Over $53 million awarded for professional services, with HP Inc. as the primary contractor

Contract Overview

Contract Amount: $53,466,180 ($53.5M)

Contractor: HP Inc.

Awarding Agency: Department of Commerce

Start Date: 2007-07-09

End Date: 2012-09-30

Contract Duration: 1,910 days

Daily Burn Rate: $28.0K/day

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROFESSIONAL SERVICES

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $53.5 million to HP INC. for work described as: PROFESSIONAL SERVICES Key points: 1. The contract value suggests a significant investment in professional services, likely supporting critical government functions. 2. Competition dynamics are unclear without further details on the bidding process, potentially impacting price discovery. 3. The duration of the contract (over 5 years) indicates a long-term need for these services. 4. Fixed-price contract type generally shifts risk to the contractor, potentially leading to more predictable costs. 5. The award was made to HP Inc., a large, established technology provider, suggesting a focus on reliability and existing capabilities. 6. The specific professional services rendered are not detailed, making a precise value-for-money assessment challenging.

Value Assessment

Rating: fair

Benchmarking the value of this contract is difficult without knowing the specific professional services provided. The total award of over $53 million over five years averages to approximately $10.6 million annually. This figure needs to be compared against similar contracts for comparable services within the federal government or private sector to assess if it represents a fair price. The fixed-price nature suggests that the government aimed for cost certainty, but the overall value proposition depends heavily on the quality and effectiveness of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. It is unclear whether this was a full and open competition, a limited competition among pre-selected vendors, or a sole-source award. The number of bidders and the method of solicitation are crucial for understanding the competitive landscape and its impact on pricing.

Taxpayer Impact: The level of competition directly influences taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better use of public funds. Limited or sole-source awards may result in higher costs for taxpayers if adequate justification for the lack of competition is not present.

Public Impact

The U.S. Census Bureau is the primary beneficiary, likely receiving essential support for its data collection, processing, or dissemination activities. The services provided are expected to contribute to the accuracy and efficiency of federal statistical operations. The geographic impact is likely nationwide, given the Census Bureau's mandate, though specific operational locations are not detailed. The contract may have implications for the federal workforce by supplementing or supporting government personnel in specialized roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition method hinders assessment of optimal taxpayer value.
The specific nature of 'professional services' is too broad to evaluate performance or value without further detail.
No information is provided on performance metrics or quality assurance for the services rendered.
The contract's long duration could lead to vendor lock-in or reduced flexibility if needs change.

Positive Signals

Award to a large, established contractor like HP Inc. may indicate a focus on stability and proven capabilities.
The firm fixed-price contract type offers cost predictability for the government.
The contract supports a critical government agency (U.S. Census Bureau), suggesting alignment with national priorities.

Sector Analysis

This contract falls within the professional services sector, which encompasses a wide range of support functions for government agencies. The U.S. Census Bureau's need for such services is consistent with its mission to provide essential data about the nation's population and economy. Spending in this category is substantial across the federal government, supporting everything from IT consulting to administrative and specialized analytical support. Benchmarking requires comparison to similar professional service contracts, often categorized by NAICS codes related to management, scientific, and technical consulting services.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Consequently, the primary contractor, HP Inc., is likely a large business. There is no information provided regarding subcontracting plans or goals, making it impossible to assess the impact on the small business ecosystem or whether small businesses were involved as subcontractors.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. Typically, federal contracts are subject to oversight by the contracting agency (Department of Commerce, U.S. Census Bureau), program managers, and potentially Inspectors General. Transparency would be enhanced by public reporting on performance, expenditures, and any modifications. The effectiveness of accountability measures depends on the agency's internal controls and reporting requirements.

Related Government Programs

Federal IT Services
Government Consulting Contracts
Census Bureau Operations Support
Professional and Management Support Services

Risk Flags

Potential NAICS code misclassification
Lack of detail on specific services rendered
Unclear competition level
No performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $53.5 million to HP INC.. PROFESSIONAL SERVICES

Who is the contractor on this award?

The obligated recipient is HP INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $53.5 million.

What is the period of performance?

Start: 2007-07-09. End: 2012-09-30.

What specific professional services were procured under this contract?

The provided data classifies the contract under NAICS code 443120 (Computer and Software Stores), which is unusual for 'professional services'. However, the description 'PROFESSIONAL SERVICES' suggests a broad category. Without further details, it's impossible to specify the exact services. These could range from IT consulting, data analysis, program management, administrative support, or specialized technical expertise required by the U.S. Census Bureau. The discrepancy between the NAICS code and the service description warrants further investigation to understand the actual nature of the work performed and ensure appropriate classification for future benchmarking.

How does the total contract value of $53.4 million compare to similar professional services contracts awarded by the U.S. Census Bureau or other federal agencies?

Comparing the $53.4 million contract value requires identifying similar professional services contracts. For the U.S. Census Bureau, professional services could support data collection, analysis, IT infrastructure, or program management. Annually, this contract represents approximately $10.6 million. To benchmark effectively, one would need to analyze contracts with similar scopes (e.g., IT support, data analytics, administrative services) awarded over comparable periods. Without specific service details, a direct comparison is challenging. However, for a five-year period, a $53 million contract for specialized professional services is substantial, indicating a significant requirement for external support by the agency.

What is the track record of HP Inc. in delivering professional services to the federal government, particularly for agencies like the U.S. Census Bureau?

HP Inc. is a major technology corporation with a long history of providing a wide array of products and services to the federal government. Their track record typically includes IT hardware, software, and related support services. While they are known for technology solutions, their specific experience in delivering 'professional services' as defined in this context would need detailed examination. Reviewing past performance evaluations, contract history databases (like FPDS), and agency feedback would reveal their success rate, quality of service, and ability to meet complex requirements for agencies such as the U.S. Census Bureau. Their large size suggests significant capacity but also potential challenges in agility or specialized focus compared to smaller, niche providers.

What are the potential risks associated with a long-duration contract (over 5 years) for professional services?

Long-duration contracts, like this one spanning over five years (1910 days), carry several potential risks. Firstly, there's the risk of scope creep or requirements evolving over time, potentially leading to cost overruns if not managed carefully through contract modifications. Secondly, vendor lock-in can occur, making it difficult and costly to switch providers even if performance declines or better alternatives emerge. Thirdly, the technology landscape or the agency's needs might change significantly, rendering the contracted services or solutions obsolete before the contract ends. Finally, maintaining consistent oversight and performance management over an extended period requires sustained effort and resources from the contracting agency to ensure continued value for taxpayers.

How does the NAICS code 443120 (Computer and Software Stores) align with the contract description 'PROFESSIONAL SERVICES' and the awarding agency (U.S. Census Bureau)?

The provided NAICS code 443120, 'Computer and Software Stores,' typically relates to retail sales of computer hardware and software. This classification appears incongruent with a contract described as 'PROFESSIONAL SERVICES' awarded to HP Inc. and utilized by the U.S. Census Bureau. Professional services usually fall under categories like Management, Scientific, and Technical Consulting Services (e.g., 5416xx) or Computer Systems Design Services (e.g., 5415xx). This discrepancy suggests a potential misclassification in the contract data. It is possible that the contract involved the sale of significant software or hardware coupled with implementation or support services, leading to this classification, or it could be an administrative error. Clarification is needed to accurately categorize the contract's purpose and benchmark spending appropriately.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Contractor Details

Parent Company: HP, Inc.

Address: 13600 EDS DRIVE, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $56,500,888

Exercised Options: $56,500,888

Current Obligation: $53,466,180

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4663G

IDV Type: FSS

Timeline