MicroTechnologies LLC awarded $21.8M bridge contract for engineering support services by SSA
Contract Overview
Contract Amount: $21,826,695 ($21.8M)
Contractor: Microtechnologies LLC
Awarding Agency: Social Security Administration
Start Date: 2012-07-01
End Date: 2013-03-30
Contract Duration: 272 days
Daily Burn Rate: $80.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: IGF::OT::IGF REQUESTING AN ENGINEERING SUPPORT SERVICES (ESS) BRIDGE CONTRACT TO PROVIDE SERVICES FOR THE CONTINUATION OF SENIOR LEVEL ENGINEERING SUPPORT. OTHER FUNCTION
Place of Performance
Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21235
State: Maryland Government Spending
Plain-Language Summary
Social Security Administration obligated $21.8 million to MICROTECHNOLOGIES LLC for work described as: IGF::OT::IGF REQUESTING AN ENGINEERING SUPPORT SERVICES (ESS) BRIDGE CONTRACT TO PROVIDE SERVICES FOR THE CONTINUATION OF SENIOR LEVEL ENGINEERING SUPPORT. OTHER FUNCTION Key points: 1. Contract awarded as a bridge to ensure service continuity, indicating potential planning gaps. 2. Sole-source award limits opportunities for competitive pricing and innovation. 3. High value for a short-term bridge contract warrants scrutiny of necessity and scope. 4. Performance period of 9 months suggests a need for a more strategic, long-term solution. 5. Focus on senior-level engineering support highlights critical, specialized needs within the agency.
Value Assessment
Rating: questionable
This $21.8 million bridge contract for a 9-month period appears high for a short-term solution. Without a competitive process, it's difficult to benchmark pricing against market rates or similar contracts. The lack of competition raises concerns about whether the government is receiving the best possible value. The urgency implied by a bridge contract suggests a potential gap in strategic planning or a need for immediate, unbudgeted support, which can often lead to less favorable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can provide the required services. However, for engineering support services, a competitive process would usually be expected to yield better pricing and a wider range of technical solutions. The sole-source nature here suggests a specific, perhaps proprietary, need or a failure to plan for a competitive procurement.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they bypass the price discovery mechanisms inherent in a competitive bidding process.
Public Impact
The Social Security Administration (SSA) benefits from continued access to essential senior-level engineering support. Services ensure the ongoing functionality and maintenance of critical systems. The contract supports specialized engineering expertise required for complex agency operations. Workforce implications are minimal as it likely utilizes existing contractor personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in inflated costs for taxpayers.
- Bridge contract suggests potential issues with procurement planning or execution.
- Sole-source award limits the agency's ability to explore alternative solutions or providers.
Positive Signals
- Ensures continuity of critical engineering support services.
- Addresses an immediate need for specialized expertise.
- Maintains operational stability for essential agency functions.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on engineering support. The IT and professional services market is highly competitive, making the sole-source award notable. Comparable spending benchmarks for similar engineering support services can vary widely based on specialization and duration, but a $21.8 million award for a 9-month period warrants careful justification, especially when not competitively procured.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. As a sole-source award to MicroTechnologies LLC, the direct impact on the broader small business ecosystem is limited, focusing instead on the capabilities of the awarded prime contractor.
Oversight & Accountability
Oversight for this contract would typically fall under the Social Security Administration's contracting and program management offices. The Inspector General's office may also conduct audits or investigations into the necessity and cost-effectiveness of sole-source awards, particularly those of significant value. Transparency is limited due to the non-competitive nature of the award.
Related Government Programs
- Engineering Services
- IT Support Services
- Professional Services
- Bridge Contracts
- Sole Source Procurements
Risk Flags
- Sole-source award lacks competition
- High cost for a short-term bridge contract
- Potential for inadequate price discovery
- Indicates possible procurement planning issues
Tags
other-professional-services, engineering-support, social-security-administration, sole-source, bridge-contract, maryland, labor-hours, large-contract, it-support
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $21.8 million to MICROTECHNOLOGIES LLC. IGF::OT::IGF REQUESTING AN ENGINEERING SUPPORT SERVICES (ESS) BRIDGE CONTRACT TO PROVIDE SERVICES FOR THE CONTINUATION OF SENIOR LEVEL ENGINEERING SUPPORT. OTHER FUNCTION
Who is the contractor on this award?
