Department of State awards $11.7M for GITM Desktop and Monitors, with 2 bids received

Contract Overview

Contract Amount: $11,690,526 ($11.7M)

Contractor: Government Acquisitions Inc

Awarding Agency: Department of State

Start Date: 2025-09-23

End Date: 2025-11-28

Contract Duration: 66 days

Daily Burn Rate: $177.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GITM DESKTOP AND MONITORS- NEW REQUEST

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $11.7 million to GOVERNMENT ACQUISITIONS INC for work described as: GITM DESKTOP AND MONITORS- NEW REQUEST Key points: 1. Value appears reasonable given the scope of IT hardware and related services. 2. Competition was limited, with only two bids submitted, potentially impacting price discovery. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This contract supports essential IT infrastructure for the Department of State. 5. The vendor has a track record with government contracts, though specific performance data is limited. 6. The contract duration is relatively short, suggesting a focused need.

Value Assessment

Rating: good

The contract value of approximately $11.7 million for desktop computers and monitors seems within a reasonable range for a federal agency of the Department of State's size. Benchmarking against similar IT hardware procurements for large agencies suggests this is competitive. The firm fixed-price structure further enhances value by locking in costs. However, without detailed specifications of the hardware and services, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while full and open competition was intended, specific sources may have been excluded prior to the solicitation. Only two bids were received, which suggests a potentially limited pool of interested and capable vendors for this specific requirement. This level of competition may not have driven the most aggressive pricing.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most competitive pricing that a broader competition could have yielded. The government may have paid a premium due to the limited number of offers.

Public Impact

Department of State personnel will benefit from updated desktop hardware and monitors, improving operational efficiency. Essential IT services supporting agency operations and national security functions are delivered. The primary geographic impact is within the Department of State's operational facilities. The contract supports the IT services workforce, potentially including technicians for deployment and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher prices for taxpayers.
The specific nature of 'exclusion of sources' warrants further investigation to ensure fairness.
Dependence on a limited number of vendors for critical IT hardware can pose supply chain risks.

Positive Signals

Firm fixed-price contract minimizes cost overrun risk.
The awardee has prior experience with government contracts.
The contract supports essential IT infrastructure for a key federal agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer hardware procurement and related services. The market for federal IT hardware is substantial, with agencies constantly needing to refresh equipment to maintain security and performance standards. Comparable spending benchmarks for similar IT refresh cycles across large federal agencies often run into tens or hundreds of millions of dollars annually, making this $11.7 million award a moderate-sized procurement within this context.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of IT hardware procurement for a large agency, it is likely that the primary awardee is a large business. Subcontracting opportunities for small businesses may exist, particularly in areas like installation, configuration, or support services, but this is not explicitly detailed in the provided data.

Oversight & Accountability

The Department of State's acquisition regulations and the Federal Acquisition Regulation (FAR) provide the primary oversight for this contract. Accountability is maintained through the firm fixed-price structure and delivery schedules. Transparency is facilitated by contract award databases, though detailed performance metrics are not publicly available. The Department of State's Office of Inspector General may conduct audits or investigations if specific concerns arise regarding performance or compliance.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Hardware Procurement
Desktop Computer and Monitor Supply Contracts
Information Technology Services Contracts

Risk Flags

Limited competition may result in suboptimal pricing.
The specific reasons for excluding sources require further clarification.
Vendor performance history needs detailed review for risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.7 million to GOVERNMENT ACQUISITIONS INC. GITM DESKTOP AND MONITORS- NEW REQUEST

Who is the contractor on this award?

The obligated recipient is GOVERNMENT ACQUISITIONS INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2025-09-23. End: 2025-11-28.

What is the specific track record of Government Acquisitions Inc. with Department of State contracts?

Government Acquisitions Inc. (GAI) has a history of securing contracts with various federal agencies, including the Department of State. While the provided data indicates GAI as the contractor, a deeper dive into their past performance with the State Department would be necessary to assess their reliability and quality of service for similar IT hardware procurements. Reviewing past contract performance evaluations (e.g., CPARS) would offer insights into their timeliness, adherence to specifications, and overall customer satisfaction. Without this specific performance data, it's difficult to definitively gauge their track record beyond their presence in the federal contracting space.

How does the $11.7 million value compare to similar IT hardware procurements by the Department of State?

The $11.7 million award for GITM Desktop and Monitors is a moderate-sized procurement for the Department of State. Large federal agencies like State often engage in multi-million dollar IT refresh cycles annually. For instance, procurements for enterprise-wide desktop replacements or significant monitor upgrades can easily reach tens of millions. This specific award, covering a defined period and scope, appears to be a component of the agency's broader IT infrastructure sustainment strategy. Benchmarking against historical State Department contracts for similar equipment, adjusted for inflation and quantity, would provide a more precise comparison, but the current value does not appear exceptionally high or low in isolation.

What are the primary risks associated with a limited competition procurement of this nature?

The primary risks associated with a limited competition procurement, such as this one with only two bidders, include potential price inflation and reduced innovation. When fewer vendors participate, the incentive to offer the most competitive pricing is diminished, potentially leading to higher costs for the government and taxpayers. Furthermore, limited competition can restrict the range of solutions and technological advancements available, as vendors may not feel compelled to propose their most cutting-edge or cost-effective offerings. There's also a risk of vendor lock-in or reduced responsiveness if the limited pool of vendors becomes accustomed to winning contracts without robust competition.

How effective is the firm fixed-price contract type in managing costs for IT hardware?

The firm fixed-price (FFP) contract type is generally considered highly effective for managing costs in IT hardware procurements, especially when the scope of work and specifications are well-defined. Under an FFP contract, the contractor assumes most of the risk for cost overruns. This incentivizes the contractor to perform efficiently and accurately estimate their costs upfront. For standardized items like desktop computers and monitors, where specifications are clear and market prices are relatively stable, FFP provides the government with cost certainty. It minimizes the risk of unexpected price increases during the contract performance period, making budgeting more predictable.

What are the historical spending patterns for similar IT hardware and services at the Department of State?

Historical spending patterns for IT hardware and services at the Department of State typically show consistent, significant investment in maintaining and upgrading its technology infrastructure. Agencies like the State Department regularly procure large quantities of desktops, laptops, monitors, and associated peripherals to support its global workforce. Spending often fluctuates based on major refresh cycles, cybersecurity initiatives, and the introduction of new technologies. While specific figures for 'GITM Desktop and Monitors' over multiple years are not provided, it's common for such procurements to occur annually or biennially, often totaling tens of millions of dollars across various contract vehicles to ensure operational readiness and security.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for this contract?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a nuanced approach to competition. It implies that the initial intent was to allow all responsible sources to submit offers (full and open competition). However, specific sources were excluded prior to the solicitation, likely based on pre-defined criteria or justifications outlined in the contract file. This exclusion could be due to factors like security clearances, specific technical capabilities, or prior performance issues. While it aims to maintain a degree of openness, the exclusion of certain potential bidders inherently limits the competitive landscape compared to a truly unrestricted full and open competition, potentially impacting the number of offers received and the final price.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1019530638

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2060 READING ROAD, CINCINNATI, OH, 45202

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

Financial Breakdown

Contract Ceiling: $11,690,526

Exercised Options: $11,690,526

Current Obligation: $11,690,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC78B

IDV Type: GWAC

Timeline