DoD's $16.7M contract for computer equipment and software awarded to Admiral Integration, Inc

Contract Overview

Contract Amount: $16,771,306 ($16.8M)

Contractor: Admiral Integration, Inc

Awarding Agency: Department of Defense

Start Date: 2008-03-26

End Date: 2010-03-31

Contract Duration: 735 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REFINED LEADS

Place of Performance

Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08034

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to ADMIRAL INTEGRATION, INC for work described as: REFINED LEADS Key points: 1. Contract value of $16.7 million over a 2-year period. 2. Awarded under full and open competition after exclusion of sources. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. Performance period spans 735 days. 5. The North American Industry Classification System (NAICS) code is 423430, related to wholesale trade of computer equipment and software. 6. The contract was awarded by the Department of the Army, a component of the Department of Defense. 7. The contractor, Admiral Integration, Inc., is based in New Jersey.

Value Assessment

Rating: fair

The contract value of $16.7 million for computer equipment and software over two years appears to be within a reasonable range for federal procurement of such goods. Without specific details on the exact equipment and software procured, a direct value-for-money assessment is challenging. However, the firm fixed-price nature of the contract suggests that the government has locked in costs, mitigating the risk of cost overruns. Benchmarking against similar large-scale IT procurements would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons, which warrants further investigation. The number of bidders is not specified, but the 'full and open' designation generally implies a competitive process designed to solicit offers from all responsible sources. The level of competition, even with exclusions, should ideally lead to price discovery and potentially better pricing for the government.

Taxpayer Impact: The 'full and open' competition, even with exclusions, suggests an effort to leverage market forces to secure favorable pricing for taxpayers. However, the exclusion of certain sources could potentially limit the competitive landscape and impact the ultimate cost savings.

Public Impact

The Department of the Army benefits from the acquisition of necessary computer equipment and software to support its operations. The contract ensures the availability of critical IT infrastructure for military personnel. The geographic impact is primarily within the Department of the Army's operational areas, wherever the equipment and software are deployed. Workforce implications are indirect, supporting the IT infrastructure that enables military and civilian personnel to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a 'full and open' competition needs clarification to ensure maximum competition.
Lack of specific details on the exact hardware and software procured makes a precise value assessment difficult.
The duration of the contract (735 days) is substantial, requiring ongoing monitoring of performance and value.

Positive Signals

The contract is Firm Fixed Price, which caps the government's financial exposure.
Awarded under a competitive process, aiming for market-driven pricing.
The contractor is a registered entity, implying adherence to federal procurement standards.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on the wholesale distribution of computer equipment and software. The IT sector is a significant area of federal spending, with agencies constantly needing to update and maintain their technological infrastructure. This contract represents a portion of the broader federal IT procurement landscape, which includes hardware, software, and related services. Comparable spending benchmarks would involve analyzing other large-scale procurements for similar IT goods by defense agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Admiral Integration, Inc., is likely a mid-to-large sized business given the contract value. Opportunities for small businesses would typically arise through subcontracting if the prime contractor chooses to engage them, but this is not mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting officers and program managers. Accountability measures are embedded in the Firm Fixed Price contract type, which holds the contractor responsible for delivering specified goods at the agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Department of Defense IT Procurement
Army Computer Hardware Acquisition
Software Licensing and Distribution
Wholesale Trade Services

Risk Flags

Potential for limited competition due to source exclusion.
Lack of detailed product specifications for value assessment.
Need for verification of contractor past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to ADMIRAL INTEGRATION, INC. REFINED LEADS

Who is the contractor on this award?

The obligated recipient is ADMIRAL INTEGRATION, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2008-03-26. End: 2010-03-31.

What specific types of computer equipment and software were procured under this contract?

The provided data identifies the contract under NAICS code 423430, which pertains to 'Computer and Computer Peripheral Equipment and Software Merchant Wholesalers.' This suggests the contract was for the procurement of hardware such as computers, servers, peripherals (keyboards, monitors, printers), and potentially software licenses or packaged software. However, the specific make, model, quantity, and type of software (e.g., operating systems, productivity suites, specialized applications) are not detailed in the summary data. A deeper dive into the contract's statement of work or line item details would be required to ascertain the exact nature of the goods acquired.

How does the $16.7 million contract value compare to similar IT procurements by the Department of the Army?

Benchmarking the $16.7 million contract value requires comparing it to similar procurements for computer equipment and software by the Department of the Army or other Department of Defense components. Without access to a comprehensive database of historical Army IT contracts, a precise comparison is difficult. However, for a two-year period, $16.7 million for wholesale IT goods is a substantial amount, suggesting a significant quantity or high-value items. It is plausible that this contract supported a large-scale refresh of IT assets or provided critical infrastructure for a specific unit or program. Further analysis would involve identifying contracts with similar NAICS codes and contract types awarded over comparable timeframes.

What are the potential risks associated with a 'Full and Open Competition After Exclusion of Sources' award?

A 'Full and Open Competition After Exclusion of Sources' award, while intended to be competitive, carries specific risks. The primary risk is that the exclusion of certain sources, even if justified, may have inadvertently limited the competitive pool. This could lead to less aggressive pricing than might have been achieved in a truly unrestricted competition. It also raises questions about the rationale for exclusion, which could potentially mask non-competitive practices or preferential treatment if not properly documented and justified. Ensuring that the exclusions were based on objective criteria and served a legitimate government purpose is crucial for mitigating these risks and assuring taxpayers of fair value.

What is the track record of Admiral Integration, Inc. in fulfilling federal contracts, particularly for the Department of Defense?

The provided data indicates Admiral Integration, Inc. was awarded this $16.7 million contract by the Department of the Army. To assess their track record, one would need to examine their past performance on federal contracts. This includes reviewing contract completion history, any reported performance issues, past performance evaluations, and any awards or penalties. Information on previous contracts with the Department of Defense or other federal agencies would be particularly relevant. A positive track record would suggest reliability and capability, while a history of issues might indicate potential risks for future procurements.

How does the Firm Fixed Price (FFP) contract type impact cost control and risk for this procurement?

The Firm Fixed Price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and risks are understood. For this procurement of computer equipment and software, FFP means that Admiral Integration, Inc. is obligated to deliver the specified goods at the agreed-upon price, regardless of their actual costs. This shifts the cost risk to the contractor. For the government, it provides budget certainty and protects against cost overruns. The primary risk for the government under FFP is that the contractor may cut corners on quality or service to maintain profitability if their initial cost estimates were too low, or conversely, that the price may be higher than necessary if the contractor's initial estimate was overly conservative.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124D07R0089

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1950 OLD CUTHBERT RD STE L, CHERRY HILL, NJ, 01

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Higher Education, Hispanic American Owned Business, Minority Owned Business, Higher Education (Minority Serving), Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $49,991,308

Exercised Options: $21,291,308

Current Obligation: $16,771,306

Contract Characteristics

Cost or Pricing Data: NO

Timeline