SSA awards $420M for CA software renewal, support, and maintenance over 66 months

Contract Overview

Contract Amount: $419,783,100 ($419.8M)

Contractor: CA, Inc.

Awarding Agency: Social Security Administration

Start Date: 2018-03-22

End Date: 2026-09-30

Contract Duration: 3,114 days

Daily Burn Rate: $134.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW 66 MONTH OPEN-MARKET CONTRACT FOR RENEWAL OF CA SOFTWARE, SUPPORT SERVICES, AND MAINTENANCE. CA PROPRIETARY SOFTWARE PRODUCTS ARE USED EXTENSIVELY THROUGHOUT OUR MAINFRAME AND DISTRIBUTED ENVIRONMENTS AT ALL SSA DATA CENTERS.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $419.8 million to CA, INC. for work described as: NEW 66 MONTH OPEN-MARKET CONTRACT FOR RENEWAL OF CA SOFTWARE, SUPPORT SERVICES, AND MAINTENANCE. CA PROPRIETARY SOFTWARE PRODUCTS ARE USED EXTENSIVELY THROUGHOUT OUR MAINFRAME AND DISTRIBUTED ENVIRONMENTS AT ALL SSA DATA CENTERS. Key points: 1. Contract provides essential software, support, and maintenance for critical CA proprietary products. 2. Extensive use of CA software across SSA's mainframe and distributed environments. 3. Long-term renewal indicates reliance on established software solutions. 4. Firm Fixed Price contract type aims to control costs. 5. Contract duration of over 5 years suggests a stable, ongoing need. 6. Competition was full and open, potentially leading to better pricing. 7. The award value represents a significant investment in software lifecycle management.

Value Assessment

Rating: good

The contract value of approximately $420 million over 66 months averages to about $6.36 million per month. This figure needs to be benchmarked against similar long-term software renewal and support contracts for enterprise-level software. Given the proprietary nature of specialized software and the extensive integration within SSA's data centers, the pricing appears to be within a reasonable range for such a comprehensive agreement. However, a detailed cost analysis of the specific software modules and support levels would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the competition would require further investigation. A competitive process generally benefits the government by driving down prices and encouraging innovation.

Taxpayer Impact: A full and open competition for a contract of this magnitude is beneficial for taxpayers as it increases the likelihood of securing the best possible price and terms for essential software and support services.

Public Impact

The Social Security Administration (SSA) benefits directly through continued access to and support for its critical CA software. Services delivered include software renewal, technical support, and maintenance, ensuring operational continuity. The geographic impact is national, as SSA data centers across the country rely on this software. Workforce implications include ensuring IT staff have the necessary tools and support to maintain and operate these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to proprietary software.
Risk of price increases in future renewals if competition diminishes.
Dependence on a single vendor for critical infrastructure.
Need for robust contract management to ensure service delivery meets expectations.

Positive Signals

Long-term contract provides stability and predictable costs for essential services.
Firm Fixed Price structure helps mitigate cost overrun risks.
Full and open competition suggests a competitive market for these services.
Extensive use implies the software meets critical operational needs effectively.

Sector Analysis

This contract falls within the Software Publishers industry, specifically for enterprise-level software licensing, support, and maintenance. The market for such specialized software is often dominated by a few key players, making long-term contracts common. Comparable spending benchmarks would involve analyzing other large federal agencies' expenditures on similar proprietary software suites and their associated support agreements, which can range from tens to hundreds of millions of dollars depending on the scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The focus is on a large, established software vendor. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem is likely minimal for this specific award, as it directly addresses the needs of a large enterprise software provider.

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 embedded in the Firm Fixed Price contract terms, requiring the vendor to deliver specified software, support, and maintenance. Transparency is generally achieved through contract award databases and public reporting, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Software Licensing and Support Services
IT Infrastructure Maintenance
Enterprise Software Agreements
Mainframe Computing Services
Data Center Operations Support

Risk Flags

Proprietary Software Dependency
Long-Term Vendor Lock-in Potential
Critical Infrastructure Reliance
Significant Contract Value

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $419.8 million to CA, INC.. NEW 66 MONTH OPEN-MARKET CONTRACT FOR RENEWAL OF CA SOFTWARE, SUPPORT SERVICES, AND MAINTENANCE. CA PROPRIETARY SOFTWARE PRODUCTS ARE USED EXTENSIVELY THROUGHOUT OUR MAINFRAME AND DISTRIBUTED ENVIRONMENTS AT ALL SSA DATA CENTERS.

Who is the contractor on this award?

