DHS ICE Awards $3.9M for Cisco Switches, Sole Source After Exclusion of Sources

Contract Overview

Contract Amount: $3,927,152 ($3.9M)

Contractor: Anacapa Micro Products, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2025-09-29

Contract Duration: 364 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO BRAND CATALYST 9300/9400 SERIES SWITCHES FOR ICE/OCIO

Place of Performance

Location: OXNARD, VENTURA County, CALIFORNIA, 93036

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.9 million to ANACAPA MICRO PRODUCTS, INC. for work described as: CISCO BRAND CATALYST 9300/9400 SERIES SWITCHES FOR ICE/OCIO Key points: 1. Significant award for network infrastructure, indicating critical operational needs. 2. Limited competition raises questions about price discovery and potential value. 3. Reliance on specific brand (Cisco) may limit future flexibility and cost savings. 4. IT hardware procurement is a common but complex area for federal spending.

Value Assessment

Rating: questionable

The award amount of $3.9M for Cisco switches appears high given the limited competition. Without a clear benchmark or competitive bids, it's difficult to assess if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a deviation from standard full and open competition. This method can lead to higher prices due to reduced market engagement.

Taxpayer Impact: Taxpayer funds may be used inefficiently if the limited competition resulted in a price above what could have been achieved through broader market participation.

Public Impact

Enhances critical network infrastructure for U.S. Immigration and Customs Enforcement. Supports ongoing operations and data management within DHS. Potential for increased cybersecurity resilience with updated network hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Brand-specific procurement
Potential for overpayment

Positive Signals

Supports critical agency function
Modernizes IT infrastructure

Sector Analysis

This procurement falls within the Information Technology sector, specifically network hardware. Federal spending on IT infrastructure is substantial, with benchmarks often varying based on agency size, specific technology, and competitive landscape.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, and there is no indication of subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The 'EXCLUSION OF SOURCES' clause warrants further scrutiny to ensure proper justification and adherence to procurement regulations, safeguarding against potential waste or impropriety.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Lack of robust competition
Potential for inflated pricing
Brand-specific requirement
Limited transparency in source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.9 million to ANACAPA MICRO PRODUCTS, INC.. CISCO BRAND CATALYST 9300/9400 SERIES SWITCHES FOR ICE/OCIO

Who is the contractor on this award?

The obligated recipient is ANACAPA MICRO PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-09-29.

What was the specific justification for excluding other sources, and was this exclusion adequately documented and approved?

The justification for excluding other sources is critical. Agencies typically must demonstrate that only one source can fulfill the requirement due to unique capabilities, proprietary technology, or urgent needs. Without this documentation, the procurement method raises concerns about fairness and potential circumvention of competitive principles, impacting overall value for taxpayer dollars.

How does the per-unit cost of these Cisco switches compare to similar government or commercial contracts awarded competitively?

Benchmarking the per-unit cost against competitively awarded contracts is essential. If this award's pricing is significantly higher, it suggests that the limited competition may have led to a less favorable price for the government. A detailed cost analysis comparing specifications and quantities is needed to confirm value.

What is the long-term strategy for network hardware procurement to ensure ongoing cost-effectiveness and avoid vendor lock-in?

Agencies should have a strategic plan for IT hardware procurement that balances immediate needs with long-term cost savings and flexibility. This includes exploring multi-vendor strategies, standardization where appropriate, and leveraging competitive bidding processes to prevent vendor lock-in and ensure the best value over the lifecycle of the equipment.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CTD024Q00000064

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: $3,927,152

Exercised Options: $3,927,152

Current Obligation: $3,927,152

Actual Outlays: $3,836,243

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC12D00014

IDV Type: IDC

Timeline