Wave Systems Corp. (fka WAVXQ)

[New Wave]

More details on the pending Army Desktop and Mobile Computing RFP (see New Contract below):

http://www.military-information-technology.com/article.cfm?DocID=1153

Following a successful Air Force program, the Army plans to use its bulk purchasing clout to obtain the best computer prices it can.

By Mickey McCarter
September 21, 2005

Seeking to take advantage of their huge volume of purchases, military IT procurement officials are turning to bulk buying of computers as a way of lowering prices and standardizing equipment.

Following in the footsteps of the Air Force Information Technology Commodity Council, the Army Small Computer Program (ASCP) recently initiated the Army’s first consolidated buy of desktop and laptop computers for the service. Using Army Desktop and Mobile Computing (ADMC) contracts, the Army plans to bundle requests to buy computers and then use the power of bulk purchasing to obtain the best prices it can from its vendors.

Lieutenant General Steven W. Boutelle, the Army’s chief information officer/G6, this summer directed the use of the process for Army units, which can order two standard configurations of desktops and two of laptops through AMDC. One desktop is a small model and the other is a standard configuration, while one laptop is lightweight and the other a regular-sized one.

“The contract offerings are far greater than that, so if users have requirements that don’t fit into the specs for the consolidated buy or they can’t wait because they have mission-critical requirements, they are free to order off the vehicles at any time during the year,” said Michelina LaForgia, assistant project manager for ASCP, based at Fort Monmouth, NJ.

The Army Network Enterprise Technology Command (NETCOM) set the requirements for the most popular configurations of computers, which became the systems that could be purchased through consolidated buying on the ADMC contract. As LaForgia noted, however, soldiers also can buy different configurations such as ruggedized notebooks for use in the field as they need them.

“If our consolidated offering doesn’t meet your requirements, then just order ruggedized right off the basic contract,” she said.

The first consolidated buy is already underway. Boutelle’s memo directed Army units to submit funding requirements during the month of August. ASCP was then scheduled to issue orders during September, completing the first consolidated buy before the end of fiscal 2005.

Volume-Based Pricing

ASCP posted initial prices for computers on August 1, as offered by the eight vendors that hold ADMC contracts. The total number of orders that are gathered by September will determine the actual price per unit that the Army pays for the computers.

“So, for example, if Hewlett Packard is going to propose a price in all of the different ranges, when we consolidate them all up and say we have 3,000 requirements for Hewlett Packard, everybody would pay the price for the range that includes the quantity of 3,000. So you would see a second announcement on our Web site on or about the first of September that gives the final price for each product,” LaForgia explained.

The eight vendors currently on the ADMC contract vehicle are Apptis, CDW-G, Dell, GTSI, ID, iGov, Insight and MPC. Soldiers can potentially acquire computers from original equipment manufacturers such as Gateway, Hewlett Packard, Apple, IBM, Dell, Acer, NCS, Panasonic and ruggedized manufacturer AMREL.

According a memo from Boutelle, consolidated buys will occur twice a year on the ADMC contract: in August/September and February/March. For each period, the ASCP will collect the requirements from each unit, and then submit them to the IT E-Commerce and Commercial Contracting Center (ITEC4).

ITEC4 will talk to the vendors on the ADMC contract to obtain prices for bulk purchasing, and ASCP will post those prices in the second month of the period for Armywide ordering. Customers will then be able to place an order through their contracting officers using the offering of their choice.

LaForgia added that the schedule for the consolidated buying could change. The decision to make consolidated buys twice a year was based on feedback from Army commands using ADMC, she said.

“More frequent buys could make it difficult to support the various pieces of equipment that come in, so we decided to do it just twice a year,” LaForgia said. “But now that the proposal is really mandatory for Army users, we may find out that they need it more than twice a year.”

The experience of the first consolidated buy may prompt changes in the purchasing schedule, she added. For example, the Army could move to quarterly purchases, like the Air Force IT Commodity Council, if the service finds that more frequent buys better fit its needs.

New Contract

Currently, the ADMC contract vehicles are blanket purchase agreements (BPA) awarded to the eight participants in the program. Army commands have been able to use the BPAs to order items a la carte from individual vendors. These eight BPAs constitute ADMC 1, which is set to expire at the end of calendar 2005.

As the BPA contracts extend three months beyond the end of fiscal 2005, the first consolidated buy will occur through the eight vendors on ADMC 1. However, the ASCP plans to introduce ADMC 2 at the beginning of 2006, which will be structured differently than its predecessor.

As opposed to BPAs, the Army plans to award indefinite delivery/indefinite quantity (IDIQ) contracts to at least six qualified vendors, according to Joann Underwood, the ADMC 2 contracting officer.

“If we get best value offers from a couple more that we decide we would like to award to, we will do so, but at a minimum, we will make six awards. We are not planning on awarding 20 contracts,” Underwood said.

ITEC4 is managing the acquisition, which will have three spots set aside for small business. ADMC 2 contracts will have a 10-year period of performance—a three-year base period, three two-year options and one one-year option—with a maximum ceiling of $5 billion. The new structure maximizes the Army’s ability to be flexible in procuring its computer hardware in the future.

“We think the ceiling will be sufficient, but if it does run out, we will just do a new re-compete and a new follow-on sooner than 10 years,” Underwood said. “It’s set up with options throughout, so if we decide the vehicle is no longer meeting our needs as well, then we can do a follow-on and do a new acquisition as well.”

ITEC4 posted a synopsis of its plans for ADMC 2 on the Federal Business Opportunities Web site on July 21. The synopsis states that the Army intends to issue a request for proposals to vendors in support of ADMC 2, which the Army will use for leases or purchases of personal computers, notebooks, ruggedized notebooks, tablets and personal digital assistants as well as printers, digital cameras, video teleconferencing equipment, projectors, displays and high-definition television units. The other services and Department of Defense agencies may also use the contracts if desired.

The Army and other buyers will also use the contract for warranty services, asset tagging and other support for equipment. Vendors are required to provide a minimum of a three-year warranty for all desktops and notebooks delivered through the contract. Other equipment must carry its commercial warranty terms, but the vendors must provide toll-free telephone support at no additional charge for product questions and technical support.

Vendors would have a turnaround time of no more than two business days to replace failed equipment, at most locations inside or outside of the continental United States, although they would have five business days from receipt of the failed equipment in the case of units in remote areas outside of the United States. Shipping could take up to 30 or 35 days, depending on the location.

Contractors under ADMC 2 must support security clearances. Most of the vendors would need secret clearance, but some “orders may require Top Secret Sensitive Compartmented Information for on-site warranty support,” the synopsis said.

ITEC4 released a draft request for proposals in early August, with the deadline for questions and comments and an on-line conference for interested bidders occurring that month as well. The final RFP was expected in early September, with proposals due in October.