SSA awards $161M+ to MCI WorldCom for telecom services under full and open competition
Contract Overview
Contract Amount: $161,138,250 ($161.1M)
Contractor: MCI Worldcom Network Services, Incorporated
Awarding Agency: Social Security Administration
Start Date: 2001-03-15
End Date: 2013-08-19
Contract Duration: 4,540 days
Daily Burn Rate: $35.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21235
State: Maryland Government Spending
Plain-Language Summary
Social Security Administration obligated $161.1 million to MCI WORLDCOM NETWORK SERVICES, INCORPORATED for work described as: Key points: 1. Significant contract value exceeding $161 million over its life. 2. MCI WorldCom, a major telecommunications provider, was the awardee. 3. Contract utilized full and open competition, suggesting a competitive bidding process. 4. The sector is telecommunications, crucial for government operations.
Value Assessment
Rating: fair
The contract value is substantial, but without specific unit pricing or comparison data, assessing its value relative to similar telecom contracts is difficult. The firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple bidders were likely considered, which typically drives better pricing discovery. However, the long duration and specific nature of services could influence the final price.
Taxpayer Impact: Taxpayer funds were used for this contract. The competitive nature should have aimed for cost-effectiveness, but the long-term commitment warrants scrutiny for ongoing value.
Public Impact
Ensures continued telecommunications infrastructure for the Social Security Administration. Supports critical government functions reliant on reliable network services. Potential for long-term cost savings if services remained competitive throughout the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 12 years) may lead to price inflexibility.
- Reliance on a single vendor for critical infrastructure.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides budget certainty.
Sector Analysis
This contract falls within the telecommunications sector, providing essential network services. Benchmarks for similar long-term government telecom contracts would be needed for a precise comparison, but $161M+ over 12 years suggests significant infrastructure investment.
Small Business Impact
The data indicates the awardee was MCI WorldCom Network Services, Inc., a large corporation. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
The contract was awarded by the Social Security Administration. Oversight would focus on service delivery, adherence to contract terms, and managing the long-term relationship to ensure continued value and compliance.
Related Government Programs
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Long contract duration potentially leading to outdated technology or pricing.
- Lack of explicit small business participation noted.
- Potential for vendor lock-in with critical infrastructure.
- Limited insight into specific performance metrics and oversight activities.
Tags
social-security-administration, md, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $161.1 million to MCI WORLDCOM NETWORK SERVICES, INCORPORATED. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is MCI WORLDCOM NETWORK SERVICES, INCORPORATED.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $161.1 million.
What is the period of performance?
Start: 2001-03-15. End: 2013-08-19.
Was the firm fixed price structure appropriate for the evolving telecommunications landscape over a 12-year period?
A firm fixed price contract offers budget certainty but can be less adaptable to technological changes or market fluctuations. For a long-duration telecom contract, it might have locked SSA into potentially suboptimal pricing if market rates decreased significantly or if new, more cost-effective technologies emerged that weren't easily incorporated.
What were the specific performance metrics and service level agreements tied to this contract?
Detailed performance metrics and SLAs are crucial for contracts of this scale and duration. They would define the expected quality, availability, and reliability of the network services. Without them, assessing the contractor's adherence to standards and the overall effectiveness of the service delivery is challenging.
How did the government ensure ongoing cost-effectiveness and competitive pricing throughout the contract's 12-year lifespan?
Given the long duration, mechanisms for price adjustments based on market indices or periodic re-negotiations would be important. The government likely relied on the initial competitive award and potentially contract clauses allowing for modifications or reviews to maintain cost-effectiveness, though the firm fixed price nature limits flexibility.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 500 CLINTON CENTER DR, CLINTON, MS, 02
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $141,743,032
Exercised Options: $141,743,032
Current Obligation: $161,138,250
Timeline
Start Date: 2001-03-15
Current End Date: 2013-08-19
Potential End Date: 2013-08-19 00:00:00
Last Modified: 2013-05-07
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