HHS Awards $627K for Data Center UPS Replacement to New Tech Solutions

Contract Overview

Contract Amount: $627,374 ($627.4K)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-08-29

End Date: 2026-06-30

Contract Duration: 305 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA CENTER UPS REPLACEMENT

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21703

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $627,374.47 to NEW TECH SOLUTIONS, INC. for work described as: DATA CENTER UPS REPLACEMENT Key points: 1. The contract value is $627,374.47 for a critical data center component. 2. Competition was full and open, suggesting a competitive bidding process. 3. The award is a delivery order under an existing contract. 4. The sector involves IT infrastructure maintenance and upgrades.

Value Assessment

Rating: good

The contract value of $627,374.47 for UPS replacement appears reasonable for a federal agency's data center needs. Benchmarking against similar federal contracts for UPS systems of comparable capacity and features would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which typically leads to better price discovery and potentially lower costs for the government. The use of a delivery order indicates it's part of a larger, pre-established contract vehicle.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it promotes a fair marketplace and encourages competitive pricing, maximizing the value of government spending.

Public Impact

Ensures continuity of operations for critical health data. Supports the reliability of the Department of Health and Human Services' IT infrastructure. Modernizes essential data center equipment, potentially improving energy efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the UPS system is proprietary.
Delivery order may not reflect the best possible price compared to a standalone bid.

Positive Signals

Full and open competition utilized.
Critical infrastructure upgrade for a major federal agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on hardware maintenance and upgrades for critical data center infrastructure. Federal spending on IT infrastructure, including power protection like UPS systems, is substantial and essential for agency operations.

Small Business Impact

The data does not indicate whether small businesses participated in or benefited from this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The award is a delivery order, suggesting it falls under an existing contract that has likely undergone prior oversight. The Department of Health and Human Services' Office of the Assistant Secretary for Administration is responsible for this procurement.

Related Government Programs

Electronic Computer Manufacturing
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Lack of detailed technical specifications.
No mention of warranty period.
Potential for future compatibility issues with evolving technology.
Limited insight into long-term maintenance costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $627,374.47 to NEW TECH SOLUTIONS, INC.. DATA CENTER UPS REPLACEMENT

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $627,374.47.

What is the period of performance?

Start: 2025-08-29. End: 2026-06-30.

What is the expected lifespan of the new UPS system and how does it compare to industry standards?

The contract duration is 305 days, suggesting the installation and initial setup phase. The expected lifespan of the UPS system itself is not detailed in the provided data. However, typical commercial UPS systems have lifespans ranging from 5 to 15 years, depending on the technology, maintenance, and usage. Federal agencies often procure equipment with consideration for long-term reliability and total cost of ownership.

Are there any performance metrics or service level agreements (SLAs) associated with this UPS replacement to ensure operational effectiveness?

The provided data does not explicitly mention performance metrics or SLAs for the UPS system. However, as a critical component for data center operations, it is highly probable that the contract includes specifications for uptime, response times for failures, and potentially maintenance schedules. These would be detailed in the full contract documentation to ensure the system meets the agency's operational requirements.

What is the total cost of ownership for this UPS system, including maintenance and potential future upgrades?

The current award is for the replacement itself, totaling $627,374.47. The total cost of ownership is not fully captured here. It would need to include ongoing maintenance contracts, potential battery replacements over the system's lifespan, and any associated energy costs. Federal procurement often considers these factors, but they are not itemized in this summary data.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $627,374

Exercised Options: $627,374

Current Obligation: $627,374

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00CX

IDV Type: FSS

Timeline