GSA awards 10-year BPA for end-user hardware and unified communications to Sterling Computers Corporation

Contract Overview

Contract Amount: $6,401,906 ($6.4M)

Contractor: Sterling Computers Corporation

Awarding Agency: General Services Administration

Start Date: 2024-09-30

End Date: 2034-09-29

Contract Duration: 3,651 days

Daily Burn Rate: $1.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: END USER HARDWARE AND UNIFIED COMMUNICATIONS OFFICE OF THE CHIEF INFORMATION OFFICER BLANKET PURCHASE AGREEMENT (BPA).

Place of Performance

Location: NORTH SIOUX CITY, UNION County, SOUTH DAKOTA, 57049

State: South Dakota Government Spending

Plain-Language Summary

General Services Administration obligated $6.4 million to STERLING COMPUTERS CORPORATION for work described as: END USER HARDWARE AND UNIFIED COMMUNICATIONS OFFICE OF THE CHIEF INFORMATION OFFICER BLANKET PURCHASE AGREEMENT (BPA). Key points: 1. Contract provides a long-term framework for acquiring essential IT hardware and communication tools. 2. The BPA structure allows for flexible ordering and potential for volume discounts over its lifespan. 3. Competition under SAP suggests a streamlined procurement process, potentially impacting cost-efficiency. 4. The fixed-price contract type offers budget certainty for the agency. 5. A 10-year duration indicates a strategic, long-term investment in IT infrastructure. 6. The contract is not set aside for small businesses, suggesting a focus on broader market participation.

Value Assessment

Rating: good

The contract's value is established through a Blanket Purchase Agreement (BPA) under the General Services Administration (GSA), indicating a structured approach to IT procurement. While specific pricing details for individual calls are not provided, the BPA mechanism itself is designed to leverage government-wide purchasing power. Benchmarking against similar IT hardware and unified communications BPAs would be necessary for a precise value assessment, but the long-term nature suggests potential for cost savings through sustained engagement with a single vendor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which typically allows for a broader range of vendors to participate compared to micro-purchase thresholds. The presence of 3 bids indicates a reasonable level of competition for this BPA. The SAP framework aims to balance efficiency with fair competition, ensuring that pricing is generally reflective of market conditions.

Taxpayer Impact: The competition level suggests that taxpayers benefit from a balance between efficient procurement and a fair price, avoiding potential overpayment associated with less competitive scenarios.

Public Impact

Federal employees across various agencies will benefit from access to updated end-user hardware and unified communication solutions. The contract supports the modernization of IT infrastructure, enhancing productivity and collaboration. The geographic impact is broad, as BPAs can be utilized by agencies nationwide. Workforce implications include ensuring federal employees have the necessary tools to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term reliance on a single vendor for critical IT needs could lead to vendor lock-in.
Potential for price increases in subsequent years if not managed through competitive call orders.
The broad scope of 'end-user hardware and unified communications' may lead to unforeseen requirements not fully captured in initial pricing.

Positive Signals

The BPA structure allows for streamlined ordering of essential IT equipment.
A 10-year duration provides stability and predictability for IT planning.
Competition under SAP ensures a degree of market responsiveness in pricing.
The firm fixed-price contract type offers cost certainty for the agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on electronic computer manufacturing and related communication equipment. The market for end-user hardware and unified communications is highly competitive, with numerous manufacturers and resellers. GSA BPAs are a common mechanism for federal agencies to procure these types of goods efficiently, often leveraging existing government-wide contracts. Comparable spending benchmarks would typically involve analyzing aggregate IT hardware spending across federal agencies or specific categories like laptops, desktops, and communication devices.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb' field being false. This suggests that the procurement was open to all eligible vendors, and the winning offer was selected based on the best overall value. While there is no direct small business set-aside, Sterling Computers Corporation may still engage small businesses as subcontractors, depending on their own supply chain and subcontracting plans. The absence of a set-aside means that the primary focus was on broader market competition rather than specifically fostering small business participation.

Oversight & Accountability

The General Services Administration (GSA) Federal Acquisition Service (FAS) is responsible for overseeing this BPA. Oversight mechanisms include regular performance reviews, contract management, and ensuring compliance with federal acquisition regulations. Transparency is facilitated through public contract databases where such awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Schedule IT-70
End-User Hardware Procurement
Unified Communications Solutions
Blanket Purchase Agreements (BPAs)
Information Technology Services

Risk Flags

Technological Obsolescence Risk
Vendor Lock-in Potential
Price Competitiveness Over Time
Scope Creep Management

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6.4 million to STERLING COMPUTERS CORPORATION. END USER HARDWARE AND UNIFIED COMMUNICATIONS OFFICE OF THE CHIEF INFORMATION OFFICER BLANKET PURCHASE AGREEMENT (BPA).

