DoD's $18.1M HP Hardware/Software Maintenance: Firm Fixed Price Contract Awarded to HP Inc
Contract Overview
Contract Amount: $18,091,054 ($18.1M)
Contractor: HP Inc.
Awarding Agency: Department of Defense
Start Date: 2006-10-01
End Date: 2009-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HEWLETT PACKARD HARDWARE AND SOFTWARE MAINTENANCE SUPPORT
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $18.1 million to HP INC. for work described as: HEWLETT PACKARD HARDWARE AND SOFTWARE MAINTENANCE SUPPORT Key points: 1. The contract value is $18.1 million for hardware and software maintenance. 2. The sole awardee is HP Inc., indicating a potentially limited competitive landscape. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The sector is IT, specifically electronic computer manufacturing and maintenance.
Value Assessment
Rating: fair
The $18.1 million contract value for a 3-year period seems reasonable for enterprise-level hardware and software maintenance. However, without specific details on the scope of services and the number of devices covered, a precise benchmark is difficult. The firm fixed price structure suggests the government has locked in costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. This method aims to ensure the government receives the best possible prices by allowing all eligible vendors to bid. The impact on price discovery is generally positive, as competition drives down costs.
Taxpayer Impact: The firm fixed price contract provides cost certainty for taxpayers, protecting against unexpected price increases during the contract term.
Public Impact
Ensures continued operation of critical IT infrastructure for the Department of Defense. Supports the Defense Information Systems Agency's mission. Provides access to essential hardware and software updates and technical support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with proprietary HP products.
- Limited competition may lead to higher prices over time.
- Reliance on a single vendor for critical maintenance.
Positive Signals
- Firm Fixed Price contract shifts cost risk to the contractor.
- Awarded under Full and Open Competition.
- Long-term support for essential IT systems.
Sector Analysis
This contract falls within the Information Technology sector, specifically supporting electronic computer manufacturing and maintenance. Spending in this area is crucial for maintaining modern defense capabilities. Benchmarks for similar maintenance contracts vary widely based on scope and vendor.
Small Business Impact
The data indicates the awardee is HP Inc., a large business. There is no specific information provided regarding set-asides for small businesses in this contract, suggesting it was not specifically targeted towards them.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA), a component of the Department of Defense responsible for IT. Oversight would typically involve contract management teams ensuring performance and adherence to terms.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for vendor lock-in.
- Limited competition may impact long-term pricing.
- Reliance on a single vendor for critical IT support.
- Lack of specific scope details hinders precise value assessment.
Tags
electronic-computer-manufacturing, department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.1 million to HP INC.. HEWLETT PACKARD HARDWARE AND SOFTWARE MAINTENANCE SUPPORT
Who is the contractor on this award?
The obligated recipient is HP INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $18.1 million.
What is the period of performance?
Start: 2006-10-01. End: 2009-09-30.
What is the total number of devices and software licenses covered under this maintenance contract?
The provided data does not specify the exact number of devices or software licenses included in the $18.1 million contract. This information is crucial for a detailed cost-per-unit analysis and for understanding the true value proposition. Without it, assessing the efficiency of the spending is challenging.
Were there any significant price differences between the winning bid and other competitive bids received?
While the contract was awarded under full and open competition, the data does not reveal the pricing of other bids. Understanding the spread between the winning bid and others would provide insight into the effectiveness of the competition in driving down costs and ensuring the government secured the best possible price.
How does the annual cost of this maintenance contract compare to industry benchmarks for similar HP hardware and software support?
Comparing the annual cost of approximately $6.03 million ($18.1M / 3 years) to industry benchmarks requires detailed knowledge of the specific HP products, versions, and service levels covered. General benchmarks are difficult to establish without this granularity, but for enterprise-level support, this figure could be within a reasonable range if comprehensive support is provided.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: HP, Inc. (UEI: 009122532)
Address: 6600 ROCKLEDGE DR STE 150, BETHESDA, MD, 08
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,091,054
Exercised Options: $18,091,054
Current Obligation: $18,091,054
Parent Contract
Parent Award PIID: GS35F0066N
IDV Type: FSS
Timeline
Start Date: 2006-10-01
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2009-11-17
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