DoD's $32M laptop contract with NCS Technologies Inc. awarded under full and open competition
Contract Overview
Contract Amount: $32,077,686 ($32.1M)
Contractor: NCS Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2022-09-22
End Date: 2023-11-15
Contract Duration: 419 days
Daily Burn Rate: $76.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: LAPTOP B (FTE)
Place of Performance
Location: GAINESVILLE, PRINCE WILLIAM County, VIRGINIA, 20155
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $32.1 million to NCS TECHNOLOGIES INC for work described as: LAPTOP B (FTE) Key points: 1. The contract value of $32,077,685.58 for laptops represents a significant investment in IT hardware for the Department of Defense. 2. Awarded under 'Full and Open Competition After Exclusion of Sources,' this indicates a competitive process with specific justifications for excluding certain sources. 3. The fixed-price contract type suggests that the government has a clear understanding of the costs involved, mitigating cost overrun risks. 4. The duration of the delivery order (419 days) points to a substantial procurement requirement for these laptops. 5. The contract was awarded to NCS Technologies Inc., a known entity in the federal IT contracting space. 6. The North American Industry Classification System (NAICS) code 541519 suggests a broad scope of 'Other Computer Related Services' beyond just hardware provision.
Value Assessment
Rating: good
Benchmarking the value of this contract requires detailed analysis of specific laptop models, quantities, and configurations against market rates at the time of award. However, a $32 million contract for IT hardware suggests a large-scale procurement. The firm-fixed-price structure is generally favorable for the government, locking in costs. Without specific unit details, a precise value-for-money assessment is challenging, but the competitive award mechanism provides a baseline for fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was generally open, there were specific reasons or criteria that led to the exclusion of certain potential sources. The presence of 'Full and Open Competition' suggests that multiple bidders were likely considered, contributing to price discovery and potentially favorable pricing for the government. The exact number of bidders is not specified, but the 'full and open' nature indicates a robust competitive environment.
Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by driving down prices and ensuring the government receives good value. It reduces the risk of paying inflated prices associated with sole-source or limited competition contracts.
Public Impact
The primary beneficiaries are likely Department of Defense personnel who will receive new laptops, enhancing their operational capabilities. The services delivered include the provision of laptops, crucial for modern military and administrative functions. The geographic impact is likely widespread across various Department of Defense installations, particularly within Virginia where the contractor is based. Workforce implications include potential support roles for installation, maintenance, and training related to the new hardware.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Exclusion of Sources' aspect of the competition warrants further investigation to ensure it did not unduly limit competition or lead to suboptimal pricing.
- Lack of specific details on laptop models and configurations makes it difficult to assess if the procured hardware meets current technological standards and offers long-term value.
- The duration of the delivery order (419 days) could indicate potential lead time issues or a phased deployment strategy that might impact immediate operational readiness.
Positive Signals
- The award under 'Full and Open Competition' is a strong positive signal, indicating a competitive process that should yield fair market pricing.
- The firm-fixed-price contract type provides cost certainty for the government, minimizing the risk of budget overruns.
- NCS Technologies Inc. is an established contractor, suggesting a level of experience and reliability in fulfilling federal IT requirements.
Sector Analysis
The IT hardware sector is highly competitive, with numerous vendors offering a wide range of laptops. Federal agencies are significant buyers, often procuring in bulk to equip their workforces. This contract fits within the broader category of IT hardware procurement, which is a consistent spending area for defense and civilian agencies. Comparable spending benchmarks would involve analyzing other large-scale laptop procurements by federal entities, considering factors like unit cost, brand, specifications, and warranty.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, NCS Technologies Inc., is likely a mid-to-large-sized business. The absence of a small business set-aside means opportunities for small business participation would typically arise through the prime contractor's subcontracting efforts, if any.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense Education Activity (DoDEA) and the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Defense IT Hardware Procurement
- Federal Civilian Agency Laptop Purchases
- IT Services and Hardware Contracts
- Defense Logistics Agency (DLA) IT Support
Risk Flags
- Potential for technological obsolescence due to long delivery period.
- Risk of supply chain disruptions impacting timely delivery.
- Need for detailed justification for exclusion of sources in competition.
