HHS OIG Spends $16.2M on AppleCare OS Support from Countertrade Products, Inc
Contract Overview
Contract Amount: $16,236 ($16.2K)
Contractor: Countertrade Products, Inc.
Awarding Agency: Department of the Interior
Start Date: 2026-04-09
End Date: 2027-08-14
Contract Duration: 492 days
Daily Burn Rate: $33/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: APPLECARE OS SUPPORT FOR HHS OIG
Place of Performance
Location: ARVADA, JEFFERSON County, COLORADO, 80003
State: Colorado Government Spending
Plain-Language Summary
Department of the Interior obligated $16,236.3 to COUNTERTRADE PRODUCTS, INC. for work described as: APPLECARE OS SUPPORT FOR HHS OIG Key points: 1. Spending on AppleCare OS support for HHS OIG totals $16.2 million. 2. The contract is with Countertrade Products, Inc. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The duration of the contract is 492 days. 5. This spending falls under IT services.
Value Assessment
Rating: fair
The contract value of $16.2 million for AppleCare OS support over approximately 16 months appears high. Benchmarking against similar IT support contracts is difficult without specific service level agreements and scope, but the per-unit cost could be substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may not have yielded the most competitive pricing possible, as fewer vendors were likely considered.
Taxpayer Impact: Taxpayer funds are being used for this contract. The limited competition may result in a higher cost than if a broader competition were held, impacting the efficient use of taxpayer money.
Public Impact
HHS OIG relies on AppleCare OS support, impacting its operational continuity. The use of a specific vendor for OS support raises questions about potential vendor lock-in. Transparency in the procurement process is crucial given the limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Potential for vendor lock-in with specialized OS support.
- Lack of detailed service scope makes cost-effectiveness assessment difficult.
Positive Signals
- Contract awarded to a specific company, potentially indicating specialized expertise.
- Defined contract duration provides a clear timeframe for service.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer-related services. Spending on IT support for government agencies is common, but the specific nature of AppleCare OS support warrants scrutiny regarding necessity and cost-effectiveness compared to alternative solutions.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight of this contract by the Department of the Interior is noted. Regular performance reviews and cost audits would be essential to ensure the value and effectiveness of the AppleCare OS support provided to HHS OIG.
Related Government Programs
- Other Computer Related Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- High contract value for specialized IT support.
- Limited competition raises cost-efficiency concerns.
- Potential for vendor lock-in.
- Lack of detailed service scope hinders full assessment.
Tags
other-computer-related-services, department-of-the-interior, co, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $16,236.3 to COUNTERTRADE PRODUCTS, INC.. APPLECARE OS SUPPORT FOR HHS OIG
Who is the contractor on this award?
The obligated recipient is COUNTERTRADE PRODUCTS, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $16,236.3.
What is the period of performance?
Start: 2026-04-09. End: 2027-08-14.
What is the specific scope of 'AppleCare OS Support' and how does it align with HHS OIG's critical IT needs?
The exact scope of 'AppleCare OS Support' is not detailed in the provided data. It likely encompasses technical assistance, hardware maintenance, and software updates for Apple operating systems used by HHS OIG. Understanding the specific services included is crucial to assess if this specialized support is essential for the agency's operations or if more general IT support contracts could suffice, potentially at a lower cost.
What risks are associated with relying on a single vendor for specialized OS support, particularly concerning security and long-term costs?
Relying on a single vendor for specialized OS support can create significant risks. Security vulnerabilities might be addressed slower if the vendor's priorities do not align with HHS OIG's. Furthermore, a lack of competition can lead to escalating costs over time as the vendor may have less incentive to offer competitive pricing. This vendor lock-in also limits flexibility in adopting new technologies or alternative support solutions.
How does the $16.2 million expenditure for AppleCare OS support compare to industry benchmarks for similar government IT support contracts?
Direct comparison to industry benchmarks for 'AppleCare OS Support' is challenging without detailed service level agreements (SLAs) and the exact number of users or devices supported. However, for a contract duration of approximately 16 months, $16.2 million represents a substantial investment. A thorough analysis would require comparing the cost per user/device against similar government contracts for enterprise-level IT support, considering the specific services rendered.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 140D0426Q0153
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7585 W 66TH AVE, ARVADA, CO, 80003
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $16,236
Exercised Options: $16,236
Current Obligation: $16,236
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC65B
IDV Type: GWAC
Timeline
Start Date: 2026-04-09
Current End Date: 2027-08-14
Potential End Date: 2027-08-14 00:00:00
Last Modified: 2026-04-09
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