Department of Labor awards $27.2M for HPE Hardware Support Services to Colossal Contracting LLC

Contract Overview

Contract Amount: $27,219 ($27.2K)

Contractor: Colossal Contracting LLC

Awarding Agency: Department of Labor

Start Date: 2026-04-06

End Date: 2026-04-07

Contract Duration: 1 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HEWLETT PACKARD ENTERPRISE (HPE) HARDWARE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $27,219 to COLOSSAL CONTRACTING LLC for work described as: HEWLETT PACKARD ENTERPRISE (HPE) HARDWARE SUPPORT SERVICES Key points: 1. The contract is for essential hardware support services for Hewlett Packard Enterprise (HPE) equipment. 2. Colossal Contracting LLC is the awardee, with the contract valued at $27.2 million. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The period of performance is very short, spanning from April 6, 2026, to April 7, 2026. 5. This appears to be a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $27.2 million for a single day of service seems exceptionally high. Without more context on the scope and duration of the underlying contract, it's difficult to assess if this pricing is reasonable for the services rendered.

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. However, the extremely short performance period raises questions about the typical procurement process and whether it allowed for adequate price discovery.

Taxpayer Impact: The taxpayer impact is tied to the $27.2 million award, which appears to be for a very limited service period, suggesting potential inefficiency if not justified by specific, urgent needs.

Public Impact

Government reliance on specific hardware vendors like HPE necessitates ongoing support contracts. The short performance window could indicate an urgent, short-term need or a placeholder for a longer-term arrangement. Transparency in the justification for excluding other sources, if applicable, is crucial for public trust. The significant value for a single day of service warrants scrutiny to ensure taxpayer funds are used efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unusually short performance period for a large contract value.
Potential for overpayment given the single-day duration.
Lack of clarity on the specific services provided within the short timeframe.

Positive Signals

Awarded under full and open competition.
Clear contract awardee and agency.

Sector Analysis

The IT hardware support sector is critical for maintaining government operations. Spending benchmarks vary widely based on the type of hardware, vendor, and service level agreements. A $27.2 million award for a single day of support is highly anomalous and suggests a specific, potentially urgent, requirement or a component of a larger, unstated procurement.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this specific award or the underlying contract vehicle. Further investigation would be needed to determine small business participation.

Oversight & Accountability

Oversight would focus on the justification for the high value associated with the extremely short performance period. The Department of Labor's Office of the Assistant Secretary for Administration and Management is responsible for ensuring proper contract execution and financial stewardship.

Related Government Programs

Other Computer Related Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

High cost for a single day of service.
Extremely short contract performance period.
Potential lack of detailed justification for the award value.
Ambiguity in the 'exclusion of sources' rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $27,219 to COLOSSAL CONTRACTING LLC. HEWLETT PACKARD ENTERPRISE (HPE) HARDWARE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $27,219.

What is the period of performance?

Start: 2026-04-06. End: 2026-04-07.

What specific HPE hardware is covered by this support contract, and what justifies the $27.2 million cost for a single day of service?

The data does not specify the exact HPE hardware. The exceptionally high cost for a single day suggests it might cover a critical, large-scale event, a complex system migration, or a highly specialized support requirement. Without further details on the scope of work, the justification for this price point remains unclear and warrants detailed examination by the agency.

What is the rationale behind the extremely short performance period (one day) for such a substantial contract value?

A one-day performance period for a $27.2 million contract is highly unusual. It could represent a critical, time-sensitive operational need, a transition period, or a specific event requiring immediate, high-level support. The agency must have a documented justification for this compressed timeline, ensuring it aligns with mission requirements and avoids unnecessary expenditure.

How does the 'full and open competition after exclusion of sources' process ensure optimal value and prevent potential price inflation for this service?

While 'full and open competition' aims for best value, the 'after exclusion of sources' clause implies specific criteria limited the pool of potential bidders. The agency must demonstrate that this exclusion was justified and that the competitive process, even if limited, still yielded a fair and reasonable price for the services rendered, especially given the high value and short duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605TB-26-Q-00034

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,219

Exercised Options: $27,219

Current Obligation: $27,219

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD72B

IDV Type: GWAC

Timeline