DoD's $24M Computer & Software Stores Contract with HP Inc. Awarded via Full and Open Competition
Contract Overview
Contract Amount: $24,160,036 ($24.2M)
Contractor: HP Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-07
End Date: 2009-09-10
Contract Duration: 1,464 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Place of Performance
Location: GREENBELT, PRINCE GEORGE'S County, MARYLAND, 20770
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $24.2 million to HP INC. for work described as: Key points: 1. Significant contract value of $24.16 million over 4 years. 2. HP Inc. secured the award, indicating strong market presence. 3. Fixed Price Incentive contract type suggests shared risk between government and contractor. 4. The contract falls under the IT sector, specifically computer and software retail.
Value Assessment
Rating: good
The contract's fixed price incentive structure aims to control costs while allowing for adjustments based on performance. Benchmarking against similar IT hardware and software procurements would be necessary for a precise value assessment, but the competitive award suggests a reasonable price point.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing any qualified vendor to bid. This method typically drives competitive pricing and ensures the government receives the best value. The award to HP Inc. indicates they offered the most advantageous proposal.
Taxpayer Impact: Full and open competition generally leads to taxpayer savings by fostering a competitive environment that drives down prices and encourages innovation.
Public Impact
Ensures availability of essential computer hardware and software for Department of Defense operations. Supports military readiness by providing necessary technological equipment. Potential for technology refresh and access to updated software solutions. Impacts IT infrastructure across various DoD branches.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 4 years may lead to technology obsolescence.
- Fixed Price Incentive contracts can sometimes lead to cost overruns if not managed carefully.
Positive Signals
- Awarded through full and open competition, maximizing value.
- HP Inc. is a reputable supplier of IT equipment.
- Contract supports critical defense logistics.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on the procurement of computer hardware and software through retail channels. Spending benchmarks for similar IT procurements by the DoD are typically high, reflecting the constant need for technological upgrades and maintenance.
Small Business Impact
While the award went to a large prime contractor (HP Inc.), the contract's broad scope may create opportunities for small businesses as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Defense Logistics Agency (DLA) is responsible for overseeing this contract. Standard procurement oversight processes, including performance monitoring and compliance checks, would be in place to ensure accountability and adherence to contract terms.
Related Government Programs
- Computer and Software Stores
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Potential for technology obsolescence due to contract length.
- Fixed Price Incentive contracts require diligent oversight to manage cost risks.
- Lack of specific detail on small business subcontracting.
- Historical data may not reflect current market prices or technological capabilities.
Tags
computer-and-software-stores, department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to HP INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is HP INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $24.2 million.
What is the period of performance?
Start: 2005-09-07. End: 2009-09-10.
What specific types of computer hardware and software were procured under this contract, and how do they align with current DoD technological needs?
The contract falls under the 'Computer and Software Stores' category (NAICS 443120), suggesting a broad range of IT products. Without specific line-item details, it's difficult to ascertain precise alignment. However, the contract's duration (2005-2009) implies it covered hardware and software prevalent during that period, potentially including operating systems, office productivity suites, and various computer components.
What were the key performance metrics and incentive structures within the Fixed Price Incentive (FPI) contract, and how did they mitigate risk for the government?
An FPI contract establishes a target cost, target profit, and a price ceiling. The final price is determined by the contractor's actual cost, with profit adjusting based on cost variances, up to the ceiling. This structure incentivizes the contractor to control costs while sharing the risk of cost overruns with the government, aiming for a balance between cost efficiency and performance.
How effectively did the full and open competition process ensure the best value was achieved for taxpayers, considering the $24 million expenditure?
Full and open competition is designed to maximize value by encouraging multiple bidders to offer their best prices and terms. The fact that the contract was awarded competitively suggests that the government received proposals that met its requirements at a price deemed advantageous. However, a definitive assessment of 'best value' would require comparing the awarded price and terms against other bids received and the overall lifecycle cost of the procured items.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: HP, Inc. (UEI: 009122532)
Address: 6600 ROCKLEDGE DR STE 150, BETHESDA, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: GS35F4663G
IDV Type: FSS
Timeline
Start Date: 2005-09-07
Current End Date: 2009-09-10
Potential End Date: 2009-09-10 00:00:00
Last Modified: 2010-06-09
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