DOJ's $13.7M HP Blade Maintenance Renewal with New Tech Solutions Raises Questions on Value and Competition
Contract Overview
Contract Amount: $13,720 ($13.7K)
Contractor: NEW Tech Solutions, Inc.
Awarding Agency: Department of Justice
Start Date: 2020-09-15
End Date: 2021-09-14
Contract Duration: 364 days
Daily Burn Rate: $38/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HP BLADE MAINTENANCE RENEWAL
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of Justice obligated $13,720 to NEW TECH SOLUTIONS, INC. for work described as: HP BLADE MAINTENANCE RENEWAL Key points: 1. The contract renewal for HP Blade maintenance at $13.7 million highlights ongoing spending in IT infrastructure support. 2. Competition appears limited, with a renewal following an exclusion of sources, potentially impacting price discovery. 3. The 'Other Computer Related Services' NAICS code suggests a broad category, making direct sector benchmarks challenging. 4. Risk factors may include vendor lock-in and potential overpayment due to restricted competition.
Value Assessment
Rating: questionable
The renewal price of $13.7 million for 364 days of HP Blade maintenance needs closer scrutiny. Without clear benchmarks or competitive bids, it's difficult to ascertain if this price represents fair market value compared to similar support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a non-standard procurement. This method limits the pool of potential bidders and may hinder effective price discovery, potentially leading to higher costs.
Taxpayer Impact: Taxpayer funds are utilized for this renewal. The lack of robust competition raises concerns about whether the government is achieving the best possible price for these essential IT maintenance services.
Public Impact
Ensures continued operation of critical Department of Justice IT infrastructure. Potential for increased costs to taxpayers due to limited competition. Impacts the availability of IT support services for law enforcement and justice programs. Highlights the importance of competitive bidding in government IT procurement.
Waste & Efficiency Indicators
Waste Risk Score: 38 / 10
Warning Flags
- Limited competition
- Potential for overpayment
- Lack of transparency in source exclusion
Positive Signals
- Maintains essential IT services
- Fixed price contract reduces cost uncertainty
Sector Analysis
This contract falls under IT services, specifically hardware maintenance. Spending in this sector is substantial across government agencies, with benchmarks often varying based on hardware type, vendor, and service level agreements. Renewals without open competition warrant careful review.
Small Business Impact
The data does not indicate if small businesses were involved in this specific renewal or if opportunities were provided. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The 'exclusion of sources' clause suggests a specific justification was provided. Oversight should focus on the validity of this exclusion and whether adequate market research was conducted to ensure fair pricing and competition.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Office of Justice Programs Programs
Risk Flags
- Limited competition raises cost concerns.
- Potential for vendor lock-in.
- Lack of transparency regarding source exclusion.
- Need for detailed price justification.
- Absence of small business participation data.
Tags
other-computer-related-services, department-of-justice, dc, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $13,720 to NEW TECH SOLUTIONS, INC.. HP BLADE MAINTENANCE RENEWAL
Who is the contractor on this award?
The obligated recipient is NEW TECH SOLUTIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Office of Justice Programs).
What is the total obligated amount?
The obligated amount is $13,720.
What is the period of performance?
Start: 2020-09-15. End: 2021-09-14.
What was the specific justification for excluding other sources in this HP Blade maintenance renewal?
The justification for excluding other sources is critical for understanding the procurement's integrity. Typically, such exclusions are based on factors like unique capabilities, proprietary technology, or urgent needs where only one vendor can respond. Without this specific justification, it's impossible to assess if the exclusion was warranted or if it merely served to limit competition and potentially inflate costs.
How does the $13.7 million price compare to industry benchmarks for similar HP Blade maintenance contracts?
A direct comparison to industry benchmarks is essential for validating the contract's value. Factors such as the specific HP Blade models, the duration of the maintenance (364 days), the level of support (e.g., 24/7, next-business-day response), and the number of units covered all influence pricing. Without this comparative data, assessing whether the $13.7 million represents a fair market price is speculative.
What is the potential long-term cost implication of repeatedly renewing maintenance contracts with limited competition?
Renewing maintenance contracts with limited competition can lead to escalating costs over time. Vendors may face less pressure to offer competitive pricing, potentially resulting in higher annual increases. This can create a 'vendor lock-in' scenario, making it difficult and costly to switch providers in the future, ultimately impacting the long-term financial efficiency of IT infrastructure management.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 15PTDE20Q00000021
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,720
Exercised Options: $13,720
Current Obligation: $13,720
Actual Outlays: $13,720
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC82B
IDV Type: GWAC
Timeline
Start Date: 2020-09-15
Current End Date: 2021-09-14
Potential End Date: 2021-09-14 00:00:00
Last Modified: 2026-04-03
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