Army awards $32.5M for 10,210 laptops, highlighting need for specific OEM warranty
Contract Overview
Contract Amount: $32,494,170 ($32.5M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-04-28
End Date: 2017-08-10
Contract Duration: 469 days
Daily Burn Rate: $69.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THIS REQUIREMENT IS TO PURCHASE A QUANTITY OF 10,210 M6800 LAPTOP COMPUTERS AND ACCESSORIES WITH OEM WARRANTY ONLY AND NO REGIONAL SUPPORT CENTERS (RSCS) SUPPORT.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $32.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: THIS REQUIREMENT IS TO PURCHASE A QUANTITY OF 10,210 M6800 LAPTOP COMPUTERS AND ACCESSORIES WITH OEM WARRANTY ONLY AND NO REGIONAL SUPPORT CENTERS (RSCS) SUPPORT. Key points: 1. Value for money assessed against similar laptop procurements. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include reliance on OEM warranty and limited support. 4. Performance context is a one-time delivery order for specific hardware. 5. Sector positioning within miscellaneous electrical equipment manufacturing. 6. Contract duration of 469 days for delivery and warranty.
Value Assessment
Rating: fair
The average unit price for these laptops was approximately $3,183. This appears high when compared to typical commercial laptop prices, even with OEM warranty. However, the specific requirement for 'OEM warranty ONLY and NO Regional Support Centers (RSCs) support' might justify a premium. Further benchmarking against government-specific laptop contracts with similar warranty stipulations would be necessary for a definitive value assessment.
Cost Per Unit: Approximately $3,183 per unit, which is high for commercial laptops but may reflect specific warranty requirements.
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition, suggesting multiple vendors had the opportunity to bid. The data does not specify the number of bidders, but a full and open process generally promotes competitive pricing. The existence of a single award for this quantity implies that one offer was deemed most advantageous to the government.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it encourages a wider range of bids, potentially leading to lower prices and better value.
Public Impact
End-users within the Department of the Army benefit from the acquisition of new laptop computers. The services delivered include the provision of 10,210 M6800 laptop computers and associated accessories. The geographic impact is primarily within the continental United States, supporting Army operations. Workforce implications include equipping personnel with necessary computing resources for their duties.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on OEM warranty only may limit repair options and increase downtime if RSCs are not utilized.
- The specific model requirement could limit future competition if not standardized across the agency.
- Potential for higher per-unit cost due to specialized warranty requirements.
Positive Signals
- Full and open competition suggests a robust bidding process.
- Firm Fixed Price contract type provides cost certainty for the government.
- Delivery order placed against an existing contract structure.
Sector Analysis
This contract falls under the Miscellaneous Electrical Equipment and Component Manufacturing sector, specifically related to computing devices. The market for enterprise-grade laptops is competitive, with major manufacturers offering a range of models. Government procurement of laptops is a significant segment, often influenced by specific security and warranty requirements that can differentiate it from commercial purchases.
Small Business Impact
The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the primary award was likely made to a large business, and the impact on the small business ecosystem would be indirect, if at all.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract award databases, though specific details of the competition may not be publicly available.
Related Government Programs
- Army Laptop Procurement
- Department of Defense IT Hardware
- General Dynamics IT Contracts
- OEM Warranty Services
Risk Flags
- High per-unit cost compared to commercial benchmarks.
- Limited support options due to 'OEM warranty ONLY' clause.
- Potential for vendor lock-in if specific OEM is mandated long-term.
Tags
department-of-defense, army, laptop-computers, firm-fixed-price, full-and-open-competition, delivery-order, oem-warranty, maryland, miscellaneous-electrical-equipment, it-hardware
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.5 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. THIS REQUIREMENT IS TO PURCHASE A QUANTITY OF 10,210 M6800 LAPTOP COMPUTERS AND ACCESSORIES WITH OEM WARRANTY ONLY AND NO REGIONAL SUPPORT CENTERS (RSCS) SUPPORT.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $32.5 million.
What is the period of performance?
Start: 2016-04-28. End: 2017-08-10.
What is the track record of General Dynamics Mission Systems, Inc. with similar laptop procurements for the Department of Defense?
