Task order for Red Hat engineering services awarded to Alamo City Engineering Services, Inc. for $5.37M

Contract Overview

Contract Amount: $5,367,995 ($5.4M)

Contractor: Alamo City Engineering Services, Inc.

Awarding Agency: Social Security Administration

Start Date: 2022-09-28

End Date: 2026-04-24

Contract Duration: 1,304 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK ORDER FOR RED HAT ENGINEERING SERVICES - REDHAT PREMIER BUSINESS PARTNERS

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78229

State: Texas Government Spending

Plain-Language Summary

Social Security Administration obligated $5.4 million to ALAMO CITY ENGINEERING SERVICES, INC. for work described as: TASK ORDER FOR RED HAT ENGINEERING SERVICES - REDHAT PREMIER BUSINESS PARTNERS Key points: 1. Value for money assessed through benchmarking against similar IT services contracts. 2. Competition dynamics indicate a full and open competition, potentially driving competitive pricing. 3. Risk indicators include contract duration and reliance on a single vendor for specialized services. 4. Performance context is within the Social Security Administration's IT infrastructure support. 5. Sector positioning is in IT services, specifically computer-related services. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: fair

Benchmarking this contract against similar IT engineering services reveals a moderate price point. The firm fixed-price structure provides cost certainty, but the absence of detailed performance metrics makes a definitive value-for-money assessment challenging. The contract's duration of over three years suggests a need for sustained support, but without clear performance benchmarks, it's difficult to ascertain if the pricing reflects optimal value over the long term.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select from a range of qualified offerors. The competitive nature is a positive sign for achieving a fair market price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, maximizing the use of public funds.

Public Impact

The Social Security Administration benefits from specialized Red Hat engineering services to maintain its IT infrastructure. This contract supports the ongoing operation and potential upgrades of critical IT systems. The geographic impact is primarily within the operational areas of the Social Security Administration, likely supporting its national infrastructure. Workforce implications may include the need for specialized Red Hat expertise within the contractor's team.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Red Hat expertise is highly specialized and not easily transferable.
Reliance on a single task order for critical engineering services could pose a risk if the contractor underperforms.
The long duration of the contract may not adapt well to rapidly changing technology landscapes.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract supports essential IT services for a critical government agency.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer-related services. The market for specialized IT engineering support, particularly for enterprise software platforms like Red Hat, is robust. Comparable spending benchmarks in this area often vary based on the level of expertise required, the duration of support, and the specific services rendered. The Social Security Administration's IT infrastructure is extensive, making such specialized support a necessary component of its operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor may engage small businesses for subcontracting opportunities not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Social Security Administration. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver services within the agreed-upon cost. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be internal.

Related Government Programs

Social Security Administration IT Modernization Efforts
Federal Civilian Agency IT Services
Red Hat Enterprise Linux Support Contracts
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in
Long contract duration may not align with rapid tech evolution
Reliance on specialized engineering services

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $5.4 million to ALAMO CITY ENGINEERING SERVICES, INC.. TASK ORDER FOR RED HAT ENGINEERING SERVICES - REDHAT PREMIER BUSINESS PARTNERS

Who is the contractor on this award?

The obligated recipient is ALAMO CITY ENGINEERING SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2022-09-28. End: 2026-04-24.

What is the track record of Alamo City Engineering Services, Inc. with the Social Security Administration and similar federal contracts?

Information regarding Alamo City Engineering Services, Inc.'s specific track record with the Social Security Administration or other federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar IT engineering service contracts. Without this historical data, it is difficult to gauge their reliability and past performance in delivering complex IT solutions.

How does the awarded amount compare to market rates for Red Hat engineering services?

The awarded amount of $5.37 million over approximately 1304 days (around 3.5 years) translates to roughly $1.53 million per year. Benchmarking this against market rates for specialized Red Hat engineering services requires detailed analysis of labor categories, skill levels, and geographic location. Given the firm fixed-price nature, the contractor has assumed the risk of cost overruns. However, without specific service level agreements and detailed scope of work, a precise comparison to market rates is challenging. Generally, specialized IT engineering services command premium rates, and this figure appears within a plausible range for dedicated support.

What are the primary risks associated with this contract for the Social Security Administration?

The primary risks associated with this contract include potential vendor lock-in due to the specialized nature of Red Hat engineering services, which could make switching providers difficult or costly. There's also a risk of underperformance if the contractor lacks the necessary expertise or resources, despite the firm fixed-price structure. The long contract duration (over three years) presents a risk of the technology or requirements evolving beyond the scope of the original agreement, potentially leading to change orders or a need for renegotiation. Ensuring continuous availability and timely resolution of issues is critical.

How effective is the firm fixed-price contract type in ensuring value for money for this specific service?

The firm fixed-price (FFP) contract type is generally effective in controlling costs and providing budget certainty, as the contractor assumes the risk of cost overruns. For well-defined services like Red Hat engineering, FFP can incentivize efficiency. However, its effectiveness in ensuring value for money depends heavily on the clarity and completeness of the statement of work and performance standards. If the scope is ambiguous or performance metrics are weak, the government might not receive the full value, even with a fixed price. Regular performance monitoring is crucial to ensure the contractor is meeting expectations.

What is the historical spending pattern for similar Red Hat engineering services by the Social Security Administration?

The provided data does not include historical spending patterns for similar Red Hat engineering services by the Social Security Administration. To assess this, one would need to analyze past contracts awarded by the SSA for Red Hat support, including their value, duration, and the contractors involved. Understanding historical spending would help determine if this $5.37 million award is consistent with previous investments, potentially indicating stable needs or a significant shift in IT support strategy.

What specific Red Hat technologies or services are covered under this task order?

The provided data identifies the contract as a 'TASK ORDER FOR RED HAT ENGINEERING SERVICES' and mentions 'REDHAT PREMIER BUSINESS PARTNERS'. However, it does not specify the exact Red Hat technologies or services covered. This could range from support for Red Hat Enterprise Linux (RHEL) operating systems, middleware solutions, cloud platforms (like OpenShift), automation tools, or specific engineering and consulting services related to these products. A detailed review of the task order's statement of work would be necessary to ascertain the precise scope.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 28321322Q00000252

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alamo City Engineering Services Inc.

Address: 101 KENDALIA CIR, SPRING BRANCH, TX, 78070

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

Financial Breakdown

Contract Ceiling: $5,367,995

Exercised Options: $5,367,995

Current Obligation: $5,367,995

Actual Outlays: $5,008,532

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0598S

IDV Type: FSS

Timeline