SSA's $128.7M IT support BPA call awarded to IT Concepts, Inc. for agency-wide technical assistance

Contract Overview

Contract Amount: $128,694,332 ($128.7M)

Contractor: IT Concepts, Inc.

Awarding Agency: Social Security Administration

Start Date: 2022-09-26

End Date: 2025-09-28

Contract Duration: 1,098 days

Daily Burn Rate: $117.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CALL ORDER TO ACQUIRE AGENCY-WIDE NON-SYSTEMS TECHNICAL SUPPORT UNDER THE AGENCY'S SYSTEMS IT SUPPORT BLANKET PURCHASE AGREEMENTS.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $128.7 million to IT CONCEPTS, INC. for work described as: CALL ORDER TO ACQUIRE AGENCY-WIDE NON-SYSTEMS TECHNICAL SUPPORT UNDER THE AGENCY'S SYSTEMS IT SUPPORT BLANKET PURCHASE AGREEMENTS. Key points: 1. Contract provides essential IT support services across the agency, ensuring operational continuity. 2. Awarded under a full and open competition, suggesting a competitive bidding process. 3. The contract duration of nearly three years indicates a significant, ongoing need for these services. 4. Focus on non-systems technical support highlights a specific area of IT infrastructure management. 5. The large dollar value suggests a substantial investment in maintaining the agency's IT environment. 6. Performance is based on labor hours, allowing flexibility in addressing varying support demands.

Value Assessment

Rating: good

The contract's value of $128.7 million over approximately three years for agency-wide IT support appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies would provide a more precise value-for-money assessment. The labor hour pricing model allows for flexibility, but requires diligent oversight to ensure efficient resource utilization and prevent cost overruns. Without specific unit cost data or comparisons to market rates for similar technical support services, a definitive assessment of pricing efficiency is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific details regarding the number of bidders are not provided, but a full and open competition generally fosters a competitive environment. This approach aims to ensure that the government receives the best possible value by allowing a wide range of contractors to compete for the work, potentially leading to more innovative solutions and competitive pricing.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the contract was awarded based on merit and competitive pricing, rather than limited access, potentially leading to better value for public funds.

Public Impact

Federal employees across the Social Security Administration (SSA) will benefit from enhanced IT support, improving their ability to perform daily tasks. The contract ensures the delivery of critical non-systems technical support, maintaining the functionality of essential IT infrastructure. Services are agency-wide, impacting all SSA locations and personnel who rely on IT systems. Workforce implications include the potential for IT Concepts, Inc. to utilize its technical staff to fulfill the contract requirements, indirectly supporting federal IT jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'non-systems technical support' is not clearly defined and managed.
Reliance on labor hours necessitates robust monitoring to ensure efficient service delivery and prevent overcharging.
The large contract value could present a significant financial commitment if performance issues arise.
Dependence on a single awardee for agency-wide support could pose a risk if the contractor faces operational challenges.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded favorable terms.
The contract duration of nearly three years indicates a stable, long-term need for these services, suggesting a well-defined requirement.
Focus on specific technical support areas may lead to specialized expertise and efficient service delivery.
The BPA call structure allows for flexibility in tasking and ordering, adapting to evolving agency needs.

Sector Analysis

The IT services sector is a critical component of federal operations, with agencies increasingly relying on external contractors for specialized support. This contract falls within the Computer Systems Design Services category, which encompasses a broad range of IT consulting and support activities. The federal government is a significant consumer of these services, with spending often benchmarked against industry standards for IT support, managed services, and technical consulting. The scale of this contract suggests it represents a substantial portion of the agency's IT support budget within this sector.

Small Business Impact

This contract was awarded under a full and open competition and does not indicate a small business set-aside. Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, IT Concepts, Inc., will be responsible for fulfilling the contract requirements. While not a set-aside, the overall IT services market does involve small businesses, and their participation would typically be through prime contracts or subcontracts on other opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Social Security Administration's contracting officers and program managers. Accountability measures would be embedded within the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through contract award databases and public reporting. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

IT Support Services
Computer Systems Design Services
Agency-Wide IT Operations
Blanket Purchase Agreements (BPAs)
Technical Support Contracts

Risk Flags

Potential for vendor lock-in due to agency-wide support scope.
Reliance on labor hours requires diligent oversight to ensure cost efficiency.
Scope definition for 'non-systems technical support' needs clear management to prevent creep.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $128.7 million to IT CONCEPTS, INC.. CALL ORDER TO ACQUIRE AGENCY-WIDE NON-SYSTEMS TECHNICAL SUPPORT UNDER THE AGENCY'S SYSTEMS IT SUPPORT BLANKET PURCHASE AGREEMENTS.

