DOT awards $71K for custom liquid-cooled workstations, completed under SAP with 8 bidders

Contract Overview

Contract Amount: $71,153 ($71.2K)

Contractor: @ XI Computer Corporation

Awarding Agency: Department of Transportation

Start Date: 2026-03-24

End Date: 2026-07-23

Contract Duration: 121 days

Daily Burn Rate: $588/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURCHASE - CUSTOMIZED LIQUID-COOLED WORKSTATIONS.

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $71,152.91 to @ XI COMPUTER CORPORATION for work described as: PURCHASE - CUSTOMIZED LIQUID-COOLED WORKSTATIONS. Key points: 1. Value for money appears reasonable given the specialized nature of liquid-cooled workstations. 2. Strong competition with 8 bidders suggests a healthy market for these specialized IT assets. 3. Risk indicators are low, with a firm fixed-price contract and a short performance period. 4. Performance context is a direct purchase of IT equipment for operational needs. 5. Sector positioning is within the IT hardware manufacturing and supply chain.

Value Assessment

Rating: good

The contract value of $71,152.91 for customized liquid-cooled workstations seems within a reasonable range for specialized IT equipment. While direct comparisons are difficult without specific configuration details, the presence of 8 bidders suggests competitive pricing was likely achieved. The firm fixed-price nature of the award provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating it was likely advertised broadly to eligible vendors. The participation of 8 bidders demonstrates a competitive environment, which typically leads to better price discovery and value for the government. The use of SAP suggests the agency sought to streamline the acquisition process for this moderate-value purchase.

Taxpayer Impact: The robust competition achieved under SAP for this purchase indicates that taxpayer funds were likely used efficiently, securing competitive pricing for necessary IT equipment.

Public Impact

The Federal Aviation Administration (FAA) benefits from acquiring specialized IT hardware. Customized liquid-cooled workstations will be delivered, likely supporting high-performance computing needs. The geographic impact is concentrated in New Jersey, where the contractor is located. Workforce implications include supporting IT professionals who will utilize this equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Multiple bidders (8) indicate competitive market.
Short contract duration minimizes long-term risk.
Contractor is a manufacturer of electronic computers.

Sector Analysis

The market for high-performance computing hardware, including specialized workstations with advanced cooling solutions like liquid cooling, is a niche but growing segment within the broader IT sector. This contract fits within the electronic computer manufacturing industry (NAICS 334111). Comparable spending benchmarks for such customized systems can vary widely based on specifications, but government agencies frequently procure IT equipment to support various operational and analytical functions.

Small Business Impact

This contract was competed under SAP and does not indicate a specific small business set-aside. While the prime contractor's size is not specified, the competition level suggests that both small and large businesses could have participated. There is no explicit information regarding subcontracting plans for small businesses in the provided data.

Oversight & Accountability

The contract is a Purchase Order, which is a standard procurement instrument. Oversight would typically be managed by the Federal Aviation Administration contracting officer and program officials. Transparency is facilitated by the public availability of contract data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Hardware Procurement
Computer Systems Manufacturing
Federal Aviation Administration Purchases
Department of Transportation IT Spending

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $71,152.91 to @ XI COMPUTER CORPORATION. PURCHASE - CUSTOMIZED LIQUID-COOLED WORKSTATIONS.

Who is the contractor on this award?

The obligated recipient is @ XI COMPUTER CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $71,152.91.

What is the period of performance?

Start: 2026-03-24. End: 2026-07-23.

What is the typical performance difference between liquid-cooled and standard air-cooled workstations for the FAA's intended use?

Liquid-cooled workstations are generally designed for higher performance and thermal management compared to standard air-cooled systems. They are particularly beneficial for tasks involving intensive processing, such as complex simulations, data analysis, or graphic rendering, where heat generation can be a significant bottleneck. For the FAA, this could translate to faster processing of critical data, improved reliability during peak operational loads, and potentially longer hardware lifespan due to reduced thermal stress. The specific performance gains depend heavily on the workload and the sophistication of the liquid cooling system employed, but the choice suggests a need for enhanced computational power beyond what typical air-cooled machines can efficiently provide.

How does the price of these customized liquid-cooled workstations compare to off-the-shelf high-performance computing solutions?

Customized liquid-cooled workstations often command a premium over standard off-the-shelf high-performance computing (HPC) solutions due to the specialized engineering, integration, and potentially higher-quality components required. The customization aspect allows the FAA to tailor the specifications precisely to their unique needs, which can sometimes lead to better long-term value if it avoids over-provisioning or under-provisioning of resources. However, the $71,152.91 award for what appears to be a set of workstations (implied by the plural 'workstations' and the number of bidders) suggests a potentially competitive pricing strategy by XI Computer Corporation, especially given the 8 bidders. Benchmarking against similar custom HPC solutions would require detailed specification comparisons, but the competitive bidding process is a positive indicator for value.

What are the potential risks associated with procuring customized IT hardware versus standardized equipment?

Procuring customized IT hardware, such as these liquid-cooled workstations, carries certain risks compared to standardized equipment. These include potential integration challenges, longer lead times for manufacturing and delivery, and a more limited pool of specialized vendors, although the 8 bidders in this case suggest a reasonably competitive market. Furthermore, maintenance and repair can be more complex and costly if specialized parts or expertise are required. For the government, there's also a risk of vendor lock-in if the customization is highly proprietary. However, the firm fixed-price contract and short duration (121 days) mitigate some of these risks by defining clear terms and limiting the exposure period. The FAA's choice indicates they likely deemed the performance benefits of customization to outweigh these potential risks.

What is XI Computer Corporation's track record with federal government contracts, particularly for specialized IT hardware?

Information regarding XI Computer Corporation's specific track record with federal government contracts, especially for specialized IT hardware like liquid-cooled workstations, is not detailed in the provided data snippet. A comprehensive analysis would require accessing broader federal procurement databases (like FPDS or SAM.gov) to review their past awards, contract performance history, and any reported issues. Understanding their experience with similar agencies (like DOT or FAA) and the types of equipment supplied would provide further insight into their reliability and capability in meeting government requirements for high-performance computing solutions.

How does the $71,152.91 contract value fit within the FAA's overall IT procurement spending patterns?

The $71,152.91 contract value for customized liquid-cooled workstations represents a relatively small portion of the Federal Aviation Administration's (FAA) overall IT procurement budget. The FAA, like other large federal agencies, manages substantial investments in IT infrastructure, software, and services, often running into millions or billions of dollars annually. This specific award falls well within the simplified acquisition threshold (typically $250,000 for supplies and services), indicating it's a routine purchase for specific operational needs rather than a major strategic IT investment. Analyzing historical FAA IT spending data would reveal how frequently such specialized hardware is procured and its proportional significance within their broader technology acquisition strategy.

Industry Classification

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

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 980 CALLE NEGOCIO, SAN CLEMENTE, CA, 92673

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

Financial Breakdown

Contract Ceiling: $71,153

Exercised Options: $71,153

Current Obligation: $71,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline