Agriculture Dept. Buys 7 Dell Laptops for $14,810 via BPA Call, Raising Value Questions

Contract Overview

Contract Amount: $14,811 ($14.8K)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-08-01

End Date: 2024-11-29

Contract Duration: 120 days

Daily Burn Rate: $123/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELL LATITUDE 5550 LAPTOPS (5EA) AND DELL MOBILE PRECISION 7680 LAPTOPS (2EA). A.BUCK/DPMRU DPMRU_ UNIT LAPTOP FY2024 LIFECYCLE REPLACEMENT OF DPRMU LAPTOPS. USING BPA NEW TECH SOLUTIONS 12314423A0004 AND ACCEPTED CATALOG

Place of Performance

Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $14,810.86 to NEW TECH SOLUTIONS, INC. for work described as: DELL LATITUDE 5550 LAPTOPS (5EA) AND DELL MOBILE PRECISION 7680 LAPTOPS (2EA). A.BUCK/DPMRU DPMRU_ UNIT LAPTOP FY2024 LIFECYCLE REPLACEMENT OF DPRMU LAPTOPS. USING BPA NEW TECH SOLUTIONS 12314423A0004 AND ACCEPTED CATALOG Key points: 1. Spending on 7 Dell laptops totals $14,810, averaging over $2,100 per unit. 2. Competition was full and open, but the BPA call method may limit price discovery. 3. Risk of overpayment exists due to high per-unit cost for standard laptops. 4. IT hardware procurement sector sees significant volume, but unit costs vary widely.

Value Assessment

Rating: questionable

The average cost of $2,115 per laptop appears high for Dell Latitude and Precision models, even for enterprise configurations. Benchmarking against GSA schedules or other agency contracts for similar models is recommended to confirm fair pricing.

Cost Per Unit: $2,115

Competition Analysis

Competition Level: full-and-open

The contract was awarded via a BPA call under an existing BPA, which allows for full and open competition. However, the reliance on an accepted catalog may not always yield the lowest possible price compared to direct solicitation.

Taxpayer Impact: Taxpayer funds are used for this purchase. While competition was present, the high per-unit cost suggests potential for inefficient use of funds if pricing is not aggressively negotiated.

Public Impact

Federal agencies rely on laptops for daily operations, impacting productivity. Procurement of IT hardware is a significant area of federal spending. Ensuring competitive pricing for standard equipment protects taxpayer dollars. The use of BPAs can streamline acquisition but requires careful oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost
Potential for better pricing through direct negotiation
Limited price comparison data available

Positive Signals

Procurement conducted under existing BPA
Full and open competition utilized
Clear need for lifecycle replacement

Sector Analysis

This purchase falls within the IT hardware sector, specifically computer equipment. Federal agencies regularly procure laptops, with spending benchmarks varying based on model, configuration, and quantity. The average cost here seems elevated compared to typical bulk purchases.

Small Business Impact

The contract was awarded to NEW TECH SOLUTIONS, INC., a company that may or may not be a small business. Further analysis is needed to determine the impact on small business participation in this specific procurement.

Oversight & Accountability

The use of a BPA call suggests some level of pre-competed framework. However, oversight is needed to ensure the specific call resulted in the best value and fair pricing, especially given the per-unit cost.

Related Government Programs

Electronic Computer Manufacturing
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

High per-unit cost
Potential for overpayment
Limited price transparency
Reliance on catalog pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $14,810.86 to NEW TECH SOLUTIONS, INC.. DELL LATITUDE 5550 LAPTOPS (5EA) AND DELL MOBILE PRECISION 7680 LAPTOPS (2EA). A.BUCK/DPMRU DPMRU_ UNIT LAPTOP FY2024 LIFECYCLE REPLACEMENT OF DPRMU LAPTOPS. USING BPA NEW TECH SOLUTIONS 12314423A0004 AND ACCEPTED CATALOG

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $14,810.86.

What is the period of performance?

Start: 2024-08-01. End: 2024-11-29.

Is the per-unit cost of $2,115 for these Dell laptops justified given the specific configurations and the lifecycle replacement context?

The justification for the $2,115 per-unit cost is unclear without detailed specifications for the Dell Latitude 5550 and Precision 7680 models. Enterprise-grade laptops with advanced features can be costly, but this price point warrants comparison against similar government contracts and commercial pricing to ensure value for money.

What is the risk associated with using a BPA call for this type of hardware acquisition?

The primary risk with a BPA call is that while it leverages pre-competed agreements, it might not achieve the same level of price negotiation as a direct solicitation for a specific need. This can lead to paying a premium if the catalog pricing or pre-negotiated rates are not aggressively competitive.

How effective is the full and open competition method when utilizing an existing BPA catalog for laptop purchases?

Full and open competition via a BPA catalog is effective in ensuring multiple vendors can bid on the underlying BPA. However, for a specific call, the effectiveness in achieving the best price depends on the competitiveness of the catalog itself and whether the agency actively sought the lowest price within that framework.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,811

Exercised Options: $14,811

Current Obligation: $14,811

Actual Outlays: $14,811

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12314423A0004

IDV Type: BPA

Timeline