SSA awards $18.5M for computer equipment, with 6916 units delivered

Contract Overview

Contract Amount: $18,507,761 ($18.5M)

Contractor: Sterling Commerce (america), Inc.

Awarding Agency: Social Security Administration

Start Date: 2001-12-15

End Date: 2009-04-13

Contract Duration: 2,676 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

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 $18.5 million to STERLING COMMERCE (AMERICA), INC. for work described as: Key points: 1. Value for money appears reasonable given the scale of the purchase. 2. Full and open competition likely ensured competitive pricing. 3. No immediate risk indicators are apparent from the provided data. 4. Contract performance context is limited without delivery details. 5. This contract falls within the IT hardware procurement sector. 6. Spending aligns with typical government needs for IT infrastructure.

Value Assessment

Rating: good

The contract value of $18.5 million for computer equipment over its duration suggests a per-unit cost that is likely competitive, especially given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This broad competition is generally favorable for price discovery and achieving market-based pricing.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible value for the government's investment in IT equipment.

Public Impact

Federal employees within the Social Security Administration benefit from updated computer hardware. The services delivered include the provision of computer and peripheral equipment. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include enabling federal employees with necessary tools for their jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type can provide cost certainty.
Contract duration of over 2000 days suggests a long-term need met.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on the procurement of computer hardware and peripherals. The market for such goods is large and highly competitive, with numerous vendors capable of supplying government agencies. This contract represents a typical IT procurement action for a federal agency seeking to maintain its technological infrastructure.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without specific set-aside goals, it's difficult to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Social Security Administration. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified goods. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported.

Related Government Programs

IT Hardware Procurement
Computer Equipment Purchases
Federal IT Modernization

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $18.5 million to STERLING COMMERCE (AMERICA), INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is STERLING COMMERCE (AMERICA), INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2001-12-15. End: 2009-04-13.

What was the specific type and quantity of computer equipment procured under this contract?

The contract, NAICS code 423430, specifies 'Computer and Computer Peripheral Equipment and Software Merchant Wholesalers.' While the total award value was $18,507,761.42 and the contract noted 6916 units, the exact breakdown of desktops, laptops, monitors, printers, or other peripherals is not detailed in the provided summary data. Further investigation into the contract's line item details would be necessary to ascertain the precise mix of equipment purchased.

How does the per-unit cost compare to market rates for similar equipment during the contract period?

Without specific details on the exact models and configurations of the computer equipment purchased, a precise per-unit cost comparison is challenging. However, given the contract's duration (2001-2009) and the scale of 6916 units, the average per-unit cost would be approximately $2,670. This figure needs to be benchmarked against prevailing market prices for comparable business-grade hardware during that specific timeframe. The full and open competition suggests that pricing was likely vetted against market conditions, but a detailed analysis would require access to the original solicitation and awarded bid data.

What were the key performance metrics or delivery milestones for this contract?

The provided data indicates a Firm Fixed Price (FFP) contract type and a duration of 2676 days (approximately 7.3 years). While FFP contracts inherently focus on delivery of goods at an agreed price, specific performance metrics beyond timely delivery of the specified equipment are not detailed. Milestones would typically be outlined in the contract's statement of work (SOW) or delivery schedule, detailing when and where the 6916 units were to be delivered to various SSA locations. Adherence to this schedule would be a primary performance indicator.

Were there any significant contract modifications or overruns during its lifecycle?

The provided summary data does not include information on contract modifications, change orders, or budget overruns. A contract awarded in 2001 and ending in 2009, with a substantial value, often undergoes modifications to adjust quantities, specifications, or delivery schedules. To assess potential overruns or significant changes, a review of the contract's modification history within the Federal Procurement Data System (FPDS) or agency contract files would be required.

What is the historical spending pattern of the Social Security Administration for similar IT equipment?

This $18.5 million contract represents a significant, but likely not isolated, investment in IT hardware for the SSA. Federal agencies typically have recurring needs for computer equipment due to refresh cycles, expansion, and technological obsolescence. Analyzing historical SSA spending on IT hardware, particularly under similar NAICS codes and contract types, would reveal trends in procurement volume, average contract values, and vendor relationships. This specific contract's value and duration provide a data point within that broader spending context, suggesting a sustained need for IT infrastructure over several years.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: International Business Machines Corporation (UEI: 001368083)

Address: 4600 LAKEHURST CT, DUBLIN, OH, 15

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,579,696

Exercised Options: $11,579,696

Current Obligation: $18,507,761

Timeline