SSA Spends $28M on Microsoft Software Assurance and Support from ASAP Software Express
Contract Overview
Contract Amount: $28,034,699 ($28.0M)
Contractor: Asap Software Express, Inc.
Awarding Agency: Social Security Administration
Start Date: 2009-10-23
End Date: 2013-10-22
Contract Duration: 1,460 days
Daily Burn Rate: $19.2K/day
Competition Type: NOT COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RENEW SOFTWARE ASSURANCE AND PREMIER SUPPORT ON MICROSOFT PRODUCTS
Place of Performance
Location: BUFFALO GROVE, LAKE County, ILLINOIS, 60089
State: Illinois Government Spending
Plain-Language Summary
Social Security Administration obligated $28.0 million to ASAP SOFTWARE EXPRESS, INC. for work described as: RENEW SOFTWARE ASSURANCE AND PREMIER SUPPORT ON MICROSOFT PRODUCTS Key points: 1. Significant spending on essential software maintenance and support. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract duration (4 years) locks in current pricing. 4. IT sector spending, common for government operations.
Value Assessment
Rating: questionable
The contract value of $28M over 4 years for software assurance and premier support is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed under SAP, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to lower prices.
Taxpayer Impact: Taxpayers may be overpaying due to the lack of competition on this significant software support contract.
Public Impact
Ensures continued access to critical software updates and technical support for SSA systems. Potential for higher costs due to sole-source nature impacts agency budget. Reliance on a single vendor for essential software services poses a risk if the vendor's performance declines or pricing increases significantly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures continuity of operations
- Firm fixed price contract
Sector Analysis
This contract falls within the Information Technology sector, specifically software licensing and support. Government spending on IT maintenance and assurance is a significant portion of agency budgets, often involving large sums for enterprise-wide solutions.
Small Business Impact
The awardee, ASAP SOFTWARE EXPRESS, INC., is not identified as a small business. This contract does not appear to have provided opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further review of the justification for not competing this requirement under SAP would be beneficial to ensure proper use of funds.
Related Government Programs
- Computer and Software Stores
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long-term commitment without competitive re-evaluation.
- No small business participation identified.
Tags
computer-and-software-stores, social-security-administration, il, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $28.0 million to ASAP SOFTWARE EXPRESS, INC.. RENEW SOFTWARE ASSURANCE AND PREMIER SUPPORT ON MICROSOFT PRODUCTS
Who is the contractor on this award?
The obligated recipient is ASAP SOFTWARE EXPRESS, INC..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $28.0 million.
What is the period of performance?
Start: 2009-10-23. End: 2013-10-22.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. Without further documentation, the specific justification for this sole-source award is unknown. Typically, justifications include reasons like urgent need, lack of available sources, or specific technical requirements that only one vendor can meet. This lack of competition raises concerns about potential overpayment.
How does the per-unit cost of this software assurance compare to industry benchmarks for similar Microsoft products?
A direct per-unit cost comparison is not feasible with the provided data. The contract is for 'RENEW SOFTWARE ASSURANCE AND PREMIER SUPPORT' for unspecified Microsoft products. To benchmark, one would need to know the exact products, quantities, and support levels, and then compare against publicly available pricing or similar government contracts awarded competitively.
What is the potential financial risk to the government if Microsoft significantly increases its pricing for these products in the future?
The primary financial risk lies in the firm fixed price nature of the contract, which protects the government from price increases during the contract term (ending 2013). However, upon renewal, if the contract is re-awarded sole-source, the government would be subject to any future price hikes by Microsoft, potentially leading to higher costs if not competitively bid.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: 850 ASBURY DR, BUFFALO GROVE, IL, 90
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: SS000940002
IDV Type: BPA
Timeline
Start Date: 2009-10-23
Current End Date: 2013-10-22
Last Modified: 2011-02-09
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