SSA spent $32M on HP workstations via a full and open competition BPA

Contract Overview

Contract Amount: $32,022,171 ($32.0M)

Contractor: HP Inc.

Awarding Agency: Social Security Administration

Start Date: 2012-09-28

End Date: 2012-09-28

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WORKSTATION REFRESHMENT FOR DC7900 WORKSTATIONS FOR BPA# SS00-08-40039

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $32.0 million to HP INC. for work described as: WORKSTATION REFRESHMENT FOR DC7900 WORKSTATIONS FOR BPA# SS00-08-40039 Key points: 1. The contract represents a significant investment in IT hardware for the SSA. 2. Competition dynamics suggest a potentially competitive bidding process for this hardware. 3. The fixed-price contract type aims to control costs and manage financial risk. 4. This procurement aligns with the agency's need for updated computing infrastructure. 5. The vendor, HP Inc., is a major player in the computer hardware market. 6. The contract's duration and specific performance metrics would provide further context on value.

Value Assessment

Rating: fair

The total award amount of $32 million for workstations needs to be benchmarked against similar procurements to assess value for money. Without specific details on the quantity and configuration of workstations, a precise per-unit cost comparison is difficult. However, the fixed-price nature of the contract provides some cost certainty for the agency. Comparing this to other large-scale workstation refresh contracts by federal agencies would offer a clearer picture of whether the pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but a full and open competition generally fosters a competitive environment, which can lead to better pricing and terms for the government. The agency likely sought proposals that met specific technical requirements and offered the best value.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single vendor, potentially leading to cost savings.

Public Impact

Federal employees within the Social Security Administration will benefit from updated computing resources. The contract supports the delivery of essential IT infrastructure for agency operations. The geographic impact is likely nationwide, supporting SSA offices across the country. This procurement supports the IT hardware sector and the workforce involved in its manufacturing and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess if the workstations met all operational needs.
The total dollar amount could be high if the quantity of workstations was not substantial.
No information on warranty or post-installation support is readily available.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Fixed-price contract type helps in budget predictability.
Procurement of standard workstation models likely ensures compatibility and ease of maintenance.

Sector Analysis

This contract falls within the IT hardware sector, specifically focusing on computer workstations. The market for such equipment is large and highly competitive, dominated by major manufacturers like HP. Federal agencies are significant buyers in this market, often procuring large quantities for employee use. Benchmarking this spending against other agencies' IT hardware procurements would provide context on its relative size and cost-effectiveness.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As it was awarded under full and open competition, it's possible that small businesses could have participated directly or indirectly. However, without further details, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

The contract was awarded under a Blanket Purchase Agreement (BPA), which typically has established terms and conditions. Oversight would likely involve monitoring adherence to the BPA's terms, delivery schedules, and invoice accuracy. The Social Security Administration's internal procurement and financial oversight mechanisms would be responsible for ensuring accountability and transparency.

Related Government Programs

IT Hardware Procurement
Workstation Refresh Programs
Agency IT Modernization Efforts
General Services Administration (GSA) Schedules (if applicable to BPA)

Risk Flags

Lack of detailed performance metrics.
Limited information on competition specifics (number of bidders).
No data on warranty or support terms.
Potential for outdated technology if refresh cycles are not maintained.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $32.0 million to HP INC.. WORKSTATION REFRESHMENT FOR DC7900 WORKSTATIONS FOR BPA# SS00-08-40039

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 $32.0 million.

What is the period of performance?

Start: 2012-09-28. End: 2012-09-28.

What was the specific quantity and configuration of the HP workstations procured under this BPA?

The provided data does not specify the exact quantity or detailed configuration of the HP workstations purchased. The total award amount of $32,017,171.42 suggests a significant number of units, but without the quantity, it's impossible to calculate a precise per-unit cost. Understanding the model (e.g., DC7900) and any included peripherals or software licenses would be crucial for a thorough value assessment and comparison with market rates at the time of award.

How many bids were received for this full and open competition?

The data indicates that the contract was awarded under 'FULL AND OPEN COMPETITION,' but it does not specify the number of bids received. A full and open competition means that all responsible sources were allowed to submit proposals. The number of bidders is a key indicator of the level of competition. A higher number of bids generally suggests a more competitive environment, which can lead to better pricing and terms for the government. Conversely, a low number of bids might indicate potential barriers to entry or limited market interest.

What is the typical lifespan and expected performance of HP DC7900 workstations?

The HP DC7900 workstation model was generally released around 2008-2009. Its typical lifespan in a corporate or government environment, depending on usage intensity and maintenance, could range from 3 to 5 years before becoming significantly outdated or requiring substantial upgrades. Expected performance would be adequate for standard office productivity tasks (word processing, email, web browsing) but may struggle with more demanding applications or modern software requirements. This procurement, awarded in 2012, suggests the agency was refreshing hardware that was already several years old at the time of purchase.

How does this $32 million expenditure compare to other federal agencies' workstation procurements in the same period?

Comparing this $32 million expenditure requires context on the quantity and specific models procured. However, as a general benchmark, large federal agencies often spend tens to hundreds of millions of dollars annually on IT hardware, including workstations. For instance, agencies like the Department of Defense or the IRS might have similar or larger workstation refresh budgets. The Social Security Administration's total IT budget and the proportion allocated to hardware refreshes would provide further context. Without knowing the number of units, a direct comparison of per-unit cost is not feasible, but the total dollar amount is within the expected range for a federal agency of the SSA's size.

What were the key technical requirements that HP Inc. met to win this contract?

The provided data does not detail the specific technical requirements that HP Inc. met. However, for a workstation procurement of this nature, typical requirements would include processor speed and type (e.g., Intel Core 2 Duo or similar), RAM capacity, hard drive size and type (HDD or SSD), graphics capabilities, operating system compatibility, security features, and form factor (e.g., desktop, small form factor). The HP DC7900 model suggests a focus on business-class desktops. The winning proposal would have demonstrated compliance with all mandatory technical specifications outlined in the solicitation.

What is the significance of this contract being awarded under a BPA?

This contract was awarded under a Blanket Purchase Agreement (BPA), which is a simplified method of filling anticipated repetitive needs for supplies or services. A BPA is not a contract in itself but rather an agreement establishing terms and conditions under which future orders (calls) can be placed. Awarding workstation refreshes under a BPA with HP Inc. likely streamlined the procurement process for the SSA, allowing them to quickly order necessary hardware from a pre-vetted vendor at pre-negotiated prices. This can lead to faster delivery and potentially better pricing due to anticipated volume.

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. (UEI: 009122532)

Address: 13600 EDS DRIVE, HERNDON, VA, 11

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

Financial Breakdown

Contract Ceiling: $32,022,171

Exercised Options: $32,022,171

Current Obligation: $32,022,171

Parent Contract

Parent Award PIID: SS000840039

IDV Type: BPA

Timeline