SSA Renews QUEST ELA Software Subscription for $6.4M with Blue Tech Inc. via Full and Open Competition
Contract Overview
Contract Amount: $6,421,310 ($6.4M)
Contractor: Blue Tech Inc.
Awarding Agency: Social Security Administration
Start Date: 2025-01-15
End Date: 2027-01-14
Contract Duration: 729 days
Daily Burn Rate: $8.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: QUEST ELA SOFTWARE SUBSCRIPTION AND MAINTENANCE RENEWAL. ONE, 12-MONTH BASE YEAR, FOUR, 12-MONTH OPTION PERIODS, AND ONE, SIX-MONTH OPTION PERIOD.
Place of Performance
Location: ALISO VIEJO, ORANGE County, CALIFORNIA, 92656
Plain-Language Summary
Social Security Administration obligated $6.4 million to BLUE TECH INC. for work described as: QUEST ELA SOFTWARE SUBSCRIPTION AND MAINTENANCE RENEWAL. ONE, 12-MONTH BASE YEAR, FOUR, 12-MONTH OPTION PERIODS, AND ONE, SIX-MONTH OPTION PERIOD. Key points: 1. The contract is a renewal for essential ELA software, indicating ongoing need and potential vendor lock-in. 2. Blue Tech Inc. is the incumbent, suggesting a strong competitive position. 3. The contract value is substantial, requiring careful monitoring of cost-effectiveness. 4. The 'Other Computer Related Services' NAICS code suggests a broad category, making direct benchmarking challenging.
Value Assessment
Rating: good
The contract value of $6.4M over approximately 2 years appears reasonable for enterprise-level software subscriptions and maintenance. Benchmarking against similar large-scale software agreements would provide a more definitive assessment.
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,' which implies a competitive process was initiated but may have had specific criteria or prior exclusions. This method aims for price discovery but the 'exclusion of sources' aspect warrants further scrutiny.
Taxpayer Impact: The renewal ensures continued access to critical software, maintaining operational efficiency for the SSA. The competitive award process aims to secure fair pricing for taxpayers.
Public Impact
Ensures continued operation of essential software for the Social Security Administration. Supports the agency's ability to manage its IT infrastructure and services. The renewal impacts users and IT personnel relying on the QUEST ELA software.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with software renewals.
- Need to verify the 'exclusion of sources' rationale for competition.
- Ensuring the software remains cost-effective against evolving market solutions.
Positive Signals
- Full and open competition process utilized.
- Incumbent vendor provides continuity of service.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
The IT services sector, particularly software subscriptions and maintenance, is characterized by rapid innovation and diverse pricing models. Benchmarking requires careful consideration of software functionality, user base, and support levels.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were excluded or had an opportunity to compete.
Oversight & Accountability
The contract was awarded by the Social Security Administration, indicating internal oversight mechanisms. The 'delivery order' nature suggests it's part of a larger framework agreement, which may have its own oversight processes.
Related Government Programs
- Other Computer Related Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Potential for limited competition due to 'exclusion of sources'.
- Risk of vendor lock-in for essential software.
- Need for robust benchmarking to ensure cost-effectiveness.
- Lack of explicit small business participation noted.
Tags
other-computer-related-services, social-security-administration, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $6.4 million to BLUE TECH INC.. QUEST ELA SOFTWARE SUBSCRIPTION AND MAINTENANCE RENEWAL. ONE, 12-MONTH BASE YEAR, FOUR, 12-MONTH OPTION PERIODS, AND ONE, SIX-MONTH OPTION PERIOD.
Who is the contractor on this award?
The obligated recipient is BLUE TECH INC..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $6.4 million.
What is the period of performance?
Start: 2025-01-15. End: 2027-01-14.
What specific justification was provided for the 'exclusion of sources' in the full and open competition process, and did it limit competitive options?
The justification for 'exclusion of sources' is critical. If it was based on specific technical requirements or prior investments, it might be valid. However, if it unduly restricted competition, it could lead to higher prices and reduced innovation. A thorough review of the solicitation documents and award justification is necessary to understand the impact on price discovery and taxpayer value.
How does the per-unit cost or total contract value compare to industry benchmarks for similar ELA software subscriptions and maintenance, considering the specific features and user base?
A comprehensive benchmark analysis is needed. This involves comparing the contract's total cost and key metrics (e.g., cost per user, cost per module) against similar government and commercial contracts for comparable ELA software. Factors like the software's age, feature set, vendor support quality, and the number of users are crucial for an accurate comparison and to assess value for money.
What is the long-term strategy for managing ELA software costs and ensuring the agency is not overly reliant on a single vendor, especially given the renewal nature of this contract?
The agency should develop a proactive strategy for managing software assets and vendor relationships. This includes regular market research, exploring alternative solutions, negotiating favorable terms in future renewals, and potentially developing in-house capabilities. Mitigating vendor lock-in and ensuring continuous cost optimization are key to long-term fiscal responsibility.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 28321325Q00000045
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $16,685,241
Exercised Options: $6,421,310
Current Obligation: $6,421,310
Actual Outlays: $3,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD00B
IDV Type: GWAC
Timeline
Start Date: 2025-01-15
Current End Date: 2027-01-14
Potential End Date: 2030-01-14 00:00:00
Last Modified: 2026-03-26
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