MicroTechnologies LLC awarded $23.5M for Engineer Support Services, with a significant portion allocated to custom computer programming

Contract Overview

Contract Amount: $23,513,655 ($23.5M)

Contractor: Microtechnologies LLC

Awarding Agency: Social Security Administration

Start Date: 2009-04-01

End Date: 2010-09-30

Contract Duration: 547 days

Daily Burn Rate: $43.0K/day

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ESS (ENGINEER SUPPORT SERVICES) CY3 (4/1/2009-3/31/2010)

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $23.5 million to MICROTECHNOLOGIES LLC for work described as: ESS (ENGINEER SUPPORT SERVICES) CY3 (4/1/2009-3/31/2010) Key points: 1. The contract value of $23.5 million for a 547-day duration suggests a substantial investment in specialized engineering and IT support. 2. The primary NAICS code (541511) indicates a focus on custom computer programming, aligning with modern IT infrastructure needs. 3. The contract was awarded as 'Other Direct Costs' (ODC), which can sometimes lead to less predictable spending compared to fixed-price contracts. 4. The duration of the contract (547 days) provides a reasonable timeframe for service delivery and performance evaluation. 5. The award to MicroTechnologies LLC, a single entity, warrants a review of their capacity and past performance in similar engagements. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

The total award of $23.5 million over approximately 18 months for engineer support services, heavily weighted towards custom computer programming, appears to be within a reasonable range for specialized IT services. However, without specific benchmarks for 'Engineer Support Services' that include custom programming, a precise value-for-money assessment is challenging. The contract's 'Other Direct Costs' (ODC) nature means actual spending could fluctuate, making direct comparison to fixed-price contracts difficult. Further analysis would require understanding the specific deliverables and labor categories involved to benchmark against similar government or commercial IT service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. Understanding whether it was competed under full and open competition, a limited competition, or awarded sole-source is crucial for assessing price discovery and potential value. If it was a limited or sole-source award, it raises questions about whether the government secured the best possible pricing and terms. A competitive process typically drives down costs and encourages innovation from multiple vendors.

Taxpayer Impact: The level of competition directly impacts taxpayer value. A highly competitive award generally leads to lower prices, while a sole-source award may result in higher costs due to the lack of market pressure.

Public Impact

The primary beneficiaries are likely the Social Security Administration (SSA) itself, receiving critical engineering and IT support services. The services delivered include custom computer programming, essential for maintaining and upgrading the SSA's complex IT systems. The contract's performance is geographically centered in Maryland (ST: MD, SN: MARYLAND), indicating a focus on a specific regional operational base. The workforce implications involve the employment of individuals with specialized skills in engineering and computer programming, potentially including MicroTechnologies LLC employees and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition details prevents assessment of optimal pricing.
The 'Other Direct Costs' (ODC) contract type can lead to less predictable spending.
The specific nature of 'Engineer Support Services' combined with custom programming requires detailed understanding for true value assessment.

Positive Signals

Award to a single entity (MicroTechnologies LLC) can streamline management if the contractor is highly capable.
The contract duration allows for sustained support and potential for relationship building with the agency.
The focus on custom computer programming addresses a critical need for IT modernization within the SSA.

Sector Analysis

This contract falls within the Information Technology (IT) and Professional Services sector, specifically focusing on custom computer programming and engineering support. The market for such services is highly competitive, with numerous firms offering specialized IT solutions to government agencies. The total contract value of $23.5 million is moderate within the context of large federal IT procurements. Comparable spending benchmarks would typically involve analyzing other contracts for similar custom programming and engineering support services awarded by agencies like the SSA or other large civilian departments.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (SS: false, SB: false). This means that the procurement was likely open to all responsible sources, including large businesses. While this contract may not directly benefit small businesses through a set-aside, MicroTechnologies LLC could potentially engage small businesses as subcontractors. However, without specific subcontracting plans or reporting, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Social Security Administration's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The contract's 'Other Direct Costs' (ODC) nature may necessitate closer scrutiny of expenditures to ensure they are reasonable and necessary. Transparency would depend on the agency's public reporting practices regarding contract performance and spending.

Related Government Programs

Custom Computer Programming Services
IT Support Services
Engineering Services
Federal IT Contracts
Social Security Administration IT Spending

Risk Flags

Potential for cost overruns due to ODC contract type.
Lack of transparency regarding competition level.
Need for detailed performance monitoring given specialized services.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $23.5 million to MICROTECHNOLOGIES LLC. ESS (ENGINEER SUPPORT SERVICES) CY3 (4/1/2009-3/31/2010)

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 $23.5 million.

