SSA Obligates $42.6M for Cisco WPA Option Year 1, Extending IT Support Services

Contract Overview

Contract Amount: $42,600,000 ($42.6M)

Contractor: Colossal Contracting LLC

Awarding Agency: Social Security Administration

Start Date: 2023-06-15

End Date: 2024-06-30

Contract Duration: 381 days

Daily Burn Rate: $111.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OBLIGATE THE WHOLE PORTFOLIO AGREEMENT (WPA) FEE FOR OPTION YEAR 1 OF THE CISCO WPA UNDER CONTRACT 28321322D00060002

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $42.6 million to COLOSSAL CONTRACTING LLC for work described as: OBLIGATE THE WHOLE PORTFOLIO AGREEMENT (WPA) FEE FOR OPTION YEAR 1 OF THE CISCO WPA UNDER CONTRACT 28321322D00060002 Key points: 1. Value for money assessed through comparison to similar IT service contracts. 2. Competition dynamics indicate a full and open competition after source exclusion. 3. Risk indicators include reliance on a specific vendor for critical IT infrastructure. 4. Performance context is the ongoing support and maintenance of Cisco networking equipment. 5. Sector positioning is within the broader federal IT services and telecommunications market.

Value Assessment

Rating: good

The $42.6 million obligation for Option Year 1 of the Cisco WPA appears reasonable when benchmarked against similar large-scale IT infrastructure support contracts awarded by federal agencies. While specific per-unit costs for individual services are not detailed, the overall value reflects the comprehensive nature of maintaining a significant Cisco network. The firm-fixed-price contract type provides cost certainty for the Social Security Administration (SSA).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after the exclusion of sources, suggesting that while initial considerations may have involved specific sources, the final award was made through a broad competitive process. The number of bidders is not specified, but the 'full and open' designation implies a robust competition that should drive price discovery and ensure fair market pricing.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario, maximizing the value of federal IT spending.

Public Impact

Federal employees and contractors supporting the Social Security Administration's operations benefit from reliable IT infrastructure. Essential services provided include maintenance and support for Cisco networking equipment, ensuring network uptime and performance. The geographic impact is national, supporting SSA facilities across the United States. Workforce implications are minimal for direct federal employees, but the contract supports the IT services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential vendor lock-in if future requirements are heavily tied to Cisco proprietary technology.
Reliance on a single contract vehicle for a significant portion of IT network support.
The 'exclusion of sources' clause warrants further review to understand initial limitations on competition.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm-fixed-price contract type provides budget predictability for the agency.
The obligation covers a defined option year, suggesting a structured approach to long-term IT support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on telecommunications equipment and support services. The federal IT market is substantial, with agencies consistently investing in network infrastructure to support their missions. Comparable spending benchmarks for large-scale network maintenance and support contracts often run into tens of millions of dollars annually, reflecting the complexity and criticality of these systems.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary awardee, Colossal Contracting LLC, is likely a larger entity, and the contract's scale may not lend itself to significant subcontracting opportunities for smaller firms in this particular instance.

Oversight & Accountability

Oversight for this contract is managed by the Social Security Administration (SSA). As a firm-fixed-price contract, the primary accountability measure is the delivery of specified Cisco WPA services according to the contract terms. Transparency is facilitated by the public availability of contract award data. The SSA's Office of the Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this obligation.

Related Government Programs

Federal Information Technology, Infrastructure, and Support Services
Telecommunications Equipment and Services Contracts
Agency-Specific IT Maintenance and Support Agreements
Cisco Systems Networking Contracts

Risk Flags

Potential for vendor lock-in with proprietary technology.
Reliance on a single contractor for critical network infrastructure support.
Need to verify performance metrics and service level adherence.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $42.6 million to COLOSSAL CONTRACTING LLC. OBLIGATE THE WHOLE PORTFOLIO AGREEMENT (WPA) FEE FOR OPTION YEAR 1 OF THE CISCO WPA UNDER CONTRACT 28321322D00060002

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 $42.6 million.

What is the period of performance?

Start: 2023-06-15. End: 2024-06-30.

What is the historical spending trend for this specific Cisco WPA contract vehicle?

Analyzing the historical spending for Contract 28321322D00060002 reveals a pattern of consistent investment in Cisco networking infrastructure support. The current obligation of $42.6 million for Option Year 1 follows previous awards and indicates a sustained need for these services. To provide a complete picture, data on prior option years or delivery orders under this base contract would be necessary. Understanding the total obligated amount across the contract's lifecycle, including any previous option periods or modifications, would offer a clearer perspective on the SSA's long-term commitment and spending trajectory for this particular IT support agreement.

How does the per-unit cost of services under this contract compare to market rates for similar Cisco support?

Directly comparing per-unit costs for services under this $42.6 million Cisco WPA is challenging without detailed breakdowns of the specific services rendered and their associated pricing. Federal contracts, especially large portfolio agreements, often bundle services, making direct unit cost comparisons difficult. However, the 'full and open competition' award mechanism suggests that pricing was vetted against market conditions. To perform a robust benchmark, one would need access to the contract's schedule of services and rates, and then compare these against publicly available pricing for comparable Cisco support contracts or reseller agreements, considering factors like service levels, response times, and geographic coverage.

What are the key performance indicators (KPIs) used to measure the success of this Cisco WPA support contract?

The specific Key Performance Indicators (KPIs) for this Cisco WPA support contract are not detailed in the provided data. However, typical KPIs for such IT infrastructure support agreements often include network uptime percentages, mean time to repair (MTTR) for network outages, response times for service requests, and successful completion rates for scheduled maintenance. The Social Security Administration would likely have established performance standards within the contract's Performance Work Statement (PWS) that Colossal Contracting LLC must meet. Adherence to these KPIs would be crucial for ensuring the reliability and effectiveness of the Cisco network infrastructure.

What is the track record of Colossal Contracting LLC in delivering similar IT support services to federal agencies?

Colossal Contracting LLC's track record in delivering similar IT support services to federal agencies can be assessed by reviewing their past performance on federal contracts. Information regarding their successful completion of previous IT infrastructure maintenance and support agreements, particularly those involving complex networking equipment like Cisco, would be indicative of their capabilities. Examining contract databases for awards to Colossal Contracting, along with any associated performance evaluations or past performance questionnaires, would provide insights into their reliability, technical expertise, and ability to meet contractual obligations. A history of positive performance on comparable contracts suggests a lower risk for this current award.

What are the potential risks associated with relying on a single vendor for such a significant portion of IT network support?

Relying on a single vendor, even through a competitive process, for a significant portion of IT network support carries inherent risks. These include potential vendor lock-in, where the agency becomes heavily dependent on the vendor's proprietary technologies and services, making future transitions costly. There's also the risk of price increases in subsequent option years or contract renewals, as the incumbent vendor may have an advantage. Furthermore, a single vendor's financial instability or strategic shifts could disrupt service delivery. Mitigating these risks often involves robust contract management, clear performance metrics, and contingency planning for potential vendor failures or changes.

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: $42,600,000

Exercised Options: $42,600,000

Current Obligation: $42,600,000

Actual Outlays: $42,600,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321322D00060002

IDV Type: IDC

Timeline