HHS awards $1.26M for Cisco licenses to Blue Tech Inc., covering Portland and remote offices
Contract Overview
Contract Amount: $126,577 ($126.6K)
Contractor: Blue Tech Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2023-04-12
End Date: 2027-04-11
Contract Duration: 1,460 days
Daily Burn Rate: $87/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CISCO FLEX LICENSES FOR PORTLAND AREA OFFICE AND REMOTE LOCATIONS, BASE PLUS FOUR OPTION YEARS
Place of Performance
Location: PORTLAND, MULTNOMAH County, OREGON, 97209
State: Oregon Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $126,576.54 to BLUE TECH INC. for work described as: CISCO FLEX LICENSES FOR PORTLAND AREA OFFICE AND REMOTE LOCATIONS, BASE PLUS FOUR OPTION YEARS Key points: 1. The contract value is $1,265,765.40 over five years. 2. Blue Tech Inc. secured the award under full and open competition. 3. The contract is for IT hardware and software licensing. 4. The primary risk is potential vendor lock-in with Cisco products.
Value Assessment
Rating: good
The contract's value of $1.26M over five years appears reasonable for enterprise-level Cisco licensing. Benchmarking against similar large-scale Cisco deployments would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for essential IT infrastructure.
Public Impact
Ensures continued IT infrastructure functionality for HHS operations in the Portland area and for remote workers. Supports critical health services by providing necessary software licenses. Potential for cost savings through competitive bidding on essential technology.
Waste & Efficiency Indicators
Waste Risk Score: 87 / 10
Warning Flags
- Reliance on a single vendor's licensing model.
- Potential for price increases in option years if not carefully managed.
Positive Signals
- Awarded via full and open competition.
- Supports critical government functions.
Sector Analysis
This contract falls within the IT services sector, specifically computer hardware and software. Spending benchmarks for similar IT licensing contracts vary widely based on scope and vendor.
Small Business Impact
The awardee, Blue Tech Inc., is not identified as a small business in the provided data. The contract was competed full and open, which does not inherently exclude small businesses but does not guarantee their participation.
Oversight & Accountability
The contract is a delivery order under a larger contract vehicle, implying prior oversight. The Department of Health and Human Services' Office of the Assistant Secretary for Financial Resources is responsible for this award.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Financial Resources Programs
Risk Flags
- Vendor lock-in
- Potential for price escalation in option years
- Lack of detailed license breakdown
- Limited visibility into per-unit cost competitiveness
Tags
other-computer-related-services, department-of-health-and-human-services, or, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $126,576.54 to BLUE TECH INC.. CISCO FLEX LICENSES FOR PORTLAND AREA OFFICE AND REMOTE LOCATIONS, BASE PLUS FOUR OPTION YEARS
Who is the contractor on this award?
The obligated recipient is BLUE TECH INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).
What is the total obligated amount?
The obligated amount is $126,576.54.
What is the period of performance?
Start: 2023-04-12. End: 2027-04-11.
What is the specific breakdown of licenses and their associated costs within this contract?
The provided data does not detail the specific types or quantities of Cisco licenses included in this $1.26M contract. A breakdown would be necessary to fully assess the value and ensure alignment with HHS's actual IT needs and usage patterns.
Are there any provisions for negotiating better pricing in future option years based on usage or volume discounts?
The contract terms do not explicitly mention provisions for renegotiating pricing based on usage or volume discounts in option years. This could represent a missed opportunity for cost optimization if not addressed proactively by HHS during the renewal or extension phases.
How does the per-unit cost of these Cisco licenses compare to government-wide acquisition contracts (GWACs) or other federal purchasing vehicles?
Without specific license details, a direct per-unit cost comparison is not feasible. However, HHS should leverage existing federal purchasing vehicles and price lists to ensure they are obtaining the most competitive rates for Cisco products.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: DIRM-23-011
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $157,268
Exercised Options: $126,577
Current Obligation: $126,577
Actual Outlays: $95,885
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSN316201500026W
IDV Type: GWAC
Timeline
Start Date: 2023-04-12
Current End Date: 2027-04-11
Potential End Date: 2028-04-11 00:00:00
Last Modified: 2026-04-08
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