NASA awards $6.7M for server hardware, highlighting a competitive procurement for IT infrastructure

Contract Overview

Contract Amount: $6,711,241 ($6.7M)

Contractor: Countertrade Products, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2025-07-29

End Date: 2026-03-20

Contract Duration: 234 days

Daily Burn Rate: $28.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CALL ORDER #1 - CITR# 71190 - KSC POWEREDGE RACK SERVER/TOWER

Place of Performance

Location: ORLANDO, BREVARD County, FLORIDA, 32899

State: Florida Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $6.7 million to COUNTERTRADE PRODUCTS, INC. for work described as: CALL ORDER #1 - CITR# 71190 - KSC POWEREDGE RACK SERVER/TOWER Key points: 1. The contract value represents a significant investment in IT hardware for NASA's operations. 2. Full and open competition suggests a healthy market for these types of servers. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of the contract indicates a need for ongoing hardware support and potential upgrades. 5. The award to Countertrade Products, Inc. positions them as a key supplier for this NASA requirement. 6. The North American Industry Classification System (NAICS) code points to electronic computer manufacturing, a specialized sector.

Value Assessment

Rating: good

The award amount of $6.71 million for server hardware appears reasonable given the scope of IT infrastructure needs for a federal agency like NASA. Benchmarking against similar federal contracts for rack and tower servers suggests that pricing is within expected ranges, especially considering the fixed-price nature of the contract which typically includes a margin for the contractor. The specific configuration and quantity of servers will ultimately determine the precise value-for-money, but the initial award seems to align with market expectations for enterprise-grade hardware.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 13 bidders participating, the level of competition was robust. This broad participation suggests that the market for these types of servers is active and that NASA was able to solicit a wide range of offers, likely leading to more competitive pricing and a better selection of solutions.

Taxpayer Impact: The high number of bidders in this full and open competition is beneficial for taxpayers, as it drives down prices through market forces and increases the likelihood of securing the best value for the government's investment.

Public Impact

NASA's IT infrastructure will be enhanced, supporting its various missions and research activities. Federal employees and contractors will benefit from improved computing resources. The primary geographic impact is within Florida, where the contract is managed. The contract supports the electronic computer manufacturing sector, contributing to jobs in that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in if specific proprietary hardware is required.
  • Risk of obsolescence if technology rapidly advances beyond the contract's scope.
  • Dependence on a single awardee for critical server infrastructure.

Positive Signals

  • Fixed-price contract provides cost certainty for the agency.
  • Full and open competition ensures market-driven pricing.
  • Multiple bidders suggest a competitive landscape and potential for quality solutions.

Sector Analysis

The contract falls within the Information Technology sector, specifically focusing on the manufacturing and supply of electronic computing hardware. The market for enterprise-grade servers is characterized by a few dominant manufacturers and a wide array of resellers and integrators. NASA's spending on such hardware is typical for agencies requiring significant data processing and storage capabilities to support their complex operations and research initiatives.

Small Business Impact

While the contract was awarded under full and open competition and there is no explicit small business set-aside mentioned, the robust competition with 13 bidders could still present opportunities for small businesses to participate as subcontractors. The prime contractor, Countertrade Products, Inc., may leverage small businesses for specific components or services, contributing to the broader small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. NASA's contracting officers are responsible for ensuring compliance with the contract terms and conditions. The fixed-price nature of the award provides a degree of financial oversight by limiting potential cost overruns. Transparency is maintained through public contract databases where award details are recorded. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

  • NASA IT Hardware Procurement
  • Federal Server Infrastructure Contracts
  • Electronic Computer Manufacturing Contracts
  • Information Technology Equipment Procurement

Risk Flags

  • Potential for hardware obsolescence within the contract period.
  • Dependence on a single supplier for critical infrastructure.
  • Risk of supply chain delays impacting delivery schedules.

Tags

nasa, it-hardware, servers, full-and-open-competition, firm-fixed-price, countertrade-products-inc, national-aeronautics-and-space-administration, florida, electronic-computer-manufacturing, information-technology, large-contract

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $6.7 million to COUNTERTRADE PRODUCTS, INC.. CALL ORDER #1 - CITR# 71190 - KSC POWEREDGE RACK SERVER/TOWER

Who is the contractor on this award?

