SSA awards $89.3M contract to Computer Associates for IT services, facing no competition

Contract Overview

Contract Amount: $89,291,966 ($89.3M)

Contractor: Computer Associates Internatio

Awarding Agency: Social Security Administration

Start Date: 2000-09-15

End Date: 2008-08-12

Contract Duration: 2,888 days

Daily Burn Rate: $30.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $89.3 million to COMPUTER ASSOCIATES INTERNATIO for work described as: Key points: 1. Significant contract value of $89.3 million awarded. 2. Sole-source award indicates potential lack of competition. 3. Long contract duration (2000-2008) may impact price competitiveness. 4. IT sector spending is substantial, but this award's value is moderate within it.

Value Assessment

Rating: questionable

The contract value of $89.3 million over nearly 8 years is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning it was not competed. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than if multiple vendors had bid, impacting taxpayer funds negatively.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract could mean outdated technology or services were procured. Reliance on a single vendor for critical IT services poses a risk if the vendor fails to perform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of price competition

Positive Signals

Awarded to a known vendor
Provided IT services to a critical agency

Sector Analysis

This contract falls within the Information Technology sector, which sees significant government spending. The award value of $89.3 million is moderate within this large sector, but the sole-source nature raises concerns about value for money.

Small Business Impact

The award was not made to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants further review to understand why full and open competition was not pursued. Accountability for the procurement decision is crucial.

Related Government Programs

Social Security Administration Contracting
Social Security Administration Programs

Risk Flags

Sole-source award lacks competition.
Long contract duration may lead to inflated costs.
Potential for outdated technology or services.
Lack of transparency in price discovery.
Risk of vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $89.3 million to COMPUTER ASSOCIATES INTERNATIO. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is COMPUTER ASSOCIATES INTERNATIO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $89.3 million.

What is the period of performance?

Start: 2000-09-15. End: 2008-08-12.

Was the sole-source justification robust, and did it truly represent the only viable option for the SSA's IT needs?

The provided data indicates a sole-source award, labeled 'NOT COMPETED'. Without further documentation, it's impossible to definitively assess the robustness of the justification. Typically, sole-source awards require extensive justification demonstrating why only one vendor can meet the requirement, often due to unique capabilities or urgent needs. The lack of competition raises concerns about whether alternative solutions were adequately explored or if market research was insufficient.

What was the specific IT service provided, and how did its criticality justify a sole-source procurement?

The data identifies the vendor as 'COMPUTER ASSOCIATES INTERNATIO' and the agency as 'Social Security Administration', with the contract type as 'FIRM FIXED PRICE'. However, the specific IT service is not detailed. Criticality often involves essential functions that, if interrupted, would severely impact agency operations. A sole-source award for a critical service implies a unique dependency, but this must be rigorously justified to prevent potential overpricing and ensure long-term viability.

How did the long contract duration (2000-2008) impact the overall cost-effectiveness and technological relevance of the procured services?

A contract spanning nearly eight years (2000-2008) presents significant risks regarding cost-effectiveness and technological relevance. Without periodic re-competition or robust price adjustment clauses, the government may be locked into prices that become uncompetitive over time. Furthermore, technology evolves rapidly, and services procured in 2000 might be outdated by 2008, potentially leading to inefficiencies or the need for costly workarounds.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 8045 LEESBURG PIKE, VIENNA, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $128,974,425

Exercised Options: $128,974,425

Current Obligation: $89,291,966

Timeline