SSA renews VenaFi Trustforce & Authority maintenance for $1.05M, extending support through March 2026

Contract Overview

Contract Amount: $1,053,628 ($1.1M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Social Security Administration

Start Date: 2022-04-01

End Date: 2026-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $722/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RENEWAL OF 28321321FDX030126 MAINTENANCE ON VENAFI TRUSTFORCE AND AUTHORITY

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $1.1 million to CARAHSOFT TECHNOLOGY CORP for work described as: RENEWAL OF 28321321FDX030126 MAINTENANCE ON VENAFI TRUSTFORCE AND AUTHORITY Key points: 1. Contract provides essential software maintenance, ensuring operational continuity for critical systems. 2. The renewal indicates satisfaction with the current service provider and software performance. 3. Fixed-price contract structure offers cost predictability for the agency. 4. Limited duration suggests a potential for re-competition or system evolution. 5. The specific software's role within SSA's broader IT infrastructure warrants further examination. 6. Cybersecurity implications of maintaining legacy or specialized software are a key consideration.

Value Assessment

Rating: good

The contract value of approximately $1.05 million over four years for software maintenance appears reasonable, especially considering the specialized nature of 'VenaFi Trustforce and Authority'. Benchmarking against similar enterprise software maintenance contracts is challenging without more specific details on the software's functionality and user base. However, the fixed-price nature of the contract provides cost certainty. The renewal suggests that the pricing is competitive enough to retain the incumbent provider, implying it aligns with market expectations for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single delivery order suggests that Carahsoft Technology Corp was the most advantageous offeror based on the evaluation criteria. The competitive process should have driven a fair market price, although the specific number of bidders is not provided.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality, preventing potential overcharges associated with sole-source or limited competition awards.

Public Impact

Benefits the Social Security Administration by ensuring the continued functionality of its IT systems. Delivers software maintenance services crucial for operational continuity. Primarily impacts internal SSA operations and the workforce reliant on these systems. Supports the agency's mission to administer social insurance programs effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not explored.
Reliance on a single vendor for critical software maintenance could pose a risk if the vendor faces financial or operational difficulties.
Ensuring adequate knowledge transfer and documentation from the vendor is crucial for long-term maintainability.

Positive Signals

Successful renewal indicates a stable and reliable service delivery from the incumbent.
Fixed-price contract provides budget predictability.
Full and open competition suggests a well-managed procurement process.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, which encompasses companies that publish, and/or develop and market software. The market for enterprise software maintenance is substantial, driven by the need for organizations, particularly government agencies, to ensure the ongoing operability, security, and updates of their critical software systems. The spending on software maintenance is a significant component of overall IT budgets, often representing a recurring cost necessary to leverage initial software investments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Carahsoft Technology Corp, while a large business, often acts as a reseller and partner for various software vendors, some of which may be small businesses. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses through Carahsoft or the underlying software developers.

Oversight & Accountability

The contract is managed by the Social Security Administration (SSA), which has its own internal oversight mechanisms for contract performance and financial management. The fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Software Maintenance Services
IT Support Contracts
Enterprise Software Licensing
Government IT Renewals

Risk Flags

Potential for vendor lock-in
Software obsolescence risk
Cost escalation in maintenance renewals

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $1.1 million to CARAHSOFT TECHNOLOGY CORP. RENEWAL OF 28321321FDX030126 MAINTENANCE ON VENAFI TRUSTFORCE AND AUTHORITY

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 $1.1 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-03-31.

What is the specific functionality and criticality of 'VenaFi Trustforce and Authority' software within the SSA's operations?

The provided data does not detail the specific functionalities of 'VenaFi Trustforce and Authority'. However, its renewal for maintenance by the Social Security Administration (SSA) suggests it plays a critical role in the agency's IT infrastructure. Software like 'Trustforce' often relates to identity and access management, security, or workflow automation, which are vital for government operations. The 'Authority' component might imply a system for managing permissions or governance. Given the SSA's mission, such software could be integral to processing benefits, managing citizen data securely, or ensuring internal compliance. Without direct access to SSA's system architecture documentation, its precise criticality remains inferred from the contract's renewal and duration.

How does the annual cost of this maintenance contract compare to industry benchmarks for similar specialized software?

Benchmarking the annual cost of $263,156.38 ($1,053,627.51 / 4 years) for 'VenaFi Trustforce and Authority' maintenance against industry standards is challenging without knowing the software's specific features, user base size, and complexity. Specialized enterprise software maintenance can range significantly, from a few percent of the initial license cost for simpler applications to 20% or more for highly complex, mission-critical systems. Carahsoft Technology Corp is a known reseller, and their pricing often reflects established vendor maintenance agreements. Given the full and open competition, the price achieved suggests it was deemed fair and reasonable by the SSA procurement officials relative to the market as understood during the bidding process. Further comparison would require access to proprietary pricing data for comparable government or commercial software maintenance agreements.

What is Carahsoft Technology Corp's track record with the SSA and other federal agencies for similar software maintenance contracts?

Carahsoft Technology Corp is a prominent government IT solutions provider and reseller, frequently appearing in federal contract databases. Their track record with the SSA and other agencies typically involves providing a wide array of software licenses and maintenance agreements through various contract vehicles. They often partner with numerous software manufacturers, facilitating procurement for government entities. While specific performance metrics for this particular contract (28321321FDX030126) are not detailed in the provided data, Carahsoft's consistent presence in federal contracting suggests a generally established capability to meet agency requirements. Agencies often rely on Carahsoft due to their broad portfolio and established relationships with software vendors, simplifying the acquisition process for complex IT solutions.

What are the potential risks associated with renewing maintenance for specialized software like 'VenaFi Trustforce and Authority'?

Renewing maintenance for specialized software like 'VenaFi Trustforce and Authority' carries several potential risks. Firstly, there's the risk of vendor lock-in, where the agency becomes heavily reliant on a single vendor, making it difficult and costly to switch to alternative solutions in the future. Secondly, if the software is aging or not actively developed by the vendor, maintenance renewals might offer diminishing returns, providing only basic support rather than significant enhancements or security patches. Thirdly, the cost of maintenance can escalate over time, potentially becoming disproportionately high compared to the software's ongoing value. Finally, there's the risk associated with the vendor's own stability; if the provider faces financial difficulties or discontinues the product line, the agency could be left without support for critical systems.

How has SSA's spending on software maintenance evolved over the past five years, and does this contract represent a typical spending pattern?

Analyzing SSA's overall spending evolution on software maintenance requires access to historical procurement data beyond this single contract. However, this $1.05 million renewal over four years, averaging approximately $263,000 annually, represents a recurring operational expense typical for maintaining specialized enterprise software. Government agencies, including the SSA, consistently allocate significant portions of their IT budgets to software maintenance to ensure the operability, security, and compliance of their systems. Trends in such spending are often influenced by factors like system modernization efforts, cybersecurity mandates, and the lifecycle of deployed software. Without broader SSA spending data, it's difficult to definitively state if this contract is typical, but it aligns with the general necessity of ongoing software support in large organizations.

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: 28321322Q00000150

Offers Received: 1

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: $1,351,492

Exercised Options: $1,053,628

Current Obligation: $1,053,628

Actual Outlays: $1,053,628

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA18D008F

IDV Type: FSS

Timeline