The obligated recipient is CA, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $419.8 million.

What is the period of performance?

Start: 2018-03-22. End: 2026-09-30.

What is the historical spending pattern for CA software and support services at the SSA?

Analyzing historical spending requires access to prior contract data for CA software and support at the SSA. Without specific prior contract numbers or award details, a precise historical trend is difficult to establish. However, given the 'NEW 66 MONTH OPEN-MARKET CONTRACT' description, it suggests this is a significant renewal or replacement of previous agreements. Typically, large agencies like the SSA maintain long-term relationships with key software vendors due to the extensive integration and operational reliance. Spending patterns for such critical software often show consistent, substantial annual outlays, potentially increasing over time due to inflation, added features, or expanded usage. Understanding the previous contract's duration, value, and any competitive history would provide crucial context for evaluating the current award's value and necessity.

How does the per-unit cost of this contract compare to market rates for similar enterprise software support?

Determining a precise per-unit cost is challenging without knowing the specific CA software products, modules, and support tiers included in this $420 million contract. Enterprise software support contracts are highly customized. However, the average monthly cost of approximately $6.36 million ($420M / 66 months) can be used as a high-level benchmark. Industry reports and analyses of similar large-scale enterprise software agreements (e.g., for Oracle, SAP, or other major vendors) often show significant annual support fees, typically ranging from 15-25% of the initial software license cost. If this contract represents a renewal, the SSA would likely have benchmarked renewal costs against market data and previous agreements to ensure fair pricing. The 'full and open competition' aspect suggests that the SSA sought competitive bids to achieve favorable market rates.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this nature—encompassing software renewal, support, and maintenance for critical systems—typical SLAs would focus on response times for technical support, resolution times for issues, software availability and uptime guarantees, and patch/update delivery schedules. KPIs would likely measure the vendor's adherence to these SLAs, customer satisfaction, and the effectiveness of the support provided. The Firm Fixed Price nature implies that the vendor is obligated to meet these performance standards to receive full payment. The SSA's contract management team would be responsible for monitoring these KPIs and SLAs throughout the contract's duration.

What is the contractor's track record with the SSA and other federal agencies for similar services?

CA, Inc. (now part of Broadcom) has a long-standing relationship with the federal government, providing software solutions to numerous agencies, including the Social Security Administration. Given that SSA utilizes CA proprietary software 'extensively throughout our mainframe and distributed environments,' it indicates a deep, established integration and likely a history of prior contracts with CA for these products. Federal procurement databases (like SAM.gov or FPDS) would contain records of past awards to CA, Inc. by the SSA and other agencies. A review of these records would reveal the duration, value, and types of services previously rendered. Generally, for such critical infrastructure software, agencies tend to stick with established vendors unless there are significant performance issues or cost-saving opportunities through competitive re-procurement.

What are the risks associated with relying on proprietary software from a single vendor for such a critical function?

Relying on proprietary software from a single vendor like CA (Broadcom) presents several risks. Firstly, there's the risk of vendor lock-in, where the deep integration of the software makes it difficult and costly to switch to alternative solutions. This can lead to reduced bargaining power for the agency during contract renewals, potentially resulting in higher prices. Secondly, the vendor's business strategy, financial stability, or product roadmap changes can directly impact the agency's operations. For instance, if the vendor decides to discontinue a product line or significantly alter its support model, the agency could face disruption. Thirdly, security vulnerabilities specific to the proprietary software require timely patches from the vendor, creating a dependency. Finally, the lack of open standards can hinder interoperability with other systems. The SSA's extensive use suggests these risks have been weighed against the benefits of the software's functionality and integration.

How does the duration of this contract (66 months) impact the SSA's flexibility and long-term IT strategy?

A 66-month (5.5 year) contract duration provides significant stability and predictability for the SSA's IT operations concerning the supported CA software. This long-term commitment ensures continuity of service and access to necessary updates and support, which is crucial for maintaining complex mainframe and distributed environments. However, it also reduces the agency's short-term flexibility. Committing to a single vendor for over five years means less agility to adopt potentially newer, more cost-effective, or technologically advanced solutions that might emerge during the contract period. It also implies a significant investment that might be difficult to pivot away from if strategic IT priorities shift. The SSA likely balanced the need for stability and operational continuity against the potential loss of flexibility when deciding on this contract length.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Solicitation ID: 28321318R00000028

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Broadcom Inc.

Address: 2291 WOOD OAK DR, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $544,582,085

Exercised Options: $419,783,100

Current Obligation: $419,783,100

Actual Outlays: $328,495,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline