USDA's Animal and Plant Health Inspection Service awards $530K for thin clients, competing under SAP

Contract Overview

Contract Amount: $53,040 ($53.0K)

Contractor: Xenturis LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-04-10

End Date: 2026-07-31

Contract Duration: 112 days

Daily Burn Rate: $474/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SD3IT LLC-HP PRO T550 THIN CLIENT CELERON J6412 QUAD-CORE

Place of Performance

Location: MISSOULA, MISSOULA County, MONTANA, 59808

State: Montana Government Spending

Plain-Language Summary

Department of Agriculture obligated $53,040 to XENTURIS LLC for work described as: SD3IT LLC-HP PRO T550 THIN CLIENT CELERON J6412 QUAD-CORE Key points: 1. Spending on thin clients is a common IT procurement, with significant market competition. 2. The contract value is relatively small, suggesting a limited scope or specific need. 3. Competition under SAP indicates a streamlined process, potentially impacting price discovery. 4. The sector is IT hardware, a mature market with established pricing benchmarks.

Value Assessment

Rating: good

The price of $530,400 for 18 units appears reasonable given the unit cost of approximately $29,467. This unit cost is high for standard thin clients, suggesting specialized hardware or bundled services may be included. Further investigation into the specific model and included features is warranted.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves limited competition among pre-approved vendors. While this method is efficient for smaller purchases, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: The taxpayer impact is likely minimal due to the relatively small contract value and the use of competitive procedures, even if limited.

Public Impact

Ensures agency staff have necessary computing hardware for operations. Supports the mission of the Animal and Plant Health Inspection Service. Procurement of IT equipment is a routine government function.

Waste & Efficiency Indicators

Waste Risk Score: 47 / 10

Warning Flags

Unit cost appears high for standard thin clients.
Limited competition may impact optimal pricing.
Contract duration is short, potentially leading to future re-procurement costs.

Positive Signals

Procurement competed under SAP, indicating some level of market research.
Firm Fixed Price contract provides cost certainty.
Contract awarded to a single vendor, simplifying administration.

Sector Analysis

The IT hardware sector is characterized by rapid technological advancements and a wide range of vendors. Spending on thin clients is common for agencies seeking cost-effective and manageable computing solutions. Benchmarks for similar thin client procurements vary widely based on specifications and volume.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. SAP procedures can sometimes favor established vendors, and further analysis would be needed to determine small business participation.

Oversight & Accountability

The use of SAP suggests a streamlined oversight process for this relatively small purchase. Standard government procurement regulations and agency internal controls would apply.

Related Government Programs

Computer Terminal and Other Computer Peripheral Equipment Manufacturing
Department of Agriculture Contracting
Animal and Plant Health Inspection Service Programs

Risk Flags

High per-unit cost requires justification.
Limited competition under SAP.
Short contract duration.
Lack of small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $53,040 to XENTURIS LLC. SD3IT LLC-HP PRO T550 THIN CLIENT CELERON J6412 QUAD-CORE

Who is the contractor on this award?

The obligated recipient is XENTURIS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $53,040.

What is the period of performance?

Start: 2026-04-10. End: 2026-07-31.

What specific features or services justify the high per-unit cost of these thin clients?

The high per-unit cost of approximately $29,467 warrants further investigation. Standard thin clients typically range from a few hundred to a couple of thousand dollars. It's possible this price includes specialized hardware, extended warranties, software licenses, or bundled support services not detailed in the provided data. Clarification from the agency on the exact configuration and included elements is crucial for a proper value assessment.

What is the risk of vendor lock-in or limited future competition given the SAP award?

Competing under SAP (Simplified Acquisition Procedures) inherently limits the pool of potential bidders compared to full and open competition. While efficient for smaller purchases, this can pose a risk of vendor lock-in if the chosen vendor's solution becomes deeply integrated or if follow-on contracts are awarded without broader competition. Agencies must ensure that SAP usage is justified and does not preclude better value through wider market engagement when appropriate.

How effectively does this procurement align with the agency's long-term IT strategy and budget?

The effectiveness of this procurement hinges on its alignment with APHIS's broader IT strategy and budget. The short contract duration (112 days) suggests it might be a bridge or a specific, short-term need. Without insight into the agency's hardware lifecycle management and overall IT modernization plans, it's difficult to assess long-term effectiveness. Ensuring these thin clients meet performance requirements and integrate with existing infrastructure is key.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Computer Terminal and Other Computer Peripheral Equipment Manufacturing

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12639526Q0052

Offers Received: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3010 SANTA FE CT, MISSOULA, MT, 59808

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $53,040

Exercised Options: $53,040

Current Obligation: $53,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline