SEC awards $28.3M contract for NetApp products, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $28,299,828 ($28.3M)

Contractor: Anacapa Micro Products, Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2022-04-15

End Date: 2027-04-30

Contract Duration: 1,841 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETAPP PRODUCTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $28.3 million to ANACAPA MICRO PRODUCTS, INC. for work described as: NETAPP PRODUCTS Key points: 1. Contract focuses on essential IT hardware, supporting SEC's operational continuity. 2. Competition was robust, suggesting a competitive pricing environment. 3. Long-term contract duration indicates a strategic investment in IT. 4. Fixed-price structure provides cost certainty for the agency. 5. This award aligns with broader federal IT modernization efforts.

Value Assessment

Rating: good

The contract value of $28.3 million over approximately five years appears reasonable for enterprise-level NetApp products and associated services. Benchmarking against similar large-scale IT hardware procurements for federal agencies suggests this pricing is within expected ranges, especially considering the firm-fixed-price nature which transfers some risk to the contractor. The specific unit costs or configurations are not detailed here, but the overall award size reflects a significant investment in maintaining and upgrading critical IT infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and terms to secure the award. The presence of a single award for a delivery order suggests that while competition was open, Anacapa Micro Products, Inc. was ultimately selected as the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, maximizing the value for government spending.

Public Impact

The Securities and Exchange Commission (SEC) benefits directly through enhanced IT infrastructure. This contract ensures the availability of critical data storage and management solutions. The primary geographic impact is within the District of Columbia, where the SEC operates. IT support staff and potentially other personnel will utilize these products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific NetApp ecosystem is heavily relied upon.
Dependence on a single awardee for delivery and potential support could pose risks.
Long-term commitment might not adapt quickly to rapidly evolving storage technologies.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Firm-fixed-price contract provides budget predictability.
Contract duration aligns with typical IT hardware lifecycle planning.
Supports the SEC's mission-critical IT operations.

Sector Analysis

This contract falls within the broader IT hardware and services sector, specifically focusing on data storage solutions. The market for enterprise storage, including solutions like NetApp's, is characterized by significant competition among major vendors and their resellers. Federal spending in this area is substantial, driven by the need for secure, scalable, and reliable data management across various agencies. This award represents a portion of the government's ongoing investment in maintaining and upgrading its IT infrastructure to meet evolving data demands and cybersecurity requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large award for enterprise IT products, it is likely that the primary contractor, Anacapa Micro Products, Inc., is a larger entity or a reseller capable of fulfilling such a significant requirement. Further analysis would be needed to determine if any small business subcontracting opportunities exist within the execution of this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Securities and Exchange Commission's contracting officers and program managers. The firm-fixed-price nature simplifies some aspects of oversight by focusing on delivery and performance against the contract terms. Transparency is generally maintained through federal procurement databases like FPDS.gov. The Inspector General's office for the SEC would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Federal Data Storage Solutions
IT Hardware Procurement
Enterprise Network Infrastructure
NetApp Product Contracts
SEC IT Modernization

Risk Flags

Potential for vendor lock-in
Long-term technology dependence
Single award delivery order risk

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $28.3 million to ANACAPA MICRO PRODUCTS, INC.. NETAPP PRODUCTS

Who is the contractor on this award?

The obligated recipient is ANACAPA MICRO PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2022-04-15. End: 2027-04-30.

What is the track record of Anacapa Micro Products, Inc. in fulfilling federal contracts, particularly for large IT hardware procurements?

Anacapa Micro Products, Inc. has a history of receiving federal contracts, primarily as a reseller or provider of IT hardware and software. While specific details on their performance for large-scale, multi-million dollar procurements like this SEC award require deeper investigation into contract performance reports and past performance evaluations, their presence in the federal market suggests they possess the capability to navigate government procurement processes. It is crucial to examine their history with similar agencies and contract types to assess their reliability and experience in delivering complex IT solutions within established timelines and budgets. Past performance data, if available, would offer insights into their ability to manage logistics, provide technical support, and meet delivery schedules for high-value IT assets.

How does the $28.3 million award compare to other federal spending on NetApp products or similar data storage solutions?

The $28.3 million award for NetApp products represents a significant, but not unprecedented, level of federal spending on enterprise data storage. Federal agencies collectively spend billions annually on IT hardware, including storage solutions. Awards of this magnitude are typical for agencies like the SEC that require robust, scalable, and secure data management capabilities to support their operations. When compared to other large federal contracts for similar enterprise storage systems from competitors like Dell EMC, HPE, or IBM, this award falls within a common range for comprehensive solutions involving hardware, software, and potentially multi-year support. The specific value is influenced by the quantity of equipment, the level of service agreements, and the duration of the contract.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential vendor lock-in, where the SEC becomes heavily reliant on NetApp's proprietary technology and ecosystem, making future transitions difficult or costly. There's also a risk of technological obsolescence if the procured hardware doesn't keep pace with rapid advancements in storage technology, although the contract duration is typical for hardware lifecycles. Performance risks, such as delivery delays or inadequate support from Anacapa Micro Products, Inc., are present. Mitigation strategies include the firm-fixed-price structure which incentivizes contractor performance, the full and open competition process which selects the most capable vendor, and the SEC's internal oversight mechanisms to monitor delivery and service. Contract clauses regarding warranties, support levels, and potential remedies for non-performance also serve as mitigations.

How effective is the firm-fixed-price contract type in ensuring value for money for this IT hardware procurement?

The firm-fixed-price (FFP) contract type is generally considered effective for procuring IT hardware like NetApp products when the scope of work and requirements are well-defined, as is typical for hardware purchases. FFP shifts the risk of cost overruns to the contractor, Anacapa Micro Products, Inc., incentivizing them to manage their costs efficiently to maintain profitability. This provides the SEC with budget certainty, as the total price is fixed regardless of the contractor's actual costs. For the taxpayer, this means predictable spending and a reduced risk of unexpected cost increases. The effectiveness hinges on the initial pricing being competitive, which is supported by the full and open competition used for this award. If the initial price is fair and reasonable, FFP maximizes value by ensuring the government pays a set amount for the specified goods.

What are the historical spending patterns of the SEC on data storage and related IT infrastructure?

Analyzing the SEC's historical spending patterns on data storage and IT infrastructure would reveal trends in their technology adoption, budget allocations, and vendor relationships. Typically, agencies like the SEC maintain consistent or increasing budgets for IT infrastructure due to data growth, regulatory requirements, and the need for system modernization. Past contracts would likely show a mix of procurements for servers, storage arrays, networking equipment, and associated software and support services. Examining previous awards for NetApp or comparable storage solutions would indicate the frequency and scale of their investments in this area. Understanding these patterns helps contextualize the current $28.3 million award, showing whether it represents a typical refresh cycle, a significant expansion, or a shift in strategy.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 50310222Q0031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Anacapa Micro Products Inc.

Address: 1901 SOLAR DR STE 150, OXNARD, CA, 93036

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

Financial Breakdown

Contract Ceiling: $70,651,831

Exercised Options: $28,299,828

Current Obligation: $28,299,828

Actual Outlays: $23,069,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 50310221G0003

IDV Type: BOA

Timeline