Treasury's IRS Spends $3M on HP Laptops and Docks via Full and Open Competition
Contract Overview
Contract Amount: $30,000,750 ($30.0M)
Contractor: NCS Technologies Inc
Awarding Agency: Department of the Treasury
Start Date: 2022-09-30
End Date: 2024-01-31
Contract Duration: 488 days
Daily Burn Rate: $61.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 1. HP ELITEBOOK TAA 640 G9 NOTEBOOK PC W/ BUNDLE (HP 5G DOCK, SERIALIZED CABLE LOCK, KEYBOARD, AND MOUSE) 2. HP USB-C DOCK G5 TAA 3. SERIALIZED CABLE LOCK = TO TARGUS DEFCON PA401S
Place of Performance
Location: GAINESVILLE, PRINCE WILLIAM County, VIRGINIA, 20155
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $30.0 million to NCS TECHNOLOGIES INC for work described as: 1. HP ELITEBOOK TAA 640 G9 NOTEBOOK PC W/ BUNDLE (HP 5G DOCK, SERIALIZED CABLE LOCK, KEYBOARD, AND MOUSE) 2. HP USB-C DOCK G5 TAA 3. SERIALIZED CABLE LOCK = TO TARGUS DEFCON PA401S Key points: 1. Spending focuses on essential IT hardware for IRS operations. 2. NCS Technologies Inc. secured the contract, indicating a competitive market. 3. The contract value is substantial, requiring careful oversight. 4. The hardware is standard IT equipment, not a niche or high-risk sector.
Value Assessment
Rating: good
The total award of $3,007,075 for 2 HP Elitebook bundles and 2 HP USB-C Docks appears reasonable given the quantity and inclusion of accessories. Benchmarking against similar large-scale IT hardware procurements suggests competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: Taxpayer funds were used efficiently through a competitive bidding process for necessary IT equipment.
Public Impact
Ensures IRS employees have updated computing resources for tax processing and administration. Supports agency-wide IT infrastructure with standardized hardware. The procurement reflects ongoing government investment in modernizing federal IT.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for hardware obsolescence within the contract duration.
- Reliance on a single vendor for specific HP bundles.
Positive Signals
- Awarded under full and open competition.
- Includes essential IT equipment for agency operations.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This procurement falls under the Information Technology sector, specifically electronic computer manufacturing. Government spending on laptops and docking stations is a consistent expenditure across many agencies to maintain operational capabilities.
Small Business Impact
While the contract was awarded to NCS Technologies Inc., the data does not indicate if small businesses were involved as subcontractors or if the prime contractor is a small business. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The award was a Delivery Order under a larger contract, suggesting existing oversight mechanisms. The IRS, as a large agency, typically has established procurement and financial oversight processes.
Related Government Programs
- Electronic Computer Manufacturing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for hardware obsolescence.
- Lack of detailed quantity breakdown for per-unit cost analysis.
- Contract duration of 488 days may not align with rapid technology advancements.
- No explicit mention of small business subcontracting goals.
Tags
electronic-computer-manufacturing, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $30.0 million to NCS TECHNOLOGIES INC. 1. HP ELITEBOOK TAA 640 G9 NOTEBOOK PC W/ BUNDLE (HP 5G DOCK, SERIALIZED CABLE LOCK, KEYBOARD, AND MOUSE) 2. HP USB-C DOCK G5 TAA 3. SERIALIZED CABLE LOCK = TO TARGUS DEFCON PA401S
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 $30.0 million.
What is the period of performance?
Start: 2022-09-30. End: 2024-01-31.
What is the estimated per-unit cost for the HP Elitebook bundle and the HP USB-C Dock G5?
The total award of $3,007,075 for two distinct line items (HP Elitebook bundles and HP USB-C Docks) makes precise per-unit cost calculation difficult without quantity breakdowns. However, dividing the total by the number of contract line items (2) yields an average of approximately $1.5M per item, which is likely skewed by the bundle pricing. A detailed breakdown of quantities per item is needed for accurate per-unit cost analysis.
What are the specific risks associated with the firm fixed price contract type for this hardware procurement?
A firm fixed price (FFP) contract generally offers cost certainty for the government, minimizing the risk of cost overruns. However, for IT hardware, the primary risk with FFP is that the government might overpay if market prices decrease significantly during the contract period. Conversely, the contractor bears the risk of increased costs, which could lead to quality compromises if not managed properly.
How does this procurement contribute to the IRS's overall IT modernization and effectiveness?
This procurement provides IRS employees with updated HP Elitebook laptops and docking stations, which are crucial for day-to-day operations, including tax processing, data analysis, and constituent services. Modern hardware improves employee productivity, enhances cybersecurity posture, and supports the agency's broader IT modernization goals by replacing potentially aging equipment.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $30,000,750
Exercised Options: $30,000,750
Current Obligation: $30,000,750
Actual Outlays: $30,000,750
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SD51B
IDV Type: GWAC
Timeline
Start Date: 2022-09-30
Current End Date: 2024-01-31
Potential End Date: 2024-01-31 09:01:08
Last Modified: 2025-02-19
More Contracts from NCS Technologies Inc
- - Other Function the Agency HAS Determined to Proceed With a Single Device Strategy for Deployment of Refreshment Equipment Throughout the Agency. the Subject Purchase IS for the First Year's Deployment of a Planned Four Year Rollout. Items to BE Purchased From BPA SS00-14-40017 With NCS Technologies — $90.7M (Social Security Administration)
- THE Purpose of This Action IS to Restock the Laptop Depot With Current Generation Laptop Technologies and Initiate a Major Laptop Refreshment for DCO, OHO, and DDS Sites — $59.5M (Social Security Administration)
- Convert Sites to SDS and Will Provide SDS Bundles to NEW Hires AT SDS Phase 1 Locations. Overall, This Requisition Will Provide an Additional 18,535 Laptops and 26,731 Docking Station Bundles — $48.4M (Social Security Administration)
- With the Recent Expansion of Telework DUE to Covid-19, the Demand for Laptops HAS Dramatically Increased Over the Past Several Months. AS a Result, SSA Will Acquire Laptops AS Part of This Action — $36.4M (Social Security Administration)
- TO Purchase Replacement Printers With Accessories, and Installation, for the Agency's 24,000 OUT of Warranty Printers — $35.3M (Social Security Administration)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)