Social Security Administration awards $23.4M for data storage hardware, software, and services

Contract Overview

Contract Amount: $23,403,118 ($23.4M)

Contractor: EMC Corporation

Awarding Agency: Social Security Administration

Start Date: 2014-07-29

End Date: 2014-09-24

Contract Duration: 57 days

Daily Burn Rate: $410.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE OFFICE OF TELECOMMUNICATIONS OPERATIONS SYSTEMS REQUEST HARDWARE, SOFTWARE AND SERVICES FOR THE DATA STORAGE INFRASTRUCTURE.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $23.4 million to EMC CORPORATION for work described as: THE OFFICE OF TELECOMMUNICATIONS OPERATIONS SYSTEMS REQUEST HARDWARE, SOFTWARE AND SERVICES FOR THE DATA STORAGE INFRASTRUCTURE. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $23.4 million is a significant investment in IT infrastructure. 3. The short duration of 57 days for this delivery order may indicate a specific, time-sensitive need. 4. The primary contractor, EMC Corporation, is a major player in the data storage market. 5. The NAICS code 541519 suggests a broad range of 'Other Computer Related Services' were procured. 6. The contract type is Firm Fixed Price, which transfers cost risk to the contractor. 7. The award was made to the Virginia region, potentially indicating a specific operational need or location.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and market data for the specific hardware and software procured. The fixed-price nature provides some cost certainty. However, the relatively short duration and the broad service category make it difficult to assess if the $23.4 million represents optimal value for money without further analysis of the specific deliverables and their market prices at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for the required data storage solutions.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most advantageous offer available in the market.

Public Impact

The primary beneficiary is the Social Security Administration, which gains enhanced data storage capabilities. The services delivered likely support the agency's mission of managing and processing social security benefits and data. The geographic impact is likely concentrated within the operational areas served by the Virginia region. The contract may have implications for the IT workforce involved in implementing and managing data storage solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration (57 days) might indicate a rushed procurement or a temporary solution, potentially leading to higher costs or less robust solutions.
Lack of detailed service description makes it difficult to fully assess the value and scope of the $23.4 million expenditure.
Reliance on a single primary contractor (EMC Corporation) for a significant IT infrastructure component could pose vendor lock-in risks if not managed carefully.

Positive Signals

Awarded under full and open competition, which typically leads to better pricing and selection.
Firm Fixed Price contract type shifts cost overrun risks to the contractor.
Procurement of essential data storage infrastructure is critical for agency operations and data integrity.

Sector Analysis

The IT services sector, particularly data storage solutions, is a large and dynamic market. This contract falls within the broader category of computer hardware, software, and related services. Spending on data storage infrastructure is a critical component of government IT modernization efforts, aimed at improving efficiency, security, and data accessibility. Comparable spending benchmarks would depend on the specific type and scale of storage solutions procured, but investments in the tens of millions are common for large federal agencies.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'sb' field is false. The primary contractor, EMC Corporation, is a large business. This means that opportunities for small businesses would likely be limited to subcontracting roles, if any, and their participation is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Social Security Administration's contracting and program management offices. As a delivery order under a larger contract vehicle (implied by 'AW' - Delivery Order), oversight might also be tied to the parent contract's terms. Transparency is generally facilitated by contract award databases, but detailed performance monitoring and accountability measures are internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Data Center Consolidation Initiative
IT Modernization Programs
Cloud Computing Services
Enterprise Resource Planning Systems

Risk Flags

Short contract duration may indicate rushed procurement or temporary solution.
Lack of detailed service description hinders comprehensive value assessment.
Potential for vendor lock-in with a single primary contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $23.4 million to EMC CORPORATION. THE OFFICE OF TELECOMMUNICATIONS OPERATIONS SYSTEMS REQUEST HARDWARE, SOFTWARE AND SERVICES FOR THE DATA STORAGE INFRASTRUCTURE.

Who is the contractor on this award?

The obligated recipient is EMC CORPORATION.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2014-07-29. End: 2014-09-24.

What specific types of hardware and software were procured under this contract?

The provided data indicates the procurement was for 'HARDWARE, SOFTWARE AND SERVICES FOR THE DATA STORAGE INFRASTRUCTURE.' However, the specific models, capacities, or types of hardware (e.g., SAN, NAS, object storage, servers, networking equipment) and software (e.g., storage management software, backup solutions, data deduplication tools) are not detailed. This level of specificity is crucial for a thorough value assessment and understanding the technological capabilities acquired by the Social Security Administration.

How does the $23.4 million cost compare to similar data storage procurements by federal agencies of similar size?

Direct comparison is difficult without knowing the exact specifications and duration of the services. However, $23.4 million for a 57-day period suggests a high per-day cost or a focus on very high-end, specialized, or rapidly deployable storage solutions. Typically, large-scale data storage infrastructure procurements span longer periods and involve significant capital investment. The short duration might imply this was a bridge solution, an emergency upgrade, or a specific project component rather than a full infrastructure refresh.

What is EMC Corporation's track record with the Social Security Administration and other federal agencies for data storage solutions?

EMC Corporation (now part of Dell Technologies) is a major vendor in the federal IT space, including data storage. Their track record with the Social Security Administration and other agencies would likely involve numerous contracts for hardware, software, and support services. A deeper analysis would require reviewing past performance evaluations, contract history, and any reported issues or successes related to EMC's products and services delivered to federal entities.

What are the potential risks associated with a short-duration, high-value contract for critical IT infrastructure?

A short duration (57 days) for a $23.4 million contract could indicate several risks. It might suggest a rushed implementation, potentially leading to errors or suboptimal configuration. It could also mean the price is inflated to cover expedited delivery or specialized services. Furthermore, if this is a temporary solution, it may not align with long-term IT strategy, leading to future integration challenges or stranded investments. The fixed-price nature mitigates cost overruns for the government but could incentivize the contractor to cut corners on quality or support if not closely monitored.

What performance metrics or service level agreements (SLAs) were likely in place for this data storage contract?

While not explicitly stated in the provided data, a contract of this magnitude for critical IT infrastructure would almost certainly include performance metrics and Service Level Agreements (SLAs). These would likely cover aspects such as storage availability (uptime), data access speeds, latency, backup and recovery times, and security compliance. The effectiveness of the contract's value is heavily dependent on the rigor of these SLAs and the agency's ability to monitor and enforce them.

How does this procurement fit into the Social Security Administration's broader IT modernization or data management strategy?

The provided data does not offer insight into the SSA's broader IT strategy. This $23.4 million award for data storage could be part of a larger initiative, such as upgrading aging infrastructure, migrating to cloud services, enhancing disaster recovery capabilities, or supporting new data analytics projects. Understanding its strategic context is essential to evaluating its long-term impact and justification.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dell Technologies Inc. (UEI: 601839660)

Address: 8444 WESTPARK DR STE 100, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,403,118

Exercised Options: $23,403,118

Current Obligation: $23,403,118

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001461028

IDV Type: IDC

Timeline