SSA Spent $16.1M on 15,323 Workstations in FY07 Refresh, Averaging $1,052 Per Unit
Contract Overview
Contract Amount: $16,114,171 ($16.1M)
Contractor: HP Inc.
Awarding Agency: Social Security Administration
Start Date: 2007-01-18
End Date: 2012-09-27
Contract Duration: 2,079 days
Daily Burn Rate: $7.8K/day
Pricing Type: NOT REPORTED
Sector: IT
Official Description: 15,323 WORKSTATIONS - FY 07 CYCLE 2 PHASE 3 A WORKSTATION REFRESHMENT
Place of Performance
Location: GWYNN OAK, BALTIMORE County, MARYLAND, 21207
State: Maryland Government Spending
Plain-Language Summary
Social Security Administration obligated $16.1 million to HP INC. for work described as: 15,323 WORKSTATIONS - FY 07 CYCLE 2 PHASE 3 A WORKSTATION REFRESHMENT Key points: 1. Significant investment in IT hardware refresh for agency operations. 2. HP Inc. was the sole provider, raising questions about competition. 3. Long contract duration (2007-2012) may indicate potential for price escalation. 4. Spending falls within typical IT hardware procurement ranges, but lack of competition is a concern.
Value Assessment
Rating: fair
The average price of $1,052 per workstation appears reasonable for high-end business-class machines in 2007. However, without competitive bids, it's difficult to ascertain if this represents the best possible value.
Cost Per Unit: $1,052
Competition Analysis
Competition Level: sole-source
The contract was awarded sole-source to HP Inc. This method limits price discovery and may result in higher costs compared to an open competition.
Taxpayer Impact: Taxpayers may have overpaid due to the lack of competitive bidding, potentially by millions of dollars over the contract's lifespan.
Public Impact
Ensured operational continuity for Social Security Administration employees. Provided necessary computing resources for critical agency functions. Potential for outdated technology by the end of the contract period. Limited transparency in the procurement process due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of reported pricing details
Positive Signals
- Provided essential IT infrastructure
- Supported agency operations
Sector Analysis
This procurement falls under the Information Technology sector, specifically computer hardware. Benchmarks for workstation refreshes vary widely based on specifications and volume, but this price point is within a plausible range for enterprise-grade equipment.
Small Business Impact
The data does not indicate any specific participation or benefit for small businesses in this sole-source procurement.
Oversight & Accountability
The sole-source nature of this award warrants further scrutiny regarding the justification for not seeking competitive bids. Oversight should ensure proper documentation and adherence to procurement regulations.
Related Government Programs
- Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Long contract duration may lead to technology obsolescence and reduced value.
- Lack of reported justification for sole-source award.
- Potential for overpayment due to lack of competitive pricing.
Tags
computer-and-computer-peripheral-equipme, social-security-administration, md, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $16.1 million to HP INC.. 15,323 WORKSTATIONS - FY 07 CYCLE 2 PHASE 3 A WORKSTATION REFRESHMENT
Who is the contractor on this award?
The obligated recipient is HP INC..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $16.1 million.
What is the period of performance?
Start: 2007-01-18. End: 2012-09-27.
What was the specific justification for awarding this workstation refresh contract sole-source to HP Inc.?
The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, compatibility requirements with existing systems, or urgent needs where competition is not feasible. Without the specific documentation from the Social Security Administration, the exact reason remains unknown, but it is a critical point for assessing procurement integrity.
How did the long contract duration impact the overall cost-effectiveness and technological relevance of the workstations?
A contract spanning nearly six years (2007-2012) for technology like workstations presents a significant risk of obsolescence and potential cost inefficiencies. While the initial price might have been acceptable, the extended period could have led to higher per-year costs compared to more frequent, competitive refreshes. Furthermore, employees may have been using outdated hardware by the contract's end, impacting productivity and security.
Were there any performance metrics or service level agreements tied to this procurement to ensure effective delivery and support?
The provided data does not explicitly mention performance metrics or service level agreements (SLAs). For a large hardware procurement, especially one with a sole-source award, robust SLAs are crucial to ensure timely delivery, adequate support, and maintenance. The absence of this information raises concerns about accountability and the agency's ability to enforce quality and service standards throughout the contract's lifecycle.
Industry Classification
NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Contractor Details
Parent Company: HP, Inc. (UEI: 009122532)
Address: 6406 IVY LN, GREENBELT, MD, 04
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: SS000540015
IDV Type: BPA
Timeline
Start Date: 2007-01-18
Current End Date: 2012-09-27
Last Modified: 2011-06-25
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