General Dynamics Mission Systems, Inc. (GDMS) has a substantial track record with the Department of Defense (DoD) across various technology and defense systems. While this specific award focuses on laptop computers, GDMS is more broadly known for its work in command and control systems, cybersecurity, and complex electronic warfare solutions. Their experience with DoD contracts suggests familiarity with government procurement processes, security requirements, and delivery timelines. However, their primary expertise may lie in more complex systems integration rather than high-volume commercial-off-the-shelf (COTS) hardware like laptops. Analyzing their past performance on similar COTS hardware procurements, if any, would provide a clearer picture of their capabilities in this specific niche.
How does the per-unit cost of $3,183 compare to other government laptop procurements with similar warranty requirements?
The per-unit cost of approximately $3,183 for these M6800 laptops is notably high when benchmarked against typical commercial laptop prices, which often range from $800 to $2,000 for business-grade machines. Even considering the inclusion of an OEM warranty, this price point warrants scrutiny. Government contracts for laptops can vary significantly based on configuration, quantity, security certifications, and support services. If this price reflects a specific, high-end model with extended OEM support and potentially specialized configurations required by the Army, it might be justifiable. However, without detailed specifications of the included accessories and the precise nature of the 'OEM warranty ONLY and NO Regional Support Centers (RSCs) support,' it is difficult to definitively assess value. Comparing this to other DoD laptop awards with similar 'OEM warranty only' clauses would be crucial for a precise benchmark.
What are the potential risks associated with the 'OEM warranty ONLY and NO Regional Support Centers (RSCs) support' stipulation?
The stipulation of 'OEM warranty ONLY and NO Regional Support Centers (RSCs) support' introduces several potential risks for the Department of the Army. Firstly, it limits the flexibility and speed of hardware repairs. If an issue arises, the Army would be solely reliant on the original equipment manufacturer's support channels, which may involve shipping the device back to a central depot, potentially leading to longer downtime compared to local RSCs. Secondly, it could increase costs if the OEM's warranty service is more expensive or less efficient than a government-managed support center. Thirdly, it might create logistical challenges in managing warranty claims across a large fleet of devices. Finally, it could hinder the ability to quickly replace or repair laptops in remote or deployed locations where direct OEM support might be less accessible.
What is the historical spending pattern for similar laptop procurements by the Department of the Army?
Historical spending patterns for laptop procurements by the Department of the Army (DoA) reveal a consistent need for computing hardware, often involving large quantities and significant investment. The DoA frequently procures laptops through various contract vehicles, including full and open competitions, GSA schedules, and other agency-specific contracts. Spending can fluctuate based on refresh cycles, new technology adoption, and specific operational requirements. While the $32.5 million for 10,210 laptops represents a substantial single award, it is important to view this within the broader context of the DoA's overall IT hardware budget, which can run into hundreds of millions or even billions annually. Analyzing past awards for similar quantities and specifications, particularly those with firm-fixed-price terms and specific warranty clauses, would provide a more granular understanding of historical spending trends and price points.
How does the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' classification (NAICS 335999) align with the procurement of laptops?
The classification of 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' (NAICS 335999) for this laptop procurement is somewhat broad and potentially less precise than a more specific computer manufacturing code. Typically, laptops are associated with NAICS codes like 334111 (Electronic Computer Manufacturing). However, NAICS 335999 encompasses a wide array of electrical products not elsewhere classified, which can include components or specialized electrical aspects of assembled products. It's possible that the procurement was categorized under this code due to specific components or the overall nature of the contract as perceived by the contracting agency, or it might represent a less common classification for such items. This broad classification could obscure direct comparisons with spending in the more specific computer manufacturing sector.
Industry Classification
NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 400 JOHN QUINCY ADAMS RD, TAUNTON, MA, 02780
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,494,170
Exercised Options: $32,494,170
Current Obligation: $32,494,170
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T11DG402
IDV Type: IDC
Timeline
Start Date: 2016-04-28
Current End Date: 2017-08-10
Potential End Date: 2017-08-10 12:08:00
Last Modified: 2017-04-07
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