DoD's Air Force Spent $491K on HP ProBook 640 G2 Notebooks via BPA Call
Contract Overview
Contract Amount: $49,143,052 ($49.1M)
Contractor: HP Inc.
Awarding Agency: Department of Defense
Start Date: 2016-09-20
End Date: 2016-12-19
Contract Duration: 90 days
Daily Burn Rate: $546.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OFFICE NOTEBOOK: HP PROBOOK 640 G2
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $49.1 million to HP INC. for work described as: OFFICE NOTEBOOK: HP PROBOOK 640 G2 Key points: 1. Spending on HP ProBook 640 G2 notebooks totaled $491,430. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract was awarded via a Blanket Purchase Agreement (BPA) Call. 4. The sector is IT hardware procurement, a common area for federal spending.
Value Assessment
Rating: fair
The total award amount of $491,430 for 1 unit (likely a placeholder or error in data) is difficult to assess without quantity. However, the benchmark of $54,603 per unit suggests a potentially high price if multiple units were purchased.
Cost Per Unit: $54,603
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds were used for IT hardware procurement through a competitive process, aiming for value for money.
Public Impact
Procurement of standard IT equipment for military operations. Potential for bulk purchasing discounts if multiple units were acquired. Ensures availability of necessary technology for Air Force personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost benchmark.
- Single unit listed for a large sum.
Positive Signals
- Full and open competition.
- Awarded via BPA Call, potentially streamlining procurement.
Sector Analysis
This purchase falls within the Information Technology sector, specifically hardware procurement. Federal spending on IT hardware is substantial, with benchmarks varying widely based on device type and quantity.
Small Business Impact
The data does not indicate whether small businesses participated in or benefited from this procurement. Further analysis would be needed to determine small business impact.
Oversight & Accountability
The award was made via a BPA Call, which is a mechanism for fulfilling orders under an existing BPA. Oversight would typically involve ensuring the BPA itself was competitively established and that individual calls adhere to its terms.
Related Government Programs
- Computer and Software Stores
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Unclear quantity purchased.
- Extremely high per-unit cost benchmark.
- Potential for data inaccuracy.
- Lack of detail on specific configuration or services included.
Tags
computer-and-software-stores, department-of-defense, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.1 million to HP INC.. OFFICE NOTEBOOK: HP PROBOOK 640 G2
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 $49.1 million.
What is the period of performance?
Start: 2016-09-20. End: 2016-12-19.
What was the actual quantity of notebooks purchased for the $491,430 award?
The provided data lists 'no' (quantity) as 1 for the $491,430 award. This is highly unusual for notebook purchases and suggests a potential data entry error or a specific, non-standard procurement scenario. Clarification on the quantity is essential for accurate value assessment.
How does the $54,603 per-unit benchmark compare to market rates for HP ProBook 640 G2 at the time of award?
The $54,603 per-unit benchmark appears exceptionally high for a notebook, even considering potential bulk discounts or included services. A typical HP ProBook 640 G2 in 2016 would likely cost between $800-$1500. This benchmark warrants further investigation into what it represents.
Was the BPA Call effectively utilized to achieve best value compared to other potential contract vehicles?
Utilizing a BPA Call suggests an existing framework was in place. The effectiveness in achieving best value depends on the terms of the underlying BPA and the specific pricing negotiated for this call. Full and open competition on the BPA itself is a positive indicator, but the high per-unit benchmark raises questions about the ultimate value realized.
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: 1
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: $49,143,052
Exercised Options: $49,143,052
Current Obligation: $49,143,052
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877110A0601
IDV Type: BPA
Timeline
Start Date: 2016-09-20
Current End Date: 2016-12-19
Potential End Date: 2016-12-19 00:00:00
Last Modified: 2017-03-30
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