DoD's Air Force Spends $25.8M on Computer Hardware via BPA Call with HP Inc
Contract Overview
Contract Amount: $25,835,817 ($25.8M)
Contractor: HP Inc.
Awarding Agency: Department of Defense
Start Date: 2016-09-16
End Date: 2017-04-15
Contract Duration: 211 days
Daily Burn Rate: $122.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF AFWAY TRACKING # 241016, ORDER # 285364
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $25.8 million to HP INC. for work described as: IGF::OT::IGF AFWAY TRACKING # 241016, ORDER # 285364 Key points: 1. Significant spending on computer hardware for the Air Force. 2. HP Inc. is the sole awardee under this BPA call. 3. Potential risk associated with a single vendor for a large purchase. 4. Spending falls within the IT sector, specifically computer hardware.
Value Assessment
Rating: fair
The total award amount is $25.8 million. Without specific unit pricing or comparison data for the exact hardware procured, it's difficult to definitively assess value. However, the scale of the purchase suggests a need for competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a full and open competition BPA call. This method allows for broad participation, which generally supports competitive pricing. However, the specific call might have had limited participants.
Taxpayer Impact: Taxpayer funds are used for this purchase. The effectiveness of the competition in securing the best price will directly impact the value for taxpayers.
Public Impact
Military readiness and operational capabilities are supported by this hardware acquisition. The purchase contributes to the Air Force's IT infrastructure modernization efforts. Potential for technology refresh and upgrades for Air Force personnel. Economic impact on HP Inc. and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit cost data for detailed value analysis.
- Reliance on a BPA call, which may limit the scope of competition for this specific order.
Positive Signals
- Awarded under full and open competition, indicating a broad initial search for vendors.
- Firm Fixed Price contract type helps control costs and budget certainty.
Sector Analysis
This spending is within the Information Technology sector, specifically for computer hardware. Benchmarks for similar large-scale hardware procurements by government agencies would be needed for a precise comparison.
Small Business Impact
There is no indication that small businesses were involved in this specific BPA call award. Further analysis would be needed to determine if small business set-asides were considered during the broader BPA establishment.
Oversight & Accountability
The award was made by the Department of the Air Force, part of the Department of Defense. Standard procurement oversight processes would apply, but specific details on oversight for this BPA call are not provided.
Related Government Programs
- Computer and Software Stores
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed product specifications.
- Limited insight into the competitive landscape of the BPA call.
- No explicit mention of small business participation.
- Potential for vendor lock-in if this hardware becomes standard.
Tags
computer-and-software-stores, department-of-defense, il, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to HP INC.. IGF::OT::IGF AFWAY TRACKING # 241016, ORDER # 285364
Who is the contractor on this award?
The obligated recipient is HP INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $25.8 million.
What is the period of performance?
Start: 2016-09-16. End: 2017-04-15.
What specific computer hardware was procured, and how does its pricing compare to market rates at the time of award?
The data indicates the procurement was for computer hardware under NAICS code 443120 (Computer and Software Stores). Without a detailed list of SKUs or models, a direct price comparison is impossible. Market research on average prices for enterprise-grade hardware during 2016-2017 would be necessary to assess if the $25.8 million represented good value.
What were the key factors that led to HP Inc. being the awardee under this specific BPA call, and did they offer the best value?
As this was a BPA call under a previously established full and open competition BPA, HP Inc. likely offered competitive pricing and met the technical requirements outlined in the call. The specific evaluation criteria and the number of other vendors who responded to the call would determine if the best value was achieved for the government.
How effectively did the BPA call mechanism ensure competitive pricing compared to a direct solicitation for this specific requirement?
BPA calls are designed to streamline the procurement process for recurring needs. While the initial BPA was competed broadly, the effectiveness of competition for individual calls depends on the number of participating BPA holders and the specific terms of the call. A direct solicitation might have yielded more focused competition if the requirement was unique.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
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
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: HP, Inc. (UEI: 009122532)
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: $25,835,817
Exercised Options: $25,835,817
Current Obligation: $25,835,817
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877110A0601
IDV Type: BPA
Timeline
Start Date: 2016-09-16
Current End Date: 2017-04-15
Potential End Date: 2017-04-15 00:00:00
Last Modified: 2017-05-11
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