IBM receives $3.78M for IT support services for Social Security Administration's access control and web services

Contract Overview

Contract Amount: $3,780,307 ($3.8M)

Contractor: International Business Machines Corporation

Awarding Agency: Social Security Administration

Start Date: 2025-12-31

End Date: 2026-11-14

Contract Duration: 318 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IBM PROPRIETARY TECHNICAL SUPPORT SERVICES FOR ACCESS CONTROL UTILITY (ACU) AND SECURE WEB SERVICES ARCHITECTURE (SWSA) SUPPORT SERVICES.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $3.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IBM PROPRIETARY TECHNICAL SUPPORT SERVICES FOR ACCESS CONTROL UTILITY (ACU) AND SECURE WEB SERVICES ARCHITECTURE (SWSA) SUPPORT SERVICES. Key points: 1. Contract awarded to IBM for technical support of critical IT systems. 2. The contract duration is approximately 1.8 years. 3. Services include support for Access Control Utility (ACU) and Secure Web Services Architecture (SWSA). 4. The award is a BPA Call under a larger contract. 5. The contract type is Firm Fixed Price, indicating predictable costs. 6. No small business set-aside was utilized for this specific award. 7. The North American Industry Classification System (NAICS) code is 541519, indicating other computer-related services.

Value Assessment

Rating: good

The contract value of $3.78 million for approximately 1.8 years of IT support appears reasonable given the specialized nature of the services. Benchmarking against similar IT support contracts for federal agencies suggests that IBM's pricing is competitive, especially considering the proprietary systems involved. The firm fixed-price structure helps manage cost predictability for the Social Security Administration.

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 specific number of bidders is not provided, but the competitive process is expected to drive fair market pricing. The use of a BPA Call suggests that a broader competitive process may have occurred previously for the underlying BPA.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a competitive bidding process, leading to potentially lower prices and higher quality services.

Public Impact

The Social Security Administration (SSA) benefits from continued technical support for its essential IT infrastructure. Users of SSA services will experience reliable access to systems managed by ACU and SWSA. The contract supports IT professionals within IBM, contributing to the tech workforce. The geographic impact is primarily within the SSA's operational centers, likely in Maryland where the contract is managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if proprietary knowledge is heavily concentrated with IBM.
Reliance on a single vendor for critical system support could pose risks if performance degrades.
The specific details of the technical support required are not fully elaborated, making independent performance assessment challenging.

Positive Signals

Award to a well-established IT services provider with a track record in government contracting.
Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process.
The contract is a BPA Call, implying it leverages a pre-competed framework.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer-related services. The market for federal IT support is substantial, with agencies increasingly relying on specialized vendors for maintaining complex systems. Comparable spending benchmarks for similar IT support contracts often range from hundreds of thousands to millions of dollars annually, depending on the scope and criticality of the systems supported. IBM is a major player in this market.

Small Business Impact

This contract does not appear to have a small business set-aside. As a result, small businesses are not directly benefiting from this specific award. There is no information provided regarding subcontracting opportunities for small businesses under this BPA Call. The impact on the small business ecosystem is neutral to negative for this specific contract, as opportunities were not reserved for them.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officers and program managers within the Social Security Administration. Performance will be monitored against the terms of the Firm Fixed Price BPA Call. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Social Security Administration IT Modernization Efforts
Federal Civilian Agency IT Support Services
Access Control Systems Support
Web Services Infrastructure Maintenance
IBM Government Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical systems
Limited public detail on specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $3.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IBM PROPRIETARY TECHNICAL SUPPORT SERVICES FOR ACCESS CONTROL UTILITY (ACU) AND SECURE WEB SERVICES ARCHITECTURE (SWSA) SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2025-12-31. End: 2026-11-14.

What is IBM's track record with the Social Security Administration for similar IT support services?

IBM has a long-standing relationship with the Social Security Administration (SSA), providing a wide range of IT services. This includes support for various critical systems, infrastructure management, and modernization efforts. The SSA has previously awarded IBM contracts for technical support, software development, and hardware maintenance. While specific performance data for past contracts is not publicly detailed, IBM's continued engagement with the SSA suggests a generally satisfactory performance history. The current contract, awarded as a BPA Call, likely builds upon this established relationship and the agency's confidence in IBM's capabilities to support complex systems like ACU and SWSA.

How does the $3.78 million value compare to similar IT support contracts for federal agencies?

The $3.78 million contract value for approximately 22 months of specialized IT support for critical systems like ACU and SWSA appears to be within a reasonable range for federal contracts of this nature. Similar contracts for maintaining proprietary or complex IT infrastructure for agencies like the Department of Defense or the Department of Homeland Security can range from several hundred thousand to millions of dollars annually. Factors influencing cost include the level of expertise required, the criticality of the systems, the vendor's overhead, and the specific service level agreements. Given that this is a Firm Fixed Price award to a major IT provider like IBM, the pricing is likely competitive, especially considering the potential costs associated with system downtime or security breaches if support were inadequate.

What are the primary risks associated with this contract for the SSA?

The primary risks associated with this contract include potential vendor lock-in, where the SSA becomes heavily reliant on IBM's proprietary knowledge and expertise for ACU and SWSA, making future transitions difficult or costly. There's also a risk of performance degradation if IBM's support falters, potentially impacting the availability and security of critical SSA systems. Another risk is the concentration of critical IT support within a single vendor, which could be problematic in the event of unforeseen business disruptions for IBM. Ensuring robust service level agreements (SLAs) and maintaining strong oversight are crucial to mitigating these risks.

How effective is the Firm Fixed Price (FFP) contract type in managing costs for this service?

The Firm Fixed Price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks of cost overruns are relatively low. For IT support services like this, where the tasks are often predictable (e.g., routine maintenance, troubleshooting, system updates), FFP provides cost certainty for the Social Security Administration. It shifts the risk of cost overruns to the contractor, IBM, incentivizing them to manage their resources efficiently. This structure helps prevent budget blowouts that can occur with cost-plus contracts, making financial planning more straightforward for the agency.

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

The Social Security Administration (SSA) consistently allocates significant portions of its budget to IT services, reflecting the agency's reliance on technology to deliver its programs. Historical spending patterns show a steady investment in maintaining and modernizing its IT infrastructure, including systems for managing benefits, processing data, and ensuring cybersecurity. This includes contracts for hardware, software, network management, and specialized technical support. Spending on IT support services, in particular, has been substantial, often awarded through competitive bidding processes to large IT vendors as well as smaller specialized firms. The current contract aligns with this historical trend of investing in robust IT support to ensure operational continuity and service delivery.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 NEW ORCHARD RD, ARMONK, NY, 10504

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

Financial Breakdown

Contract Ceiling: $3,780,307

Exercised Options: $3,780,307

Current Obligation: $3,780,307

Actual Outlays: $945,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 28321323A00040003

IDV Type: BPA

Timeline