SSA awards $15.9M McAfee Enterprise License Agreement for software maintenance over 5 years

Contract Overview

Contract Amount: $15,932,733 ($15.9M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Social Security Administration

Start Date: 2021-08-01

End Date: 2026-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MCAFEE ENTERPRISE LICENSE AGREEMENT (ELA) SOFTWARE MAINTENANCE

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $15.9 million to CARAHSOFT TECHNOLOGY CORP for work described as: MCAFEE ENTERPRISE LICENSE AGREEMENT (ELA) SOFTWARE MAINTENANCE Key points: 1. Value for money assessed against market rates for similar enterprise software licenses. 2. Competition dynamics indicate a robust bidding process for this significant software procurement. 3. Risk indicators include potential for vendor lock-in and the need for ongoing security updates. 4. Performance context relies on the contractor's ability to provide timely and effective software maintenance. 5. Sector positioning places this contract within the broader IT software and licensing market.

Value Assessment

Rating: good

The contract value of $15.9 million over five years for enterprise software maintenance appears reasonable when benchmarked against similar large-scale software licensing agreements. While specific per-unit cost data is not available, the firm-fixed-price structure suggests predictable budgeting. The government's ability to secure a multi-year agreement with a major software vendor like McAfee Enterprise, through a competitive process, likely yielded favorable pricing compared to shorter-term or sole-source arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a healthy level of competition for this enterprise software maintenance requirement. This competitive environment is generally conducive to achieving fair market prices and encouraging contractors to offer their best terms.

Taxpayer Impact: For taxpayers, full and open competition increases the likelihood that the government is obtaining the required software maintenance at a competitive price, maximizing the value of federal dollars spent.

Public Impact

The Social Security Administration (SSA) benefits from continuous access to updated and maintained McAfee enterprise software, crucial for its IT infrastructure. Services delivered include software maintenance, technical support, and access to software updates and patches. The geographic impact is primarily within the SSA's operational centers, ensuring the security and functionality of its national IT systems. Workforce implications involve ensuring SSA IT personnel have the necessary tools and support to manage and utilize the licensed software effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor for critical software maintenance could lead to future price increases or limited negotiation leverage.
The effectiveness of the software maintenance is dependent on the vendor's responsiveness and the quality of support provided.
Ensuring compliance with licensing terms and managing software assets effectively requires diligent oversight.

Positive Signals

The multi-year, firm-fixed-price contract provides budget certainty for the SSA.
Awarding through full and open competition suggests a competitive pricing structure was achieved.
The contract duration allows for stable access to essential software maintenance and support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software publishers and enterprise license agreements. The market for cybersecurity and endpoint protection software is highly competitive, with numerous vendors offering similar solutions. The total addressable market for enterprise software licenses and maintenance is substantial, with government agencies representing a significant portion of spending due to their extensive IT needs and security requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor, Carahsoft Technology Corp, is known for its extensive work with small and disadvantaged businesses in its distribution channels.

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 delivery of specified software maintenance services. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were identified.

Related Government Programs

Enterprise Software Licensing
Software Maintenance Agreements
Cybersecurity Software Procurement
IT Infrastructure Support
Government IT Contracts

Risk Flags

Potential for vendor lock-in
Dependence on timely security patches
Long-term cost sustainability

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $15.9 million to CARAHSOFT TECHNOLOGY CORP. MCAFEE ENTERPRISE LICENSE AGREEMENT (ELA) SOFTWARE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.9 million.

What is the period of performance?

Start: 2021-08-01. End: 2026-07-31.

What is the historical spending pattern for McAfee Enterprise software maintenance at the SSA?

Analyzing historical spending requires access to detailed procurement data beyond this single award. However, the current award of $15.9 million over five years suggests a consistent need for this type of software maintenance. To understand the pattern, one would look at previous contracts for similar McAfee products or competing cybersecurity solutions awarded to the SSA, noting the value, duration, and competition level of those prior awards. Significant year-over-year increases or decreases could indicate shifts in IT strategy, security posture, or vendor relationships. Comparing the current price per year ($3.18 million) to previous periods would reveal trends in cost escalation or savings.

How does the per-user cost of this McAfee ELA compare to industry benchmarks?

The provided data does not include the number of users or endpoints covered by this McAfee Enterprise License Agreement (ELA), making a direct per-user cost comparison impossible. To perform such an analysis, the total number of licenses or seats procured would be necessary. Once that figure is known, the annual cost ($3.18 million) could be divided by the number of users to derive a per-user rate. This rate would then be benchmarked against publicly available pricing guides from McAfee Enterprise, industry reports on cybersecurity software licensing costs, and data from similar government ELAs to assess if the SSA is receiving a competitive price per user.

What are the key performance indicators (KPIs) for this software maintenance contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for enterprise software maintenance contracts include: 1) Response time to support requests, measured in hours or business days based on severity. 2) Resolution time for reported issues, aiming to minimize downtime. 3) Availability of software updates and patches, ensuring timely delivery and successful deployment. 4) Uptime and performance of the software itself, as supported by the maintenance. 5) Contractor's adherence to service level agreements (SLAs) regarding technical support and issue remediation. The SSA would likely have established SLAs within the contract to monitor these aspects.

What is the track record of Carahsoft Technology Corp in fulfilling similar government software contracts?

Carahsoft Technology Corp has a well-established track record as a leading government IT solutions provider and reseller. They frequently win contracts for enterprise software licenses and maintenance across various federal agencies. Their business model often involves partnering with major software manufacturers like McAfee Enterprise to provide these solutions to the public sector. Reviews of federal procurement data would likely show numerous awards to Carahsoft for similar IT products and services, often through competitive processes. Their extensive experience suggests a high likelihood of successful contract performance, though specific performance metrics for past contracts would require deeper investigation.

What are the potential risks associated with relying on McAfee Enterprise software for critical SSA functions?

Potential risks include: 1) Vendor Lock-in: Dependence on a single vendor can limit future flexibility and potentially lead to higher costs over time if competitive alternatives are not considered. 2) Security Vulnerabilities: Despite maintenance, new zero-day exploits could emerge, requiring rapid patching from McAfee. Delays in vendor response could leave SSA systems exposed. 3) Software Obsolescence: Enterprise software evolves rapidly. The SSA must ensure the maintained version remains compatible with its infrastructure and future IT plans, or face costly upgrade cycles. 4) Support Quality: The effectiveness of the maintenance is contingent on the quality and responsiveness of McAfee's technical support, which can vary. 5) Budgetary Constraints: Long-term maintenance costs can strain budgets, especially if unexpected support needs arise or if the software's utility diminishes relative to newer technologies.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 28321321Q00000303

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11493 SUNSET HILLS RD, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $15,932,733

Exercised Options: $15,932,733

Current Obligation: $15,932,733

Actual Outlays: $15,932,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline