Gateway protests ADMC-2 contracts

Gateway is protesting its exclusion from the Army Desktop and Mobile Computing-2 (ADMC-2) contract, awarded last month. The ADMC-2 contract will fund Army purchases of desktop and mobile computers in the next 10 years and is worth $5 billion.

Gateway filed its grievance with the Government Accountability Office, effectively bringing contract work to a halt. The Army will likely file a response, and the GAO may call a hearing. GAO has 100 days to issue a recommendation.

The Army will feel compelled to abide by GAO’s decision. “I don’t think anybody’s ever not taken the recommendation. It’s an offer you can’t refuse,” said Kevin Carroll, director of the Program Executive Office for Enterprise Information Systems. PEO-EIS’ Small Computer Program and the Information Technology, E-Commerce, and Commercial Contracting Center issued the awards. The center, supported by PEO-EIS, will respond to Gateway’s protest.

The frequency of protests is increasing, Carroll said, because awards are generally large and long-lasting. "If you don’t win it, you feel you’re going to be cut out of the business for a long time,” he said.

Carroll added that PEO-EIS hopes this issue is resolved by summer’s end, allowing time to place orders before the fiscal year closes in September.

The ADMC-2 contracts will be the primary source for commercial desktop and laptop PCs, ruggedized and semiruggedized devices, printers, and peripherals, according to PEO-EIS.

CDW Government, Dell and Hewlett-Packard won the large-business awards under the contract. Integration Technologies Group, MPC-G, NCS Technologies, Telos, Transource Computer and Westwood Computer took home the small-business portions.

Gateway declined to comment.