SSA obligates $42.6M for Cisco WPA Option Year 2, extending IT support services

Contract Overview

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

Contractor: Colossal Contracting LLC

Awarding Agency: Social Security Administration

Start Date: 2024-06-28

End Date: 2025-06-30

Contract Duration: 367 days

Daily Burn Rate: $116.1K/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 2 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 2 OF THE CISCO WPA UNDER CONTRACT 28321322D00060002. Key points: 1. The contract value represents a significant investment in maintaining critical IT infrastructure for the Social Security Administration. 2. While specific performance metrics are not detailed, the renewal suggests satisfactory service delivery in the previous period. 3. The fixed-price contract type aims to control costs, but the overall value warrants scrutiny against market benchmarks. 4. This spending is part of a broader IT modernization effort within federal agencies. 5. The duration of the option year aligns with typical IT service contract cycles. 6. The absence of small business set-aside indicates a focus on specialized IT capabilities.

Value Assessment

Rating: good

The $42.6 million obligation for one year of Cisco WPA services appears to be within a reasonable range for enterprise-level IT support agreements of this nature. Benchmarking against similar large-scale IT service contracts for federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns, but the total cost should be evaluated against the scope of services and the specific technologies covered by the Cisco WPA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process occurred, certain sources may have been excluded. This suggests a potentially limited pool of bidders compared to a truly full and open competition. The specific reasons for excluding sources would be crucial to understanding the extent of competition and its potential impact on pricing and innovation.

Taxpayer Impact: A limited competition may result in higher prices for taxpayers if the excluded sources could have offered more competitive bids. It also raises questions about the fairness and transparency of the procurement process.

Public Impact

Beneficiaries include Social Security Administration employees who rely on stable IT systems for daily operations. The services delivered are essential for maintaining the functionality of the Cisco Wide Area Network (WAN) infrastructure. The geographic impact is likely nationwide, supporting SSA offices and remote workers across the United States. Workforce implications include ensuring IT support staff are available and skilled to manage the Cisco environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to ensure fair market access and optimal pricing.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's effectiveness beyond contract renewal.
The specific technologies and services covered under the Cisco WPA are not fully detailed, limiting a comprehensive value assessment.

Positive Signals

The renewal of the contract for an option year suggests a level of satisfaction with the contractor's performance.
The firm fixed-price contract type provides cost certainty for the government.
The obligation is for essential IT infrastructure support, crucial for the agency's mission.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on network infrastructure and support services. The market for enterprise-level IT support, particularly for major technology providers like Cisco, is substantial within the federal government. Agencies frequently enter into large agreements for network hardware, software, and associated maintenance and support to ensure operational continuity. Benchmarking this spending against other federal agencies' IT service contracts, especially those involving similar network equipment and support scopes, would provide valuable context.

Small Business Impact

The contract data indicates that this was not a small business set-aside, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary contractor, Colossal Contracting LLC, is likely a large business. The absence of specific small business participation goals or reporting in this data point means its direct impact on the small business ecosystem is unclear, though large IT contracts often have indirect subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Social Security Administration's contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency regarding the specific services rendered and performance against any established Service Level Agreements (SLAs) would be key to assessing accountability. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Federal IT Services Contracts
Network Infrastructure Support
Cisco Enterprise Agreements
Social Security Administration IT Modernization

Risk Flags

Limited Competition Concerns
Lack of Detailed Performance Metrics
Unclear Value-for-Money Without Benchmarking

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 2 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: 2024-06-28. End: 2025-06-30.

What is the historical spending trend for this Cisco WPA with the Social Security Administration?

To determine the historical spending trend, one would need to analyze all previous contract actions, including base periods and prior option years, associated with the primary contract (28321322D00060002) and this specific WPA. This would involve examining the original award amount, any modifications, and the actual amounts obligated in previous fiscal years. A trend analysis would reveal if spending has been consistent, increasing, or decreasing over time. For instance, if previous years saw significantly lower obligations, the current $42.6 million might indicate an expansion of services or a price increase. Conversely, consistent high spending suggests a stable, ongoing need for these services.

How does the per-unit cost or overall value of this contract compare to similar Cisco WPA agreements at other federal agencies?

A robust comparison requires access to data on similar Cisco WPA agreements across other federal agencies, focusing on contracts with comparable scope, duration, and number of users or endpoints. Key metrics to compare would include the total contract value, the annual cost, and potentially per-unit costs if specific services (e.g., per user license, per device supported) are clearly defined and itemized. Without this comparative data, assessing whether the $42.6 million represents excellent, fair, or questionable value is challenging. Agencies often leverage purchasing power through large, consolidated agreements, but variations in negotiated terms, support levels, and underlying technology versions can significantly impact pricing.

What specific IT services and support are included under this Cisco WPA, and are they aligned with SSA's current IT needs?

The provided data snippet is limited and does not detail the specific services and support covered by the Cisco WPA. A comprehensive analysis would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This document outlines deliverables, service level agreements (SLAs), and the scope of support, which could include hardware maintenance, software updates, technical assistance, network management, and potentially consulting services related to Cisco technologies. Assessing alignment with SSA's current IT needs involves understanding the agency's strategic IT goals, existing infrastructure, and any identified gaps or modernization plans. Renewal suggests alignment, but a deeper dive into the SOW is necessary for confirmation.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance under this agreement?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate Colossal Contracting LLC's performance. Typically, IT service contracts of this magnitude include detailed SLAs within the Performance Work Statement (PWS). These SLAs might cover aspects like network uptime, response times for technical support, resolution times for issues, availability of subject matter experts, and successful implementation of updates or patches. Performance is usually monitored through regular reporting by the contractor and oversight by the government's Contracting Officer's Representative (COR). Without access to the PWS and performance reports, a thorough assessment of contractor effectiveness is not possible.

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

Evaluating the track record of Colossal Contracting LLC requires accessing historical contract data, past performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and any publicly available information on their previous projects. Key aspects to investigate include their experience with Cisco-specific technologies, the size and complexity of past contracts, client satisfaction ratings, and any history of performance issues, disputes, or contract terminations. A strong track record with similar federal IT support contracts would increase confidence in their ability to meet the SSA's requirements effectively and efficiently. Conversely, a history of subpar performance would raise significant concerns.

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