Social Security Administration awards $34M for Computer Associates Software, a sole-source contract

Contract Overview

Contract Amount: $34,011,111 ($34.0M)

Contractor: CA, Inc.

Awarding Agency: Social Security Administration

Start Date: 2008-10-01

End Date: 2009-09-30

Contract Duration: 364 days

Daily Burn Rate: $93.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

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 $34.0 million to CA, INC. for work described as: SS00-07-60009 COMPUTER ASSOCIATES SW Key points: 1. Contract Value: $34.01 million over 1 year. 2. Competition: Sole-source award, limiting price discovery. 3. Risk: Potential for overpayment due to lack of competition. 4. Sector: Software Publishers (NAICS 511210).

Value Assessment

Rating: questionable

The contract value of $34.01 million for a single year of software is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar software licenses or support agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning only one vendor, Computer Associates (CA), Inc., was considered. This approach bypasses competitive bidding, potentially leading to higher prices and reduced innovation.

Taxpayer Impact: Taxpayers may be paying a premium for this software due to the absence of a competitive process to secure the best possible price.

Public Impact

Citizens rely on the Social Security Administration for essential services, which are supported by this software. The lack of competition raises concerns about the efficient use of taxpayer funds. Transparency in government contracting is crucial for public trust, and sole-source awards warrant scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Lack of competition

Positive Signals

Specific software need addressed

Sector Analysis

The Software Publishers sector involves companies that produce, develop, and distribute software. Spending in this sector can vary widely based on agency needs for operating systems, applications, and specialized software. Benchmarks are difficult without specific software details.

Small Business Impact

This contract was awarded to CA, Inc., a large corporation. There is no indication that small businesses were involved in this specific sole-source award, missing an opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award suggests limited oversight on price negotiation. Further review would be needed to understand the justification for not competing the requirement and the internal approval processes.

Related Government Programs

Software Publishers
Social Security Administration Contracting
Social Security Administration Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated pricing due to lack of bids.
Lack of transparency in vendor selection.
Missed opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $34.0 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 $34.0 million.

What is the period of performance?

Start: 2008-10-01. End: 2009-09-30.

What was the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to proprietary software, unique capabilities, or urgent and compelling needs. Without specific documentation from the SSA, the exact reason remains unclear, but it's a critical factor in assessing the contract's legitimacy and value.

What is the risk of vendor lock-in with this sole-source contract?

Sole-source contracts inherently increase the risk of vendor lock-in. By awarding the contract to Computer Associates without competition, the SSA may become dependent on this specific vendor for software updates, maintenance, and future needs. This dependence can limit the agency's flexibility and bargaining power in subsequent procurements, potentially leading to higher costs over time.

How does this spending align with the SSA's overall IT budget and mission effectiveness?

Assessing the alignment requires comparing this $34 million expenditure against the SSA's total IT budget and its contribution to the agency's mission. If this software is critical for core operations like processing benefits or managing records, the spending might be justified. However, the lack of competition raises questions about whether the funds are being used as effectively as possible to support the mission.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,011,111

Exercised Options: $34,011,111

Current Obligation: $34,011,111

Parent Contract

Parent Award PIID: SS000760009

IDV Type: IDC

Timeline