SSA Awards $4.6M Firm Fixed Price Contract to Cincom Systems for Software Publishing Services
Contract Overview
Contract Amount: $4,626,414 ($4.6M)
Contractor: Cincom Systems, Inc.
Awarding Agency: Social Security Administration
Start Date: 2023-10-05
End Date: 2026-09-30
Contract Duration: 1,091 days
Daily Burn Rate: $4.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ESTABLISH NEW CONTRACT - CINCOM ID TEXT ID SPELL - RECOMPETE OF 28321319C00060002
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45246
State: Ohio Government Spending
Plain-Language Summary
Social Security Administration obligated $4.6 million to CINCOM SYSTEMS, INC. for work described as: ESTABLISH NEW CONTRACT - CINCOM ID TEXT ID SPELL - RECOMPETE OF 28321319C00060002 Key points: 1. The contract is a sole-source award for software publishing services. 2. The total value is $4.6 million over approximately three years. 3. This is a sole-source recompete, raising questions about competition. 4. The sector is Software Publishers (NAICS 513210).
Value Assessment
Rating: fair
The contract is a firm-fixed-price purchase order. Without competitive bids, it's difficult to assess if the $4.6 million price is optimal. Benchmarking against similar software publishing contracts would be necessary for a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these software publishing services.
Public Impact
Citizens rely on the Social Security Administration for essential services, making software reliability crucial. The award impacts the software publishing industry, specifically Cincom Systems. Taxpayer funds are allocated to this contract, highlighting the need for efficient spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for overpayment due to lack of competition
- Recompete of existing contract without clear justification for sole-source
Positive Signals
- Firm-fixed-price contract type can control costs
- Established vendor may offer continuity of service
Sector Analysis
The Software Publishers sector (NAICS 513210) encompasses companies that publish, develop, and distribute software. Spending in this sector can vary widely based on agency needs for operating systems, applications, and specialized software solutions. Benchmarks are difficult without specific software details.
Small Business Impact
This award went to Cincom Systems, Inc., a known entity. There is no indication that small businesses were involved in this specific sole-source procurement, which limits opportunities for them.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the necessity of a sole-source approach and validating the pricing against market rates, even without direct competition.
Related Government Programs
- Software Publishers
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification
- Vendor lock-in risk
Tags
software-publishers, social-security-administration, oh, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $4.6 million to CINCOM SYSTEMS, INC.. ESTABLISH NEW CONTRACT - CINCOM ID TEXT ID SPELL - RECOMPETE OF 28321319C00060002
Who is the contractor on this award?
The obligated recipient is CINCOM SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $4.6 million.
What is the period of performance?
Start: 2023-10-05. End: 2026-09-30.
What is the justification for this contract being a sole-source recompete, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source recompete is not provided in the data. Typically, agencies must demonstrate that only one source can meet the requirement due to unique capabilities, urgent needs, or specific compatibility issues. Without this justification, it's difficult to assess the validity of the sole-source award. Fair pricing in such cases often relies on historical pricing, independent government cost estimates, or benchmarking against similar commercial items, though these methods are less robust than competitive bidding.
What are the specific software publishing services being procured, and how do they align with the agency's mission critical functions?
The specific software publishing services are not detailed in the provided data. However, given the agency is the Social Security Administration (SSA), these services likely relate to the development, maintenance, licensing, or distribution of software essential for managing social security benefits, records, and public-facing portals. Ensuring these services are robust and secure is critical for the SSA's mission of providing essential support to beneficiaries.
What is the potential risk to the government if Cincom Systems' software or services become obsolete or if the company faces financial instability?
If Cincom Systems' software or services become obsolete, the SSA faces significant disruption in its operations, potentially impacting beneficiary services. Financial instability of the vendor could lead to service interruptions or contract termination, requiring a costly and time-consuming transition to a new provider. As a sole-source award, the government has limited leverage to compel updates or ensure long-term viability, increasing the risk profile.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 28321324Q00000015
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 55 MERCHANT ST, CINCINNATI, OH, 45246
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,481,759
Exercised Options: $4,626,414
Current Obligation: $4,626,414
Actual Outlays: $4,626,414
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-10-05
Current End Date: 2026-09-30
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2026-01-22
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