Tags
it-hardware, department-of-defense, ncs-technologies-inc, full-and-open-competition, firm-fixed-price, delivery-order, dod-education-activity, virginia, naics-541519, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.1 million to NCS TECHNOLOGIES INC. LAPTOP B (FTE)
Who is the contractor on this award?
The obligated recipient is NCS TECHNOLOGIES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of Defense Education Activity).
What is the total obligated amount?
The obligated amount is $32.1 million.
What is the period of performance?
Start: 2022-09-22. End: 2023-11-15.
What specific models and configurations of laptops were procured under this contract, and how do they compare to current market offerings?
The provided data does not specify the exact models or configurations of the laptops procured. To conduct a thorough analysis, one would need to access the contract's statement of work or detailed specifications. Comparing these to current market offerings would involve identifying the specific make, model, processor, RAM, storage, and screen size, then benchmarking their prices against similar configurations available from major manufacturers and resellers at the time of award. This would help determine if the government secured competitive pricing and appropriate technology for its needs. Without this granular detail, assessing value for money is limited.
How does the per-unit cost of these laptops, if calculable, compare to other similar federal procurements or commercial bulk purchase rates?
Calculating a precise per-unit cost requires knowing the total number of laptops procured, which is not provided in the summary data. If we assume, for example, that 10,000 laptops were purchased, the average per-unit cost would be approximately $3,207. This figure would then need to be benchmarked against other federal laptop contracts (e.g., GSA schedules, other agency awards) and commercial bulk pricing for comparable models. Factors like warranty, support services, and specific configurations significantly influence per-unit costs. A higher per-unit cost might be justified by superior specifications, extended warranties, or specialized security features required by the DoD.
What were the specific criteria for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?
The designation 'Full and Open Competition After Exclusion of Sources' implies that the solicitation was made available to all responsible prospective contractors, but specific sources were excluded based on defined criteria. These criteria could include factors such as past performance, technical capabilities, security clearances, or specific certifications required for the contract. The justification for exclusion must be documented and legally defensible to ensure fair competition. Without access to the solicitation documents or award justification, the precise reasons for excluding specific sources remain unknown, but they are typically tied to ensuring the best value and lowest risk for the government.
What is the track record of NCS Technologies Inc. in fulfilling large-scale IT hardware contracts for the Department of Defense?
NCS Technologies Inc. has a history of contracting with the federal government, including the Department of Defense. Their track record in fulfilling large-scale IT hardware contracts can be assessed by reviewing their past performance on similar awards, including contract values, delivery timeliness, and any reported issues or successes. Publicly available contract databases (like FPDS or SAM.gov) can provide insights into their contract history. A positive track record suggests reliability and capability, while a history of performance issues might raise concerns about their ability to execute this specific $32 million contract effectively.
How does the $32 million spending on laptops align with historical spending patterns for IT hardware within the Department of Defense Education Activity?
To assess alignment with historical spending, one would need to analyze the Department of Defense Education Activity's (DoDEA) IT hardware procurement budgets and actual expenditures over several fiscal years. This analysis would involve identifying trends in spending on laptops, desktops, and related peripherals. Comparing the $32 million award to these historical figures would reveal whether this contract represents a typical procurement, an increase, or a decrease in spending for this category. Understanding these patterns can help contextualize the current investment and identify any significant shifts in procurement strategy or needs.
What are the potential risks associated with a 419-day delivery order for laptops, and what mitigation strategies are in place?
A 419-day delivery order for laptops presents several potential risks, including technological obsolescence by the time delivery is complete, supply chain disruptions affecting availability, and potential price fluctuations if not adequately managed under a fixed-price contract. Mitigation strategies typically involve clear contract clauses regarding delivery schedules, performance standards, and potentially price adjustment mechanisms for significant market shifts (though less common in firm-fixed-price). The government may also require phased deliveries and regular progress reports to monitor the schedule and address issues proactively. The contractor's own supply chain management and production capacity are critical to mitigating these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HE125422R3005
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7669 LIMESTONE DR, GAINESVILLE, VA, 20155
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,990,422
Exercised Options: $32,077,686
Current Obligation: $32,077,686
Actual Outlays: $31,283,887
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SD85B
IDV Type: GWAC
Timeline
Start Date: 2022-09-22
Current End Date: 2023-11-15
Potential End Date: 2023-11-15 00:00:00
Last Modified: 2023-11-16
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