Review of Enterprise-Wide PC Lease Awarded to Dell Marketing, L.P.

In response to a request from the Chairman of the Subcommittee on Oversight and Investigations, Committee on Veterans’ Affairs, U.S. House of Representatives, we reviewed the contract awarded by VA to Dell Marketing, L.P. to standardize the personal computers, as well as installation and other services, in VA. We concluded that the contract award complied with Federal Acquisition Regulations and was awarded properly. However, we determined that the contract was not necessary or in the best interest of VA because the approach employed by VA limited competition, did not fully consider the needs of VA customers , and would not achieve one of the stated goals of VA-wide standardization. In addition, the decision to lease with option to purchase was based on a faulty pricing analysis. We concluded that purchasing, not leasing, would have been more cost effective.