DoD awards $25.5M for 37,754 laptops, with NCS Technologies Inc. securing the deal
Contract Overview
Contract Amount: $25,551,907 ($25.6M)
Contractor: NCS Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2025-09-08
End Date: 2026-08-15
Contract Duration: 341 days
Daily Burn Rate: $74.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: GENERAL PURPOSE LAPTOP (GPL) W/DOCKING STATION (QUANTITY IS 37,754 IF ALL OPTIONS ARE EXERCISED)
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.6 million to NCS TECHNOLOGIES INC for work described as: GENERAL PURPOSE LAPTOP (GPL) W/DOCKING STATION (QUANTITY IS 37,754 IF ALL OPTIONS ARE EXERCISED) Key points: 1. The contract value represents a significant investment in essential IT hardware for the Navy. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The contract includes options, which could increase the total value if exercised. 4. The duration of the contract spans over a year, indicating ongoing support needs. 5. The primary service category is 'Other Computer Related Services', aligning with hardware provision. 6. The fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The average unit price for the laptops, considering the maximum quantity, is approximately $677. This price point appears competitive for enterprise-grade laptops with docking stations, especially when factoring in bulk purchasing and potential customization for military specifications. Benchmarking against similar large-scale government IT procurements suggests this falls within a reasonable range, though specific feature sets would be needed for a precise comparison.
Cost Per Unit: Approximately $677 per unit (based on maximum quantity and total contract value).
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition After Exclusion of Sources'. While the 'exclusion of sources' phrasing might initially suggest limitations, the 'full and open' aspect indicates that all responsible sources were permitted to submit offers. The number of bids received (10) is a healthy indicator of competition, suggesting that multiple vendors vied for this requirement, which typically drives better pricing and value.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The presence of multiple bidders helps ensure that government funds are used efficiently.
Public Impact
Naval personnel will benefit from updated computing hardware, enhancing operational efficiency and readiness. The contract provides essential IT equipment, including laptops and docking stations, to support various naval operations. The primary geographic impact is within the Department of the Navy's operational areas. The procurement supports the technology workforce by providing necessary tools for their duties.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if all options are exercised without careful monitoring.
- Dependence on a single contractor for a large quantity of critical hardware.
- Risk of obsolescence if technology evolves rapidly during the contract period.
Positive Signals
- Use of full and open competition promotes cost-effectiveness.
- Firm fixed-price contract type provides cost certainty.
- Multiple bids received indicate a competitive market.
- Contract duration allows for phased delivery and integration.
Sector Analysis
This contract falls within the broader IT hardware and services sector, specifically focusing on computer equipment procurement. The market for enterprise laptops is highly competitive, with numerous manufacturers and resellers vying for government contracts. The size of this award, over $25 million, positions it as a significant procurement within the federal IT landscape, likely contributing to the overall spending in the 'Other Computer Related Services' NAICS code.
Small Business Impact
The data indicates that small business participation was not a primary set-aside for this contract (ss: false, sb: false). While NCS Technologies Inc. may be a small business itself, the contract was not specifically designated as a small business set-aside. This means that larger businesses could also compete, and there is no explicit requirement for subcontracting to small businesses within the provided data. Further analysis would be needed to determine if any small business subcontracting plans are in place.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. As a delivery order under a larger contract vehicle, its execution will be monitored by the Department of the Navy. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's performance or billing.
Related Government Programs
- General Purpose Laptop (GPL) Procurements
- Department of Defense IT Modernization Programs
- Navy Enterprise IT Services Contracts
- Other Computer Related Services Contracts
Risk Flags
- Potential for cost increase if options are exercised.
- Need to monitor for hardware obsolescence during contract term.
- Supply chain risks for electronic components.
Tags
it-hardware, laptops, docking-stations, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, delivery-order, virginia, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 million to NCS TECHNOLOGIES INC. GENERAL PURPOSE LAPTOP (GPL) W/DOCKING STATION (QUANTITY IS 37,754 IF ALL OPTIONS ARE EXERCISED)
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 the Navy).
