DoD's $14.6M HP Capacity Services Contract for UX Platform Awarded to HP, Inc

Contract Overview

Contract Amount: $14,575,772 ($14.6M)

Contractor: HP, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-10-01

End Date: 2009-09-30

Contract Duration: 364 days

Daily Burn Rate: $40.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HP CAPACITY SERVICES CONTRACT - UX PLATFORM

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to HP, INC. for work described as: HP CAPACITY SERVICES CONTRACT - UX PLATFORM Key points: 1. Contract awarded to incumbent HP, Inc. for UX Platform capacity services. 2. Full and open competition was utilized for this contract. 3. The contract duration was 364 days, indicating a short-term need. 4. The contract was awarded as 'Other Computer Related Services'. 5. The contract was awarded in California. 6. The contract type was Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. The firm fixed-price structure suggests a defined scope, but the total value of $14.6 million for a one-year contract for UX platform capacity services appears within a reasonable range for enterprise-level IT services. However, without comparison to similar contracts for similar services or specific performance outcomes, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the actual impact on pricing depends on the specific market dynamics and the number of qualified bidders.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service offerings.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its personnel who rely on the UX platform for their operations. The contract delivers essential IT capacity services for the UX platform. The geographic impact is primarily within California, where the contract was awarded and likely services were rendered. Workforce implications are likely related to IT support and maintenance personnel required to manage the contracted capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality and efficiency of services provided.
The contract's short duration (364 days) might indicate a temporary need or a precursor to a larger, longer-term solution, raising questions about strategic IT planning.
Limited information on the specific 'UX Platform' makes it hard to gauge the criticality and complexity of the services.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible procurement process.
Firm Fixed Price contract type provides cost predictability for the government.
The contract was awarded to HP, Inc., a known entity in IT services, potentially leveraging existing expertise and infrastructure.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on computer-related services and platform capacity. The market for IT services, including cloud computing, managed services, and platform support, is substantial and highly competitive. Contracts like this are common as government agencies increasingly rely on specialized IT solutions to support their missions. Benchmarking against similar IT capacity contracts would require access to detailed service level agreements and performance data.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless HP, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) and the contracting officer within the Department of Defense. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with data typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Services Contracts
Cloud Computing Services
Platform as a Service (PaaS)
Defense Information Technology Modernization

Risk Flags

Lack of detailed performance metrics.
Ambiguity regarding the specific 'UX Platform' and its criticality.
Short contract duration may indicate potential strategic planning gaps.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to HP, INC.. HP CAPACITY SERVICES CONTRACT - UX PLATFORM

Who is the contractor on this award?

The obligated recipient is HP, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2008-10-01. End: 2009-09-30.

What specific 'UX Platform' does this contract refer to, and what are its primary functions within the DoD?

The provided data does not specify the exact 'UX Platform'. However, 'UX' typically refers to User Experience. In a Department of Defense (DoD) context, a UX Platform could relate to systems designed to enhance the usability and effectiveness of software applications, websites, or digital interfaces used by military personnel, analysts, or administrative staff. This could range from internal communication portals to mission-critical operational dashboards. Without further details, its precise function remains speculative, but it likely supports user interaction with digital DoD resources, aiming to improve efficiency, reduce training time, and enhance user satisfaction with technology.

How does the $14.6 million cost compare to similar IT capacity services contracts within the DoD or other federal agencies?

Directly comparing the $14.6 million cost is difficult without knowing the specific services, Service Level Agreements (SLAs), and duration of comparable contracts. However, for a one-year contract providing IT capacity services for a platform, this figure is not inherently excessive, especially considering the potential scale and security requirements within the DoD. Enterprise-level IT services can range from tens of millions to billions of dollars annually. To provide a more accurate benchmark, one would need to analyze contracts with similar scopes, such as managed hosting, cloud infrastructure provisioning, or specialized platform support, considering factors like the number of users supported, data volume, and uptime guarantees.

What were the key performance indicators (KPIs) or metrics used to evaluate HP, Inc.'s performance under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics for this contract. Typically, for IT capacity services, KPIs might include uptime percentages (e.g., 99.9% availability), response times for service requests, data processing speeds, security compliance adherence, and user satisfaction scores. The Firm Fixed Price nature of the contract implies that HP, Inc. was obligated to meet certain performance standards to receive full payment. However, without access to the contract's Statement of Work (SOW) or performance reports, a detailed assessment of their performance against specific metrics is not possible.

Given the contract's short duration (364 days), what was the government's strategy regarding this capacity need?

The 364-day duration suggests this contract may have served a short-term or interim need. Possible strategies include bridging a gap while a longer-term solution was being procured, addressing a temporary surge in demand, or testing a new service model before a larger commitment. It could also represent a single year of a multi-year requirement that was awarded annually, though the lack of option periods mentioned suggests otherwise. Without more context, it's difficult to definitively state the government's strategy, but the duration implies a focused, time-bound objective rather than a foundational, long-term capacity investment.

What is the significance of the NAICS code 541519 (Other Computer Related Services) for this contract?

The NAICS code 541519, 'Other Computer Related Services,' indicates that the contract's scope extends beyond more specific categories like software development (541511), computer systems design (541512), or computer facilities management (541513). This broad classification suggests the services provided were diverse or did not fit neatly into other predefined IT service categories. It could encompass a range of activities such as IT consulting, data processing services, disaster recovery services, or specialized technical support related to computer systems and infrastructure, provided they are not the primary focus of other, more specific NAICS codes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC101306R2000

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3000 HANOVER ST, PALO ALTO, CA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,575,772

Exercised Options: $14,575,772

Current Obligation: $14,575,772

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101307D2003

IDV Type: IDC

Timeline