Who is the contractor on this award?

The obligated recipient is STERLING COMPUTERS CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2024-09-30. End: 2034-09-29.

What is the historical spending pattern for end-user hardware and unified communications under GSA?

Historical spending on end-user hardware and unified communications through GSA has been substantial, reflecting the continuous need for agencies to update their IT infrastructure. GSA's IT Schedule 70 (now IT Professional Services and Electronic Information Technology) has historically been a primary vehicle for such procurements. Billions of dollars are spent annually across the federal government on these categories. BPAs, like the one awarded to Sterling Computers Corporation, are often established against these schedules to streamline ordering. Analyzing past BPA awards and call orders can reveal trends in vendor performance, pricing fluctuations, and the types of hardware and communication solutions most frequently acquired by federal agencies. This specific BPA, with a potential 10-year lifespan, suggests a strategic shift towards longer-term IT asset management and procurement planning.

How does Sterling Computers Corporation's track record compare to other vendors in similar IT hardware procurements?

Sterling Computers Corporation has a history of serving government clients, including federal agencies, with IT hardware solutions. Their track record can be assessed by examining past contract awards, performance evaluations (if publicly available), and their participation in previous GSA schedules or BPAs. Comparing their performance and pricing on similar contracts would involve looking at the number of bids they've submitted, their win rates, and the value of contracts they've previously held. For instance, if they have consistently won contracts for end-user hardware or communication systems, it suggests a competitive offering. However, a comprehensive comparison would require access to detailed performance metrics and pricing data for their past engagements, which may not always be publicly accessible. Their ability to secure this 10-year BPA indicates a level of trust and competitiveness recognized by the GSA.

What are the primary risks associated with a 10-year Blanket Purchase Agreement for IT hardware?

A significant risk with a 10-year Blanket Purchase Agreement (BPA) for IT hardware is technological obsolescence. Technology evolves rapidly, and hardware purchased at the beginning of a decade may be outdated or unsupported by the end. Another risk is vendor lock-in, where the agency becomes heavily reliant on Sterling Computers Corporation, potentially limiting future flexibility or the ability to switch to more innovative or cost-effective solutions if they emerge. Price escalation over the long term is also a concern; while the contract is firm fixed-price, the initial pricing might not remain competitive as market rates change. Furthermore, the broad scope of 'end-user hardware and unified communications' could lead to unforeseen requirements or scope creep, potentially impacting the overall value if not managed meticulously through call orders. Finally, changes in agency needs or federal IT strategies could render the BPA less relevant over its extended term.

How does the firm fixed-price (FFP) contract type impact value for money in this BPA?

The Firm Fixed-Price (FFP) contract type for this BPA offers significant advantages for value for money by providing cost certainty to the government. Under an FFP agreement, the contractor, Sterling Computers Corporation, assumes the majority of the risk for cost overruns. This means the price agreed upon at the time of the BPA award (and subsequently for each call order) is generally the final price, regardless of the contractor's actual costs. This predictability allows the General Services Administration (GSA) to budget more effectively and avoid unexpected expenses. For taxpayers, this translates to a clearer understanding of the financial commitment. While FFP contracts can sometimes lead to higher initial prices to account for contractor risk, the absence of cost-reimbursement elements and the potential for competitive bidding under the BPA framework help to ensure that the government is not overpaying for the goods and services procured over the 10-year period.

What is the potential impact of this BPA on the IT hardware market for federal agencies?

This 10-year Blanket Purchase Agreement (BPA) awarded to Sterling Computers Corporation has the potential to significantly influence the IT hardware market for federal agencies, particularly those served by GSA. By consolidating a substantial portion of end-user hardware and unified communications needs under a single, long-term agreement, it can streamline procurement processes and potentially offer volume discounts. This could lead to more predictable IT spending patterns for participating agencies. However, it might also reduce opportunities for other vendors in the short to medium term, especially for smaller, more agile competitors who might not be able to compete on the scale or terms of this BPA. The long duration also signals a trend towards strategic, long-term IT asset management rather than frequent, ad-hoc purchasing, which could encourage vendors to offer more comprehensive support and lifecycle management services.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 303 CENTENNIAL DR, NORTH SIOUX CITY, SD, 57049

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $6,401,906

Exercised Options: $6,401,906

Current Obligation: $6,401,906

Actual Outlays: $6,401,906

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 86615424A00003

IDV Type: BPA

Timeline