DHS awarded $13.4M for computer manufacturing, raising questions about value and competition

Contract Overview

Contract Amount: $13,454,422 ($13.5M)

Contractor: Emtec Federal, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-21

End Date: 2010-09-29

Contract Duration: 1,834 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: IT

Official Description: COGENT MAINT WITH WESTWOOD COMPUTERS

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.5 million to EMTEC FEDERAL, LLC for work described as: COGENT MAINT WITH WESTWOOD COMPUTERS Key points: 1. The contract's duration of over 1800 days suggests a long-term need for these services. 2. The award was made under a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 3. The lack of small business participation raises concerns about equitable distribution of federal dollars. 4. The contract's performance period spans a significant portion of the last decade. 5. The specific nature of 'Electronic Computer Manufacturing' warrants further scrutiny regarding its necessity and market alternatives.

Value Assessment

Rating: questionable

Benchmarking the value of this $13.4 million contract is challenging without specific details on the goods or services procured under the BPA Call. However, the extended duration of nearly five years suggests a substantial investment. Comparing it to similar contracts for electronic computer manufacturing requires access to a broader dataset of comparable procurements. The absence of a stated per-unit cost makes direct price assessment difficult, but the overall award amount indicates a significant expenditure that should be scrutinized for efficiency and necessity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided. A full and open competition is generally preferred as it theoretically leads to better pricing and quality through market forces. The fact that it was a BPA Call might mean that the initial competition was for the BPA itself, and this call was a specific order against it.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition. However, without more transparency on the bidding process and the number of actual bidders for this specific call, it's difficult to definitively state the extent of taxpayer savings achieved.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, receiving electronic computer manufacturing services. The contract supports the operational needs of DHS by providing necessary computing hardware or manufacturing capabilities. The geographic impact is likely concentrated within DHS facilities or locations where these manufactured computers are deployed. Workforce implications could include jobs in manufacturing, logistics, and IT support related to the delivered products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on specific deliverables and performance metrics.
Extended contract duration without clear justification for renewal.
Absence of small business participation in a significant federal contract.
Potential for price creep over the long performance period without re-competition.

Positive Signals

Awarded through full and open competition, indicating market engagement.
Contract supports a critical federal agency (DHS).
Established under a BPA, suggesting a pre-vetted procurement vehicle.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically focusing on the manufacturing of electronic computers. This sector is characterized by rapid technological advancements and a dynamic supply chain. The market size for federal IT procurement is substantial, with agencies like DHS being major consumers. This contract represents a portion of that spending, likely for specialized or bulk computer hardware needs that are manufactured to specific government requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win the award. The absence of small business participation, especially in a contract of this size, suggests that opportunities for small businesses in this specific procurement were limited or non-existent. This could have implications for the broader small business ecosystem if such contracts are consistently awarded without specific subcontracting goals for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's procurement oversight mechanisms. As a BPA Call, the initial BPA likely had its own oversight framework. Specific accountability measures would be detailed in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is assessed as fair, given the award details are public, but deeper insights into performance and value require further investigation.

Related Government Programs

Department of Homeland Security IT Procurement
Federal Electronic Computer Manufacturing Contracts
Blanket Purchase Agreements (BPAs)
IT Hardware Acquisition

Risk Flags

Long contract duration without clear justification for renewal.
Lack of transparency on specific deliverables and performance metrics.
Absence of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.5 million to EMTEC FEDERAL, LLC. COGENT MAINT WITH WESTWOOD COMPUTERS

Who is the contractor on this award?

The obligated recipient is EMTEC FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2005-09-21. End: 2010-09-29.

What specific types of electronic computers were manufactured under this contract, and what were their intended uses within DHS?

The provided data does not specify the exact types of electronic computers manufactured. However, given the awardee's name (WESTWOOD COMPUTERS) and the NAICS code (334111 - Electronic Computer Manufacturing), it is highly probable that the contract involved the production of desktop computers, laptops, servers, or specialized computing devices tailored to the Department of Homeland Security's operational requirements. These could range from standard office workstations to high-performance computing systems for data analysis, cybersecurity operations, or critical infrastructure monitoring. Without further details from the contract award itself, the precise nature and application of these manufactured computers remain speculative but are presumed to align with DHS's broad mission.

How does the awarded amount of $13.4 million compare to the average cost of similar computer manufacturing contracts for federal agencies?

Directly comparing the $13.4 million award to average costs is difficult without knowing the exact specifications, quantity, and type of computers manufactured. However, the duration of the contract (over 1800 days) suggests a sustained procurement rather than a one-time purchase. If this amount represents the total value over nearly five years, the annual expenditure would be approximately $2.7 million. This figure needs to be benchmarked against the average annual spending on IT hardware manufacturing by agencies of similar size and mission scope. Factors like custom configurations, security hardening, and specific performance requirements can significantly influence per-unit costs, making a simple dollar-for-dollar comparison potentially misleading without granular data on the procured items.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was contractor performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for manufacturing contracts, KPIs would relate to production timelines, defect rates, adherence to specifications, delivery schedules, and warranty provisions. Performance would likely be assessed through regular progress reports, quality control inspections, and end-user feedback. The absence of this information in the summary data suggests that such details are either not publicly available or were not deemed critical for this high-level overview. Effective oversight would necessitate clear metrics to ensure the government received value for its $13.4 million investment.

What is the track record of EMTEC FEDERAL, LLC in fulfilling federal contracts, particularly those related to computer manufacturing?

EMTEC FEDERAL, LLC was the awardee for this $13.4 million contract with the Department of Homeland Security. To assess their track record, one would need to examine their past performance on similar federal contracts. This includes looking at contract completion rates, any instances of contract disputes or terminations, customer satisfaction ratings (if available through sources like the Contractor Performance Assessment Reporting System - CPARS), and their history with fulfilling requirements related to electronic computer manufacturing. Without access to this detailed performance history, it's challenging to definitively evaluate EMTEC FEDERAL, LLC's reliability and expertise in this specific domain based solely on this single award.

How does the spending on this contract compare to overall federal spending on electronic computer manufacturing over the contract's performance period?

This contract represents $13.4 million in federal spending on electronic computer manufacturing over its nearly five-year duration (September 2005 to September 2010). To contextualize this, one would need to analyze total federal outlays for NAICS code 334111 during that same period. Federal spending on IT hardware can fluctuate significantly based on agency needs, technological obsolescence, and budget allocations. This contract's value, while substantial for a single award, would need to be compared against the aggregate spending across all federal agencies to understand its relative significance within the broader federal procurement landscape for computer manufacturing.

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: SIMPLIFIED ACQUISITION

Evaluated Preference: NONE

Contractor Details

Parent Company: Emtec, Inc. (UEI: 056090210)

Address: 11 DIAMOND RD, SPRINGFIELD, NJ, 07081

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $28,858,582

Exercised Options: $13,604,235

Current Obligation: $13,454,422

Parent Contract

Parent Award PIID: HSCOW9A0028

IDV Type: BPA

Timeline