DHS Spends $51M on IT Hardware Refresh for TSA End-User Computing

Contract Overview

Contract Amount: $51,064,828 ($51.1M)

Contractor: Countertrade Products, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-09-20

End Date: 2024-09-19

Contract Duration: 1,826 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HARDWARE AND PERIPHERAL EQUIPMENT TO REFRESH END-USER COMPUTER EQUIPMENT. THIS DELIVERY ORDER ACQUIRES LAPTOP COMPUTERS, DESKTOP AND TABLET COMPUTERS, THIN CLIENT, MONITORS, AND VARIOUS IT PERIPHERAL/MISCELLANEOUS EQUIPMENT.

Place of Performance

Location: ARVADA, JEFFERSON County, COLORADO, 80003

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $51.1 million to COUNTERTRADE PRODUCTS, INC. for work described as: HARDWARE AND PERIPHERAL EQUIPMENT TO REFRESH END-USER COMPUTER EQUIPMENT. THIS DELIVERY ORDER ACQUIRES LAPTOP COMPUTERS, DESKTOP AND TABLET COMPUTERS, THIN CLIENT, MONITORS, AND VARIOUS IT PERIPHERAL/MISCELLANEOUS EQUIPMENT. Key points: 1. Significant investment in essential IT hardware for TSA operations. 2. Competition method indicates a deliberate effort to ensure fair pricing. 3. Potential for cost savings through strategic sourcing and bulk purchasing. 4. Focus on end-user computing refresh suggests a need for updated technology.

Value Assessment

Rating: good

The $51M contract value for IT hardware is substantial. Benchmarking against similar large-scale IT refresh contracts would be necessary for a precise value assessment, but the firm fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process was initiated but specific sources were later excluded. This method aims for competitive pricing, but the exclusion criteria warrant scrutiny.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT equipment.

Public Impact

Ensures TSA personnel have up-to-date computing resources for critical security functions. Supports operational efficiency by reducing downtime associated with outdated hardware. Potential for improved cybersecurity posture with newer, more secure equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in a full and open competition needs clarification.
Lack of small business participation noted.

Positive Signals

Firm fixed-price contract provides cost predictability.
Long-term delivery order supports sustained operational needs.

Sector Analysis

This contract falls within the IT hardware and peripherals sector, a common area for government spending. Benchmarks for similar end-user computing refresh contracts vary widely based on quantity, specifications, and competition.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The use of a delivery order under a larger contract structure implies existing oversight mechanisms. However, the specific details of oversight for this particular order and the exclusion of sources require further examination.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Lack of small business participation.
Rationale for source exclusion unclear.
Potential for price variation due to source exclusion.
Need for detailed per-unit cost benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $51.1 million to COUNTERTRADE PRODUCTS, INC.. HARDWARE AND PERIPHERAL EQUIPMENT TO REFRESH END-USER COMPUTER EQUIPMENT. THIS DELIVERY ORDER ACQUIRES LAPTOP COMPUTERS, DESKTOP AND TABLET COMPUTERS, THIN CLIENT, MONITORS, AND VARIOUS IT PERIPHERAL/MISCELLANEOUS EQUIPMENT.

Who is the contractor on this award?

The obligated recipient is COUNTERTRADE PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $51.1 million.

What is the period of performance?

Start: 2019-09-20. End: 2024-09-19.

What was the rationale behind excluding specific sources in a full and open competition, and how did this impact the final price?

The exclusion of sources in a full and open competition typically occurs when specific technical requirements, security mandates, or existing interagency agreements necessitate particular vendors. Understanding the precise reasons for exclusion is crucial to assess if it limited competitive options and potentially inflated the final price, or if it was a necessary step to ensure the government acquired the most suitable and secure technology for its needs.

How does the per-unit cost of these IT hardware components compare to market rates and similar government procurements?

A detailed analysis of the per-unit cost for laptops, desktops, tablets, and monitors against General Services Administration (GSA) schedules, other agency contracts, and commercial market prices is essential. Benchmarking will reveal if the government secured a favorable price or if there's an opportunity for cost savings in future procurements through better negotiation or different sourcing strategies.

What is the expected lifespan and performance improvement of the new hardware compared to the equipment being replaced?

Assessing the expected lifespan and performance gains requires comparing the specifications of the new hardware against the capabilities and age of the existing equipment. This evaluation helps determine the true value of the $51 million investment, ensuring it meets the TSA's operational demands for the contract duration and provides a tangible improvement in efficiency and security.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70T03019Q6BCIO151

Offers Received: 5

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: $56,594,679

Exercised Options: $56,491,160

Current Obligation: $51,064,828

Actual Outlays: $23,870,658

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC65B

IDV Type: GWAC

Timeline