Agriculture's OCIO Spends $3.3M on Network Hardware Refresh via Sterling Computers BPA

Contract Overview

Contract Amount: $3,294,610 ($3.3M)

Contractor: Sterling Computers Corporation

Awarding Agency: Department of Agriculture

Start Date: 2024-09-16

End Date: 2026-09-30

Contract Duration: 744 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24 OCIO CEC NETWORK HARDWARE REFRESH DAETS CISCO BPA STERLING QUOTE Q-00G23749 MIKE.BOUSQUET@STERLING.COM TOTAL AMOUNT: $3,294,610.00 PERIOD OF PERFORMANCE (POP): DATE OF AWARD - 6 MONTHS FROM AWARD AAR: 255758 INVESTMENT: 005-00

Place of Performance

Location: NORTH SIOUX CITY, UNION County, SOUTH DAKOTA, 57049

State: South Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.3 million to STERLING COMPUTERS CORPORATION for work described as: FY24 OCIO CEC NETWORK HARDWARE REFRESH DAETS CISCO BPA STERLING QUOTE Q-00G23749 MIKE.BOUSQUET@STERLING.COM TOTAL AMOUNT: $3,294,610.00 PERIOD OF PERFORMANCE (POP): DATE OF AWARD - 6 MONTHS FROM AWARD AAR: 255758 INVESTMENT: 005-00 Key points: 1. The Department of Agriculture's OCIO is procuring network hardware valued at $3.3 million. 2. The contract was awarded to Sterling Computers Corporation under a full and open competition. 3. The period of performance is 6 months from award, indicating a focused refresh effort. 4. This spending falls under the Electronic Computer Manufacturing sector (NAICS 334111).

Value Assessment

Rating: fair

The total contract amount is $3,294,610.00. Without specific unit pricing or a detailed breakdown of the hardware being refreshed, it is difficult to benchmark against similar contracts. However, the firm fixed-price nature suggests a defined cost expectation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which generally promotes competitive pricing. The use of a BPA call suggests that Sterling Computers Corporation was likely selected from pre-negotiated terms, but the specific price discovery mechanism within that BPA is not detailed here.

Taxpayer Impact: Taxpayer funds are being used for essential network hardware upgrades within the Department of Agriculture's OCIO.

Public Impact

Ensures continued operational efficiency for the Office of the Chief Financial Officer. Supports the agency's IT infrastructure with updated network components. Potential for improved cybersecurity posture with modern hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited period of performance (6 months) may indicate urgency or a phased approach.
Lack of detailed hardware specifications makes cost-effectiveness assessment challenging.
Reliance on a single BPA call without further competition details.

Positive Signals

Full and open competition process.
Firm fixed-price contract type.
Clear investment category (005-00).

Sector Analysis

This procurement falls within the IT hardware sector, specifically electronic computer manufacturing. Spending benchmarks for network hardware refreshes can vary widely based on agency size, scope of upgrades, and specific technologies deployed. This $3.3 million expenditure appears to be a significant investment for a single refresh cycle.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false). Therefore, small businesses were likely not the primary focus of this specific procurement, although they may participate as subcontractors.

Oversight & Accountability

The award is a BPA call, suggesting it falls under a broader existing agreement. Oversight would involve ensuring the terms of the BPA are met and that the hardware procured aligns with agency needs and specifications.

Related Government Programs

Electronic Computer Manufacturing
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Limited visibility into specific hardware and unit costs.
Short period of performance may indicate potential execution risks.
Reliance on a BPA call without explicit details on price discovery.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.3 million to STERLING COMPUTERS CORPORATION. FY24 OCIO CEC NETWORK HARDWARE REFRESH DAETS CISCO BPA STERLING QUOTE Q-00G23749 MIKE.BOUSQUET@STERLING.COM TOTAL AMOUNT: $3,294,610.00 PERIOD OF PERFORMANCE (POP): DATE OF AWARD - 6 MONTHS FROM AWARD AAR: 255758 INVESTMENT: 005-00

Who is the contractor on this award?

The obligated recipient is STERLING COMPUTERS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2024-09-16. End: 2026-09-30.

What specific network hardware components are included in this refresh, and how do their unit costs compare to market averages?

The provided data lacks specific details on the network hardware components being refreshed. To assess value, a detailed list of items (e.g., routers, switches, firewalls) and their quantities is necessary. Comparing unit costs against industry benchmarks for similar enterprise-grade equipment would reveal if the pricing is competitive or inflated, directly impacting the taxpayer's return on investment.

What is the risk associated with the short 6-month period of performance for a network hardware refresh?

A short 6-month period of performance for a network hardware refresh could pose risks if there are supply chain delays, installation complexities, or unforeseen technical issues. It might indicate an urgent need, potentially leading to rushed decisions or premium pricing for expedited delivery. It also limits the time for thorough testing and integration, increasing the risk of post-deployment problems.

How effective is a full and open competition via a BPA call in ensuring the best value for network hardware?

A full and open competition via a BPA call can be effective if the underlying BPA was established through a robust competitive process and includes favorable pricing. However, the effectiveness hinges on whether the specific call truly leverages competition or defaults to pre-negotiated, potentially less competitive, pricing. Without visibility into the BPA's terms and the call process, its effectiveness in achieving best value remains uncertain.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 303 CENTENNIAL DR, NORTH SIOUX CITY, SD, 57049

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,294,610

Exercised Options: $3,294,610

Current Obligation: $3,294,610

Actual Outlays: $2,555,844

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12314424A0004

IDV Type: BPA

Timeline