Social Security Administration awards $121.8M for IT systems operations, with 4 bidders competing

Contract Overview

Contract Amount: $121,809,499 ($121.8M)

Contractor: Koniag Technology Solutions Inc

Awarding Agency: Social Security Administration

Start Date: 2014-02-19

End Date: 2020-08-18

Contract Duration: 2,372 days

Daily Burn Rate: $51.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS TASK ORDER AWARD (12-MON. BASE; 5 12-MONTH OPTION PERIODS) AGAINST KONIAG TECHNOLOGY SERVICES GSA FSS FOR SOCIAL SECURITY SYSTEMS OPERATIONS SUPPORT SERVICES (SOSS)

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $121.8 million to KONIAG TECHNOLOGY SOLUTIONS INC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS TASK ORDER AWARD (12-MON. BASE; 5 12-MONTH OPTION PERIODS) AGAINST KONIAG TECHNOLOGY SERVICES GSA FSS FOR SOCIAL SECURITY SYSTEMS OPERATIONS SUPPORT SERVICES (SOSS) Key points: 1. Contract awarded via full and open competition, indicating a competitive market. 2. Firm-fixed-price contract type suggests predictable costs for the government. 3. Contract duration of approximately 6.5 years provides long-term stability for services. 4. The award is a delivery order against a GSA Federal Supply Schedule. 5. No small business set-aside was utilized for this procurement. 6. The contract supports critical IT functions for the Social Security Administration.

Value Assessment

Rating: good

The contract's value of $121.8 million over roughly 6.5 years for IT systems operations support appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure helps control costs, though detailed cost breakdowns are not provided in the summary data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bidders participating. This level of competition is generally positive, suggesting that multiple vendors were interested and capable of providing the required services. The presence of four bidders likely contributed to price discovery and potentially drove down costs compared to a sole-source or limited competition scenario.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it fosters a competitive environment, leading to potentially better pricing and service quality.

Public Impact

Beneficiaries include Social Security Administration staff and the public who rely on its IT systems. Services delivered include operations support for critical Social Security systems. Geographic impact is primarily within the operational scope of the Social Security Administration, likely nationwide. Workforce implications include the potential for employment by the contractor, KONIAG TECHNOLOGY SOLUTIONS INC, and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical systems operations could pose a risk if performance degrades.
The long duration may reduce flexibility to adopt newer technologies if not managed proactively.

Positive Signals

Awarded through a competitive process, indicating a vetted and capable contractor.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration ensures continuity of essential IT operations support.
Contract is an order against an existing GSA FSS, streamlining the procurement process.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and IT systems operations support. The market for such services is large and highly competitive, with numerous federal and commercial providers. This contract represents a significant investment by the Social Security Administration in maintaining its critical IT infrastructure, aligning with broader government trends towards modernizing and securing federal IT systems.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements specifically for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this particular award. However, the prime contractor may engage small businesses as subcontractors, which would need to be tracked separately.

Oversight & Accountability

Oversight is likely managed by the Social Security Administration's contracting officers and program managers. As a delivery order against a GSA FSS, it benefits from GSA's contract management framework. Transparency is facilitated by public contract award data, though detailed performance metrics and IG oversight specifics are not provided here.

Related Government Programs

Social Security Administration IT Modernization Efforts
GSA Federal Supply Schedule IT Contracts
Custom Computer Programming Services Contracts
Federal IT Operations and Maintenance Support

Risk Flags

Critical Systems Dependency
Long-Term Contract Duration
Vendor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $121.8 million to KONIAG TECHNOLOGY SOLUTIONS INC. IGF::CT::IGF CRITICAL FUNCTIONS TASK ORDER AWARD (12-MON. BASE; 5 12-MONTH OPTION PERIODS) AGAINST KONIAG TECHNOLOGY SERVICES GSA FSS FOR SOCIAL SECURITY SYSTEMS OPERATIONS SUPPORT SERVICES (SOSS)

Who is the contractor on this award?

The obligated recipient is KONIAG TECHNOLOGY SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $121.8 million.

What is the period of performance?

Start: 2014-02-19. End: 2020-08-18.

What is the track record of KONIAG TECHNOLOGY SOLUTIONS INC in performing similar IT operations support contracts for federal agencies?

KONIAG TECHNOLOGY SOLUTIONS INC has a history of performing IT and professional services contracts for various federal agencies. While specific details on past performance for similar large-scale Social Security Systems Operations Support Services (SOSS) contracts are not detailed in this summary, their ability to win this competitive award suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, past performance reviews, and any reported issues on previous government contracts would provide a more comprehensive understanding of their reliability and capability in this domain.

How does the awarded price compare to market rates for similar IT systems operations support services?

The total award value of $121.8 million over approximately 6.5 years translates to an average annual value of roughly $18.7 million. Benchmarking this against similar large-scale IT operations and maintenance contracts for federal agencies, particularly those involving critical systems, suggests that this pricing is competitive. The firm-fixed-price nature of the contract provides cost certainty. However, a precise comparison to market rates would require detailed analysis of the specific services, Service Level Agreements (SLAs), and the complexity of the Social Security systems involved, which are not fully detailed in the provided data.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance degradation by the contractor, over-reliance on a single vendor for critical systems, and the possibility of technological obsolescence over the contract's long duration. Mitigation strategies likely involve robust performance monitoring by the Social Security Administration, clearly defined Service Level Agreements (SLAs), and contract clauses that allow for adjustments or modifications. The competitive nature of the initial award and the firm-fixed-price structure also serve as risk mitigators by incentivizing contractor performance and cost control.

How effective has the Social Security Administration been in managing similar large IT support contracts in the past?

The effectiveness of the Social Security Administration (SSA) in managing large IT support contracts can be assessed through various indicators, including system uptime, successful implementation of upgrades, and adherence to budget. While this specific contract award data doesn't provide historical management effectiveness metrics for SSA, the agency generally relies on established procurement processes and contract management best practices. Past performance reviews of SSA's IT contract management, including any reports from the Office of the Inspector General (OIG), would offer more insight into their track record.

What is the historical spending pattern for Social Security Systems Operations Support Services (SOSS) by the SSA?

This contract represents a significant, multi-year investment in SOSS. Historical spending patterns for SOSS by the SSA would likely show a consistent need for such services, given the critical nature of Social Security's IT infrastructure. Annual spending on IT operations and maintenance can fluctuate based on system upgrades, security requirements, and contract renewals. Analyzing prior contracts for SOSS, including their values, durations, and awarded contractors, would reveal trends in SSA's IT support expenditures and highlight the importance of this service area.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SSA-RFQ-13-0398

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Koniag, Inc.

Address: 3800 CENTERPOINT DR 502, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $121,809,499

Exercised Options: $121,809,499

Current Obligation: $121,809,499

Actual Outlays: $20,847,811

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0461Y

IDV Type: FSS

Timeline