The Naval Sea Systems Command (NAVSEA) awarded a $405,380 firm fixed-price purchase order to Arrow Electronics, Inc. on April 22, 2025, for the procurement of 14 Mercury RES X08 2U Rugged Rack Servers (part number RESX08-2U18RA1038). The servers, manufactured by Mercury Systems, Inc., feature advanced specifications including dual-socket Intel Xeon Gold processors, 512GB memory, NVIDIA RTX A2000 GPU, and are intended for delivery to the Naval Surface Warfare Center Dam Neck facility in Virginia Beach, Virginia. This sole-source procurement was justified based on the government's determination that introducing alternative manufacturers would require extensive system integration, redesign, and testing; Arrow Electronics is identified as the only authorized reseller for these specialized servers. The contract is not subject to any small business set-aside and was awarded using simplified acquisition procedures under a Lowest Price Technically Acceptable evaluation method.
The ultimate completion date for delivery is November 19, 2025, with an anticipated 28-week delivery timeline from award. Arrow Electronics, a Fortune 500 global provider headquartered in Englewood, Colorado, leverages its extensive federal contracting experience and existing contract vehicles—including a General Services Administration Multiple Award Schedule and participation in Solutions for Enterprise Wide Procurement V (SEWP V)—to deliver commercial off-the-shelf IT solutions across civilian and defense agencies. This award reflects NAVSEA's modernization efforts to replace existing equipment with technologically equivalent systems that meet the demanding operational requirements of naval surface warfare capabilities.