DHS awards $3.8M for phone and VTC refresh, with 4 bidders competing

Contract Overview

Contract Amount: $3,795,089 ($3.8M)

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: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PHONES AND VTC REFRESH

Place of Performance

Location: VENTURA, VENTURA County, CALIFORNIA, 93006

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.8 million to ANACAPA MICRO PRODUCTS, INC. for work described as: PHONES AND VTC REFRESH Key points: 1. The contract value appears reasonable given the scope of IT equipment refresh. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This contract supports essential communication infrastructure for the TSA. 5. The duration of one year aligns with typical refresh cycles for such equipment.

Value Assessment

Rating: good

The contract value of approximately $3.8 million for a phone and VTC refresh seems within a reasonable range for IT equipment procurement. Benchmarking against similar refresh contracts would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the ultimate value depends on the quality and longevity of the procured equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources may have been excluded prior to the solicitation. With four bidders, the competition level suggests a moderate degree of market interest, which should have contributed to price discovery. However, the exclusion of sources warrants further investigation to ensure maximum competition was achieved.

Taxpayer Impact: The presence of four bidders indicates a degree of competition, which generally benefits taxpayers by driving down prices. The exclusion of sources, however, could potentially limit the number of competitive offers and may have resulted in a higher price than if all potential sources had been included.

Public Impact

This contract directly benefits the Transportation Security Administration (TSA) by ensuring its personnel have up-to-date communication technology. The services delivered include the refresh of phones and Video Teleconferencing (VTC) systems, crucial for operational efficiency and collaboration. The geographic impact is likely concentrated within TSA facilities where these communication systems are deployed, primarily in California. Workforce implications include ensuring TSA employees have reliable tools for communication, potentially improving productivity and operational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics in the provided data.
Dependence on a single contractor for a critical refresh cycle.

Positive Signals

Firm fixed-price contract limits cost escalation risks.
Multiple bidders (4) indicate some level of market interest.
Contract supports essential operational communication infrastructure.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on telecommunications equipment and services. The market for IT hardware and refresh cycles is characterized by rapid technological advancements and a need for continuous upgrades. The total addressable market for such IT services within the federal government is substantial, with agencies regularly undertaking equipment refreshes to maintain operational readiness and security.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, ANACAPA MICRO PRODUCTS, INC., is not explicitly identified as a small business in the provided data, and its size status would need further verification to assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Transportation Security Administration. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods and services at an agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly accessible.

Related Government Programs

Federal IT Modernization Programs
Telecommunications Equipment Procurement
Video Teleconferencing Systems
Department of Homeland Security IT Contracts
Transportation Security Administration Operations

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Need for detailed performance metrics to assess value.
Risk of technology obsolescence in a rapidly evolving IT landscape.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.8 million to ANACAPA MICRO PRODUCTS, INC.. PHONES AND VTC REFRESH

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 $3.8 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 the Department of Homeland Security and TSA?

A review of federal procurement data would be necessary to fully assess ANACAPA MICRO PRODUCTS, INC.'s track record with DHS and TSA. This would involve examining past contract awards, performance evaluations (if available), and any history of contract disputes or issues. Without specific historical data, it's difficult to gauge their reliability and past performance on similar IT refresh projects. Agencies often maintain internal performance records that inform future contracting decisions.

How does the awarded price compare to market rates for similar phone and VTC refresh services?

To compare the awarded price of approximately $3.8 million to market rates, one would need to benchmark it against recent, similar contracts for phone and VTC refreshes awarded by other federal agencies or even state and local governments. Factors such as the quantity of devices, specific models, included services (installation, support), and contract duration would need to be matched as closely as possible. A detailed analysis of the Bill of Materials and labor rates would also be crucial for a precise comparison. Given the limited information, a preliminary assessment suggests the price is within a plausible range for a one-year refresh.

What are the specific risks associated with this contract, beyond general IT refresh challenges?

Specific risks for this contract could include potential vendor lock-in if the chosen equipment is proprietary and difficult to integrate with existing systems. The 'exclusion of sources' clause in the competition method raises a flag regarding whether the most competitive options were truly considered, potentially leading to suboptimal pricing or technology choices. Furthermore, the rapid obsolescence of communication technology means that even a recent refresh could become outdated relatively quickly, posing a risk of diminished long-term value if not managed strategically.

How effective are phone and VTC systems in supporting TSA's operational mission?

Effective phone and VTC systems are critical for the TSA's operational mission, enabling seamless communication and collaboration among personnel across various locations. This is vital for coordinating security operations, responding to incidents, and managing day-to-day activities. Reliable communication infrastructure supports real-time information sharing, which is paramount for maintaining national security and transportation safety. The refresh ensures that these systems are up-to-date, secure, and capable of supporting the TSA's evolving communication needs.

What has been the historical spending pattern for phone and VTC refreshes at TSA or DHS?

Analyzing historical spending patterns for phone and VTC refreshes at TSA or DHS would involve examining contract databases for similar procurements over the past several fiscal years. This would reveal trends in contract values, the number of vendors engaged, and the frequency of such refreshes. Understanding these patterns helps in budgeting, identifying potential cost savings through consolidation or longer-term contracts, and assessing whether current spending aligns with historical norms or represents a significant deviation.

What is the potential impact of this contract on the broader IT services market?

This contract contributes to the overall demand within the IT services market, particularly for telecommunications hardware and related services. While a single $3.8 million contract is not market-shaping, it represents a portion of the federal government's ongoing investment in IT infrastructure. The competition dynamics, especially the 'exclusion of sources' aspect, could influence how other vendors approach future solicitations. It also signals TSA's commitment to maintaining modern communication tools, which can encourage vendors to specialize in such offerings.

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

Offers Received: 4

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: $3,795,089

Exercised Options: $3,795,089

Current Obligation: $3,795,089

Actual Outlays: $3,795,089

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