Social Security Administration Spends $35.3M on Computer Associates Software in 2010
Contract Overview
Contract Amount: $35,318,968 ($35.3M)
Contractor: CA, Inc.
Awarding Agency: Social Security Administration
Start Date: 2009-10-01
End Date: 2010-09-30
Contract Duration: 364 days
Daily Burn Rate: $97.0K/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 $35.3 million to CA, INC. for work described as: SS00-07-60009 COMPUTER ASSOCIATES SW Key points: 1. Significant spending on a single software vendor highlights potential vendor lock-in. 2. The contract was not competed, raising questions about price discovery and value. 3. Lack of competition and fixed-price contract may limit cost savings. 4. The software publishing sector is dynamic; ongoing evaluation of alternatives is crucial.
Value Assessment
Rating: questionable
The contract was awarded on a firm fixed-price basis without competition. Without a benchmark or competitive bids, it's difficult to assess if the $35.3 million price represents fair value for the software and services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This lack of competition likely resulted in higher prices than might have been achieved through a competitive process.
Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive bidding, as the agency did not explore alternative solutions or negotiate based on market prices.
Public Impact
Citizens rely on the Social Security Administration for critical services, making software reliability paramount. The use of taxpayer funds for software procurement necessitates transparency and accountability. Dependence on a single vendor for essential software could impact service delivery if issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Fixed-price contract without clear benchmarks
Positive Signals
- Software is essential for agency operations
Sector Analysis
The IT sector, particularly software procurement, is characterized by rapid innovation and evolving market prices. Spending benchmarks for similar software licenses and support services are essential for evaluating the value of this contract.
Small Business Impact
This contract does not appear to have involved small businesses, as it was awarded to a large corporation (Computer Associates, Inc.) on a sole-source basis.
Oversight & Accountability
The lack of competition raises concerns about oversight. A review of the justification for the sole-source award and an analysis of whether alternatives were adequately considered are warranted.
Related Government Programs
- Software Publishers
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
- Vendor lock-in risk
- Limited transparency in pricing
Tags
software-publishers, social-security-administration, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $35.3 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 $35.3 million.
What is the period of performance?
Start: 2009-10-01. End: 2010-09-30.
Was the sole-source justification for this software contract adequately documented and reviewed?
The provided data indicates the contract was 'NOT COMPETED'. Without access to the specific justification documentation (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it's impossible to definitively assess its adequacy. However, the absence of competition itself warrants scrutiny regarding the necessity and thoroughness of the sole-source determination.
What is the potential risk associated with relying on a single vendor for critical software, especially without competition?
Reliance on a single vendor without competition poses several risks: potential for inflated pricing, lack of innovation due to no market pressure, vendor lock-in making future transitions difficult and costly, and potential service disruptions if the vendor faces financial or operational issues. This lack of competition limits the government's leverage.
How effective was this contract in ensuring the Social Security Administration received necessary software at a reasonable price?
The effectiveness in terms of reasonable pricing is questionable due to the sole-source nature of the award. While the agency presumably received the necessary software, the lack of competition suggests that the price may not have been optimized. A competitive process would have provided better assurance of value for money.
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: $35,318,968
Exercised Options: $35,318,968
Current Obligation: $35,318,968
Parent Contract
Parent Award PIID: SS000760009
IDV Type: IDC
Timeline
Start Date: 2009-10-01
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2010-10-05
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