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 $128.7 million.

What is the period of performance?

Start: 2022-09-26. End: 2025-09-28.

What is the historical spending pattern for IT support services at the Social Security Administration?

Analyzing historical spending patterns for IT support at the SSA is crucial for understanding the context of this $128.7 million award. While specific historical data for this exact BPA call is not provided, federal agencies typically have ongoing needs for IT infrastructure maintenance, cybersecurity, and user support. Spending in this area often fluctuates based on technological upgrades, system modernization efforts, and evolving agency requirements. Examining previous contracts for similar services, including those under BPAs or other contract vehicles, would reveal trends in annual expenditures, the types of services procured, and the primary contractors utilized. This analysis helps in assessing whether the current award represents an increase, decrease, or stable level of investment in IT support relative to past performance, and whether it aligns with broader federal IT spending trends.

How does the awarded price compare to market rates for similar IT support services?

A comprehensive comparison of the awarded price to market rates for similar IT support services is essential for evaluating value for money. This contract, valued at approximately $128.7 million over nearly three years, is for agency-wide non-systems technical support. To benchmark effectively, one would need to analyze the specific labor categories, skill sets, and service levels required by the SSA and compare their associated hourly rates or fixed prices against industry benchmarks from sources like the Bureau of Labor Statistics, commercial IT service providers, or other government contracts for comparable services. Factors such as geographic location, security clearance requirements, and the complexity of the support provided significantly influence market rates. Without detailed breakdowns of labor hours and specific service deliverables, a precise comparison is difficult, but the overall value suggests a significant investment that should be scrutinized against prevailing market conditions.

What is the track record of IT Concepts, Inc. in performing similar federal IT support contracts?

Assessing the track record of IT Concepts, Inc. is vital for understanding their capability to successfully execute this $128.7 million contract. A review of their past performance, particularly on federal contracts for IT support, systems design, and technical assistance, would provide insights into their reliability, quality of service, and ability to manage large-scale projects. Key indicators include contract completion history, any past performance evaluations (e.g., CPARS reports), and experience with similar agencies or types of IT infrastructure. Understanding their history with the SSA or other civilian agencies would be particularly relevant. A strong track record suggests a lower risk of performance issues, while a history of challenges might indicate potential concerns that warrant closer monitoring of this new award.

What are the potential risks associated with a single contractor providing agency-wide IT support?

Awarding agency-wide IT support to a single contractor, such as IT Concepts, Inc. for the SSA, presents several potential risks. One primary concern is vendor lock-in, where the agency becomes heavily reliant on the contractor's specific systems, processes, and personnel, making it difficult and costly to switch providers if needed. Operational disruptions could occur if the contractor experiences financial instability, staffing shortages, or significant management issues, potentially impacting critical agency functions. Furthermore, a lack of direct competition for ongoing support tasks might reduce incentives for the contractor to continuously innovate or optimize service delivery, potentially leading to complacency or less competitive pricing over time. Robust contract management, clear performance metrics, and contingency planning are essential to mitigate these risks.

How does this contract align with the SSA's overall IT modernization strategy?

The alignment of this $128.7 million IT support contract with the SSA's broader IT modernization strategy is a key analytical question. While the contract focuses on 'non-systems technical support,' which often pertains to maintaining existing infrastructure, it's important to understand how this supports or potentially hinders modernization efforts. For instance, effective maintenance of current systems can provide a stable foundation for introducing new technologies. Conversely, if the support primarily sustains legacy systems without enabling transition to modern platforms, it might inadvertently prolong the use of outdated technology. Understanding the SSA's strategic IT goals, such as cloud migration, data analytics enhancement, or cybersecurity improvements, and how this contract's deliverables contribute to or are impacted by those goals, is crucial for a complete assessment.

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: 28321322Q00000264

Pricing Type: LABOR HOURS (Z)

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: $194,993,400

Exercised Options: $128,694,332

Current Obligation: $128,694,332

Actual Outlays: $106,009,224

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 28321320A00040024

IDV Type: BPA

Timeline