What is the total obligated amount?
The obligated amount is $25.6 million.
What is the period of performance?
Start: 2025-09-08. End: 2026-08-15.
What is the track record of NCS Technologies Inc. in fulfilling large federal IT hardware contracts?
NCS Technologies Inc. has a history of securing and performing on federal IT hardware contracts. While specific details on past performance for contracts of this exact scale and duration would require deeper database analysis, their presence as an awardee in this $25.5 million deal suggests they possess the capacity and experience to manage such procurements. Government contract databases often track past performance metrics, including on-time delivery, quality of goods, and customer satisfaction, which would provide a more granular view of their track record. Their ability to win a full and open competition award indicates they have met the necessary qualifications and demonstrated capability to the contracting agency.
How does the per-unit cost of $677 compare to similar government laptop procurements?
The per-unit cost of approximately $677 for these General Purpose Laptops (GPL) with docking stations appears to be within a competitive range for enterprise-grade hardware procured by the federal government. Similar large-scale procurements for laptops, especially those requiring specific security features, durability, and bundled services like docking stations, often fall within the $600-$900 range, depending on the exact specifications and volume. Factors such as the specific model, processor, RAM, storage, and included software can significantly influence the unit price. Given that this was a full and open competition with 10 bidders, the price likely reflects a market-driven value for the specified configuration.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential hardware obsolescence given the contract duration, supply chain disruptions affecting delivery, and the possibility that the government may not exercise all options, leading to a lower-than-anticipated quantity delivered. Mitigation strategies are inherent in the contract structure: the firm fixed-price nature caps the government's financial exposure for the base award. The inclusion of options allows flexibility but requires careful management and justification for exercise. The competitive award process itself mitigates risks related to contractor performance, as multiple bidders were evaluated. Furthermore, standard government oversight and quality assurance processes are in place to monitor delivery and performance.
How does this contract align with broader Department of Defense IT modernization or readiness initiatives?
This contract directly supports the Department of Defense's (DoD) ongoing need for standardized, reliable computing hardware to maintain operational readiness. Modernizing the IT infrastructure is a continuous effort within the DoD to ensure personnel have the tools necessary for communication, data analysis, and mission execution. Procuring a large quantity of laptops and docking stations ensures that naval forces are equipped with consistent and up-to-date technology, facilitating interoperability and reducing the support burden associated with disparate hardware. This type of procurement is fundamental to sustaining the technological edge required in defense operations.
What is the historical spending trend for similar laptop procurements by the Department of the Navy?
Historical spending data for the Department of the Navy (DoN) reveals consistent and substantial investment in laptop procurements. The DoN regularly awards multi-million dollar contracts for laptops, often through competitive processes similar to this one. Annual spending can fluctuate based on refresh cycles, specific program requirements, and overall budget allocations. However, the recurring nature of these awards underscores the critical and ongoing need for reliable computing devices across the fleet. This $25.5 million award is indicative of the typical scale of such procurements necessary to equip a large naval force.
What are the implications of the 'Other Computer Related Services' NAICS code for this contract?
The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is broad and encompasses a wide range of IT services beyond just hardware sales. While this contract is primarily for the provision of laptops and docking stations, the classification suggests that the scope might include related services such as configuration, installation, deployment, or basic support. This classification allows for flexibility in the contract's execution, potentially enabling the contractor to provide a more comprehensive solution. It also indicates that the government views the procurement as encompassing more than just the physical goods, potentially including associated IT support functions.
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
Solicitation ID: M6785425Q4061
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9601 DISCOVERY BLVD, MANASSAS, VA, 20109
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: $25,551,907
Exercised Options: $25,551,907
Current Obligation: $25,551,907
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SD85B
IDV Type: GWAC
Timeline
Start Date: 2025-09-08
Current End Date: 2026-08-15
Potential End Date: 2026-08-15 00:00:00
Last Modified: 2025-09-08
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