Navy awards $28M for IT hardware, with HPE as primary contractor under full and open competition
Contract Overview
Contract Amount: $28,088,361 ($28.1M)
Contractor: HPE Government, LLC
Awarding Agency: Department of Defense
Start Date: 2017-12-21
End Date: 2023-12-10
Contract Duration: 2,180 days
Daily Burn Rate: $12.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS TECHNOLOGY INSERTION - NAVY
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39522
Plain-Language Summary
Department of Defense obligated $28.1 million to HPE GOVERNMENT, LLC for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS TECHNOLOGY INSERTION - NAVY Key points: 1. Significant contract value of $28M for IT hardware. 2. HPE Government, LLC is the primary contractor. 3. Awarded under full and open competition, suggesting market availability. 4. Contract spans over 6 years, indicating long-term IT needs.
Value Assessment
Rating: good
The contract value of $28M appears reasonable for IT hardware over a 6-year period. Benchmarking against similar large-scale IT hardware procurements would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely benefiting from a price discovery process that favors cost-effectiveness.
Public Impact
Ensures the Navy has access to necessary electronic computer hardware. Supports military readiness and technological advancement within the Department of Defense. Potential for follow-on contracts or upgrades based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2180 days) could lead to technology obsolescence.
- Reliance on a single primary contractor (HPE) might limit future flexibility.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Contract awarded to a known entity (HPE Government, LLC).
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on electronic computer manufacturing. Spending in this area is critical for modernizing military infrastructure and maintaining operational capabilities.
Small Business Impact
The data does not indicate specific participation or set-asides for small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was awarded by the Department of the Army, with oversight likely managed through their contracting and program management offices. The long duration necessitates ongoing monitoring for performance and compliance.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for technology obsolescence due to long contract duration.
- Limited visibility into specific hardware procured.
- Lack of explicit small business participation noted.
- Benchmark rate provided without sufficient context for validation.
Tags
electronic-computer-manufacturing, department-of-defense, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.1 million to HPE GOVERNMENT, LLC. IGF::OT::IGF FOR OTHER FUNCTIONS TECHNOLOGY INSERTION - NAVY
Who is the contractor on this award?
The obligated recipient is HPE GOVERNMENT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $28.1 million.
What is the period of performance?
Start: 2017-12-21. End: 2023-12-10.
What specific types of electronic computer hardware were procured under this contract?
The provided data specifies 'Electronic Computer Manufacturing' (NAICS 334111) but does not detail the exact hardware components. This could range from servers and workstations to specialized computing devices. Understanding the specific items is crucial for assessing technological relevance and potential obsolescence risks over the contract's lifespan.
How does the awarded price compare to industry benchmarks for similar IT hardware procurements?
While the contract value is $28M, a direct comparison to industry benchmarks requires detailed specifications of the hardware. The 'br' (benchmark rate) of 12885 is provided but lacks context. A thorough analysis would involve comparing unit costs for comparable items, considering volume discounts, and factoring in the contract duration and support services.
What mechanisms are in place to ensure the hardware remains relevant and effective throughout the contract's duration?
Given the contract's 6-year term, mechanisms for managing technology refresh or upgrades are essential. This could include contract clauses allowing for modernization, periodic reviews of technological advancements, or phased delivery schedules. Without explicit details, there's a risk of the procured hardware becoming outdated before the contract ends.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hewlett Packard Enterprise CO
Address: 420 NATIONAL BUSINESS PKWY STE 180, ANNAPOLIS JUNCTION, MD, 20701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,109,317
Exercised Options: $28,109,317
Current Obligation: $28,088,361
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY13G0025
IDV Type: BOA
Timeline
Start Date: 2017-12-21
Current End Date: 2023-12-10
Potential End Date: 2023-12-10 00:00:00
Last Modified: 2023-10-10
More Contracts from HPE Government, LLC
- Balanced, Commercially Available, Production-Grade High Performance Computing Systems (which Contain an Appropriate Combination of Processor,Memory, Disk Input/Output [I/O], Interconnect, and Operating System [OS] Capabilities) in Order to Conduct Complex, Tightlycoupled, Large-Scale, Scientific Calculations AT the AIR Force Research Laboratory (afrl) DOD Supercomputing Resource Center (dsrc) — $36.8M (Department of Defense)
- Technology Insertion (TI) 09 Computer System — $34.6M (General Services Administration)
- - TI-17 Afrl Order 13 — $29.1M (Department of Defense)
- Erdc ICE X Base System — $27.3M (Department of Defense)
- SGI Technology Insertion 1112 — $23.9M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)