SSA's $16.3M Fujitsu/Executone/IVX/IWATSU System Maintenance Contract Awarded to Government Telecommunications, Inc
Contract Overview
Contract Amount: $16,303,896 ($16.3M)
Contractor: Government Telecommunications, Inc.
Awarding Agency: Social Security Administration
Start Date: 2003-10-31
End Date: 2008-10-31
Contract Duration: 1,827 days
Daily Burn Rate: $8.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Telecommunications
Official Description: FUJITSU/EXECUTONE/IVX/IWATSU SYS-MAINTENANCE
Place of Performance
Location: RALEIGH, WAKE County, NORTH CAROLINA, 27609
Plain-Language Summary
Social Security Administration obligated $16.3 million to GOVERNMENT TELECOMMUNICATIONS, INC. for work described as: FUJITSU/EXECUTONE/IVX/IWATSU SYS-MAINTENANCE Key points: 1. The contract, valued at $16.3 million, covers system maintenance for specific telecommunications equipment. 2. Competition was competitive, suggesting potential for price discovery, though the specific method is not detailed. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The sector is Wired Telecommunications Carriers, a mature industry with established service providers.
Value Assessment
Rating: fair
The contract's value of $16.3 million over five years appears reasonable for system maintenance of specialized telecommunications equipment. Benchmarking against similar maintenance contracts for complex systems would provide a clearer assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was awarded as a competitive delivery order. The competitive nature suggests that multiple vendors likely vied for the contract, which typically leads to better pricing and terms for the government.
Taxpayer Impact: The competitive award process is expected to have yielded a fair market price, maximizing taxpayer value for the required system maintenance services.
Public Impact
Ensures continued operation of critical telecommunications systems for the Social Security Administration. Supports government communication infrastructure, vital for agency operations and public service. Potential for service disruptions if maintenance is not performed effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition specifics
- Potential for vendor lock-in with specialized equipment maintenance
Positive Signals
- Competitive award process
- Firm fixed-price contract type
- Long-term maintenance agreement ensures system stability
Sector Analysis
The Wired Telecommunications Carriers sector involves the operation and maintenance of communication networks. Spending in this sector is generally stable, driven by the need for reliable infrastructure, with benchmarks varying based on the complexity and scale of the systems maintained.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded as a delivery order, implying it falls under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle. Oversight would typically involve monitoring performance against the delivery order terms and conditions.
Related Government Programs
- Wired Telecommunications Carriers
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Potential for increased costs if maintenance needs exceed initial estimates.
- Dependence on a single vendor for critical system support.
- Risk of technological obsolescence of the supported systems.
- Limited visibility into the specific competitive evaluation process.
Tags
wired-telecommunications-carriers, social-security-administration, nc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $16.3 million to GOVERNMENT TELECOMMUNICATIONS, INC.. FUJITSU/EXECUTONE/IVX/IWATSU SYS-MAINTENANCE
Who is the contractor on this award?
The obligated recipient is GOVERNMENT TELECOMMUNICATIONS, INC..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $16.3 million.
What is the period of performance?
Start: 2003-10-31. End: 2008-10-31.
What is the specific scope of 'system maintenance' covered by this contract?
The contract specifies maintenance for FUJITSU/EXECUTONE/IVX/IWATSU systems. This likely includes preventative maintenance, corrective repairs, software updates, and potentially hardware replacements for the designated telecommunications equipment. A detailed statement of work would clarify the exact services included.
What were the key factors that led to the selection of Government Telecommunications, Inc. in the competitive process?
While the award was competitive, the specific evaluation criteria and the winning factors for Government Telecommunications, Inc. are not detailed in the provided data. Typically, factors include technical approach, past performance, price, and adherence to requirements. Understanding these would offer insight into the value proposition.
How does the $16.3 million expenditure align with the criticality of the systems being maintained for SSA operations?
The $16.3 million expenditure over five years represents a significant investment in maintaining SSA's telecommunications infrastructure. The alignment depends on the criticality of these specific systems to SSA's mission. If they are essential for processing benefits or citizen communication, the cost is justified; otherwise, it might warrant closer scrutiny.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation ID: SSA-RFQ-04-0034
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Sterling Hallmark Inc. (UEI: 019723815)
Address: 4500 SOUTHGATE PLACE, SUITE 300, CHANTILLY, VA, 90
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $23,651,559
Exercised Options: $23,651,559
Current Obligation: $16,303,896
Parent Contract
Parent Award PIID: GS00T03AHD0007
IDV Type: IDC
Timeline
Start Date: 2003-10-31
Current End Date: 2008-10-31
Potential End Date: 2008-10-31 00:00:00
Last Modified: 2009-10-31
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