What is the period of performance?

Start: 2009-04-01. End: 2010-09-30.

What is the track record of MicroTechnologies LLC in performing similar government contracts, particularly those involving custom computer programming and engineering support?

Assessing MicroTechnologies LLC's track record requires a deep dive into their past performance on federal contracts. This would involve reviewing contract databases (like FPDS or SAM.gov) for awards to the company, examining past performance evaluations, and looking for any documented issues such as contract disputes, performance failures, or termination for default. Specifically, contracts with the Social Security Administration or other agencies requiring similar NAICS codes (e.g., 541511) would be most relevant. A positive track record would include successful completion of similar scope work, meeting performance metrics, and maintaining good relationships with contracting officers. Conversely, a history of performance issues would raise concerns about the current contract's successful execution and value for money.

How does the awarded amount of $23.5 million compare to similar 'Engineer Support Services' contracts with custom programming components awarded by the SSA or other agencies?

To benchmark the $23.5 million award, one would need to identify comparable contracts. This involves searching federal procurement databases for contracts with similar NAICS codes (primarily 541511, Custom Computer Programming Services, and potentially others related to engineering support), similar contract types (e.g., Labor Hours, ODC), and similar agencies (large civilian agencies like SSA, HHS, etc.). The duration of the contract (547 days) is also a key factor for normalization. Analyzing the average award value, per-unit costs (if available), and the scope of work for these comparable contracts would provide context. If this contract's value appears significantly higher or lower than benchmarks, it warrants further investigation into the specific requirements, market conditions, and competition level.

What are the specific risks associated with the 'Other Direct Costs' (ODC) contract type for this 'Engineer Support Services' engagement?

The 'Other Direct Costs' (ODC) contract type, as indicated by 'pt': 'LABOR HOURS', presents specific risks for federal spending. ODC contracts typically reimburse the contractor for direct costs incurred, plus a fee or profit. For this 'Engineer Support Services' contract, the primary risk is that actual spending could exceed the initial award amount if the scope of work expands or if direct costs (like labor hours) are higher than anticipated. This can lead to budget overruns and less predictable financial planning for the agency. Unlike fixed-price contracts, ODC offers less certainty on the final cost. Effective oversight is crucial to manage these risks, ensuring that all claimed costs are reasonable, allocable, and allowable according to the contract terms and federal regulations.

What is the expected impact of this contract on the Social Security Administration's IT modernization efforts and operational efficiency?

This contract, focused on 'Engineer Support Services' and 'Custom Computer Programming Services' (NAICS 541511), is expected to directly support the Social Security Administration's (SSA) IT modernization and operational efficiency. Custom programming is vital for developing, updating, and integrating software systems that underpin the SSA's core functions, such as processing benefits, managing data, and providing services to the public. By engaging MicroTechnologies LLC, the SSA aims to enhance its technological capabilities, potentially leading to improved system performance, increased data security, better user experiences for beneficiaries and staff, and the ability to adapt to evolving technological landscapes and policy changes. The success of this contract will be a key determinant of the SSA's progress in these critical areas.

How has the Social Security Administration's spending on 'Engineer Support Services' and custom programming evolved over the past five years, and how does this contract fit into that trend?

Analyzing the SSA's historical spending on 'Engineer Support Services' and custom programming requires accessing historical procurement data. This would involve querying databases like FPDS for contracts awarded by the SSA under relevant NAICS codes (e.g., 541511) and service descriptions over the last five fiscal years. Trends to look for include the total dollar amount spent annually, the number of contracts awarded, the types of contractors (large vs. small business), and the dominant contract types. This $23.5 million award for CY3 (covering parts of 2009-2010) is from an earlier period. To understand its place in current trends, one would need to compare it to more recent SSA spending patterns. If recent spending has increased, it might indicate a growing reliance on external IT support; if it has decreased, it could suggest a shift towards in-house capabilities or different procurement strategies.

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

Contractor Details

Address: 8330 BOONE BLVD STE 310, VIENNA, VA, 11

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $23,513,655

Exercised Options: $23,513,655

Current Obligation: $23,513,655

Parent Contract

Parent Award PIID: SS000760056

IDV Type: IDC

Timeline