SSA's $32.6M Mainframe Contract with Compuware: A 5-Year Delivery Order for Computer Stores
Contract Overview
Contract Amount: $32,599,911 ($32.6M)
Contractor: Compuware Corporation
Awarding Agency: Social Security Administration
Start Date: 2005-02-09
End Date: 2010-07-29
Contract Duration: 1,996 days
Daily Burn Rate: $16.3K/day
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: IT
Official Description: MAINFRAME - SMALL PURCHASE
Place of Performance
Location: DETROIT, WAYNE County, MICHIGAN, 48226
State: Michigan Government Spending
Plain-Language Summary
Social Security Administration obligated $32.6 million to COMPUWARE CORPORATION for work described as: MAINFRAME - SMALL PURCHASE Key points: 1. The contract value is $32.6 million over approximately 5 years. 2. Compuware Corporation is the sole awardee, raising questions about competition. 3. The fixed-price contract type suggests some cost certainty for the government. 4. The sector is Computer and Software Stores, indicating IT-related services or products.
Value Assessment
Rating: fair
The contract is a delivery order under a larger award, making direct pricing assessment difficult without the base contract details. The fixed-price nature provides some predictability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, which limits price discovery and competitive pressure. The government may not have achieved the best possible price.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a fully competitive procurement.
Public Impact
Taxpayers may be paying a premium due to the sole-source nature of this award. The long duration of the contract (5 years) means potential for price escalation or outdated technology. Reliance on a single vendor for critical mainframe needs could pose a risk if the vendor faces financial or operational issues.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potentially increases cost.
- Long contract duration may lead to price increases or technology obsolescence.
- Dependence on a single vendor creates risk.
Positive Signals
- Fixed-price contract provides some cost certainty.
- Awarded to a known entity (Compuware).
Sector Analysis
This contract falls within the IT sector, specifically related to computer and software stores, likely supporting mainframe operations. Spending benchmarks in this area vary widely based on the specific services or hardware procured.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
As a delivery order, oversight would typically be managed by the contracting officer for the base contract. The Social Security Administration is responsible for ensuring the delivery order meets its needs and is executed appropriately.
Related Government Programs
- Computer and Software Stores
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Sole-source award potentially inflates costs.
- Lack of detailed justification for sole-source award.
- Limited transparency into specific goods/services procured.
- Potential for price increases over the contract's 5-year duration.
- Risk associated with vendor dependency.
Tags
computer-and-software-stores, social-security-administration, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $32.6 million to COMPUWARE CORPORATION. MAINFRAME - SMALL PURCHASE
Who is the contractor on this award?
The obligated recipient is COMPUWARE CORPORATION.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $32.6 million.
What is the period of performance?
Start: 2005-02-09. End: 2010-07-29.
What specific mainframe services or products were procured under this delivery order, and how do they align with SSA's current IT strategy?
The provided data classifies this under 'Computer and Software Stores' for 'MAINFRAME - SMALL PURCHASE'. Without the base contract details or specific line items, it's impossible to determine the exact services or products. This lack of specificity hinders an assessment of alignment with SSA's current IT strategy and whether the procurement remains relevant and effective.
What was the justification for awarding this delivery order on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
Sole-source awards typically require a justification, such as the existence of a unique capability or the need to maintain compatibility with existing systems. The data indicates a sole-source award, but the specific justification and the process for ensuring fair and reasonable pricing are not detailed. This raises concerns about potential overpayment and the absence of competitive market forces.
How has the performance of Compuware Corporation under this contract impacted SSA's mainframe operations and overall mission effectiveness?
The data provided focuses on the contract's financial and award details, not its performance outcomes. Assessing the impact on SSA's operations and mission effectiveness would require access to performance reports, user feedback, and potentially system uptime or efficiency metrics. Without this performance data, it's difficult to gauge the true value and effectiveness of this $32.6 million expenditure.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Contractor Details
Address: 31440 NORTHWESTERN HWY, FARMINGTON HILLS, MI, 48334
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $32,599,911
Exercised Options: $32,599,911
Current Obligation: $32,599,911
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F5337H
IDV Type: FSS
Timeline
Start Date: 2005-02-09
Current End Date: 2010-07-29
Potential End Date: 2010-07-29 00:00:00
Last Modified: 2021-12-03
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