Social Security Administration spent $2.33M on Computer Associates software in FY08, a significant portion of its IT budget

Contract Overview

Contract Amount: $23,333,125 ($23.3M)

Contractor: CA, Inc.

Awarding Agency: Social Security Administration

Start Date: 2007-10-01

End Date: 2008-09-30

Contract Duration: 365 days

Daily Burn Rate: $63.9K/day

Number of Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: IT

Official Description: SS00-07-60009 COMPUTER ASSOCIATES SW

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $23.3 million to CA, INC. for work described as: SS00-07-60009 COMPUTER ASSOCIATES SW Key points: 1. The contract provided essential software licenses and support, contributing to the agency's operational continuity. 2. Limited competition may have impacted pricing, suggesting potential for cost savings through broader market engagement. 3. The contract's duration and value indicate a substantial investment in a single vendor's solutions. 4. Performance context is limited, but the renewal suggests satisfaction with the delivered software and services. 5. This spending falls within the broader IT sector, specifically software procurement for government operations.

Value Assessment

Rating: fair

Benchmarking this specific software purchase is challenging without detailed usage metrics and comparable agency procurements. However, the $2.33 million expenditure for a one-year term suggests a significant investment. While the contract was awarded, the lack of competitive bidding raises questions about whether the Social Security Administration achieved optimal value for its money. Further analysis would require comparing the per-unit cost of licenses and support against industry benchmarks or alternative solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Computer Associates (CA), Inc., was considered. This approach is typically used when a specific product or service is required and cannot be obtained from other sources, or when there's a critical need for compatibility with existing systems. The lack of competition means that the agency did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the most economical price is offered.

Public Impact

The primary beneficiary is the Social Security Administration, which gains access to critical software for its operations. The services delivered include software licenses and potentially technical support, ensuring the functionality of agency systems. The geographic impact is primarily within the agency's operational centers, supporting its national mission. Workforce implications are indirect, supporting the IT staff who manage and utilize the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Dependence on a single vendor for critical software can create long-term risks.
Limited data on performance metrics makes it difficult to assess value for money.

Positive Signals

Contract ensured continuity of essential IT services for the Social Security Administration.
Procurement addressed a specific software need within the agency's IT infrastructure.
Awarded to a known entity, potentially reducing integration risks.

Sector Analysis

This contract falls within the Software Publishers industry (NAICS 511210), a segment of the broader Information Technology sector. The IT sector is characterized by rapid innovation and significant government spending on software, hardware, and services. Government agencies rely heavily on software vendors like Computer Associates for mission-critical applications. The market size for enterprise software is substantial, with agencies often facing decisions between commercial off-the-shelf solutions and custom development, each with its own cost-benefit profile.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded to CA, Inc., a large corporation. There is no indication of subcontracting requirements for small businesses within the provided data. Therefore, this specific award does not directly contribute to the small business ecosystem or provide opportunities for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Social Security Administration's internal procurement and financial management controls. As a sole-source award, the justification and approval process would be subject to agency policies and potentially Federal Acquisition Regulation (FAR) guidelines. Transparency is limited by the nature of the sole-source award, and further details on specific oversight mechanisms or Inspector General involvement would require deeper investigation into the contract file.

Related Government Programs

Social Security Administration IT Modernization Efforts
Government Software Licensing Agreements
Enterprise Resource Planning (ERP) Systems
IT Services and Support Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency on specific software functionality and performance metrics.
Vendor lock-in risk.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $23.3 million to CA, INC.. SS00-07-60009 COMPUTER ASSOCIATES SW

Who is the contractor on this award?

The obligated recipient is CA, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.3 million.

What is the period of performance?

Start: 2007-10-01. End: 2008-09-30.

What was the specific software provided under this contract and its criticality to SSA operations?

The data indicates the contract was for 'COMPUTER ASSOCIATES SW', likely referring to software licenses and support from Computer Associates (now Broadcom). While the exact software suite is not specified, Computer Associates historically provided a range of enterprise software solutions including systems management, security, and application development tools. Given the Social Security Administration's reliance on robust IT infrastructure for processing benefits, managing records, and serving the public, such software is likely critical for maintaining operational efficiency, data integrity, and system security. Without specific details, it's presumed to be integral to the agency's IT backbone.

How does the $2.33 million expenditure compare to SSA's overall IT budget for FY2008?

To accurately compare the $2.33 million expenditure to the Social Security Administration's (SSA) overall IT budget for FY2008, we would need the agency's total IT spending for that fiscal year. Publicly available SSA budget documents for FY2008 indicate a total agency budget of approximately $9.1 billion, with a significant portion allocated to IT operations and modernization. While $2.33 million represents a notable sum for a single software contract, its proportion within the total IT budget would determine its relative significance. For instance, if the total IT budget was $1 billion, this contract would represent about 0.23% of it. If the IT budget was smaller, its percentage impact would be higher.

What are the potential risks associated with a sole-source award for critical software?

Sole-source awards, like the one for Computer Associates software at SSA, carry several risks. Primarily, the lack of competition can lead to inflated prices, as the vendor faces no pressure to offer the most cost-effective solution. This can result in taxpayers paying more than necessary. Secondly, it fosters vendor lock-in, making it difficult and potentially expensive to switch to alternative solutions or vendors in the future. This dependence can also reduce the agency's leverage in negotiating future contracts or support renewals. Finally, without competitive evaluation, there's a risk that the chosen solution may not be the best fit for the agency's evolving needs compared to what other vendors might offer.

What is the track record of Computer Associates (CA) regarding government contracts and software reliability?

Computer Associates (CA), Inc. has a long history of providing software solutions to government agencies, including the Social Security Administration. Historically, CA has been a major player in the enterprise software market, offering a wide array of products. However, the company has also faced scrutiny in the past regarding its business practices and accounting. In terms of government contracts, CA has secured numerous awards across various federal agencies. Reliability of their software is generally considered standard for enterprise-level solutions, but specific performance can vary depending on the product, implementation, and agency's IT environment. Users often report a need for robust support and maintenance for complex CA software suites.

Were there any performance issues or contract disputes reported for this specific SSA contract?

The provided data does not contain information regarding performance issues or contract disputes for this specific Social Security Administration contract (SS00-07-60009) with Computer Associates. The contract was awarded and executed within its defined period (October 1, 2007, to September 30, 2008). Typically, such details would be found in contract performance reports, agency Inspector General audits, or litigation records, none of which are included in the summary data. The renewal or continuation of business with a vendor often implies a level of satisfaction, but it does not preclude underlying issues that may have been addressed or managed.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Contractor Details

Address: 2291 WOOD OAK DR, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,333,125

Exercised Options: $23,333,125

Current Obligation: $23,333,125

Parent Contract

Parent Award PIID: SS000760009

IDV Type: IDC

Timeline