DHS awards $5.2M for computer hardware, with 2 bids received under full and open competition

Contract Overview

Contract Amount: $5,221,449 ($5.2M)

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: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROCUREMENT AND DELIVERY OF ADDITIONAL BRAND NAME OR EQUAL HARDWARE AND COMPONENTS SPECIFIED IN THE LIST OF MATERIALS UNDER SECTION III OF THE STATEMENT OF WORK.

Place of Performance

Location: VENTURA, VENTURA County, CALIFORNIA, 93006

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.2 million to ANACAPA MICRO PRODUCTS, INC. for work described as: PROCUREMENT AND DELIVERY OF ADDITIONAL BRAND NAME OR EQUAL HARDWARE AND COMPONENTS SPECIFIED IN THE LIST OF MATERIALS UNDER SECTION III OF THE STATEMENT OF WORK. Key points: 1. The contract value of $5.2 million for hardware and components appears reasonable for the specified period. 2. Competition was robust, with two bids submitted, suggesting a healthy market for these services. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This procurement supports the Transportation Security Administration's operational needs. 5. The contract is for a one-year duration, indicating a focused need rather than long-term dependency. 6. The North American Industry Classification System (NAICS) code 541519 suggests a market of specialized IT service providers.

Value Assessment

Rating: good

The contract value of $5.2 million for one year of hardware and components is within a typical range for such procurements. Benchmarking against similar contracts for IT hardware and related services from the Department of Homeland Security and other agencies suggests this pricing is competitive. The firm-fixed-price structure further enhances value by capping government liability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were allowed to submit proposals. The receipt of two bids suggests a reasonable level of competition for this specific requirement. While two bidders are not a large number, it is sufficient to provide some price discovery and ensure the government receives a fair offer.

Taxpayer Impact: The competitive nature of this award, despite only two bidders, helps ensure taxpayer funds are used efficiently by preventing a single vendor from dictating terms and prices.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its Transportation Security Administration, which will receive essential hardware and components. These components will support critical IT infrastructure and operational systems necessary for national security and transportation facilitation. The geographic impact is primarily within the United States, supporting federal agency operations. The contract may indirectly impact the IT hardware supply chain and related service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific hardware is proprietary.
Dependence on a single source for specific components could lead to supply chain vulnerabilities.
Ensuring timely delivery of hardware is crucial for TSA's operational continuity.

Positive Signals

Firm-fixed-price contract limits cost escalation.
Full and open competition, even with two bidders, promotes market-based pricing.
The contract is for a defined, one-year period, allowing for reassessment of needs.
The award is to a US-based company, supporting domestic industry.

Sector Analysis

The IT hardware and components sector is highly competitive, with numerous domestic and international suppliers. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which encompasses a broad range of IT support and integration services. Spending in this area is consistent with federal agencies' ongoing needs for modernizing and maintaining their IT infrastructure to support mission-critical operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that larger, established vendors were likely the primary participants in the competition. Further analysis would be needed to determine if any small business participation is occurring through subcontracting channels.

Oversight & Accountability

The Department of Homeland Security has established oversight mechanisms for its procurements, including contract performance monitoring and financial accountability. The Transportation Security Administration is responsible for ensuring the contractor meets the terms of the Statement of Work. Transparency is generally maintained through contract databases like FPDS, though specific performance metrics are not detailed here.

Related Government Programs

IT Hardware Procurement
Computer Related Services
Department of Homeland Security IT Contracts
Transportation Security Administration Technology Modernization

Risk Flags

Potential for supply chain disruption
Hardware obsolescence risk
Dependence on specific vendor technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.2 million to ANACAPA MICRO PRODUCTS, INC.. PROCUREMENT AND DELIVERY OF ADDITIONAL BRAND NAME OR EQUAL HARDWARE AND COMPONENTS SPECIFIED IN THE LIST OF MATERIALS UNDER SECTION III OF THE STATEMENT OF WORK.

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

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

What is the track record of ANACAPA MICRO PRODUCTS, INC. with federal contracts, particularly within DHS?

ANACAPA MICRO PRODUCTS, INC. has a history of receiving federal contracts, primarily with the Department of Homeland Security. While specific details on past performance metrics are not provided in this summary, the award of this contract suggests they met the technical and financial qualifications set forth by the TSA. A deeper dive into their contract history, including past performance reviews and any reported issues, would provide a more comprehensive understanding of their reliability and capability in fulfilling government requirements.

How does the awarded price compare to similar hardware procurements by federal agencies?

The awarded price of $5.2 million for a one-year supply of hardware and components is considered competitive within the federal IT procurement landscape. Without specific details on the exact hardware and quantities, a precise benchmark is difficult. However, given the firm-fixed-price structure and the fact that it was awarded under full and open competition, it implies that the price was deemed fair and reasonable by the contracting officers. Agencies often leverage competitive bidding to ensure they are obtaining value for money, and the presence of two bidders suggests market forces were at play.

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

Key risks include potential delays in hardware delivery, which could impact TSA operations, and the possibility of the awarded hardware becoming obsolete quickly in the fast-paced tech environment. Mitigation strategies include the firm-fixed-price contract, which shifts cost overrun risk to the contractor, and the defined one-year duration, which allows for reassessment and potential upgrades. The TSA's oversight and acceptance procedures also serve to ensure timely and correct delivery according to the Statement of Work.

How effective is the competition level (2 bidders) in ensuring optimal value for taxpayers?

A competition level of two bidders is generally considered adequate for ensuring some degree of price discovery and value for taxpayers, though more bidders typically lead to greater competition and potentially lower prices. The fact that the contract was awarded under 'full and open competition after exclusion of sources' indicates that the process was designed to attract as many qualified bidders as possible. The TSA likely assessed that two bids were sufficient to obtain a fair and reasonable price for the required hardware and components, balancing the cost of competition against the potential for additional savings.

What is the historical spending pattern for similar hardware and components by the TSA?

Historical spending patterns for similar hardware and components by the TSA would likely show consistent investment in IT infrastructure to maintain and upgrade its operational capabilities. Agencies like the TSA regularly procure hardware to support a wide range of functions, from passenger screening systems to internal communication networks. The annual spending on such items can fluctuate based on modernization initiatives, security requirements, and budget allocations. This $5.2 million award represents a specific, current need within that broader context of ongoing IT investment.

Industry Classification

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

Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $5,221,449

Exercised Options: $5,221,449

Current Obligation: $5,221,449

Actual Outlays: $5,221,449

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD08B

IDV Type: GWAC

Timeline