DOD Education Activity Spends $11.4M on Dell Computer Equipment Lease
Contract Overview
Contract Amount: $12,163,167 ($12.2M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2003-09-09
End Date: 2006-09-29
Contract Duration: 1,116 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200312!000901!9700!ZK12 !DOD EDUCATION ACTIVITY (DODEA) !GS35F4076D !C!N! !N!MDA41203F0021 !20030909!20070909!114315195!114315195!114315195!N!DELL MARKETING L P !ONE DELL WAY !ROUND ROCK !TX!78682!* !* !GM!* !* !GERMANY !+000002139787!N!N!000000000000!W070!LEASE OR RENTAL OF EQ/ADP EQUIP & SUPPLIES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !532420!E! !6! ! ! ! ! !99990909!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !
Plain-Language Summary
Department of Defense obligated $12.2 million to DELL MARKETING L.P. for work described as: 200312!000901!9700!ZK12 !DOD EDUCATION ACTIVITY (DODEA) !GS35F4076D !C!N! !N!MDA41203F0021 !20030909!20070909!114315195!114315195!114315195!N!DELL MARKETING L P !ONE DELL WAY !ROUND ROCK !TX!78682!* !* !GM!* !* … Key points: 1. Significant expenditure on computer equipment leasing by DODEA. 2. Contract awarded to Dell Marketing L.P., a major technology vendor. 3. Lease duration of 1116 days suggests a long-term equipment need. 4. The sector is IT, specifically related to computer hardware and leasing.
Value Assessment
Rating: fair
The contract value of $11.4M for a 3-year lease of ADP equipment appears substantial. Benchmarking against similar government IT equipment leases would be necessary to determine if this represents a competitive price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for the lease of essential IT equipment for military educational activities.
Public Impact
Ensures students and staff at DOD Education Activity facilities have access to necessary computer equipment. Supports the operational needs of educational programs within the Department of Defense. The lease agreement impacts the IT infrastructure and budget of DODEA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lease vs. purchase analysis could reveal long-term cost savings.
- Potential for technology obsolescence during the lease term.
Positive Signals
- Full and open competition likely secured a reasonable price.
- Provides necessary equipment for educational purposes.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT equipment leasing. Government spending on IT infrastructure and hardware is a significant portion of federal budgets, with leasing being a common procurement method for managing asset lifecycles and capital outlay.
Small Business Impact
While the award went to Dell Marketing L.P., a large business, the procurement process under full and open competition theoretically allows small businesses to participate as subcontractors or through joint ventures, though specific small business participation is not detailed here.
Oversight & Accountability
The contract was subject to federal procurement regulations. Oversight would involve ensuring DODEA received the leased equipment as specified and that payments were made according to the firm fixed-price agreement.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of Defense Education Activity Programs
Risk Flags
- Potential for higher long-term costs compared to purchasing.
- Risk of technology becoming outdated during the lease period.
- Lack of specific detail on equipment configuration and performance standards.
- Limited insight into small business participation in the subcontracting chain.
Tags
electronic-computer-manufacturing, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.2 million to DELL MARKETING L.P.. 200312!000901!9700!ZK12 !DOD EDUCATION ACTIVITY (DODEA) !GS35F4076D !C!N! !N!MDA41203F0021 !20030909!20070909!114315195!114315195!114315195!N!DELL MARKETING L P !ONE DELL WAY !ROUND ROCK !TX!78682!* !* !GM!* !* !GERMANY !+000002139787!N!N!000000000000!W070!LEASE OR RENTAL OF EQ/ADP EQUIP & SUPPLIES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !532420!E! !6! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of Defense Education Activity).
What is the total obligated amount?
The obligated amount is $12.2 million.
What is the period of performance?
Start: 2003-09-09. End: 2006-09-29.
What is the total cost of ownership if DODEA had purchased the equipment outright versus leasing it for the duration of the contract?
Determining the total cost of ownership requires comparing the lease payments ($11.4M over ~3 years) against the depreciated value and maintenance costs of purchasing similar equipment. If the equipment's useful life extends significantly beyond the lease term, or if residual value is high, purchasing might have been more cost-effective in the long run. A detailed lifecycle cost analysis would be needed.
What specific types of ADP equipment were leased, and how does their configuration align with current educational technology standards?
The data specifies 'Electronic Computer Manufacturing' (NAICS 334111) and 'Lease or Rental of Equipment/ADP Equipment & Supplies'. Without further detail, it's unclear if the leased ADP equipment (likely computers and related peripherals) meets current educational technology standards. DODEA's internal IT assessments and curriculum needs would dictate the appropriateness of the leased hardware.
Were there any performance metrics or service level agreements associated with the lease to ensure equipment functionality and support?
The contract type is 'FIRM FIXED PRICE', and the data indicates 'SERVICES' were procured. While not explicitly detailed, firm fixed-price contracts for leased equipment often include provisions for maintenance, repair, and uptime guarantees. Specific performance metrics and SLAs would typically be outlined in the contract's statement of work or terms and conditions.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,690,661
Exercised Options: $31,690,661
Current Obligation: $12,163,167
Parent Contract
Parent Award PIID: GS35F4076D
IDV Type: FSS
Timeline
Start Date: 2003-09-09
Current End Date: 2006-09-29
Potential End Date: 2006-09-29 00:00:00
Last Modified: 2014-05-22
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