IT Concepts Inc. awarded $135M BPA Call for SSA IT infrastructure and modernization

Contract Overview

Contract Amount: $135,442,339 ($135.4M)

Contractor: IT Concepts, Inc.

Awarding Agency: Social Security Administration

Start Date: 2021-08-07

End Date: 2025-08-31

Contract Duration: 1,485 days

Daily Burn Rate: $91.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CALL ORDER TO SUPPORT SSAS ENVIRONMENTS, INFRASTRUCTURE, MAINFRAMES, AND MODERNIZATION INITIATIVES.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $135.4 million to IT CONCEPTS, INC. for work described as: CALL ORDER TO SUPPORT SSAS ENVIRONMENTS, INFRASTRUCTURE, MAINFRAMES, AND MODERNIZATION INITIATIVES. Key points: 1. Contract focuses on critical IT infrastructure, including mainframes and modernization. 2. Value for money assessed against similar IT services contracts. 3. Competition dynamics indicate a full and open process. 4. Risk indicators include contract duration and potential for scope creep. 5. Performance context relies on contractor's ability to deliver complex IT solutions. 6. Sector positioning within government IT services is a key consideration.

Value Assessment

Rating: good

The contract value of $135.4 million over approximately 4 years appears reasonable for comprehensive IT support encompassing infrastructure, mainframes, and modernization initiatives. Benchmarking against similar large-scale IT service contracts awarded by agencies like the SSA or other federal entities for system design and integration services suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty, though the total value will depend on the specific call orders issued.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but a full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach allows the agency to select the most capable and cost-effective solution from the widest possible pool of qualified contractors.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and encourages a broad range of innovative solutions, ultimately aiming to secure the best value for public funds.

Public Impact

The Social Security Administration (SSA) benefits from enhanced IT infrastructure and modernization capabilities. Services delivered include support for environments, infrastructure, mainframes, and modernization initiatives. Geographic impact is primarily within the SSA's operational areas, likely nationwide. Workforce implications may involve IT professionals supporting and developing SSA systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (approx. 4 years) could lead to cost overruns if not managed tightly.
Scope creep is a potential risk in modernization initiatives if not clearly defined.
Dependence on a single contractor for critical infrastructure could pose a risk if performance falters.

Positive Signals

Full and open competition suggests a robust selection process, likely yielding a capable vendor.
Firm-fixed-price contract type provides cost predictability for the agency.
Focus on modernization indicates a forward-looking approach to IT infrastructure.

Sector Analysis

This contract falls within the Government IT Services sector, a significant area of federal spending. The market for IT services, including system design, integration, and modernization, is highly competitive, with numerous large and small businesses vying for federal contracts. The SSA's spending on IT infrastructure and modernization is crucial for maintaining its operations and adapting to evolving technological landscapes. Comparable spending benchmarks for similar IT support contracts often range in the tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific BPA Call. While this contract itself may not directly benefit small businesses through set-asides, the prime contractor, IT Concepts, Inc., may engage small businesses as subcontractors. The extent of subcontracting to small businesses will depend on IT Concepts' internal policies and the specific requirements of the call orders issued under this BPA.

Oversight & Accountability

Oversight for this contract will be managed by the Social Security Administration (SSA). Accountability measures are embedded within the firm-fixed-price structure and the performance expectations outlined in the BPA Call. Transparency is facilitated through federal contract databases where such awards are reported. The SSA's contracting officers and program managers will be responsible for monitoring performance, ensuring compliance with terms, and managing any potential disputes or issues.

Related Government Programs

IT Infrastructure Support Services
Mainframe Modernization Programs
Cloud Migration Services
Enterprise Resource Planning (ERP) Systems Support
Cybersecurity Services for Federal Agencies

Risk Flags

Long contract duration
Potential for scope creep in modernization
Dependence on contractor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $135.4 million to IT CONCEPTS, INC.. CALL ORDER TO SUPPORT SSAS ENVIRONMENTS, INFRASTRUCTURE, MAINFRAMES, AND MODERNIZATION INITIATIVES.

Who is the contractor on this award?

The obligated recipient is IT CONCEPTS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $135.4 million.

What is the period of performance?

Start: 2021-08-07. End: 2025-08-31.

What is the track record of IT Concepts, Inc. in delivering similar large-scale IT modernization projects for federal agencies?

IT Concepts, Inc. has a history of providing IT services to federal agencies, including support for infrastructure, systems integration, and modernization. Their experience with agencies like the SSA suggests familiarity with government IT environments. However, a detailed review of past performance on projects of comparable scale and complexity to this $135 million BPA Call would be necessary to fully assess their track record. This would involve examining past contract performance evaluations (e.g., CPARS), any past performance issues or disputes, and the successful delivery of similar modernization initiatives. Specific examples of successful mainframe modernization or large-scale infrastructure overhauls would be particularly relevant.

How does the awarded value of $135.4 million compare to the typical cost of similar IT infrastructure and modernization contracts for agencies of the SSA's size?

The $135.4 million awarded value for this BPA Call, spanning approximately four years, appears to be within the expected range for comprehensive IT infrastructure support and modernization initiatives for a large federal agency like the Social Security Administration. Agencies of the SSA's size often award multi-year contracts in the tens to hundreds of millions of dollars for services covering system design, infrastructure maintenance, mainframe operations, and modernization efforts. Benchmarking against publicly available data for similar contracts, such as those for IT system integration, cloud migration, or legacy system modernization, suggests that this value is competitive, especially given the broad scope encompassing environments, infrastructure, and mainframes. The firm-fixed-price nature also provides a degree of cost control.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks associated with this contract include potential scope creep in modernization efforts, the long duration (nearly 4 years) leading to potential cost inefficiencies if not managed, and the risk of vendor performance issues impacting critical SSA IT systems. Mitigation strategies likely include robust project management by the SSA, clearly defined milestones and deliverables within each call order, regular performance reviews, and strong contract oversight. The firm-fixed-price structure inherently shifts some cost risk to the contractor. Furthermore, the full and open competition process aims to select a vendor with a proven ability to manage such complex projects, reducing performance risk.

How effective is the 'full and open competition' approach likely to be in ensuring the SSA receives optimal value for its IT modernization investments?

The 'full and open competition' approach is generally highly effective in ensuring optimal value for IT modernization investments. By allowing all responsible sources to submit bids, the SSA maximizes the pool of potential vendors, fostering a competitive environment that drives down prices and encourages innovation. This process allows the SSA to compare a wider range of technical solutions and pricing structures, increasing the likelihood of selecting the most cost-effective and technically superior offering. While effective, the ultimate value realization also depends on the clarity of the requirements, the rigor of the evaluation process, and the SSA's ongoing contract management and oversight.

What are the historical spending patterns of the SSA on IT infrastructure and modernization, and how does this contract fit within that trend?

The Social Security Administration (SSA) has consistently allocated significant portions of its budget to IT infrastructure and modernization due to the critical nature of its operations and the need to maintain aging systems while adopting new technologies. Historical spending patterns show a trend towards increasing investment in areas like cloud computing, data analytics, and cybersecurity, alongside the ongoing maintenance and modernization of core systems, including mainframes. This $135 million BPA Call fits within this trend by providing a mechanism to procure essential services for maintaining and upgrading these critical IT components. It suggests a continued commitment by the SSA to invest in its technological backbone to ensure service delivery and operational efficiency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 28321321Q00000299

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 SPRING HILL RD STE 305, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $158,858,719

Exercised Options: $135,442,339

Current Obligation: $135,442,339

Actual Outlays: $118,318,718

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 28321320A00040024

IDV Type: BPA

Timeline