SSA awards $36.4M for laptops to NCS Technologies, driven by telework surge

Contract Overview

Contract Amount: $36,383,012 ($36.4M)

Contractor: NCS Technologies Inc

Awarding Agency: Social Security Administration

Start Date: 2020-09-25

End Date: 2022-07-27

Contract Duration: 670 days

Daily Burn Rate: $54.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WITH THE RECENT EXPANSION OF TELEWORK DUE TO COVID-19, THE DEMAND FOR LAPTOPS HAS DRAMATICALLY INCREASED OVER THE PAST SEVERAL MONTHS. AS A RESULT, SSA WILL ACQUIRE LAPTOPS AS PART OF THIS ACTION.

Place of Performance

Location: GAINESVILLE, PRINCE WILLIAM County, VIRGINIA, 20155

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $36.4 million to NCS TECHNOLOGIES INC for work described as: WITH THE RECENT EXPANSION OF TELEWORK DUE TO COVID-19, THE DEMAND FOR LAPTOPS HAS DRAMATICALLY INCREASED OVER THE PAST SEVERAL MONTHS. AS A RESULT, SSA WILL ACQUIRE LAPTOPS AS PART OF THIS ACTION. Key points: 1. Contract addresses increased demand for laptops due to expanded telework. 2. NCS Technologies Inc. secured the award through full and open competition. 3. The contract utilizes a Firm Fixed Price (FFP) structure, providing cost certainty. 4. This award is a BPA Call, indicating it's part of a larger agreement. 5. The duration of the contract is 670 days, ending in July 2022. 6. The North American Industry Classification System (NAICS) code is 334111 (Electronic Computer Manufacturing).

Value Assessment

Rating: good

The contract value of $36.4 million for laptops appears reasonable given the surge in demand and the specified duration. Benchmarking against similar large-scale government laptop procurements would provide a more precise value-for-money assessment. The Firm Fixed Price structure helps mitigate cost overruns for the agency. However, without specific unit pricing or comparison to commercial market rates at the time of award, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This approach is generally favored for maximizing competition and achieving competitive pricing. The specific number of bidders is not provided, but the 'full and open' designation implies a robust bidding process was intended and likely occurred, leading to a more competitive outcome.

Taxpayer Impact: Full and open competition typically results in better pricing for taxpayers by encouraging multiple vendors to offer their best prices to win the contract.

Public Impact

Federal employees, particularly those within the Social Security Administration (SSA), will benefit from updated computing hardware. The contract delivers essential computing devices (laptops) to support agency operations. The geographic impact is primarily within SSA facilities and employee locations across the US. This procurement supports the IT hardware manufacturing and distribution workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for rapid obsolescence of technology given the fast-paced nature of laptop development.
Dependence on a single awardee for a critical hardware need during a period of high demand.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm Fixed Price contract type provides cost predictability for the agency.
Addresses a clear and present need driven by telework expansion.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically in the manufacturing and supply of electronic computers. The market for laptops is highly competitive, with numerous manufacturers and suppliers. Government procurements of this nature are common, often leveraging large-volume purchases to secure favorable pricing. The NAICS code 334111 indicates a focus on the manufacturing aspect, though the contract likely involves distribution and support as well.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were likely the primary bidders. There is no explicit information on subcontracting plans for small businesses within this specific award notice. The impact on the small business ecosystem would depend on whether NCS Technologies Inc. utilizes small business subcontractors, which is not detailed here.

Oversight & Accountability

The contract is a BPA Call, suggesting it falls under a broader Basic Ordering Agreement (BOA) or similar master agreement which likely has its own oversight mechanisms. The Firm Fixed Price nature provides some cost control. Transparency is facilitated by the public award notice. Further oversight details would depend on the specific terms of the parent BPA and SSA's internal procurement review processes.

Related Government Programs

General Services Administration (GSA) Schedule IT Hardware
Department of Defense (DoD) Laptop Procurements
Other Agency Telework Technology Support Contracts

Risk Flags

Potential for technology obsolescence
High demand driven by external factors (COVID-19)

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $36.4 million to NCS TECHNOLOGIES INC. WITH THE RECENT EXPANSION OF TELEWORK DUE TO COVID-19, THE DEMAND FOR LAPTOPS HAS DRAMATICALLY INCREASED OVER THE PAST SEVERAL MONTHS. AS A RESULT, SSA WILL ACQUIRE LAPTOPS AS PART OF THIS ACTION.

Who is the contractor on this award?

The obligated recipient is NCS TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $36.4 million.

What is the period of performance?

Start: 2020-09-25. End: 2022-07-27.

What was the specific justification for awarding this as a BPA Call rather than a standalone contract?

The data indicates this award is a 'BPA CALL'. A BPA Call signifies that this specific order is being placed against a pre-existing Basic Ordering Agreement (BOA). BOAs are typically established with vendors to streamline future procurements for commonly purchased items or services. In this case, SSA likely had a BOA in place with NCS Technologies Inc. for IT hardware. Awarding as a BPA Call allows SSA to quickly acquire the needed laptops by leveraging the pre-negotiated terms and conditions of the BOA, especially crucial given the urgent demand increase due to telework expansion. This method can expedite delivery and potentially offer better pricing due to the established relationship and anticipated volume.

How does the unit cost of these laptops compare to commercial market rates at the time of award?

The provided data does not include specific unit costs or detailed pricing breakdowns for the laptops. The total award amount is $36,383,012.26 over a period of 670 days. To compare unit costs to commercial market rates, we would need to know the exact quantity of laptops procured and the price per laptop. Without this information, a direct comparison is not possible. However, government procurements often aim for bulk discounts, which could make the unit price competitive, but the lack of specific data prevents a definitive assessment.

What are the key performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance metrics or service level agreements (SLAs) for this contract. As a Firm Fixed Price (FFP) contract for hardware acquisition, the primary performance expectations would likely revolve around timely delivery of the specified laptop models, adherence to configuration requirements, and warranty provisions. More detailed SLAs, such as delivery timelines, acceptable defect rates, or support response times, would typically be outlined in the full contract documentation or the parent BPA, which are not included in the provided summary data.

What is NCS Technologies Inc.'s track record with the Social Security Administration and similar government contracts?

The provided data identifies NCS Technologies Inc. as the contractor for this $36.4 million laptop award to the Social Security Administration (SSA). While this specific award indicates a significant contract, the data does not offer a comprehensive history of NCS Technologies Inc.'s performance with SSA or other government agencies. To assess their track record, one would need to examine past contract awards, performance evaluations (like Past Performance Information Retrieval System - PPIRS), and any history of disputes or contract modifications. This single award notice does not provide sufficient context to evaluate their overall reliability or expertise.

How has SSA's spending on laptops evolved over the past five years, and does this contract represent a significant increase?

This data extract focuses on a single contract award and does not provide historical spending data for SSA's laptop procurements. To understand the evolution of spending and whether this $36.4 million contract represents a significant increase, a broader analysis of SSA's IT procurement history over the past five years would be necessary. Factors such as the number of employees, telework policies, and technology refresh cycles would influence historical spending. The note 'WITH THE RECENT EXPANSION OF TELEWORK DUE TO COVID-19, THE DEMAND FOR LAPTOPS HAS DRAMATICALLY INCREASED' strongly suggests this contract is a response to a recent surge, likely higher than typical historical spending.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7669 LIMESTONE DR STE 130, GAINESVILLE, VA, 20155

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,383,012

Exercised Options: $36,383,012

Current Obligation: $36,383,012

Actual Outlays: $36,381,611

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 28321320A00040013

IDV Type: BPA

Timeline