Social Security Administration awards $33.2M for Cisco WPA, impacting telephone apparatus manufacturing

Contract Overview

Contract Amount: $33,190,140 ($33.2M)

Contractor: Colossal Contracting LLC

Awarding Agency: Social Security Administration

Start Date: 2022-06-13

End Date: 2023-06-30

Contract Duration: 382 days

Daily Burn Rate: $86.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORDER FOR CISCO WPA BASE YEAR

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $33.2 million to COLOSSAL CONTRACTING LLC for work described as: ORDER FOR CISCO WPA BASE YEAR Key points: 1. Contract value appears reasonable for a base year of network equipment and support. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Risk indicators are low given the fixed-price nature and established vendor. 4. Performance context is within the scope of IT infrastructure for a large federal agency. 5. Sector positioning is within the telecommunications equipment manufacturing industry.

Value Assessment

Rating: good

The contract value of $33.2 million for a base year of Cisco WPA (likely Wide Area Application Engine or similar network hardware/software) seems within a reasonable range for enterprise-level IT infrastructure procurement. Benchmarking against similar large-scale Cisco deployments within federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the specific unit pricing for the Cisco equipment and services would be key to a detailed value analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on predefined criteria or justifications. The number of bidders is not specified, but the 'full and open' designation suggests an effort to solicit a wide range of offers. The exclusion of sources, if not adequately justified, could potentially limit price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value, provided the exclusion of sources was justified and did not unduly restrict competition.

Public Impact

Federal employees within the Social Security Administration will benefit from enhanced network capabilities. Services delivered include the provision of Cisco WPA hardware and potentially associated software and support. Geographic impact is likely nationwide, supporting the SSA's distributed operations. Workforce implications are minimal, primarily affecting IT support staff managing the network infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Cisco products, impacting future flexibility and cost.
Reliance on a single vendor for critical network infrastructure could pose supply chain risks.

Positive Signals

Procurement through full and open competition suggests an effort to obtain competitive pricing.
Firm-fixed-price contract provides cost certainty for the government.
Cisco is a well-established provider of networking equipment, implying a degree of reliability.

Sector Analysis

This contract falls within the Information Technology sector, specifically related to network infrastructure and telecommunications equipment. The market for enterprise networking solutions is dominated by a few major players like Cisco, Juniper, and Arista. Federal spending in this area is substantial, driven by the need for secure, reliable, and high-performance networks to support agency operations. Comparable spending benchmarks would involve looking at other large federal IT procurements for similar network hardware and software.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. The nature of the procurement, involving potentially large-scale Cisco equipment, often favors larger, established vendors. Subcontracting opportunities for small businesses may exist if Colossal Contracting LLC utilizes them for specific services or components, but this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would typically reside with the Social Security Administration's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Information Technology, Infrastructure, and Cybersecurity
Network Equipment Procurement
Cisco Systems Contracts
Social Security Administration IT Modernization

Risk Flags

Potential for limited competition due to source exclusion.
Dependence on a single technology vendor (Cisco).

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $33.2 million to COLOSSAL CONTRACTING LLC. ORDER FOR CISCO WPA BASE YEAR

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.2 million.

What is the period of performance?

Start: 2022-06-13. End: 2023-06-30.

What is the specific nature of the 'Cisco WPA' being procured, and what are its primary functions for the SSA?

The abbreviation 'WPA' in the context of Cisco typically refers to Wide Area Application Engine or potentially a specific product line within their network optimization or security portfolio. These devices are often used to improve application performance over wide area networks, enhance security, or manage network traffic more efficiently. For the Social Security Administration, such a system would likely be crucial for ensuring reliable and fast access to critical systems and data for its employees across various locations, supporting its vast operational needs and citizen services.

How does the $33.2 million award compare to historical spending on similar network infrastructure by the SSA or other large federal agencies?

Without specific details on the exact Cisco WPA components and the duration of the base year services, a direct comparison is challenging. However, $33.2 million for a base year of enterprise network equipment and support is a significant but not uncommon figure for a large federal agency like the SSA. Agencies often spend tens to hundreds of millions on IT infrastructure upgrades and maintenance annually. Benchmarking against similar procurements for network hardware (e.g., routers, switches, firewalls) or application delivery controllers from major vendors like Cisco, Juniper, or F5 within the last 2-3 years would provide a more accurate context for value assessment.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure effective delivery?

The provided data does not detail the specific KPIs or SLAs for this contract. However, for a firm-fixed-price contract involving network equipment and potential support services, typical SLAs would focus on aspects like equipment uptime, response times for technical support, hardware replacement turnaround times, and potentially network performance metrics (e.g., latency, throughput) if optimization services are included. The contracting officer's representative (COR) at the SSA would be responsible for monitoring adherence to these terms and ensuring the delivered solution meets the agency's operational requirements.

What is Colossal Contracting LLC's track record with large federal IT infrastructure contracts, particularly those involving Cisco products?

Information regarding Colossal Contracting LLC's specific track record with large federal IT infrastructure contracts, especially those involving Cisco products, is not detailed in the provided data. A thorough assessment would require reviewing their past performance on similar contracts, including client satisfaction, adherence to schedule and budget, and technical execution. Federal procurement databases (like FPDS-NG) would be the primary source for identifying and evaluating their history with the government.

What are the potential risks associated with relying on a single vendor's technology (Cisco) for such a critical network function?

Relying on a single vendor like Cisco for critical network functions presents several potential risks. Firstly, there's the risk of vendor lock-in, where switching to a different vendor in the future becomes technically difficult and prohibitively expensive. Secondly, pricing power can shift towards the vendor over time, potentially leading to higher costs for renewals or upgrades. Thirdly, dependence on Cisco's product roadmap and innovation cycle means the SSA's network capabilities are tied to Cisco's strategic decisions. Finally, supply chain disruptions affecting Cisco could have a disproportionate impact on the SSA's network availability.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $203,590,140

Exercised Options: $33,190,140

Current Obligation: $33,190,140

Actual Outlays: $33,190,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321322D00060002

IDV Type: IDC

Timeline