NIH awards $9.5M for IT equipment, with 7 bids received under full and open competition

Contract Overview

Contract Amount: $9,490,952 ($9.5M)

Contractor: Anacapa Micro Products, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2023-02-03

End Date: 2027-02-02

Contract Duration: 1,460 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT EQUIPMENT

Place of Performance

Location: OXNARD, VENTURA County, CALIFORNIA, 93036

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $9.5 million to ANACAPA MICRO PRODUCTS, INC. for work described as: IT EQUIPMENT Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition dynamics with 7 bidders suggest fair market pricing. 3. No immediate risk indicators are apparent from the contract details. 4. Performance context is for IT equipment, a common federal need. 5. This contract fits within the broader IT services sector for healthcare research. 6. The firm-fixed-price structure helps manage cost certainty.

Value Assessment

Rating: good

The contract value of $9.5 million for IT equipment over a 4-year period is within a typical range for federal procurements of this nature. Benchmarking against similar IT equipment contracts awarded by NIH or other health agencies would provide a more precise value assessment. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The presence of 7 bidders indicates a healthy level of competition, which typically drives down prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The solicitation received 7 bids, indicating a robust competitive environment. A higher number of bidders generally leads to better price discovery and can result in more favorable pricing for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: The strong competition for this IT equipment contract is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition award. This ensures that federal funds are used efficiently.

Public Impact

The National Institutes of Health (NIH) is the primary beneficiary, receiving essential IT equipment. This equipment will support critical research and administrative functions within the agency. The contract's geographic impact is primarily within California, where the contractor is located, but the equipment will be used by NIH facilities. Workforce implications are likely related to the IT support and maintenance of the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary equipment is procured.
Ensuring timely delivery and installation of equipment to avoid research delays.
Verifying that the equipment meets all specified technical requirements and performance standards.

Positive Signals

Awarded under full and open competition, indicating a fair and accessible process.
Firm-fixed-price contract type provides cost certainty for the government.
Multiple bidders (7) suggest a competitive market and potentially good value.
Contract duration of 4 years allows for stable supply and potential for long-term planning.

Sector Analysis

The IT equipment sector is a fundamental component of federal agency operations, supporting everything from administrative tasks to advanced research. Federal spending on IT equipment is substantial, with agencies constantly needing to upgrade and maintain their technological infrastructure. This contract, valued at $9.5 million, represents a typical procurement for IT hardware within the healthcare and research sector, where advanced computing capabilities are often required. Comparable spending benchmarks for similar IT equipment procurements by agencies like NIH or other research institutions would likely fall within a similar per-unit or total contract value range, depending on the specific types and quantities of equipment.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is not immediately clear, though the prime contractor may engage small businesses for subcontracting opportunities.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. Accountability is ensured through the firm-fixed-price contract terms, requiring the contractor to deliver specified goods. Transparency is facilitated by the public availability of contract data. The Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Hardware Procurement
Computer Systems and Peripherals
Federal IT Services
Healthcare IT Spending
Research and Development Equipment

Risk Flags

Potential for equipment obsolescence over the 4-year contract term.
Dependence on contractor's supply chain for timely delivery.
Ensuring interoperability with existing NIH IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $9.5 million to ANACAPA MICRO PRODUCTS, INC.. IT EQUIPMENT

Who is the contractor on this award?

The obligated recipient is ANACAPA MICRO PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $9.5 million.

What is the period of performance?

Start: 2023-02-03. End: 2027-02-02.

What is the track record of ANACAPA MICRO PRODUCTS, INC. with federal contracts, particularly for IT equipment?

A review of federal procurement databases would be necessary to fully assess ANACAPA MICRO PRODUCTS, INC.'s track record. However, the award of this $9.5 million contract by the National Institutes of Health suggests a level of capability and experience deemed sufficient by the agency. Further analysis would involve examining past performance evaluations, any history of contract disputes or terminations, and the volume and value of previous federal awards to this contractor. Understanding their performance on similar IT equipment contracts would provide insight into their reliability and ability to meet government requirements.

How does the awarded price compare to market rates for similar IT equipment?

Without specific details on the exact IT equipment procured (e.g., servers, workstations, networking gear, specific models), a precise price comparison is challenging. However, the presence of 7 bids under full and open competition strongly suggests that the pricing achieved is competitive and likely reflects fair market value. Agencies typically conduct market research to establish price reasonableness before awarding contracts. If the awarded prices were significantly out of line with market rates, it would be unusual given the competitive nature of this procurement. Further analysis could involve comparing unit prices for specific items if that data becomes available.

What are the primary risks associated with this IT equipment procurement, and how are they mitigated?

Key risks include potential delays in delivery, equipment failing to meet technical specifications, or obsolescence issues. Mitigation strategies are embedded in the contract structure. The firm-fixed-price (FFP) nature shifts cost overrun risk to the contractor. Delivery schedules and technical requirements are clearly defined in the contract, with penalties or remedies for non-compliance. The 4-year duration allows for phased delivery and potential refresh cycles. The competitive bidding process itself helps mitigate risks by selecting a contractor with a demonstrated ability to meet requirements.

How effective is the National Institutes of Health in managing IT equipment procurements of this scale?

The NIH's consistent procurement of IT equipment, supported by competitive processes like this one, indicates established procedures for managing such acquisitions. The agency's large scale and mission-critical research needs necessitate robust IT infrastructure. The use of full and open competition and firm-fixed-price contracts are standard best practices that contribute to effective management. Performance monitoring throughout the contract's life cycle, including acceptance testing and vendor support, would be crucial for ensuring effectiveness. The number of bids received suggests the agency's solicitations are attractive to the market.

What are the historical spending patterns for IT equipment at the NIH, and how does this contract fit?

The NIH, as a leading biomedical research agency, has historically high spending on IT infrastructure to support its vast research endeavors. Annual spending on IT equipment can run into hundreds of millions of dollars, encompassing everything from basic office computers to high-performance computing clusters. This $9.5 million contract represents a specific, albeit significant, procurement within that larger IT budget. It likely addresses a particular need for equipment upgrades or expansion within a defined NIH division or program over the 4-year period, fitting into the agency's ongoing strategy to maintain state-of-the-art technological capabilities.

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: CS-92253-SB

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Anacapa Micro Products Inc.

Address: 2851 N VENTURA RD 201, 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: $11,984,078

Exercised Options: $9,490,952

Current Obligation: $9,490,952

Actual Outlays: $7,104,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSN316201500025W

IDV Type: GWAC

Timeline