Interior's $52.4M Dell Enterprise Agreement: Competitive Delivery Order for Electronic Computer Manufacturing
Contract Overview
Contract Amount: $52,372,127 ($52.4M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of the Interior
Start Date: 2009-06-17
End Date: 2012-12-16
Contract Duration: 1,278 days
Daily Burn Rate: $41.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DEPARTMENT WIDE ENTERPRISE AGREEMENT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20240
Plain-Language Summary
Department of the Interior obligated $52.4 million to DELL MARKETING L.P. for work described as: DEPARTMENT WIDE ENTERPRISE AGREEMENT Key points: 1. Spending focused on electronic computer manufacturing, a core IT sector. 2. Competition was utilized for this delivery order, suggesting potential for price discovery. 3. The contract duration of 1278 days indicates a long-term commitment. 4. No small business participation was reported, a potential area for review.
Value Assessment
Rating: fair
The total award amount is $52.4 million over approximately 3.5 years. Benchmarking against similar enterprise agreements for computer hardware is difficult without more granular data on specific products and configurations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. The competitive nature should have facilitated price discovery, though the specific mechanism and resulting savings are not detailed.
Taxpayer Impact: The competitive award process suggests taxpayers likely received a fair price, but the exact impact depends on the rigor of the competition and negotiation.
Public Impact
Supports the Department of the Interior's IT infrastructure needs. Provides access to Dell's computing products and services. Long-term agreement may offer stability in hardware procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Limited transparency on specific product mix and pricing details.
Positive Signals
- Competitive award process.
- Long-term agreement for predictable hardware needs.
Sector Analysis
This contract falls under the IT sector, specifically electronic computer manufacturing. Spending benchmarks for enterprise-wide IT hardware agreements vary significantly based on agency size, specific technology needs, and negotiated discounts.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests that the prime contractor, Dell, likely fulfilled the entire requirement, potentially missing opportunities to engage smaller businesses in the supply chain.
Oversight & Accountability
The contract was awarded as a competitive delivery order, implying a degree of oversight in the procurement process. Further review would be needed to assess the effectiveness of oversight in ensuring value and compliance.
Related Government Programs
- Electronic Computer Manufacturing
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- No small business participation.
- Limited detail on specific products and services procured.
- Potential for technology obsolescence over the contract term.
- Lack of transparency on the competitive evaluation process.
Tags
electronic-computer-manufacturing, department-of-the-interior, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $52.4 million to DELL MARKETING L.P.. DEPARTMENT WIDE ENTERPRISE AGREEMENT
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $52.4 million.
What is the period of performance?
Start: 2009-06-17. End: 2012-12-16.
What was the specific competitive process used for this delivery order, and how did it ensure optimal value for the government?
The data states it was a 'COMPETITIVE DELIVERY ORDER'. This implies that multiple vendors were solicited and competed for the award. However, the specific details of the competition, such as the number of bidders, the evaluation criteria, and the negotiation strategies employed, are not provided. Without this information, it's difficult to definitively assess how optimally value was secured for the taxpayer.
Are there any identified risks associated with the long duration and fixed-price nature of this enterprise agreement?
A potential risk with a long-duration, fixed-price contract is that technology can become obsolete or market prices may decrease significantly over the term. If the government is locked into prices that become uncompetitive, it could lead to paying more than necessary. Conversely, a fixed price can offer budget certainty if prices rise unexpectedly.
How effectively does this enterprise agreement support the Department of the Interior's evolving IT modernization goals?
The effectiveness of this agreement in supporting IT modernization depends heavily on the specific products and services procured under the $52.4 million award. If the agreement primarily covers standard computing hardware, it may not directly address advanced modernization needs like cloud migration or AI infrastructure. The contract's focus on 'Electronic Computer Manufacturing' suggests a foundational role rather than cutting-edge solutions.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Technologies Inc. (UEI: 601839660)
Address: ONE DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $52,372,127
Exercised Options: $52,372,127
Current Obligation: $52,372,127
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F4076D
IDV Type: FSS
Timeline
Start Date: 2009-06-17
Current End Date: 2012-12-16
Potential End Date: 2012-12-16 00:00:00
Last Modified: 2015-12-31
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