DoD awards $64M for computer equipment, with Countertrade Products Inc. securing a significant portion

Contract Overview

Contract Amount: $64,179,783 ($64.2M)

Contractor: Countertrade Products, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2024-11-30

Contract Duration: 428 days

Daily Burn Rate: $150.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LAPTOPS AND OTHER COMPUTER EQUIPMENT

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $64.2 million to COUNTERTRADE PRODUCTS, INC. for work described as: LAPTOPS AND OTHER COMPUTER EQUIPMENT Key points: 1. Value for money appears fair given the scope of IT equipment procurement. 2. Competition dynamics indicate a full and open process after source exclusion, suggesting a deliberate procurement strategy. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is tied to the Defense Health Agency's IT infrastructure needs. 5. Sector positioning is within IT services and equipment, a critical area for defense operations.

Value Assessment

Rating: fair

The contract value of approximately $64 million for laptops and computer equipment is substantial. Benchmarking against similar IT procurements for defense agencies is necessary for a precise value assessment. The firm fixed-price contract type suggests an attempt to control costs, but the overall value proposition depends on the quality and longevity of the equipment provided and its alignment with the agency's specific technical requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded for reasons not detailed in the provided data. The number of bidders (9) suggests a reasonable level of interest, but the exclusion of certain sources may have limited the overall competitive landscape and potentially impacted price discovery.

Taxpayer Impact: The exclusion of sources, even within a full and open framework, warrants scrutiny to ensure it did not unduly restrict competition and lead to suboptimal pricing for taxpayers.

Public Impact

Personnel within the Department of Defense, particularly the Defense Health Agency, will benefit from updated computer equipment. The services delivered include the provision of laptops and other computer hardware essential for daily operations. The geographic impact is likely concentrated within the operational areas of the Defense Health Agency, potentially across various military bases and facilities. Workforce implications include enabling military and civilian personnel with reliable technology to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion.
Dependence on a single awardee for a significant IT equipment requirement.
Ensuring the procured equipment meets evolving technological standards and security requirements.

Positive Signals

Firm fixed-price contract type helps manage cost certainty.
A reasonable number of bidders (9) participated in the competition.
The contract duration allows for phased deployment and support.

Sector Analysis

This contract falls within the broader IT services and equipment sector, which is a significant area of federal spending. The market for computer hardware is highly competitive, with numerous manufacturers and resellers. The Defense Health Agency's specific requirements for ruggedness, security, and interoperability likely influence the type of equipment procured and the potential pool of qualified vendors. Comparable spending benchmarks would involve analyzing other large-scale IT hardware procurements by defense agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from this award as a set-aside. However, the prime contractor may engage small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms and financial regulations. The Defense Health Agency's program managers are responsible for performance oversight. Transparency is facilitated through contract databases like FPDS, though detailed justifications for source exclusions are not always publicly available.

Related Government Programs

Defense Health Agency IT Modernization Programs
Department of Defense End-User Device Procurement
Federal Information Technology Acquisition Reform Act (FITARA) Compliance
General Services Administration (GSA) Schedule IT Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Need for detailed justification of source exclusions.
Ensuring long-term value and lifecycle support for procured equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.2 million to COUNTERTRADE PRODUCTS, INC.. LAPTOPS AND OTHER COMPUTER EQUIPMENT

Who is the contractor on this award?

The obligated recipient is COUNTERTRADE PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $64.2 million.

What is the period of performance?

Start: 2023-09-29. End: 2024-11-30.

What is the track record of Countertrade Products, Inc. in fulfilling large federal IT equipment contracts?

Countertrade Products, Inc. has been awarded federal contracts, including this significant delivery order. A comprehensive review of their past performance, particularly on similar large-scale IT equipment procurements for defense or health agencies, would be necessary to fully assess their track record. This includes examining on-time delivery rates, product quality, customer satisfaction feedback, and any history of contract disputes or performance issues. Without more detailed historical data, it's difficult to definitively gauge their reliability and expertise in executing contracts of this magnitude and complexity.

How does the per-unit cost of the laptops and computer equipment compare to market rates or similar federal procurements?

The provided data does not include per-unit cost breakdowns, making a direct comparison to market rates or similar federal procurements impossible. To assess value for money, an analysis of the average cost per laptop and other computer equipment against GSA Schedule pricing, other agency bulk purchase agreements, or commercial off-the-shelf (COTS) pricing would be required. Factors such as specific configurations, warranty terms, and support services also influence per-unit costs and must be considered in any benchmarking exercise.

What are the specific reasons for the exclusion of certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The specific reasons for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award are not detailed in the provided data. Typically, such exclusions are based on factors like national security concerns, proprietary technology limitations, or the inability of certain vendors to meet highly specialized requirements. The contracting agency would have a justification document outlining these reasons. Understanding these specifics is crucial for assessing whether the exclusion was warranted and if it potentially limited competition unfairly, impacting the final price and selection.

What is the expected impact of this equipment procurement on the operational effectiveness of the Defense Health Agency?

This procurement is expected to significantly enhance the operational effectiveness of the Defense Health Agency by providing its personnel with modern, reliable computing resources. Up-to-date laptops and computer equipment are crucial for efficient data management, communication, telehealth services, and administrative tasks within a healthcare environment. Replacing aging hardware can reduce downtime, improve cybersecurity posture, and enable the use of newer software and applications, ultimately supporting the agency's mission of providing healthcare services to service members and their families.

How does this contract's value and scope compare to historical IT equipment spending by the Defense Health Agency?

Without historical spending data specifically for IT equipment by the Defense Health Agency, a direct comparison is not feasible. However, $64 million represents a substantial investment in IT hardware. Analyzing past contracts for similar equipment, such as laptops, desktops, servers, and networking gear, over the last 3-5 fiscal years would provide context. This would help determine if this award is an outlier, a continuation of a trend, or indicative of a shift in procurement strategy or technological needs within the agency.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7585 W 66TH AVE, ARVADA, CO, 80003

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

Financial Breakdown

Contract Ceiling: $64,179,783

Exercised Options: $64,179,783

Current Obligation: $64,179,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC65B

IDV Type: GWAC

Timeline