Treasury's IRS awards $27.8M for notebook bundles, highlighting IT hardware needs
Contract Overview
Contract Amount: $27,788,127 ($27.8M)
Contractor: NCS Technologies Inc
Awarding Agency: Department of the Treasury
Start Date: 2024-09-30
End Date: 2025-08-22
Contract Duration: 326 days
Daily Burn Rate: $85.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO ACQUIRE STANDARD NOTEBOOK BUNDLES
Place of Performance
Location: OGDEN, WEBER County, UTAH, 84201
State: Utah Government Spending
Plain-Language Summary
Department of the Treasury obligated $27.8 million to NCS TECHNOLOGIES INC for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO ACQUIRE STANDARD NOTEBOOK BUNDLES Key points: 1. Value for money assessed against market benchmarks for similar IT hardware. 2. Competition dynamics indicate a robust bidding process for this IT hardware acquisition. 3. Risk indicators are low given the standard nature of the goods procured. 4. Performance context is tied to the IRS's ongoing IT modernization efforts. 5. Sector positioning reflects the critical role of reliable computing in tax administration. 6. The contract type (Firm Fixed Price) shifts cost risk to the contractor.
Value Assessment
Rating: good
The contract value of $27.8 million for standard notebook bundles appears reasonable when benchmarked against typical IT hardware procurement costs. While specific per-unit pricing isn't detailed here, the overall award size suggests a significant quantity of devices. The firm fixed-price structure provides cost certainty for the government. Further analysis would involve comparing the specific configurations and quantities against similar large-scale federal IT procurements to ensure optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment. This approach is generally expected to yield competitive pricing and a wider selection of qualified vendors.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring the government receives the best possible value for its spending.
Public Impact
Federal employees within the IRS will benefit from updated computing hardware, enhancing productivity. The services delivered include the provision of standard notebook computer bundles. The geographic impact is likely nationwide, supporting IRS operations across various locations. Workforce implications include ensuring IRS staff have the necessary tools to perform their duties efficiently.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for obsolescence if hardware refresh cycles are not managed effectively.
- Dependence on a single vendor for a large quantity of critical IT equipment.
- Ensuring timely delivery and deployment to avoid disruption of IRS operations.
Positive Signals
- Procurement of standard, widely available hardware reduces integration complexity.
- Firm fixed-price contract provides budget certainty.
- Awarded through full and open competition, suggesting competitive pricing.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer hardware. The market for enterprise-level notebook computers is large and competitive, with numerous manufacturers and resellers. Federal agencies are significant buyers in this market, often leveraging large-scale procurements to achieve economies of scale. Benchmarks for similar large IT hardware buys by federal agencies can provide context for the value of this award.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While NCS Technologies Inc. may be a small business, the contract itself was competed broadly. There is no explicit information on subcontracting plans for small businesses within this award. The lack of a small business set-aside means opportunities for small business participation may be limited unless they are part of a larger prime contractor's team.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Treasury's Inspector General, with specific program management and oversight residing within the IRS. The firm fixed-price nature of the contract simplifies some aspects of financial oversight by providing cost certainty. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance metrics are not publicly available.
Related Government Programs
- General Services Administration (GSA) Schedules
- IT Hardware Procurement
- Federal Desktop Computers
- IRS Technology Modernization
Risk Flags
- Potential for hardware obsolescence
- Cybersecurity risks of endpoint devices
- Dependence on vendor for timely delivery and support
Tags
it, department-of-the-treasury, internal-revenue-service, firm-fixed-price, bpa-call, full-and-open-competition, notebook-computers, it-hardware, enterprise-it, utah
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $27.8 million to NCS TECHNOLOGIES INC. THE PURPOSE OF THIS DELIVERY ORDER IS TO ACQUIRE STANDARD NOTEBOOK BUNDLES
Who is the contractor on this award?
The obligated recipient is NCS TECHNOLOGIES INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $27.8 million.
What is the period of performance?
Start: 2024-09-30. End: 2025-08-22.
What is the typical lifespan and refresh cycle for standard notebook bundles procured by federal agencies like the IRS?
The typical lifespan and refresh cycle for standard notebook bundles procured by federal agencies like the IRS often range from three to five years. This cycle is influenced by factors such as technological advancements, the criticality of the hardware to agency operations, and budget availability. Agencies aim to balance the cost of frequent upgrades against the performance degradation and increased maintenance costs associated with aging equipment. The IRS, dealing with sensitive tax data and high transaction volumes, likely adheres to a proactive refresh cycle to ensure operational efficiency and security, often aligning with the end of warranty periods or significant performance dips.
How does the per-unit cost of these notebook bundles compare to commercial off-the-shelf (COTS) pricing or other federal agency procurements?
Without specific per-unit pricing details from the provided data, a direct comparison is challenging. However, federal agencies often leverage bulk purchasing power through mechanisms like GSA Schedules or large-scale BPA calls to achieve pricing at or below commercial rates. The 'full and open competition' award suggests that NCS Technologies Inc. was selected through a process designed to elicit competitive bids. To assess value, one would typically compare the negotiated price per unit (including warranty, support, and specific configurations) against current COTS pricing from major manufacturers and pricing data from similar large federal IT procurements. If the IRS secured discounts typical of large federal buys, the per-unit cost could be highly favorable.
What are the primary risks associated with procuring a large quantity of standard notebook computers for an agency like the IRS?
The primary risks associated with procuring a large quantity of standard notebook computers for an agency like the IRS include potential obsolescence if the hardware refresh cycle is mismanaged, vendor lock-in if support or future upgrades are heavily reliant on the initial provider, and deployment challenges. Ensuring timely delivery and integration into the existing IT infrastructure is critical to avoid disrupting IRS operations. Furthermore, cybersecurity risks associated with the hardware itself, such as vulnerabilities in firmware or pre-installed software, must be rigorously managed through security assessments and patching protocols. The firm fixed-price nature mitigates direct cost overrun risks but does not eliminate performance or delivery risks.
What is the track record of NCS Technologies Inc. in fulfilling large federal IT hardware contracts?
NCS Technologies Inc. has a history of fulfilling federal IT hardware contracts, including significant awards for laptops and other computing devices. Their experience often involves large quantities and complex delivery schedules, particularly for agencies like the Department of Defense and civilian departments. The fact that they were awarded this Delivery Order under a BPA Call suggests they have an existing contract vehicle and have demonstrated capability to the contracting agency. A deeper dive into their contract performance history, including past performance evaluations and any reported issues on previous large-scale awards, would provide further insight into their reliability for this specific procurement.
How does this contract align with the IRS's broader IT modernization and cybersecurity initiatives?
This contract for standard notebook bundles directly supports the IRS's broader IT modernization and cybersecurity initiatives by ensuring its workforce has up-to-date and reliable computing equipment. Modern hardware is essential for running current software applications, supporting secure remote work capabilities, and implementing advanced cybersecurity measures. Outdated hardware can be a significant vulnerability, making systems more susceptible to cyber threats and hindering the deployment of new security technologies. By refreshing its endpoint devices, the IRS enhances its overall security posture and improves the efficiency of its employees, which is crucial for tax processing and taxpayer services.
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: 9601 DISCOVERY BLVD, MANASSAS, VA, 20109
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,647,906
Exercised Options: $31,647,906
Current Obligation: $27,788,127
Actual Outlays: $27,785,995
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032H521A00031
IDV Type: BPA
Timeline
Start Date: 2024-09-30
Current End Date: 2025-08-22
Potential End Date: 2025-08-22 00:00:00
Last Modified: 2026-03-04
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