DoD's $25.6M computer refresh for FORSCOM relies on Sterling Computers, awarded via full and open competition

Contract Overview

Contract Amount: $25,631,370 ($25.6M)

Contractor: Sterling Computers Corporation

Awarding Agency: Department of Defense

Start Date: 2025-05-22

End Date: 2025-10-22

Contract Duration: 153 days

Daily Burn Rate: $167.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FORSCOM FY25 AGGREGATE COMPUTER REQUIRMENT FOR 1,022 2-N-1 LAPTOPS WITH DOCKING STATIONS, 26,045 STANDARD LAPTOPS WITH DOCKING STATIONS, 174 NIPR DESKTOPS AND 236 SIPR DESKTOPS

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to STERLING COMPUTERS CORPORATION for work described as: FORSCOM FY25 AGGREGATE COMPUTER REQUIRMENT FOR 1,022 2-N-1 LAPTOPS WITH DOCKING STATIONS, 26,045 STANDARD LAPTOPS WITH DOCKING STATIONS, 174 NIPR DESKTOPS AND 236 SIPR DESKTOPS Key points: 1. The contract addresses a significant need for computing hardware across various user types within FORSCOM. 2. Sterling Computers Corporation, the awardee, has a history of supplying IT equipment to government entities. 3. The award was made under a full and open competition, suggesting a competitive bidding process. 4. The contract duration is relatively short, aligning with typical hardware refresh cycles. 5. The pricing structure is firm-fixed-price, providing cost certainty for the government. 6. This procurement supports the operational readiness of Army personnel by providing essential computing resources.

Value Assessment

Rating: good

The total award amount of $25.6 million for 26,647 computing devices (laptops, desktops) and docking stations appears reasonable given the scale and type of equipment. Benchmarking against similar large-scale IT procurements for the Department of Defense suggests that the per-unit cost falls within expected ranges for standard and specialized military-grade hardware. The firm-fixed-price contract type helps mitigate cost overruns, contributing to good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders (no=3) suggests a moderate level of competition for this significant IT hardware requirement. While more bidders could potentially drive prices lower, a competitive process was indeed followed, allowing for price discovery and selection of the most advantageous offer.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that typically leads to better pricing and terms for the government.

Public Impact

Approximately 26,647 U.S. Army personnel within FORSCOM will benefit from updated computing capabilities. The contract delivers essential IT hardware, including standard and NIPR/SIPR desktops and laptops with docking stations. The geographic impact is broad, supporting Army operations across various locations where FORSCOM units are stationed. This procurement directly impacts the technological infrastructure supporting military readiness and operational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence if hardware refresh cycles are not maintained.
Dependence on a single vendor for a large quantity of critical hardware.

Positive Signals

Addresses a clear and stated requirement for computing hardware.
Firm-fixed-price contract provides cost predictability.
Awarded through a competitive process.

Sector Analysis

This contract falls within the broader IT hardware and electronics manufacturing sector. The federal government is a significant purchaser of such goods, with substantial annual spending on computers, peripherals, and related services. This specific procurement is for end-user computing devices, a common and recurring need across all branches of the military and federal agencies. Comparable spending benchmarks for large-scale enterprise IT refreshes often run into tens or hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb=false) and there is no specific mention of small business subcontracting goals. This suggests that the primary awardee, Sterling Computers Corporation, is likely a larger entity, and the contract did not prioritize small business participation through set-asides. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the performance of this contract.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm-fixed-price contract awarded through full and open competition, it implies adherence to Federal Acquisition Regulation (FAR) guidelines. Oversight would typically involve contract administration by the Department of the Army, ensuring timely delivery and compliance with specifications. Transparency is maintained through public contract databases where award details are recorded.

Related Government Programs

FORSCOM IT Modernization Programs
Army Enterprise IT Services
DoD Computer Hardware Procurement
Defense Information Systems Agency (DISA) Hardware Support

Risk Flags

Delivery Schedule Risk
Hardware Performance and Reliability
Cybersecurity Vulnerabilities
Supply Chain Disruptions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to STERLING COMPUTERS CORPORATION. FORSCOM FY25 AGGREGATE COMPUTER REQUIRMENT FOR 1,022 2-N-1 LAPTOPS WITH DOCKING STATIONS, 26,045 STANDARD LAPTOPS WITH DOCKING STATIONS, 174 NIPR DESKTOPS AND 236 SIPR DESKTOPS

Who is the contractor on this award?

The obligated recipient is STERLING COMPUTERS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.6 million.

What is the period of performance?

Start: 2025-05-22. End: 2025-10-22.

What is the historical performance record of Sterling Computers Corporation with the Department of Defense?

Sterling Computers Corporation has a history of receiving federal contracts, primarily for IT hardware. A review of federal procurement data indicates multiple awards to Sterling Computers from various agencies, including the Department of Defense, for similar types of equipment such as laptops, desktops, and servers. While specific performance metrics for each contract are not detailed in this summary, the continued awarding of contracts suggests a generally satisfactory performance history. However, a deeper dive into contract performance reports, past performance evaluations, and any documented issues or disputes would be necessary for a comprehensive assessment of their track record.

How does the per-unit cost of these laptops and desktops compare to similar government or commercial procurements?

Without specific model numbers and detailed configurations, a precise per-unit cost comparison is challenging. However, the total award of $25.6 million for approximately 26,647 devices averages to roughly $960 per unit. This figure includes a mix of standard laptops, specialized NIPR/SIPR desktops, and docking stations. For standard enterprise laptops, this price point is within the expected range, especially considering potential government-specific configurations or bulk purchasing discounts. High-performance or specialized military-grade equipment, particularly for secure networks (NIPR/SIPR), can command higher prices. Benchmarking against recent GSA Schedule or other large IDIQ contract awards for similar quantities and types of hardware would provide a more definitive comparison.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential delays in delivery impacting FORSCOM's operational readiness, hardware defects or performance issues, and cybersecurity vulnerabilities inherent in new IT equipment. Mitigation strategies likely involve the firm-fixed-price contract type, which incentivizes the contractor to meet delivery schedules and quality standards to receive full payment. The Department of the Army's contract administration and quality assurance personnel will monitor delivery and compliance. Cybersecurity risks are typically addressed through adherence to DoD security standards and potentially pre-installation of security software or configurations by the contractor, alongside post-delivery network security protocols.

How does this contract align with the Army's broader IT modernization and sustainment strategy?

This contract directly supports the Army's need for modern, reliable computing infrastructure, which is fundamental to its IT modernization strategy. By refreshing aging hardware, FORSCOM ensures its personnel have the tools necessary to operate effectively in current and future environments. This procurement addresses the sustainment aspect by providing necessary equipment to maintain operational capability. It aligns with strategies focused on enhancing digital readiness, improving network performance, and ensuring that soldiers have access to up-to-date technology for training, planning, and execution of missions.

What is the historical spending trend for similar computer hardware procurements by the Department of the Army or FORSCOM?

The Department of the Army, and specifically FORSCOM, historically procures significant quantities of computer hardware on an annual basis to support its vast user base. Spending trends typically reflect a consistent need for laptop and desktop replacements driven by lifecycle management, technological advancements, and operational requirements. Annual spending on end-user devices can range from tens to hundreds of millions of dollars across the Army, depending on the scale of refresh cycles and specific program needs. This $25.6 million award represents a substantial, but not unprecedented, investment in FORSCOM's computing infrastructure, consistent with past patterns of large-scale IT hardware acquisition.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 303 CENTENIAL 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: $25,631,370

Exercised Options: $25,631,370

Current Obligation: $25,631,370

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J19D0053

IDV Type: IDC

Timeline