The obligated recipient is MICROTECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $21.8 million.
What is the period of performance?
Start: 2012-07-01. End: 2013-03-30.
What is the specific nature of the 'senior level engineering support' required by the SSA?
The provided data indicates the contract is for 'Engineering Support Services (ESS) Bridge Contract to provide services for the continuation of senior level engineering support.' While the exact nature isn't detailed, 'senior level engineering support' typically implies highly experienced professionals providing technical guidance, design, analysis, and problem-solving for complex systems. For the SSA, this could relate to IT infrastructure, software development, data management, or specialized operational systems critical to processing benefits and managing citizen data. The 'bridge' aspect suggests it's intended to cover a gap while a more permanent solution or a full competitive procurement is finalized.
Why was this contract awarded on a sole-source basis instead of being competed?
Sole-source awards are generally justified under specific circumstances outlined in federal acquisition regulations, such as when only one vendor possesses the unique capability or proprietary knowledge required, or in cases of urgent and compelling need where competition is impractical. For this $21.8 million, 9-month bridge contract, the justification likely stems from an urgent need to maintain continuity of critical engineering support, possibly due to unforeseen circumstances, the expiration of a previous contract, or delays in the planned competitive procurement process. Without further details, it's difficult to ascertain the precise reason, but it implies a perceived inability to obtain the necessary services through a competitive bid within the required timeframe.
How does the $21.8 million cost for a 9-month bridge contract compare to typical engineering support service contracts?
A $21.8 million cost for a 9-month contract, averaging approximately $2.4 million per month, is substantial for engineering support services, even at a senior level. Typical costs can vary significantly based on the specific technical skills, the number of personnel required, and the complexity of the systems supported. However, bridge contracts, due to their non-competitive nature and often urgent requirements, can sometimes command higher prices than competitively procured contracts. Benchmarking this specific cost would require detailed comparison with similar sole-source or competitively awarded contracts for senior engineering support within government agencies of similar size and scope, considering the specific skill sets involved.
What are the potential risks associated with awarding a sole-source bridge contract of this magnitude?
The primary risks associated with a sole-source bridge contract of this magnitude include potential overpayment due to the lack of price competition, reduced incentive for the contractor to perform efficiently, and the possibility of perpetuating a reliance on a single vendor, hindering future competition. There's also a risk that the bridge contract might delay or complicate the eventual transition to a more strategically planned, competitively awarded contract. Furthermore, if the need was due to poor planning, it indicates underlying management or procurement process weaknesses within the agency that could lead to future issues.
What oversight mechanisms are in place to ensure accountability and value for this contract?
Oversight for this contract would primarily be managed by the Social Security Administration's (SSA) contracting officers and program managers responsible for the engineering support services. They are tasked with monitoring performance, ensuring deliverables are met, and managing the contract's financial aspects. Additionally, the SSA's Office of the Inspector General (OIG) has the authority to audit and investigate federal contracts, including sole-source awards, to ensure propriety, efficiency, and prevent fraud, waste, and abuse. Publicly available contract data provides a degree of transparency, allowing for external scrutiny.
What is MicroTechnologies LLC's track record with the SSA or similar government contracts?
The provided data indicates MicroTechnologies LLC is the contractor for this specific sole-source bridge contract. To assess their track record, one would need to examine their past performance on other federal contracts, particularly with the SSA. This includes reviewing past performance evaluations, any history of contract disputes or terminations, and the types and values of previous contracts awarded to them. A positive track record with the agency or demonstrated expertise in similar engineering support services would lend credibility to this award, while any negative history would raise concerns about the suitability of the sole-source choice.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 8330 BOONE BLVD STE 600, VIENNA, VA, 11
Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $21,826,695
Exercised Options: $21,826,695
Current Obligation: $21,826,695
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $3,066,566
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SS001260077
IDV Type: IDC
Timeline
Start Date: 2012-07-01
Current End Date: 2013-03-30
Potential End Date: 2013-03-30 00:00:00
Last Modified: 2013-01-29
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