HHS FDA Awards $671.9M IT Services Contract to HP Inc. via Non-Competitive Delivery Order

Contract Overview

Contract Amount: $671,920 ($671.9K)

Contractor: HP Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-17

End Date: 2008-09-19

Contract Duration: 368 days

Daily Burn Rate: $1.8K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: IT

Official Description: IT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $671,920 to HP INC. for work described as: IT SERVICES Key points: 1. Significant contract value of $671.9 million for IT services. 2. Sole-source award to HP Inc. raises questions about competition. 3. Contract duration of 368 days (approx. 1 year) with potential for extensions. 4. Awarded by the Department of Health and Human Services (FDA) in Maryland.

Value Assessment

Rating: questionable

The contract value of $671.9 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar IT services contracts. Benchmarking is challenging due to the non-competitive nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning only one vendor, HP Inc., was considered. This significantly limits price discovery and competition, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this large award may result in taxpayers paying more than necessary for these IT services.

Public Impact

Impacts the Food and Drug Administration's IT infrastructure and operations. Potential for reduced innovation and service quality due to lack of competition. Raises concerns about government spending efficiency and vendor lock-in.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Awarded to a known vendor (HP Inc.)
Supports critical FDA operations

Sector Analysis

This contract falls under IT services, a broad category encompassing software, hardware, and related support. The benchmark for IT services contracts varies widely based on scope and duration, but a $671.9 million award is at the high end, especially for a non-competitive one.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this sole-source award to HP Inc.

Oversight & Accountability

The non-competitive nature of this large award warrants scrutiny from oversight bodies to ensure the government received the best possible value and that the justification for sole-sourcing was robust.

Related Government Programs

Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Sole-source award limits competition and potentially increases cost.
Lack of transparency in pricing due to non-competitive nature.
Potential for vendor lock-in with HP Inc.
High contract value requires strong justification for non-competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $671,920 to HP INC.. IT SERVICES

Who is the contractor on this award?

The obligated recipient is HP INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $671,920.

What is the period of performance?

Start: 2007-09-17. End: 2008-09-19.

What was the specific justification for awarding this significant IT services contract on a sole-source basis to HP Inc.?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without further documentation, the specific rationale remains unclear, but it would need to demonstrate why competition was not feasible or advantageous.

How does the pricing of this $671.9 million contract compare to industry benchmarks for similar IT services provided by HP Inc. or competitors?

Directly comparing pricing is challenging due to the sole-source nature of this award. A true benchmark would require analyzing competitive bids for comparable IT services. However, one could research average rates for HP Inc.'s IT services or similar offerings from competitors in the federal market to identify potential deviations, though this would be an indirect comparison.

What measures were in place to ensure the effectiveness and quality of IT services delivered by HP Inc. under this non-competitive contract?

Effectiveness and quality are typically ensured through detailed contract performance work statements, service level agreements (SLAs), and rigorous government oversight. Regular performance reviews, acceptance testing, and user feedback mechanisms would be crucial to monitor HP Inc.'s delivery and ensure the services met the FDA's requirements, despite the lack of initial competition.

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hewlett Packard Enterprise CO

Address: 13600 EDS DRIVE, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $671,920

Exercised Options: $671,920

Current Obligation: $671,920

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0066N

IDV Type: FSS

Timeline