DoD Awards $23M for HP EliteBook Laptops Under Full and Open Competition
Contract Overview
Contract Amount: $22,961,676 ($23.0M)
Contractor: HPI Federal LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2026-01-23
Contract Duration: 115 days
Daily Burn Rate: $199.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE HP ELITEBOOK 645 G11 NOTEBOOK
Place of Performance
Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $23.0 million to HPI FEDERAL LLC for work described as: THE HP ELITEBOOK 645 G11 NOTEBOOK Key points: 1. Significant award for essential computing hardware to a major vendor. 2. Full and open competition suggests a competitive pricing environment. 3. Risk is moderate, tied to hardware obsolescence and vendor lock-in. 4. IT hardware sector is characterized by rapid innovation and price fluctuations.
Value Assessment
Rating: good
The award price of $22.96 million for 115 units appears reasonable given the unit price of approximately $200,000. This benchmark is likely inflated due to bulk purchasing and specific configurations, but further comparison with similar large-scale IT hardware procurements is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing, ensuring the government receives value for its investment.
Taxpayer Impact: The competitive nature of this award is expected to yield favorable pricing for taxpayers, minimizing unnecessary expenditure on essential IT equipment.
Public Impact
Ensures operational readiness for Department of the Army personnel with updated computing resources. Supports the IT hardware manufacturing sector and associated supply chains. Provides a baseline for future IT hardware procurements by establishing a competitive benchmark.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for hardware obsolescence given rapid technological advancements.
- Dependence on a single vendor (HPI Federal LLC) for a large quantity of equipment.
- Risk of scope creep or additional uncompetitive purchases if not managed carefully.
Positive Signals
- Awarded under full and open competition, maximizing potential for competitive pricing.
- Firm fixed price contract provides cost certainty for the government.
- Clear end date and duration for the contract.
Sector Analysis
This procurement falls within the IT hardware sector, specifically electronic computer manufacturing. Spending benchmarks in this area are highly variable due to rapid technological advancements and market competition. The award amount is substantial for a single hardware contract.
Small Business Impact
While this contract was awarded to HPI Federal LLC, a large business, the procurement mechanism (full and open competition) does not inherently exclude small business participation in the broader IT hardware market. However, this specific award does not appear to have direct small business set-aside provisions.
Oversight & Accountability
The award is managed by the Department of the Army, a component of the Department of Defense. Standard DoD oversight procedures for contract management and performance monitoring are expected to be in place to ensure compliance and accountability.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High per-unit cost benchmark requires further justification.
- Potential for vendor lock-in despite initial competition.
- Risk of hardware obsolescence in a rapidly evolving tech market.
- Lack of detail on specific configurations and intended use.
- No explicit small business participation noted in this specific award.
Tags
electronic-computer-manufacturing, department-of-defense, md, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to HPI FEDERAL LLC. THE HP ELITEBOOK 645 G11 NOTEBOOK
Who is the contractor on this award?
The obligated recipient is HPI FEDERAL 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 $23.0 million.
What is the period of performance?
Start: 2025-09-30. End: 2026-01-23.
What is the specific configuration and intended use of these HP EliteBooks to justify the high per-unit cost benchmark?
The provided data does not detail the specific configuration or intended use of the HP EliteBook 645 G11 notebooks. The benchmark price of $199,667 per unit appears exceptionally high and may represent a bundled cost including software, extended warranties, support services, or specialized configurations for military applications, rather than the base hardware cost alone. Further investigation into the detailed contract line items is necessary.
What are the potential risks associated with relying on a single vendor for such a large quantity of laptops, even under competitive bidding?
Even with initial competition, relying on a single vendor for 115 units creates a risk of vendor lock-in for future needs and support. If the vendor's pricing increases significantly in subsequent procurements or if they discontinue specific models, the agency may face higher costs or compatibility issues. Furthermore, dependence on one supplier can limit flexibility in adopting newer technologies or alternative solutions that emerge rapidly in the IT market.
How effectively does this procurement align with the Department of Defense's broader IT modernization and cybersecurity strategies?
This procurement provides essential computing hardware, contributing to the operational capabilities of the Department of the Army. However, its alignment with broader IT modernization and cybersecurity strategies depends on factors not detailed here, such as the specific security features of the EliteBook G11 model, its compatibility with existing DoD networks, and its lifecycle management plan. Ensuring these laptops meet current and future security standards is crucial for effective modernization.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - END USER
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
Address: 1299 PENNSYLVANIA AVE NW STE 475, WASHINGTON, DC, 20004
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,961,676
Exercised Options: $22,961,676
Current Obligation: $22,961,676
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: FA805522A3003
IDV Type: BPA
Timeline
Start Date: 2025-09-30
Current End Date: 2026-01-23
Potential End Date: 2026-02-23 00:00:00
Last Modified: 2026-01-14
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