SSA Awards $75.4M Compuware ELA Maintenance Contract to BMC Software
Contract Overview
Contract Amount: $75,371,625 ($75.4M)
Contractor: BMC Software, Inc.
Awarding Agency: Social Security Administration
Start Date: 2020-09-25
End Date: 2026-09-29
Contract Duration: 2,195 days
Daily Burn Rate: $34.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MAINTENANCE FOR COMPUWARE ELA (BASE + 10 OPTIONAL YRS.)
Place of Performance
Location: DETROIT, WAYNE County, MICHIGAN, 48226
State: Michigan Government Spending
Plain-Language Summary
Social Security Administration obligated $75.4 million to BMC SOFTWARE, INC. for work described as: MAINTENANCE FOR COMPUWARE ELA (BASE + 10 OPTIONAL YRS.) Key points: 1. The contract is for maintenance of Compuware ELA, with a base period and 10 optional years. 2. BMC Software, Inc. is the contractor, and the Social Security Administration is the agency. 3. The contract was not competed, raising questions about price discovery and potential value. 4. The Software Publishers sector sees significant spending on enterprise software maintenance.
Value Assessment
Rating: questionable
The total award value is $75.4 million over the base and option periods. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar enterprise software maintenance agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may have limited price discovery and potentially led to a higher cost for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for this software maintenance.
Public Impact
Citizens rely on the Social Security Administration for critical services, which depend on robust IT infrastructure. The maintenance of enterprise software like Compuware is essential for the agency's operational continuity. Lack of competition in IT contracts can lead to increased costs, impacting the efficient use of public funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Contract ensures continued maintenance of essential software
- Firm fixed price contract provides cost certainty
Sector Analysis
The IT sector, particularly software maintenance, represents a significant portion of federal spending. Benchmarks for similar enterprise software maintenance contracts are crucial for evaluating cost-effectiveness, especially in sole-source situations.
Small Business Impact
This contract was awarded to BMC Software, Inc. and does not appear to involve small business participation. Further analysis would be needed to determine if subcontracting opportunities were explored.
Oversight & Accountability
The Social Security Administration is responsible for overseeing this contract. The lack of competition warrants close scrutiny to ensure the government is receiving fair value and that the contract terms are being met.
Related Government Programs
- Software Publishers
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing due to lack of alternatives.
- Contract duration extends significantly, increasing long-term cost exposure.
- No clear indication of small business participation.
Tags
software-publishers, social-security-administration, mi, purchase-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $75.4 million to BMC SOFTWARE, INC.. MAINTENANCE FOR COMPUWARE ELA (BASE + 10 OPTIONAL YRS.)
Who is the contractor on this award?
The obligated recipient is BMC SOFTWARE, INC..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $75.4 million.
What is the period of performance?
Start: 2020-09-25. End: 2026-09-29.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary software, or a lack of available alternatives. Without this justification, it's difficult to ascertain why competition was bypassed. Understanding the specific reasons is key to assessing if the government truly had no other viable options or if a more competitive approach could have been pursued.
How does the per-unit cost of this maintenance compare to industry benchmarks for similar Compuware ELA maintenance?
Determining the exact per-unit cost is challenging without a breakdown of the maintenance services and their associated pricing. However, given the sole-source nature, it is imperative to benchmark this against similar enterprise software maintenance agreements in the market. A significant deviation upwards would indicate a potential overpayment and a risk to taxpayer value.
What is the long-term strategy for managing Compuware ELA maintenance to ensure future cost-effectiveness?
The agency should develop a long-term strategy that includes exploring competitive procurement options for future maintenance renewals or considering alternative software solutions. Proactive planning, market research, and potentially breaking down the ELA into smaller, more competitive components could mitigate the risks associated with sole-source awards and ensure better value over time.
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
Solicitation ID: 28321320Q00000411
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2103 CITYWEST BLVD, HOUSTON, TX, 77042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $149,017,575
Exercised Options: $75,371,625
Current Obligation: $75,371,625
Actual Outlays: $75,371,624
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2020-09-25
Current End Date: 2026-09-29
Potential End Date: 2031-09-29 00:00:00
Last Modified: 2025-09-22
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