HHS awards $23.2M for electronic computer manufacturing, with a significant portion allocated to MCP Computer Products Inc

Contract Overview

Contract Amount: $23,198,736 ($23.2M)

Contractor: MCP Computer Products Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-29

End Date: 2026-09-28

Contract Duration: 364 days

Daily Burn Rate: $63.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: END OF THE YEAR OCIO PURCHASE

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.2 million to MCP COMPUTER PRODUCTS INC for work described as: END OF THE YEAR OCIO PURCHASE Key points: 1. Value for money appears reasonable given the fixed-price contract type, though detailed cost breakdowns are not available. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a fixed-price contract and a defined performance period. 4. Performance context is limited to electronic computer manufacturing, a specific niche within IT. 5. Sector positioning is within the broader IT and manufacturing sectors, supporting federal agency needs. 6. The contract's duration of one year aligns with typical procurement cycles for such goods.

Value Assessment

Rating: good

The contract value of $23.2 million for electronic computer manufacturing is substantial. Benchmarking against similar contracts is challenging without more specific details on the exact nature of the electronic components or systems procured. However, the firm fixed-price structure generally indicates that the government has negotiated a set price, aiming for cost certainty. The awarded amount represents a significant investment in IT infrastructure for the CDC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method of procurement typically fosters a competitive environment, which can lead to better pricing and quality for the government. The open competition suggests that the agency sought the best value available in the market for electronic computer manufacturing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of suppliers to offer their best terms.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from this contract by acquiring necessary electronic computer components. Services delivered include the manufacturing and supply of electronic computer equipment, crucial for data processing and research. The geographic impact is primarily within the United States, supporting federal agency operations. Workforce implications are likely within the IT manufacturing and supply chain sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes it difficult to assess granular value for money.
Specific technical specifications of the electronic components are not detailed, limiting performance assessment.
The contract is for a single year, which may necessitate future procurements and associated administrative costs.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
The contract supports critical IT infrastructure for a key federal health agency.

Sector Analysis

The contract falls within the Information Technology (IT) and Manufacturing sectors, specifically focusing on electronic computer manufacturing. This sector is vital for supporting government operations, research, and data management. Comparable spending benchmarks for electronic computer manufacturing can vary widely based on the specific components and quantities. Federal spending in IT hardware and manufacturing is consistently high, reflecting the ongoing need for updated and reliable technological infrastructure across agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, MCP Computer Products Inc. may engage small businesses as subcontractors, which is not detailed in this award notice. The absence of specific small business considerations in the primary award suggests that larger, established firms were likely the primary bidders.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' internal procurement and financial management controls. The Centers for Disease Control and Prevention (CDC) would be responsible for monitoring contract performance and ensuring compliance with terms and conditions. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics and financial audits are usually internal processes unless flagged by an Inspector General.

Related Government Programs

Federal IT Procurement
Electronic Component Manufacturing
Department of Health and Human Services Contracts
Centers for Disease Control and Prevention IT Spending
Information Technology Hardware

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of technological obsolescence if components are not cutting-edge.
Dependence on a single contractor for a significant portion of IT hardware needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.2 million to MCP COMPUTER PRODUCTS INC. END OF THE YEAR OCIO PURCHASE

Who is the contractor on this award?

The obligated recipient is MCP COMPUTER PRODUCTS INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2025-09-29. End: 2026-09-28.

What is the track record of MCP Computer Products Inc. with federal contracts, particularly for electronic computer manufacturing?

MCP Computer Products Inc. has a history of receiving federal contracts, primarily within the IT hardware and manufacturing space. While specific details on their performance for similar electronic computer manufacturing contracts require deeper analysis of historical award data, their consistent presence suggests a capacity to meet federal procurement requirements. Further investigation into past performance reviews, any past disputes, or contract terminations would provide a more comprehensive understanding of their reliability and quality of service to government agencies. The current award from HHS indicates continued trust in their capabilities for supplying necessary electronic components.

How does the awarded amount of $23.2 million compare to typical spending for similar electronic computer manufacturing contracts by federal agencies?

The $23.2 million award is a significant sum, placing it in the mid-to-large range for a single-year contract focused on electronic computer manufacturing. Without precise specifications of the goods procured (e.g., servers, specialized computing hardware, custom components), direct comparison is difficult. However, federal agencies frequently award contracts in the tens of millions for IT hardware. For context, other agencies might award similar amounts for large-scale server deployments or specialized research equipment. The firm fixed-price nature suggests this amount covers a defined scope, and its value is best assessed against the specific deliverables outlined in the contract's statement of work.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

The primary risk indicators for this contract include potential for cost overruns if the fixed price does not adequately cover unforeseen manufacturing challenges, although the fixed-price nature aims to mitigate this for the government. Performance risk exists if MCP Computer Products Inc. fails to deliver components meeting the required specifications or on schedule. Mitigation strategies likely include the firm fixed-price contract type, which shifts cost risk to the contractor, and the requirement for adherence to technical specifications. The contract's one-year duration also limits long-term exposure. The CDC's oversight and acceptance procedures would further mitigate performance risks.

How effective is the 'full and open competition' approach in ensuring value for money for this specific electronic computer manufacturing contract?

The 'full and open competition' approach is generally considered effective in ensuring value for money by fostering a competitive environment where multiple vendors vie for the contract. This typically drives down prices and encourages innovation. For this $23.2 million contract, it suggests that the CDC sought the best possible terms from the market. The effectiveness is contingent on the number of qualified bidders and the clarity of the solicitation's requirements. If the competition was robust, it increases the likelihood that the awarded price reflects a fair market value for the specified electronic computer manufacturing goods.

What are the historical spending patterns for electronic computer manufacturing at the Centers for Disease Control and Prevention (CDC) or HHS?

Analyzing historical spending patterns for electronic computer manufacturing at the CDC or HHS would reveal trends in IT hardware procurement. Typically, agencies like the CDC have consistent needs for computing infrastructure to support data analysis, research, and public health initiatives. Spending can fluctuate based on major technology refresh cycles, new research projects, or upgrades to data centers. A review of past contracts would indicate whether this $23.2 million award is an anomaly, a continuation of a regular procurement, or an increase in investment in this area. Understanding these patterns helps contextualize the current award's significance.

What are the implications of this contract for the broader IT manufacturing sector and federal supply chains?

This contract contributes to the revenue stream of MCP Computer Products Inc. and, by extension, the broader IT manufacturing sector. It signals demand for specific types of electronic computer components, potentially influencing production levels and resource allocation within the industry. For federal supply chains, it represents a node in the network responsible for equipping government agencies with essential technology. The reliance on a single awardee for a significant amount highlights the importance of maintaining a stable and competitive supply base for critical IT hardware to ensure continuity of government operations.

Industry Classification

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

Product/Service Code: OFFICE SUPPLIES AND DEVICES

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: 1565 CREEK ST STE 103, SAN MARCOS, CA, 92078

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,198,736

Exercised Options: $23,198,736

Current Obligation: $23,198,736

Actual Outlays: $2,630,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22A000C

IDV Type: BPA

Timeline