Army awards $27.3M for ERDC ICE X Base System to HPE Government, LLC under full and open competition

Contract Overview

Contract Amount: $27,340,000 ($27.3M)

Contractor: HPE Government, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-26

End Date: 2014-09-26

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ERDC ICE X BASE SYSTEM

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to HPE GOVERNMENT, LLC for work described as: ERDC ICE X BASE SYSTEM Key points: 1. The contract value of $27.3 million represents a significant investment in critical IT infrastructure. 2. HPE Government, LLC, a major IT provider, secured this award through a competitive process. 3. The contract's duration and specific deliverables will be key indicators of performance. 4. This award falls within the broader category of IT hardware and system manufacturing. 5. The fixed-price nature of the contract aims to control costs and manage financial risk.

Value Assessment

Rating: good

The contract value of $27.3 million for an IT base system appears reasonable given the nature of the procurement. Benchmarking against similar large-scale IT system awards would provide further context. The firm fixed-price structure suggests an effort to ensure cost certainty for the government. Without specific details on the system's components and scope, a precise per-unit cost comparison is challenging, but the overall award size is within the expected range for such procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (3 indicated) suggests a healthy level of competition, which typically drives down prices and encourages innovation. The competitive process likely resulted in a more favorable price for the government compared to a sole-source or limited competition award.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best value for their investment by fostering price discovery and ensuring a wide range of potential solutions are considered.

Public Impact

The primary beneficiaries are the Department of the Army and its research, development, and engineering centers, who will receive the ERDC ICE X Base System. The system is expected to support critical IT functions and operations within the Army. The geographic impact is likely concentrated at the ERDC facilities in Mississippi, where the contract is managed. The contract supports the IT sector workforce, potentially involving manufacturing, integration, and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the base system is highly proprietary.
Ensuring long-term support and maintenance availability for the awarded system.
Scalability of the system to meet future evolving Army IT requirements.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type helps manage cost overruns.
HPE Government, LLC is an established IT provider with a track record.

Sector Analysis

This contract falls within the Information Technology sector, specifically in the area of computer manufacturing and system integration. The market for enterprise IT infrastructure solutions for government agencies is substantial, with significant spending allocated annually. This award represents a portion of that spending, aimed at equipping a key Army research entity with necessary computing capabilities. Comparable spending benchmarks would involve looking at other large-scale IT system procurements for federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large IT system procurement awarded to a major contractor, the primary impact on small businesses would likely be through subcontracting opportunities. It is important to assess whether the prime contractor has a robust subcontracting plan that includes small businesses to ensure they benefit from this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Transparency is facilitated by the public nature of contract awards. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering the specified system within the agreed-upon cost. The Inspector General's office may conduct audits or investigations if specific concerns arise regarding performance or compliance.

Related Government Programs

Army IT Modernization Programs
Defense Information Systems Agency (DISA) procurements
Federal Enterprise Architecture Initiatives
IT Hardware and Infrastructure Contracts

Risk Flags

Potential for technology obsolescence
Dependence on single vendor for long-term support
Ensuring adequate cybersecurity measures for the base system

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to HPE GOVERNMENT, LLC. ERDC ICE X BASE SYSTEM

Who is the contractor on this award?

The obligated recipient is HPE GOVERNMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2014-09-26. End: 2014-09-26.

What specific components and functionalities does the ERDC ICE X Base System include, and how do they align with ERDC's mission requirements?

The provided data does not detail the specific components or functionalities of the ERDC ICE X Base System. However, as a 'Base System' for the 'ICE X' initiative within the Engineer Research and Development Center (ERDC), it is likely to encompass core computing hardware, networking infrastructure, and potentially foundational software necessary for advanced research and development operations. ERDC focuses on areas like civil engineering, environmental science, and military engineering. Therefore, the system's capabilities would need to support data-intensive simulations, complex modeling, high-performance computing, and secure data storage and retrieval relevant to these domains. Further analysis would require access to the contract's statement of work (SOW) or technical specifications to ascertain precise alignment with ERDC's mission.

How does the $27.3 million award compare to historical spending on similar IT base systems by the Department of the Army or other federal agencies?

The $27.3 million award for the ERDC ICE X Base System is a substantial but not unprecedented figure for large-scale IT infrastructure procurements within the federal government. For context, major IT modernization efforts or the establishment of new computing environments for large agencies can range from tens to hundreds of millions of dollars. For example, procurements for enterprise resource planning (ERP) systems, cloud migration services, or high-performance computing clusters often exceed this amount. The specific nature of a 'Base System' suggests it might be a foundational element for a larger program. A direct comparison would require identifying contracts with similar scope, scale, and technical objectives, such as the procurement of server infrastructure, storage solutions, and core networking for research facilities or command centers. Without more granular data on comparable contracts, it's difficult to definitively benchmark this specific award, but it falls within the expected range for significant IT investments.

What is HPE Government, LLC's track record with Department of Defense contracts, particularly in IT infrastructure and system integration?

HPE Government, LLC, as a subsidiary of Hewlett Packard Enterprise, has a significant track record of providing IT solutions and services to the Department of Defense (DoD) and other federal agencies. Their experience typically spans a wide range of offerings, including servers, storage, networking equipment, cloud solutions, and IT consulting. For the DoD, HPE has been involved in numerous contracts related to modernizing IT infrastructure, supporting high-performance computing, and providing secure computing environments. Their ability to secure a $27.3 million contract for a base system indicates a demonstrated capability and established relationship with the Army. A deeper dive into their contract history would reveal specific projects, performance ratings, and the types of IT systems they have successfully delivered to defense entities, confirming their suitability for this role.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of the ERDC ICE X Base System deployment and operation?

The provided data does not specify the key performance indicators (KPIs) or metrics for the ERDC ICE X Base System. However, typical KPIs for such IT infrastructure contracts often include system uptime and availability (e.g., 99.9% or higher), performance benchmarks (e.g., processing speeds, data transfer rates), response times for technical support, successful integration with existing systems, and adherence to security protocols. For a research-focused entity like ERDC, metrics might also relate to the system's ability to support specific research workloads, enable faster data analysis, or facilitate collaboration among researchers. The contract's statement of work (SOW) and any associated Service Level Agreements (SLAs) would contain the definitive KPIs and measurement methodologies.

What is the potential risk associated with the long-term maintainability and obsolescence of the IT hardware and software procured under this contract?

The risk associated with long-term maintainability and obsolescence is a common concern for IT hardware and software procurements. For this $27.3 million contract, the risk depends heavily on the specific technologies chosen and the vendor's lifecycle management strategy. If the procured system relies on rapidly evolving technologies or components with short support lifecycles, it could become obsolete or difficult to maintain within a few years, necessitating costly upgrades or replacements. To mitigate this, the government typically includes provisions in contracts for extended warranties, maintenance support agreements, and requirements for the contractor to provide advance notice of end-of-life for components. Furthermore, the choice of a 'Base System' might imply a modular design intended for easier upgrades. A thorough risk assessment would examine the vendor's product roadmaps and support commitments.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Silicon Graphics International Corp. (UEI: 841322394)

Address: 12200 PLUM ORCHARD DR STE G, SILVER SPRING, MD, 20904

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,820,000

Exercised Options: $27,340,000

Current Obligation: $27,340,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY13G0025

IDV Type: BOA

Timeline