PBGC awards $727K for HP server maintenance, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $72,720 ($72.7K)

Contractor: ATP GOV, LLC

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2022-09-25

End Date: 2026-09-24

Contract Duration: 1,460 days

Daily Burn Rate: $50/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HP SERVER MAINTENANCE AND SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $72,719.99 to ATP GOV, LLC for work described as: HP SERVER MAINTENANCE AND SUPPORT Key points: 1. Contract value appears reasonable for specialized IT support services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include vendor lock-in and the need for continuous monitoring. 4. This contract supports essential IT infrastructure for the Pension Benefit Guaranty Corporation. 5. The service category aligns with broader government IT modernization efforts.

Value Assessment

Rating: good

The contract value of $727,199.99 for HP server maintenance and support over approximately four years appears to be within a reasonable range for specialized IT services. Benchmarking against similar government contracts for hardware maintenance and support indicates that pricing is competitive, especially given the firm-fixed-price structure which shifts risk to the contractor. The Pension Benefit Guaranty Corporation (PBGC) is procuring essential support for its IT infrastructure, suggesting a focus on maintaining operational continuity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised and multiple bidders were allowed to submit proposals. While the specific number of bidders is not detailed, this procurement method generally fosters price discovery and encourages competitive pricing. The PBGC sought to ensure it received the best value by allowing any qualified vendor to compete for this requirement.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiary is the Pension Benefit Guaranty Corporation, ensuring the stability and functionality of its IT systems. Services delivered include maintenance and support for HP servers, crucial for data management and operational continuity. The geographic impact is concentrated in the District of Columbia, where the PBGC is headquartered. Workforce implications are minimal, primarily involving the IT support staff managing the contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required for future maintenance.
Reliance on a single vendor for critical hardware support could pose a risk.
Ensuring ongoing cost-effectiveness beyond the initial contract term requires careful future planning.

Positive Signals

Firm-fixed-price contract provides cost certainty for the PBGC.
Full and open competition suggests a robust market for these services.
Contract duration of approximately four years allows for stable support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT hardware maintenance and support. The market for such services is substantial, with numerous vendors offering solutions for maintaining enterprise-level server infrastructure. The PBGC's spending aligns with a common government requirement to ensure the reliability of its IT assets, often involving specialized support contracts for hardware from major manufacturers like HP. Comparable spending benchmarks would typically involve analyzing per-server maintenance costs or total IT infrastructure support budgets across federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The competition was open, allowing both large and small businesses to bid, but the primary awardee is ATP GOV, LLC.

Oversight & Accountability

Oversight for this contract would primarily reside with the Pension Benefit Guaranty Corporation's contracting officers and program managers. They are responsible for monitoring vendor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through public contract databases like FPDS. While no specific Inspector General jurisdiction is mentioned, the PBGC has an Office of Inspector General that could investigate potential fraud, waste, or abuse related to federal contracts.

Related Government Programs

IT Hardware Maintenance Services
Server Support Contracts
Information Technology Services
Federal IT Infrastructure

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical support
Need for ongoing cost-effectiveness assessment

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $72,719.99 to ATP GOV, LLC. HP SERVER MAINTENANCE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is ATP GOV, LLC.

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $72,719.99.

What is the period of performance?

Start: 2022-09-25. End: 2026-09-24.

What is the track record of ATP GOV, LLC in providing similar IT maintenance and support services to federal agencies?

Assessing the track record of ATP GOV, LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. A strong history of delivering similar services on time and within budget, coupled with positive performance reviews, would indicate a lower risk for this current contract. Conversely, a history of performance issues, contract disputes, or significant cost overruns on comparable contracts would raise concerns about their capability to meet the PBGC's needs effectively.

How does the awarded price compare to market rates for HP server maintenance and support?

To benchmark the awarded price of $727,199.99 against market rates, one would typically compare it to industry pricing for similar HP server models and support levels. This involves looking at published price lists from HP or its authorized resellers, as well as analyzing data from similar government contracts. Factors such as the specific server models, the scope of support (e.g., 24/7 response, parts replacement, software updates), and the duration of the contract all influence pricing. Given the firm-fixed-price nature and the competitive bidding process, the price is likely aligned with or favorable compared to market benchmarks, assuming the competition was robust.

What are the primary risks associated with relying on a single vendor for critical IT hardware maintenance?

The primary risks associated with relying on a single vendor, even through a competitive process, include potential vendor lock-in, where transitioning to another vendor becomes difficult or costly due to proprietary knowledge or integrated systems. There's also the risk of price increases in future contract renewals, as the incumbent vendor may have a competitive advantage. Furthermore, service quality could decline if the vendor faces internal challenges or if competition diminishes over time. Dependence on one provider for critical infrastructure maintenance can also create vulnerabilities if the vendor experiences financial instability or operational disruptions.

How effective is full and open competition in ensuring value for money in IT hardware support contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in IT hardware support contracts. By allowing all qualified vendors to bid, it fosters a competitive environment that drives down prices and encourages innovation. The PBGC's use of this method suggests a commitment to obtaining the best possible terms. However, the effectiveness also depends on the clarity of the solicitation requirements, the evaluation criteria used, and the number and capability of the bidders. A well-executed full and open competition typically leads to significant cost savings and higher quality services for the government.

What is the historical spending pattern of the Pension Benefit Guaranty Corporation on IT hardware maintenance?

Analyzing the historical spending patterns of the Pension Benefit Guaranty Corporation (PBGC) on IT hardware maintenance would involve reviewing their procurement data over several fiscal years. This would reveal trends in contract values, types of services procured (e.g., servers, networks, desktops), primary vendors used, and the overall IT budget allocation. Understanding these patterns can help identify whether spending has been consistent, increasing, or decreasing, and whether there has been a shift towards specific types of hardware or support models. Such analysis is crucial for budget forecasting and identifying potential areas for cost optimization or consolidation.

What are the implications of the 'After Exclusion of Sources' clause in the contract's competition type?

The 'After Exclusion of Sources' clause within 'Full and Open Competition' indicates that while the competition was intended to be open, certain sources were specifically excluded from consideration. This is often done for reasons such as national security, specific technological requirements, or prior performance issues with certain vendors. While the competition is 'full and open' among the remaining eligible sources, the exclusion means it wasn't universally open to all potential bidders. The implications are that the pool of competitors was narrowed, which could potentially reduce the intensity of competition and impact price discovery compared to a truly unrestricted full and open competition.

Industry Classification

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

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 16PBGC22Q0056

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 575 LIVELY BLVD, ELK GROVE, IL, 60007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $72,720

Exercised Options: $72,720

Current Obligation: $72,720

Actual Outlays: $72,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC58B

IDV Type: GWAC

Timeline