SSA Renews Internet Systems Corp. BIND Maintenance for $5.2M, Lacking Competition

Contract Overview

Contract Amount: $52,000 ($52.0K)

Contractor: Internet Systems Corporation

Awarding Agency: Social Security Administration

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $143/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RENEWAL OF 28321325P000500543 FOR MAINTENANCE ON INTERNET SYSTEMS CORPORATION BIND. CLIENT SERVER INFRASTRUCTURE (CSI) IN SOHE USES OPEN-SOURCE BIND SOFTWARE, THE MOST WIDELY USED DNS SYSTEM, FOR DOMAIN NAME AND IP ADDRESS TRANSLATION, PROVIDING A RO

Place of Performance

Location: NEWMARKET, ROCKINGHAM County, NEW HAMPSHIRE, 03857

State: New Hampshire Government Spending

Plain-Language Summary

Social Security Administration obligated $52,000 to INTERNET SYSTEMS CORPORATION for work described as: RENEWAL OF 28321325P000500543 FOR MAINTENANCE ON INTERNET SYSTEMS CORPORATION BIND. CLIENT SERVER INFRASTRUCTURE (CSI) IN SOHE USES OPEN-SOURCE BIND SOFTWARE, THE MOST WIDELY USED DNS SYSTEM, FOR DOMAIN NAME AND IP ADDRESS TRANSLATION, PROVIDING A RO Key points: 1. Contract awarded to Internet Systems Corporation for essential DNS software maintenance. 2. The renewal is for a 364-day period, valued at $5.2 million. 3. Lack of competition raises concerns about potential overpayment and vendor lock-in. 4. The software is critical for domain name and IP address translation, impacting SSA's IT infrastructure.

Value Assessment

Rating: questionable

The contract's value of $5.2 million for a one-year maintenance renewal needs further scrutiny. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar maintenance contracts for widely used open-source software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed under SAP, indicating a limited competition approach. This method may not have explored all available vendors or secured the best possible pricing for the government.

Taxpayer Impact: The lack of competitive pricing could lead to taxpayers paying more than necessary for this critical software maintenance.

Public Impact

Ensures continued operation of the Social Security Administration's domain name and IP address translation services. Maintains the stability and security of a core component of the SSA's internet infrastructure. Potential for increased costs due to non-competitive award impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Vendor lock-in risk

Positive Signals

Maintains critical infrastructure
Uses widely adopted open-source software

Sector Analysis

This contract falls within the Software Publishers sector, specifically for maintenance of a widely used open-source DNS system. Spending benchmarks for similar maintenance contracts are difficult to ascertain without competitive data, but renewals without competition often carry higher price tags.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. The award to a specific vendor without competition limits opportunities for small businesses to compete for this type of service.

Oversight & Accountability

The 'NOT COMPETED UNDER SAP' designation suggests a potential gap in oversight regarding competitive sourcing. Further review is needed to understand why this contract was not competed and if adequate justification exists.

Related Government Programs

Software Publishers
Social Security Administration Contracting
Social Security Administration Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited vendor options
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $52,000 to INTERNET SYSTEMS CORPORATION. RENEWAL OF 28321325P000500543 FOR MAINTENANCE ON INTERNET SYSTEMS CORPORATION BIND. CLIENT SERVER INFRASTRUCTURE (CSI) IN SOHE USES OPEN-SOURCE BIND SOFTWARE, THE MOST WIDELY USED DNS SYSTEM, FOR DOMAIN NAME AND IP ADDRESS TRANSLATION, PROVIDING A RO

Who is the contractor on this award?

The obligated recipient is INTERNET SYSTEMS CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $52,000.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the justification for not competing this contract, given the widespread use of BIND and the availability of other support providers?

The justification for not competing this contract is not provided in the data. However, for critical infrastructure software like BIND, agencies sometimes opt for sole-source or limited competition renewals to ensure continuity and avoid potential disruption. This approach, while prioritizing stability, often comes at a higher cost and reduces opportunities for competitive price discovery.

What is the risk associated with renewing maintenance for a critical internet system without competitive bidding?

The primary risk is financial: the government may be overpaying for the maintenance services compared to what could be achieved through a competitive process. There's also a risk of vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting future flexibility and innovation. Furthermore, without competition, there's less incentive for the vendor to offer optimal service levels or proactive support.

How does the use of open-source software like BIND affect the government's ability to secure competitive pricing for maintenance?

While BIND is open-source, meaning the software itself is free, commercial support and maintenance contracts are often provided by specialized companies. The government's ability to secure competitive pricing depends on whether multiple vendors can offer comparable support services. If only one or a few vendors dominate the market for specialized BIND support, or if the agency's specific configuration requires unique expertise, competitive pricing can be challenging to achieve.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 28321326Q00000076

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 60 EXETER RD STE 104, NEWMARKET, NH, 03857

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

Financial Breakdown

Contract Ceiling: $52,000

Exercised Options: $52,000

Current Obligation: $52,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline