SSA awards $104.8M for electronic computer manufacturing to Softmart Government Services
Contract Overview
Contract Amount: $104,783,091 ($104.8M)
Contractor: Softmart Government Services, Inc
Awarding Agency: Social Security Administration
Start Date: 2003-09-15
End Date: 2008-12-22
Contract Duration: 1,925 days
Daily Burn Rate: $54.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 51
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 $104.8 million to SOFTMART GOVERNMENT SERVICES, INC for work described as: Key points: 1. The contract value of $104.8 million is significant, indicating a substantial need for electronic computer manufacturing services. 2. Competition details are limited, but the award type suggests a competitive process was utilized. 3. Potential risks include vendor lock-in and the long duration of the contract, impacting adaptability. 4. The sector is IT hardware manufacturing, crucial for agency operations.
Value Assessment
Rating: fair
The contract value is substantial, but without specific unit cost data or benchmarks for similar electronic computer manufacturing contracts, a precise pricing assessment is difficult. The fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. This method generally promotes price discovery and competition, though the specific details of the competition are not provided.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, but the long duration could lead to inefficiencies if not managed closely.
Public Impact
Ensures continued access to essential electronic computer hardware for the Social Security Administration's operations. Supports the agency's mission-critical functions through reliable technology infrastructure. The long-term nature of the contract may impact the adoption of newer technologies if not carefully managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years)
- Lack of specific unit cost data for benchmarking
- No indication of small business participation
Positive Signals
- Competitive award process
- Firm fixed price contract type
- Significant contract value indicates agency commitment
Sector Analysis
This contract falls within the IT hardware manufacturing sector, which is vital for government agencies' operational capabilities. Benchmarks for similar contracts would typically consider the complexity of the hardware, volume, and required support services.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was likely awarded to a large business or that small business set-aside provisions were not applicable or met.
Oversight & Accountability
The contract's long duration necessitates robust oversight to ensure performance, adherence to specifications, and to mitigate risks associated with technological obsolescence. Regular performance reviews and contract modifications would be key accountability measures.
Related Government Programs
- Electronic Computer Manufacturing
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Long contract duration may lead to technological obsolescence.
- Lack of detailed performance metrics or specific hardware information.
- No clear indication of small business utilization.
- Potential for vendor lock-in over the five-year period.
Tags
electronic-computer-manufacturing, social-security-administration, md, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $104.8 million to SOFTMART GOVERNMENT SERVICES, INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SOFTMART GOVERNMENT SERVICES, INC.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $104.8 million.
What is the period of performance?
Start: 2003-09-15. End: 2008-12-22.
What is the specific type of electronic computer hardware being procured, and how does its cost compare to market rates for similar equipment?
The specific type of electronic computer hardware is not detailed in the provided data, only the NAICS code 334111 for Electronic Computer Manufacturing. Without this detail, a precise cost comparison to market rates is impossible. The contract value of $104.8 million over five years suggests a significant volume or specialized nature of the equipment, but a true value assessment requires knowing the exact specifications and current market pricing for those items.
What are the potential risks associated with a five-year contract for electronic computer hardware, particularly regarding technological obsolescence and vendor performance?
A five-year contract for electronic computer hardware carries a significant risk of technological obsolescence, as hardware capabilities advance rapidly. The procured equipment could become outdated before the contract ends, diminishing its utility and value. Additionally, long-term vendor performance needs continuous monitoring to ensure consistent quality, timely delivery, and adherence to contract terms. Failure in either area could lead to operational disruptions and increased costs for the agency.
How effectively does the competitive delivery order mechanism ensure optimal value and performance for this long-term hardware acquisition?
A competitive delivery order mechanism is designed to foster price discovery and competition among vendors, which should theoretically lead to better value. However, for a five-year contract, the effectiveness hinges on the clarity of the initial solicitation, the evaluation criteria, and the agency's ability to manage the contract proactively. Without ongoing competition or mechanisms to incorporate technological advancements, the initial competitive advantage might diminish over the contract's lifespan, potentially impacting long-term value and performance.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 51
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Softmart, Inc. (UEI: 050383223)
Address: 450 ACORN LN, DOWNINGTOWN, PA, 06
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $101,991,423
Exercised Options: $118,763,012
Current Obligation: $104,783,091
Parent Contract
Parent Award PIID: GS35F0346J
IDV Type: FSS
Timeline
Start Date: 2003-09-15
Current End Date: 2008-12-22
Potential End Date: 2008-12-22 00:00:00
Last Modified: 2009-05-15
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