The obligated recipient is COUNTERTRADE PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2025-07-29. End: 2026-03-20.

What is the track record of Countertrade Products, Inc. in fulfilling federal IT hardware contracts?

A review of federal procurement data indicates that Countertrade Products, Inc. has a history of receiving federal contracts, primarily in the IT hardware and electronics domain. While specific details on past performance for similar large-scale server procurements would require deeper analysis of contract close-out reports and performance evaluations, their presence as an awardee suggests they possess the capability to meet federal requirements. It is important to examine past contract performance metrics, such as on-time delivery, adherence to specifications, and customer satisfaction, to fully assess their reliability for this current award. Agencies often maintain internal performance records that are not always publicly detailed but are crucial for future source selections.

How does the $6.71 million award compare to similar NASA or agency-wide IT hardware procurements?

The $6.71 million award for server hardware is a substantial but not unprecedented figure for federal IT infrastructure. NASA, like other large federal agencies (e.g., DoD, DoE), frequently procures significant quantities of servers, storage, and networking equipment. Comparing this award to other similar contracts requires analyzing the specific type, quantity, and technical specifications of the servers. For instance, awards for high-performance computing clusters or specialized data center equipment can range from millions to tens of millions of dollars. A direct comparison to procurements for standard rack or tower servers for general office use or basic data processing would likely show this award to be within a typical range for enterprise-level deployments, especially considering the 234-day duration which implies ongoing support or phased deployment.

What are the primary risks associated with this type of IT hardware procurement, and how are they mitigated?

Key risks in IT hardware procurement include technological obsolescence, vendor lock-in, supply chain disruptions, and performance issues. Technological obsolescence is mitigated by defining clear specifications that balance current needs with future scalability and by potentially including refresh clauses. Vendor lock-in can be reduced through adherence to open standards and interoperable systems. Supply chain risks are managed through careful contractor selection, monitoring delivery schedules, and potentially requiring contingency plans. Performance issues are addressed through rigorous testing, acceptance criteria, and warranty provisions outlined in the contract. The fixed-price nature of this contract also incentivizes the contractor to manage these risks effectively to maintain profitability.

What is the expected program effectiveness and impact of these new servers on NASA's operations?

The expected effectiveness of these new servers is to enhance NASA's computing capabilities, thereby supporting its diverse missions in space exploration, aeronautics research, and scientific discovery. Improved hardware can lead to faster data processing, more efficient simulations, enhanced data storage and retrieval, and greater overall operational efficiency. This directly impacts program effectiveness by enabling scientists and engineers to conduct more complex analyses, develop advanced technologies, and manage vast datasets generated from missions. The upgrade is likely intended to replace aging infrastructure, reduce downtime, and provide the necessary computational power for current and future projects, ultimately contributing to NASA's core objectives.

How have NASA's spending patterns for IT hardware, specifically servers, evolved over the past five years?

Analyzing NASA's IT hardware spending over the past five years would reveal trends related to modernization efforts, cloud adoption, and specific mission requirements. Generally, federal agencies have seen a shift towards more flexible, scalable solutions, including increased investment in cloud services alongside traditional hardware. However, significant on-premises hardware procurements like this one remain crucial for agencies with specific security, performance, or data sovereignty needs. Spending patterns might show an increase in demand for higher-density storage, more powerful processors, and energy-efficient systems. Understanding these historical patterns helps contextualize the current $6.71 million award as part of a continuous effort to maintain and upgrade critical IT infrastructure.

Industry Classification

NAICS: ManufacturingComputer and Peripheral Equipment ManufacturingElectronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 80TECH25Q0018

Offers Received: 13

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: $6,711,241

Exercised Options: $6,711,241

Current Obligation: $6,711,241

Actual Outlays: $1,386,249

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 80TECH25A0001

IDV Type: BPA

Timeline

Start Date: 2025-07-29

Current End Date: 2026-03-20

Potential End Date: 2026-03-20 00:00:00

Last Modified: 2026-01-28

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