Navy DSRC Order 23: $30.8M for Electronic Computer Manufacturing by Penguin Computing, Inc
Contract Overview
Contract Amount: $30,827,376 ($30.8M)
Contractor: Penguin Computing, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-04-16
End Date: 2026-04-03
Contract Duration: 1,813 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TECHNICAL INSERTION (TI-21) - BASE SYSTEM - NAVY DSRC ORDER 23
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39522
Plain-Language Summary
Department of Defense obligated $30.8 million to PENGUIN COMPUTING, INC. for work described as: TECHNICAL INSERTION (TI-21) - BASE SYSTEM - NAVY DSRC ORDER 23 Key points: 1. The contract is for a base system (TI-21) with a significant value of $30.8 million. 2. Penguin Computing, Inc. is the sole awardee under a full and open competition. 3. The contract duration is 1813 days, ending in April 2026. 4. The NAICS code 334111 indicates a focus on Electronic Computer Manufacturing. 5. This is a delivery order under a larger contract vehicle.
Value Assessment
Rating: fair
The contract value of $30.8M for a base system over nearly 5 years appears reasonable given the scope. However, without specific performance metrics or comparable system costs, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently by securing favorable pricing.
Public Impact
Supports critical Navy data center operations. Ensures availability of essential computing infrastructure. Impacts military readiness and communication capabilities. Potential for technology refresh and upgrades over the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics for value assessment.
- Limited insight into the 'base system' details.
- Potential for cost overruns if requirements expand.
Positive Signals
- Awarded via full and open competition.
- Long-term contract provides stability.
- Clear awardee and contract type.
Sector Analysis
The IT hardware manufacturing sector is highly competitive, with significant government spending. Benchmarks for similar base system procurements would provide better context for this $30.8M award.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The awardee, Penguin Computing, Inc., is not identified as a small business in this context, suggesting larger prime contractors are involved.
Oversight & Accountability
As a delivery order under a larger contract, oversight may be managed through the parent contract's existing mechanisms. Specific oversight for this order would depend on the contracting agency's procedures.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for obsolescence in rapidly evolving IT sector.
- Dependence on a single vendor for critical infrastructure.
- Lack of detailed technical specifications in award data.
- Long contract duration may not align with rapid tech advancements.
Tags
electronic-computer-manufacturing, department-of-defense, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to PENGUIN COMPUTING, INC.. TECHNICAL INSERTION (TI-21) - BASE SYSTEM - NAVY DSRC ORDER 23
Who is the contractor on this award?
The obligated recipient is PENGUIN COMPUTING, 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 $30.8 million.
What is the period of performance?
Start: 2021-04-16. End: 2026-04-03.
What specific capabilities does the TI-21 base system provide, and how do these align with current Navy DSRC requirements?
The provided data lacks specifics on the TI-21 base system's capabilities. Understanding its function within the Navy's Digital Ready Compute (DSRC) infrastructure is crucial for assessing its necessity and effectiveness. Further details on its role in data processing, storage, or network support would be needed to determine alignment with operational needs.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure value for money?
The data does not specify any Key Performance Indicators (KPIs) for this contract. To ensure value for money, the Navy should establish and track metrics related to system uptime, performance, reliability, and support response times. Without defined KPIs, assessing the contractor's performance and the overall return on the $30.8 million investment becomes challenging.
How does the pricing structure (firm fixed price) mitigate risks associated with potential scope creep or unforeseen technical challenges?
A firm fixed price (FFP) contract generally shifts the risk of cost overruns to the contractor. However, for complex technical systems, FFP can sometimes lead to the contractor cutting corners on quality or scope if unforeseen challenges arise. Clear contract language defining deliverables and change order procedures is essential to manage risks effectively.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DY18R0025
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Penguin Computing Inc.
Address: 45800 NORTHPORT LOOP W, FREMONT, CA, 94538
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $34,649,376
Exercised Options: $30,827,376
Current Obligation: $30,827,376
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY19G0004
IDV Type: BOA
Timeline
Start Date: 2021-04-16
Current End Date: 2026-04-03
Potential End Date: 2028-04-03 00:00:00
Last Modified: 2025-12-31
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