USCG Awards $75.9M Hardware Contract to Blue Tech Inc. for End User Support

Contract Overview

Contract Amount: $75,895,463 ($75.9M)

Contractor: Blue Tech Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-01-01

End Date: 2025-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $69.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USCG INFRASTRUCTURE MANAGED SERVICES (IMS) HARDWARE CTA TO1 AWARDED TO PROVIDE END USER HARDWARE IN COLLABORATION WITH CTA PRIME LEAD.

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $75.9 million to BLUE TECH INC. for work described as: USCG INFRASTRUCTURE MANAGED SERVICES (IMS) HARDWARE CTA TO1 AWARDED TO PROVIDE END USER HARDWARE IN COLLABORATION WITH CTA PRIME LEAD. Key points: 1. The contract aims to provide end-user hardware for the USCG, a critical function for operational readiness. 2. Blue Tech Inc. is the prime contractor, collaborating with a CTA prime lead, indicating a potential partnership model. 3. The award is a BPA Call under a broader agreement, suggesting a streamlined procurement process. 4. The contract value of $75.9M over three years warrants scrutiny for cost-effectiveness and value for money. 5. The absence of small business participation is noted and may require further investigation.

Value Assessment

Rating: fair

The contract value of $75.9M over three years averages to approximately $25.3M annually. Benchmarking against similar IT hardware procurements for federal agencies of comparable size and scope is necessary to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition via a BPA Call. This method generally promotes competitive pricing, but the specific details of the BPA and the call process would determine the extent of price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for essential IT hardware. The value and efficiency of this procurement will directly impact the financial stewardship of these funds.

Public Impact

Ensures USCG personnel have necessary hardware for daily operations and mission execution. Supports the modernization and maintenance of the Coast Guard's technological infrastructure. Potential for follow-on contracts or task orders based on performance and evolving needs. Impacts the IT hardware market by directing significant federal spending to specific vendors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Potential for vendor lock-in if the CTA prime lead relationship is exclusive
Dependence on a single hardware provider for critical end-user devices

Positive Signals

Awarded under full and open competition
Clear contract duration and defined scope of work
Utilizes an existing BPA, potentially indicating efficiency

Sector Analysis

This contract falls within the IT hardware manufacturing and services sector. Federal spending in this area is substantial, driven by the need for up-to-date technology across all agencies. Benchmarks for similar end-user hardware procurements are typically in the tens to hundreds of millions annually.

Small Business Impact

The data indicates that small businesses were not involved in this specific award (ss: false, sb: false). Further analysis is needed to understand if opportunities were overlooked or if the nature of the requirement precluded small business participation.

Oversight & Accountability

Oversight will be crucial to ensure Blue Tech Inc. meets performance requirements and delivers hardware that aligns with USCG needs. The contracting officer and program managers will be responsible for monitoring contract execution and managing any potential issues.

Related Government Programs

Electronic Computer Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Lack of small business participation
Potential for cost overruns if hardware needs change significantly
Dependence on a single prime contractor for critical IT infrastructure
Risk of technology obsolescence during the contract period
Reliance on the CTA prime lead's capabilities and performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $75.9 million to BLUE TECH INC.. USCG INFRASTRUCTURE MANAGED SERVICES (IMS) HARDWARE CTA TO1 AWARDED TO PROVIDE END USER HARDWARE IN COLLABORATION WITH CTA PRIME LEAD.

Who is the contractor on this award?

The obligated recipient is BLUE TECH INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $75.9 million.

What is the period of performance?

Start: 2023-01-01. End: 2025-12-31.

What is the specific breakdown of hardware being procured and how does it align with the USCG's current and future operational requirements?

The provided data does not detail the specific types or quantities of hardware. A thorough review of the Statement of Work (SOW) and associated documentation would be necessary to understand the exact hardware being procured. This information is critical for assessing if the acquisition directly supports the USCG's mission needs and if the technology is current.

How was the pricing benchmarked against industry standards for similar end-user hardware solutions provided to federal agencies?

The data does not include information on the pricing benchmark used during the procurement process. While awarded under full and open competition, the effectiveness of price discovery depends on the specific solicitation and evaluation criteria. A review of the source selection documentation would reveal the basis for price reasonableness.

What mechanisms are in place to ensure the long-term effectiveness and maintainability of the procured hardware throughout the contract period?

The contract duration is three years with an end date of December 31, 2025. Mechanisms for effectiveness and maintainability would typically be detailed in the contract's performance work statement, including warranty clauses, service level agreements (SLAs), and support requirements. Monitoring adherence to these terms is key.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST, SAN DIEGO, CA, 92110

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

Financial Breakdown

Contract Ceiling: $98,337,067

Exercised Options: $94,813,170

Current Obligation: $75,895,463

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70Z07923AISD20002

IDV Type: BPA

Timeline