GSA awards $23.85M for Electronic Computer Manufacturing, highlighting firm fixed price contract
Contract Overview
Contract Amount: $23,850,000 ($23.9M)
Contractor: HPE Government, LLC
Awarding Agency: General Services Administration
Start Date: 2012-03-28
End Date: 2013-06-28
Contract Duration: 457 days
Daily Burn Rate: $52.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SGI TECHNOLOGY INSERTION 1112
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
General Services Administration obligated $23.9 million to HPE GOVERNMENT, LLC for work described as: SGI TECHNOLOGY INSERTION 1112 Key points: 1. Contract value of $23.85M for computer manufacturing. 2. Competition was full and open, suggesting market price discovery. 3. Risk appears moderate given the fixed-price structure. 4. Sector is IT hardware manufacturing.
Value Assessment
Rating: good
The contract value of $23.85M for electronic computer manufacturing appears reasonable for a 457-day duration. Benchmarking against similar GSA IT hardware contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to competitive pricing. The firm fixed price contract type further supports price certainty for the government.
Taxpayer Impact: The competitive award process likely ensured a fair price, maximizing taxpayer value for the procured electronic computer manufacturing services.
Public Impact
Ensures availability of essential electronic computer hardware for federal agencies. Supports the IT infrastructure needs of government operations. The fixed-price nature provides budget predictability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for obsolescence in rapidly evolving tech sector.
- Dependence on a single awardee for the duration.
Positive Signals
- Full and open competition.
- Firm fixed price contract.
Sector Analysis
This contract falls within the Information Technology sector, specifically electronic computer manufacturing. Spending benchmarks for similar IT hardware procurements by the GSA would be relevant for comparison.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The General Services Administration's Federal Acquisition Service managed this procurement. Standard oversight procedures for firm fixed-price contracts would apply.
Related Government Programs
- Electronic Computer Manufacturing
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Technology obsolescence risk.
- Potential for vendor lock-in if follow-on contracts are needed.
- Reliance on contractor's quality control processes.
- Scope creep risk if not tightly managed.
Tags
electronic-computer-manufacturing, general-services-administration, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $23.9 million to HPE GOVERNMENT, LLC. SGI TECHNOLOGY INSERTION 1112
Who is the contractor on this award?
The obligated recipient is HPE GOVERNMENT, LLC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $23.9 million.
What is the period of performance?
Start: 2012-03-28. End: 2013-06-28.
What specific electronic computer hardware was procured under this contract?
The provided data specifies the North American Industry Classification System (NAICS) code 334111 for Electronic Computer Manufacturing, but does not detail the specific hardware components or systems. Further investigation into the contract's statement of work or award details would be necessary to identify the exact equipment.
How does the awarded price compare to market rates for similar electronic computer manufacturing services at the time of award?
Without access to detailed market research or benchmark data from 2012, a precise comparison is difficult. However, the use of full and open competition suggests the government aimed to secure a competitive market price. A post-award review of pricing against contemporary industry standards would be beneficial.
What mechanisms were in place to ensure the quality and timely delivery of the electronic computer hardware?
As a firm fixed-price contract, the awardee, HPE GOVERNMENT, LLC, bears the primary risk for cost overruns, incentivizing efficient delivery. Standard government oversight, including acceptance testing and performance monitoring, would have been employed to ensure quality and timeliness.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ID04120054
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Silicon Graphics International Corp. (UEI: 841322394)
Address: 12200 PLUM ORCHARD DR STE G, SILVER SPRING, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,826,000
Exercised Options: $23,850,000
Current Obligation: $23,850,000
Parent Contract
Parent Award PIID: GS35F0325M
IDV Type: FSS
Timeline
Start Date: 2012-03-28
Current End Date: 2013-06-28
Potential End Date: 2016-10-15 00:00:00
Last Modified: 2013-10-14
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