On May 4, 2015

Army Contract Vehicles Expected to Include More Small Business

Army Contract Vehicles Expected to Include More Small Business

The Army’s upcoming Army Desktop and Mobile Computing-3 (ADMC-3) multiple-award contract may end up providing as much as $5 billion in technology equipment orders through 2025, and it has a deadline for release of late Spring 2016.

Like its predecessor vehicle (ADMC-2), ADMC-3 will be managed and administered by the Army’s Computer Hardware, Enterprise Software and Solutions (CHESS) program and the Army Contracting Command-Rock Island (ACC-RI). CHESS provides the overall umbrella for nearly 100% of the Army’s IT Contracting, overseeing more than $30 billion in federal contracts. ADMC-3 is one of two major upcoming contracts, the other being Information Technology Enterprise Solutions 3 Services (ITES-3S) which is expected in Summer 2015.


Thomas Neff, project director at CHESS, has gone on the record stating that both contracts will include expanded opportunities for small businesses.


The Army’s small business office was very interested in promoting the ability of small businesses … to stay in business and grow … and IT services is an innovative and cost-effective way of delivering a capability. I think maybe one of the major things that this office owes to the community of businesses that support the Army is the ability for small businesses to compete on a level playing field and win work as a prime rather than relying on subcontracting to large systems integrators.”


Although ITES-2 currently has a small business set-aside contract vehicle (ITES2-SB), the revenue volume has been low. For upcoming contracts, Neff expects to roll both large and small business into one CV.

The $12 billion ceiling makes ITES-3S a more lucrative contract overall, but ADMC-3 is expected to be the Army’s primary source of commercial-off-the-shelf (COTS) computers.

The ordering period for ADMC-3 will consist of a four-year base and two three-year options, for a total period of performance of 10 years, according to the draft statement of work (SOW) issued on March 27. The MAC will offer firm-fixed-price orders.

If the new MAC mirrors its predecessor’s key features, ADMC-3 will have a $5 billion ceiling and all federal agencies would be able to place orders on it without a fee. However, given that 85% of ADMC-2 obligations have been funded by the Army, other agencies will probably continue to have only a minor presence.

Predecessor Vehicle

ADMC-3 will replace ADMC-2, initially awarded in Q4 of 2003.  ADMC-2 generated $406 million in fiscal 2014, an increase of 64 percent from fiscal 2013.

ADMC-2 is the second-largest MAC for computers. About 90% of ADMC-2 obligations ($3.2 billion) fall under North American Industry Classification System (NAICS) code 334111: Electronic Computer Manufacturing.

More than 38,000 delivery orders have been awarded on ADMC-2 to date.


ADMC-2 has only eight vendors, among them some of the largest technology equipment supplies in the federal space.

  • Dell
  • CDW
  • HP
  • Transource
  • Integration Tech Group
  • NCS
  • Telos

Neff was mum on the total vendors expected to win contract awards. There were rumors of malcontent between major vendors and CHESS and ITES in 2012, leaving questions as to who will remain a contender for ITES-3S. Multiple protests were filed after the award of ITES-3H, and after the mass protests surrounding EAGLE II, its expected that the DoD will make an effort to be more inclusive of small businesses.


Industry day is June 10 at the Wallace Theater in Fort Belvoir, VA. Interested companies can apparently submit questions through May 27.

A draft RFP for ADMC-3 is expected in the next few months, followed by a final RFP in early 2016. Awards are expected in 2017 or later. As with most MACs, ADMC-3 is expected to start just as its predecessor ends.

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