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 TradeElectronics and Appliance StoresComputer 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

More Contracts from HP Inc.

View all HP Inc. federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending