DHS awarded $21.3M for desktop refresh, impacting 5 locations across the DC metro area

Contract Overview

Contract Amount: $21,289,056 ($21.3M)

Contractor: Government Acquisitions Inc

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-28

End Date: 2008-07-26

Contract Duration: 302 days

Daily Burn Rate: $70.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DESKTOPS AND RELATED SERVICES TO COMPLETE AN AGENCY-WIDE HARDWARE REFRESH AS PART OF THE ATLAS CCE PROJECT. EQUIPMENT TO BE SHIPPED TO MULTIPLE LOCATIONS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.3 million to GOVERNMENT ACQUISITIONS INC for work described as: DESKTOPS AND RELATED SERVICES TO COMPLETE AN AGENCY-WIDE HARDWARE REFRESH AS PART OF THE ATLAS CCE PROJECT. EQUIPMENT TO BE SHIPPED TO MULTIPLE LOCATIONS. Key points: 1. The contract focused on hardware refresh, indicating a need for updated IT infrastructure. 2. A competitive delivery order suggests a degree of market responsiveness for this type of service. 3. The short performance period (302 days) implies a time-sensitive project requirement. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The award was made to Government Acquisitions Inc., a known entity in federal contracting. 6. The scope included shipping to multiple locations, adding logistical complexity.

Value Assessment

Rating: fair

The contract value of $21.3 million for a desktop refresh appears within a reasonable range for a large-scale hardware deployment. However, without specific details on the number of units, the exact configuration, and the duration of support, a precise value-for-money assessment is challenging. Benchmarking against similar agency-wide hardware refreshes would provide better context for pricing efficiency. The fixed-price nature of the contract suggests an effort to manage cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for multiple bidders. The presence of 5 bidders suggests a reasonable level of competition for this IT hardware refresh requirement. This competition likely contributed to price discovery and potentially secured more favorable terms for the government.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price competition, which can lead to lower overall costs for goods and services procured by the government.

Public Impact

Immigration and Customs Enforcement (ICE) personnel will benefit from updated desktop hardware, potentially improving productivity and system reliability. The services delivered include the provision and shipment of new desktop computers and related equipment. The geographic impact extends to multiple locations within the District of Columbia. The contract supports the agency's broader ATLAS CCE project, indicating a strategic IT modernization effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if refresh cycles are not managed effectively.
Risk of obsolescence if hardware specifications do not account for future technological advancements.
Dependence on a single contractor for a critical hardware refresh could pose supply chain risks.

Positive Signals

Competitive award process suggests a healthy market for IT hardware and services.
Fixed-price contract type provides cost certainty for the agency.
The contract supports a clear agency objective (hardware refresh) within a defined project (ATLAS CCE).

Sector Analysis

The IT hardware sector is characterized by rapid technological advancements and intense global competition. Federal agencies are significant consumers of IT equipment, with spending often driven by refresh cycles, cybersecurity mandates, and modernization initiatives. This contract for desktop computers and related services falls within the broader IT services and hardware procurement category, a substantial segment of federal IT spending. Comparable spending benchmarks would typically involve analyzing the cost per unit for similar hardware configurations across different agencies and contract vehicles.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of a large-scale hardware refresh, it is possible that the prime contractor may engage small businesses for subcontracting opportunities related to installation, support, or logistics, but this is not explicitly stated. The absence of set-aside provisions means the primary competition was likely open to all eligible large businesses.

Oversight & Accountability

The contract was awarded as a competitive delivery order, implying it was likely managed under a larger IDIQ contract with established oversight mechanisms. The fixed-price nature of the contract provides a degree of financial oversight by limiting the government's exposure to cost increases. Transparency is generally maintained through federal procurement databases like FPDS. Specific oversight would typically involve contract officers, program managers, and potentially agency inspectors general for fraud or performance issues.

Related Government Programs

IT Hardware Procurement
Desktop Computer Refresh Programs
Agency-Wide IT Modernization
ATLAS CCE Project
Department of Homeland Security IT Spending

Risk Flags

Potential for supply chain delays
Risk of hardware obsolescence
Integration challenges with existing infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.3 million to GOVERNMENT ACQUISITIONS INC. DESKTOPS AND RELATED SERVICES TO COMPLETE AN AGENCY-WIDE HARDWARE REFRESH AS PART OF THE ATLAS CCE PROJECT. EQUIPMENT TO BE SHIPPED TO MULTIPLE LOCATIONS.

Who is the contractor on this award?

The obligated recipient is GOVERNMENT ACQUISITIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2007-09-28. End: 2008-07-26.

What was the specific type and quantity of desktop hardware procured under this contract?

The provided data does not specify the exact make, model, or quantity of desktop computers and related services acquired. The contract description indicates a 'DESKTOPS AND RELATED SERVICES TO COMPLETE AN AGENCY-WIDE HARDWARE REFRESH'. To provide a detailed answer, access to the contract's statement of work (SOW) or delivery order details would be necessary. This information is crucial for understanding the scope of the refresh and for performing a granular cost analysis. Without these specifics, it's difficult to benchmark the value effectively against other similar procurements.

How does the per-unit cost of these desktops compare to market rates or similar federal contracts?

A direct per-unit cost comparison is not possible with the available data, as the quantity and specific models of desktops are not detailed. The total award amount of $21.3 million for a 302-day project (approximately 10 months) provides a high-level figure, but it encompasses more than just the hardware; it includes 'related services.' To benchmark effectively, one would need to identify the number of units deployed and their specifications. Comparing this to GSA Schedule pricing for comparable models or analyzing other agency desktop refresh contracts with detailed line items would be the next step in assessing value for money.

What is the track record of Government Acquisitions Inc. in fulfilling similar federal IT hardware contracts?

Government Acquisitions Inc. (GAI) has a history of federal contracting, including IT-related awards. Analyzing GAI's past performance on similar large-scale hardware refreshes or IT service contracts would be necessary to assess their track record for this specific award. Key indicators would include on-time delivery, adherence to specifications, customer satisfaction ratings (if available), and any history of contract disputes or performance issues. A review of their contract history in FPDS or other federal procurement databases would provide insights into their experience and reliability in fulfilling government requirements.

What were the primary risks identified for this contract, and how were they mitigated?

Potential risks for a contract of this nature include supply chain disruptions for hardware, integration issues with existing agency networks, user adoption challenges with new equipment, and potential cost overruns if not managed tightly. Given the fixed-price contract type, the primary risk mitigation strategy for the government is cost certainty. The short performance period suggests a focus on timely delivery. Specific mitigation strategies employed by the contractor and overseen by the agency would likely involve detailed project planning, robust testing protocols, clear communication channels, and contingency planning for logistical challenges in shipping to multiple locations.

How does this spending align with the Department of Homeland Security's overall IT modernization goals?

This contract directly supports the Department of Homeland Security's (DHS) IT modernization goals by providing updated hardware, which is foundational for any technology upgrade. The mention of the 'ATLAS CCE PROJECT' suggests this refresh is part of a larger, strategic initiative. Modernizing end-user hardware is critical for enabling the deployment of new software, enhancing cybersecurity posture, improving operational efficiency, and supporting the agency's mission-critical functions. Consistent spending on hardware refreshes is a standard component of maintaining a modern and secure federal IT infrastructure.

What was the competitive landscape like for this specific delivery order, and what does it imply?

The contract was awarded as a competitive delivery order with 5 bidders. This indicates that the requirement was posted or competed under a broader contract vehicle (like an IDIQ), allowing multiple vendors to submit proposals. Having 5 bidders suggests a healthy level of competition for this type of IT hardware refresh service. A competitive environment generally leads to better pricing, improved service quality, and a wider range of solutions offered to the government, ultimately benefiting taxpayers through more efficient use of funds.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SEALED BID

Solicitation ID: HSCEOP-07-Q-00114

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 231 W 4TH ST, CINCINNATI, OH, 45202

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $21,289,056

Exercised Options: $21,289,056

Current Obligation: $21,289,056

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC07D00024

IDV Type: IDC

Timeline