SSA's $25M workstation refresh contract awarded to HP Inc. for computer equipment

Contract Overview

Contract Amount: $25,138,198 ($25.1M)

Contractor: HP Inc.

Awarding Agency: Social Security Administration

Start Date: 2010-07-01

End Date: 2012-09-26

Contract Duration: 818 days

Daily Burn Rate: $30.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SS00-09-40039 WORKSTATION REFRESHMENT (HP DC7700S)-HW

Place of Performance

Location: PORTLAND, CUMBERLAND County, MAINE, 04101

State: Maine Government Spending

Plain-Language Summary

Social Security Administration obligated $25.1 million to HP INC. for work described as: SS00-09-40039 WORKSTATION REFRESHMENT (HP DC7700S)-HW Key points: 1. Contract value of $25.14 million for hardware procurement. 2. Awarded under a BPA Call, indicating a pre-negotiated agreement. 3. Firm Fixed Price contract type suggests predictable costs. 4. Duration of 818 days for the project. 5. Procurement focused on computer and peripheral equipment. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

The contract value of $25.14 million for workstation refreshment appears to be within a reasonable range for a federal agency of the Social Security Administration's size. Benchmarking against similar IT hardware refresh contracts is challenging without specific unit details, but the total amount suggests a significant number of workstations were involved. The firm fixed-price nature of the contract provides cost certainty, which is a positive aspect for value assessment. However, without knowing the exact quantity and specifications of the workstations, a precise 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 all responsible sources were permitted to submit offers. The specific mechanism used was a BPA Call, which suggests that a broader Basic Purchasing Agreement (BPA) was already in place, and this call was a specific order against that agreement. The number of bidders is not specified, but full and open competition generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of vendors to compete, potentially driving down prices and ensuring the government receives the best value for its investment in IT equipment.

Public Impact

Federal employees within the Social Security Administration will benefit from updated workstation hardware. The contract delivers essential computer equipment to support agency operations. The geographic impact is likely nationwide, supporting SSA offices across the country. Workforce implications include ensuring employees have reliable tools for their daily tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the BPA terms were not sufficiently competitive.
Risk of obsolescence if the refresh cycle is not aligned with technological advancements.
Dependence on a single vendor (HP Inc.) for a significant hardware refresh.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Full and open competition generally leads to better pricing.
Awarded to a well-established hardware vendor (HP Inc.).

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on hardware procurement for end-user computing. The market for enterprise-grade workstations is dominated by a few major manufacturers, including HP, Dell, and Lenovo. Federal agencies frequently engage in large-scale IT refresh cycles to maintain operational efficiency and security. Spending benchmarks for such contracts can vary widely based on the number of units, specifications, and the competitive landscape at the time of award.

Small Business Impact

This contract did not include a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses based on the provided data. The award was made directly to HP Inc., a large business. This means that the direct economic benefit to the small business ecosystem from this specific contract is likely minimal, unless HP Inc. voluntarily engages small businesses for support services or components not detailed in this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Social Security Administration. As a firm fixed-price contract awarded under a BPA Call, the primary accountability measure is the delivery of the specified hardware according to the terms. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the procurement or execution phases.

Related Government Programs

General Services Administration (GSA) Schedules
IT Equipment Procurement
Workstation Refresh Programs
Basic Purchasing Agreements (BPAs)

Risk Flags

Potential for outdated technology if refresh cycle is misaligned.
Lack of specific unit pricing makes value assessment difficult.
Limited visibility into competition details beyond 'full and open'.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $25.1 million to HP INC.. SS00-09-40039 WORKSTATION REFRESHMENT (HP DC7700S)-HW

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 $25.1 million.

What is the period of performance?

Start: 2010-07-01. End: 2012-09-26.

What was the specific quantity and model of HP workstations procured under this contract?

The provided data does not specify the exact quantity or model of HP workstations procured under contract SS00-09-40039. The contract number and description indicate a 'WORKSTATION REFRESHMENT (HP DC7700S)', suggesting the HP DC7700S model was a primary component. However, the total award amount of $25,138,197.59 does not directly translate to a unit count without knowing the per-unit price. Federal procurement data often requires further investigation into contract line item details or associated documentation to ascertain precise quantities and configurations.

How does the per-unit cost of the HP DC7700S workstations compare to market rates at the time of award?

Determining the exact per-unit cost is not possible with the given data. The contract value is a total award amount, not a per-unit price. To benchmark the per-unit cost against market rates at the time of award (between July 2010 and September 2012), one would need to know the negotiated price per workstation. This information is typically found in detailed contract award files or through market research conducted prior to the solicitation. Without this specific price, a direct comparison to contemporary market prices for the HP DC7700S or similar models is speculative.

What was the original estimated value of the BPA call before the final award?

The provided data reflects the final awarded amount ($25,138,197.59) and does not include information on the original estimated value or ceiling of the BPA call. BPA calls are typically used to procure specific quantities of items or services under an existing BPA. The initial estimate might have been part of the internal justification or the BPA's overall structure, but it is not detailed in this summary data. The final award amount represents the actual commitment made by the Social Security Administration for the specified hardware.

Were there any performance issues or contract modifications during the life of this contract?

The provided data indicates a contract duration of 818 days (approximately 2.24 years) and a firm fixed-price structure. While this data does not explicitly detail performance issues or modifications, firm fixed-price contracts generally aim to minimize changes. However, modifications can occur due to unforeseen circumstances, scope adjustments, or contractor performance issues. To ascertain if modifications occurred, one would need to consult the contract's official award file or modification history within the federal procurement database (e.g., FPDS).

What is the typical lifespan and refresh cycle for workstations in federal agencies like the SSA?

The typical lifespan and refresh cycle for workstations in federal agencies like the Social Security Administration (SSA) often ranges from 3 to 5 years. This cycle is influenced by factors such as technological advancements, the cost of maintenance for older equipment, security vulnerabilities, and the agency's operational needs. A refresh cycle shorter than 3 years might be considered aggressive and potentially costly, while exceeding 5 years could lead to increased support costs, reduced productivity, and heightened security risks. This contract, with a duration of approximately 2.24 years for the delivery period, suggests a proactive approach to maintaining up-to-date hardware.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: HP, Inc.

Address: 13600 EDS DRIVE, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $25,138,198

Exercised Options: $25,138,198

Current Obligation: $25,138,198

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SS000840039

IDV Type: BPA

Timeline