USPTO spent $2M on laptops and peripherals, with 11 bidders in a full and open competition

Contract Overview

Contract Amount: $20,000,000 ($20.0M)

Contractor: PC Specialists, LLC

Awarding Agency: Department of Commerce

Start Date: 2010-09-22

End Date: 2011-10-31

Contract Duration: 404 days

Daily Burn Rate: $49.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LAPTOPS AND PERIPHERAL EQUIPMENT FOR USPTO CAPITAL HW IT REPLACEMENT PROGRAM

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $20.0 million to PC SPECIALISTS, LLC for work described as: LAPTOPS AND PERIPHERAL EQUIPMENT FOR USPTO CAPITAL HW IT REPLACEMENT PROGRAM Key points: 1. The contract value of $2 million for laptops and peripherals appears reasonable given the quantity and scope of IT hardware replacement. 2. Full and open competition with 11 bidders suggests a healthy market and potential for competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, incentivizing efficient delivery. 4. The contract duration of approximately 13 months aligns with typical hardware refresh cycles. 5. The award to PC Specialists, LLC indicates a competitive landscape for IT hardware procurement. 6. The North American Industry Classification System (NAICS) code 44120 points to a standard retail/wholesale market for computer equipment.

Value Assessment

Rating: good

The contract value of $2 million for laptops and peripherals for the USPTO's capital hardware IT replacement program is within a reasonable range for such procurements. While specific per-unit costs are not provided, the presence of 11 bidders in a full and open competition suggests that pricing was likely competitive. Benchmarking against similar large-scale hardware refresh contracts would provide further context, but the overall value appears to be in line with industry standards for government IT equipment acquisition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that all responsible sources were permitted to submit offers. The participation of 11 bidders is a strong indicator of robust competition within the market for computer and peripheral equipment. This level of competition generally leads to better price discovery and ensures that the government receives competitive pricing.

Taxpayer Impact: The high number of bidders in this full and open competition is beneficial for taxpayers, as it drives down prices and increases the likelihood of obtaining high-quality equipment at the best possible value.

Public Impact

USPTO employees benefit from updated and reliable computing hardware, enhancing productivity and operational efficiency. The contract delivers essential laptops and peripheral equipment, crucial for the daily operations of patent and trademark examiners and administrative staff. The geographic impact is primarily within the USPTO's operational locations, likely concentrated in Washington D.C. and potentially other federal facilities. Workforce implications include ensuring USPTO staff have the necessary tools to perform their duties effectively, supporting the agency's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for outdated technology if refresh cycles are not maintained.
Dependence on a single vendor for a large hardware refresh could create future support challenges.

Positive Signals

Procurement of essential hardware ensures continued USPTO operations.
Competitive bidding process likely secured favorable pricing.
Fixed-price contract shifts risk to the contractor.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on hardware procurement. The market for laptops and peripherals is mature and highly competitive, with numerous manufacturers and resellers. The USPTO's spending represents a portion of the federal government's overall IT hardware acquisition, which is a significant segment of the IT market. Comparable spending benchmarks would involve analyzing other agencies' IT hardware refresh contracts, which often run into millions of dollars.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While PC Specialists, LLC may be a small business, the contract itself was not designated as a small business set-aside. This means that large businesses could also compete and win. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, but there is no explicit requirement mandated by the contract terms shown.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of Commerce, overseeing the U.S. Patent and Trademark Office. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified goods within the agreed-upon price. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Hardware Procurement
USPTO Capital Equipment Replacement
General Services Administration (GSA) Schedule Purchases
Department of Commerce IT Modernization

Risk Flags

Contract Awarded After Exclusion of Sources
Potential for Price Inflation Due to Limited Competition (though 11 bidders mitigates this)

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $20.0 million to PC SPECIALISTS, LLC. LAPTOPS AND PERIPHERAL EQUIPMENT FOR USPTO CAPITAL HW IT REPLACEMENT PROGRAM

Who is the contractor on this award?

The obligated recipient is PC SPECIALISTS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2010-09-22. End: 2011-10-31.

What was the specific quantity of laptops and peripherals procured under this contract?

The provided data does not specify the exact quantity of laptops and peripherals procured. The contract value is listed as $2,000,000, and the description mentions 'LAPTOPS AND PERIPHERAL EQUIPMENT FOR USPTO CAPITAL HW IT REPLACEMENT PROGRAM.' To determine the quantity, one would need to access the detailed contract award documents or associated files, which would break down the line items, quantities, and unit prices. Without this detailed information, we can only infer that the quantity was sufficient to justify the $2 million expenditure for an IT hardware replacement program.

How does the per-unit cost of the laptops and peripherals compare to market rates at the time of award?

The provided data does not include the per-unit cost for the laptops and peripherals, making a direct comparison to market rates at the time of award impossible. To perform this analysis, the specific itemized costs from the contract award would be required. Factors such as the model of laptops, specifications (e.g., processor, RAM, storage), and types of peripherals (e.g., monitors, keyboards, mice) would need to be identified. Subsequently, these would be benchmarked against prevailing commercial prices or other government contracts awarded around September 2010 (the award date) for similar equipment.

What is the track record of PC SPECIALISTS, LLC in fulfilling federal IT hardware contracts?

The provided data indicates that PC SPECIALISTS, LLC was awarded this specific contract for laptops and peripherals for the USPTO. To assess their overall track record, a broader search of federal procurement databases (like FPDS or SAM.gov) would be necessary to identify all contracts awarded to this entity. This would allow for an analysis of their past performance, including contract values, agencies served, types of goods or services provided, and any reported issues or successes. Without this broader data, we can only confirm their involvement in this particular USPTO contract.

What were the key performance expectations and metrics for this contract?

The provided summary data does not detail the specific key performance expectations or metrics for this contract. However, as a firm-fixed-price contract for hardware, the primary performance expectation would be the timely delivery of the specified laptops and peripherals in accordance with the contract's technical specifications and delivery schedule. Metrics would likely include on-time delivery, adherence to quality standards, and successful installation or readiness for deployment. The contract duration of 404 days (approximately 13 months) suggests a phased delivery or a defined period for fulfilling the entire order.

How does the $2 million spending on IT hardware replacement compare to previous or subsequent years for the USPTO?

The provided data focuses solely on this single contract award of $2 million for laptops and peripherals in 2010-2011. To compare this spending to previous or subsequent years for the USPTO, extensive historical data on their IT hardware procurement budgets and actual expenditures would be required. This would involve analyzing annual IT spending reports, budget justifications, and contract award databases for the USPTO across multiple fiscal years. Without access to this broader historical financial context, it is impossible to determine if $2 million represents an increase, decrease, or consistent level of spending for IT hardware replacement.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7810 TRADE ST, SAN DIEGO, CA, 92121

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $20,000,000

Exercised Options: $20,000,000

Current Obligation: $20,000,000

Parent Contract

Parent Award PIID: DOC50PAPT0801001

IDV Type: IDC

Timeline