DoD's $29M AFRL Order to HPE Government LLC for Electronic Computer Manufacturing Shows Fair Competition
Contract Overview
Contract Amount: $29,063,809 ($29.1M)
Contractor: HPE Government, LLC
Awarding Agency: Department of Defense
Start Date: 2017-12-21
End Date: 2023-12-08
Contract Duration: 2,178 days
Daily Burn Rate: $13.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF - TI-17 AFRL ORDER 13
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $29.1 million to HPE GOVERNMENT, LLC for work described as: IGF::OT::IGF - TI-17 AFRL ORDER 13 Key points: 1. Spending of $29.06M on electronic computer manufacturing. 2. HPE Government LLC secured the contract. 3. Full and open competition was utilized. 4. Contract duration spans 2178 days. 5. Firm fixed price contract type.
Value Assessment
Rating: good
The contract value of $29.06M for electronic computer manufacturing appears reasonable given the long duration and the nature of the goods. Benchmarking against similar large-scale IT hardware procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes competitive pricing and potentially lower costs for government procurements.
Public Impact
Ensures the Department of the Army has necessary electronic computing hardware. Supports military research and development capabilities through advanced technology. HPE Government LLC's role highlights significant private sector involvement in defense. Long contract duration suggests a sustained need for these computing resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for technology obsolescence over the contract's long duration.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Long-term commitment indicates strategic importance.
Sector Analysis
This contract falls within the IT sector, specifically electronic computer manufacturing. Spending benchmarks for similar large-scale hardware procurements for defense agencies can vary widely based on technological requirements and scale.
Small Business Impact
The data indicates the prime contractor is HPE Government, LLC, a large business. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific contract.
Oversight & Accountability
The contract was awarded by the Department of the Army, with oversight likely managed by the Air Force Research Laboratory (AFRL) given the 'AFRL ORDER' designation. Standard procurement oversight processes would apply.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration increases obsolescence risk.
- Lack of detailed technical specifications.
- Potential for missed savings due to fixed pricing in a dynamic market.
- No explicit mention of small business subcontracting goals.
Tags
electronic-computer-manufacturing, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.1 million to HPE GOVERNMENT, LLC. IGF::OT::IGF - TI-17 AFRL ORDER 13
Who is the contractor on this award?
The obligated recipient is HPE GOVERNMENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $29.1 million.
What is the period of performance?
Start: 2017-12-21. End: 2023-12-08.
What specific types of electronic computers are being procured, and how do their specifications align with current technological needs?
The provided data specifies 'Electronic Computer Manufacturing' under NAICS code 334111 but lacks granular detail on the exact types of computers. Understanding if these are high-performance computing systems, servers, or specialized workstations is crucial. Their alignment with current technological needs would depend on the specific mission requirements of the AFRL, which are not detailed here.
What is the potential risk of technological obsolescence given the contract's duration of nearly six years?
A contract duration of 2178 days (approximately 5.9 years) for electronic computer hardware carries a significant risk of technological obsolescence. Rapid advancements in computing power, efficiency, and architecture mean that hardware procured at the beginning of the contract could be outdated by its end, potentially impacting performance and supportability.
How does the firm fixed price structure impact the government's ability to benefit from potential market price decreases during the contract period?
A firm fixed price (FFP) contract locks in the price at the time of award, offering cost certainty to the government. However, it limits the government's ability to benefit from potential market price decreases for components or finished goods that might occur during the contract's long duration. The contractor assumes the risk of cost increases, but the government foregoes potential savings from price drops.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: HPE Government LLC
Address: 420 NATIONAL BUSINESS PKWY STE 180, ANNAPOLIS JUNCTION, MD, 20701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,120,499
Exercised Options: $29,120,499
Current Obligation: $29,063,809
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY13G0025
IDV Type: BOA
Timeline
Start Date: 2017-12-21
Current End Date: 2023-12-08
Potential End Date: 2023-12-08 00:00:00
Last Modified: 2024-05-15
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