$175,000 computer server package acquired by mayor flagged as suspicious due to an apparent 1,300% markup

These PC systems were more than slightly overpriced
(Image credit: Mayor Sally A. Lopez)

A recently elected mayor has brought to light a costly computer systems deal, which was signed, sealed, and delivered by their predecessor. On her Facebook page, Mayor Sally A. Lopez shares photos and documents confirming that her predecessor acquired a “10 million System Server Package.” Assuming we are talking Philippine pesos, that’s equivalent to about USD $175,000. However, the 16 systems look bargain-basement – at best – being based on old Intel 11th Generation processors, with generic case and power choices. According to our calculations, someone appears to have enjoyed a 1,300% markup.

The implications of the new mayor's post seem pretty straightforward. Perhaps they were elected on a platform of cleaning up corruption. Signing off on a computer server deal for significantly more than the expected cost indicates that the previous mayor’s team was either uninformed or perhaps shared in some part of the profits. Neither conclusion is reasonable.

(Image credit: Mayor Sally A. Lopez)

Unfortunately, this Ukc Ibrahim seems to have mistakenly called out the prior mayor, indicating that the huge expenditure was for a single PC. Some social media and tech channels are still spreading this mistake.

We’re glad to see Lopez clear up the single PC vs 16 PCs error now, though she could have let the dirt on her predecessor stand.

Our calculations

We performed some quick calculations to estimate the cost of a 16-computer package with similar components (based on Intel Core i7-11700 CPU, 16GB RAM, and 512GB SSD key specs). We scoured Newegg for these and the other necessary hardware components to create a basic setup. Additionally, we note that the ‘package’ included items such as 16 monitors, sets of input peripherals, and UPS systems. There wasn’t any mention of software.

  • Newegg U.S. prices
  • $320 (CPU) + $100 (mobo) + $40 (RAM) + $40 (storage) + $70 (PSU) + $40 (case) + $60 (UPS) + $100 (monitor) + $25 (keyboard/mouse set) = $775
  • For sixteen such systems, we come to a $12,400 total.

There’s a lot of room for error in our math, and indications suggest that some of these PCs may have come with HDDs, as well as (or instead of) SSDs. There’s also the question of software. But there’s also a very long way to go to reach the equivalent of $175,000. We cannot find anything in the pictures or documents to justify the total price being multiplied by 14.

Intel’s 11th Generation processors for desktop PCs debuted in 2021, yet samples like the Core i7-11700, which appear to be what the sixteen PCs are spec'd with, seem to be overpriced in our U.S.-based Newegg findings. They’re even costlier than Intel's i7-12700 CPUs for some reason. We’d expect the PC systems supplier in the Philippines to have steered customers towards the Core i7-11700 CPUs, as they were a bargain or surplus processor at the time.

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Mark Tyson
News Editor

Mark Tyson is a news editor at Tom's Hardware. He enjoys covering the full breadth of PC tech; from business and semiconductor design to products approaching the edge of reason.

  • TechieTwo
    While there are all sorts of possibilities with the hardware, I would expect there to be much more for $175K. That said the deal may have included installation and support for a specified time, etc. Or it could be a case of ignorance by the prior mayor or worse. Nothing surprises me now days. :disappointed:
    Reply
  • hotaru251
    TechieTwo said:
    the deal may have included installation and support for a specified time, etc
    none of which would be near 100k+ of value.
    Reply
  • funguseater
    And they would be even cheaper because all of the purchases would be from ALI-express not the USA why use US pricing?
    Reply
  • USAFRet
    funguseater said:
    And they would be even cheaper because all of the purchases would be from ALI-express not the USA why use US pricing?
    They talk about Philippine pesos.
    The USD conversion is just for readability.
    Reply
  • jlake3
    hotaru251 said:
    none of which would be near 100k+ of value.
    There’s some software packages out there where licensing is CRAZY and 16 seats with maintenance fees paid up front for multiple years certainly could take a decent chunk out of that.

    …but they’re not anything I’d expect to be running in a government office.

    Still, software plus some kind of extended warranty plus something advertised as super-double-gold-diamond-plus technical support (which may not actually compare to the big vendors’ support quality, but at least sounds good) could create at least the illusion of enough value to fool someone who doesn’t know computers without them necessarily having to be in on a corruption scheme. I’ve got friends who game but don’t keep up with tech news/hang out on tech forums, and if I were to say I found an 11th-gen system on Craigslist, they’d need me to give them context if that’s new or old.

    Accepting the computers without inspection is also really hard to say if it’s corruption or incompetence. I worked for a company that was supposed to test new equipment before payment… but sometimes we hit Net 30 and it hadn’t been done, so we’d just pay and trust the vendor.
    Reply
  • turbomode99
    This doesn't completely explain it but US Newegg prices aren't comparable to Philippines prices which have a lot of markups and presumably large tariffs. Having shopped for PC parts while visiting the Philippines, the prices for gear (often stuff that was a few years old) were a lot higher than I was used to. It would be better to compare prices from local vendors there.
    Reply
  • USAFRet
    turbomode99 said:
    This doesn't completely explain it but US Newegg prices aren't comparable to Philippines prices which have a lot of markups and presumably large tariffs. Having shopped for PC parts while visiting the Philippines, the prices for gear, often stuff that was a few years old, were a lot higher than I was used to. It would be better to compare prices from local vendors there.
    The US/Newegg/whatever price is a total non-issue.

    The invoice says Php10,000,000
    The dollar amount in the article is simply the current conversion from Php to $$$.
    Reply
  • Hooda Thunkett
    Anyone who watches news about The Philippines isn't surprised, especially right now. A fair amount of corruption is coming to light.
    Reply
  • Sluggotg
    turbomode99 said:
    This doesn't completely explain it but US Newegg prices aren't comparable to Philippines prices which have a lot of markups and presumably large tariffs. Having shopped for PC parts while visiting the Philippines, the prices for gear (often stuff that was a few years old) were a lot higher than I was used to. It would be better to compare prices from local vendors there.
    The last time I was in the Philippines, (in the 80s), the prices for computer products was cheaper than in the US. But that was a long time ago. The exchange rate was 20pesos to the dollar. I see that it is now at 57pesos to the dollar.

    This does just read of corruption on the part of the prior Mayor. 16 older lower end computers for 175K? That's about 11K per computer. I think they could have done better....
    Reply