SSA's $63.4M Ethernet Bridge Replacement Maintenance contract awarded to Affigent, LLC shows potential value concerns

Contract Overview

Contract Amount: $63,450,067 ($63.5M)

Contractor: Affigent, LLC

Awarding Agency: Social Security Administration

Start Date: 2009-02-01

End Date: 2011-03-31

Contract Duration: 788 days

Daily Burn Rate: $80.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ETHERNET BRIDGE REPLACEMENT MAINTENANCE

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99503

State: Alaska Government Spending

Plain-Language Summary

Social Security Administration obligated $63.5 million to AFFIGENT, LLC for work described as: ETHERNET BRIDGE REPLACEMENT MAINTENANCE Key points: 1. The contract's duration of 788 days for a firm-fixed-price award suggests a need for clear performance metrics. 2. Competition dynamics appear limited, with only 3 bidders, potentially impacting price discovery. 3. The contract's value of over $63 million warrants a close examination of cost-effectiveness. 4. Performance context is crucial, as maintenance contracts can vary significantly in scope and necessity. 5. Sector positioning within 'Other Computer Related Services' is broad, requiring specific analysis of the services rendered. 6. Risk indicators include the potential for cost overruns if not managed tightly, given the contract's scale.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the Ethernet bridge technology and the scope of maintenance required. However, a $63.4 million expenditure over approximately two years for maintenance services suggests a significant investment. Comparing it to similar large-scale network infrastructure maintenance contracts would be necessary to ascertain if the pricing is competitive. The firm-fixed-price structure provides some cost certainty, but the overall value proposition hinges on the criticality and efficiency of the replaced systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader contract vehicle. While the specific number of bidders for this particular delivery order was 3, the initial competition for the overarching contract vehicle is key. A limited number of bidders for a delivery order of this magnitude could suggest a specialized market or potential barriers to entry for other firms. Further investigation into the initial competition for the contract vehicle would provide a clearer picture of the overall competitive landscape.

Taxpayer Impact: With 3 bidders for this delivery order, taxpayers may not have received the absolute lowest price achievable through maximum competition. However, the fact that it was competed at all is a positive sign compared to sole-source awards.

Public Impact

The Social Security Administration (SSA) benefits from potentially improved network infrastructure and reduced downtime. Users of SSA services, including beneficiaries and employees, may experience more reliable access to critical systems. The geographic impact is primarily within Alaska (ST: AK, SN: ALASKA), suggesting localized infrastructure upgrades or maintenance. Workforce implications could include the need for specialized IT personnel for installation, maintenance, and support of the new Ethernet bridges.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen technology is proprietary.
Risk of scope creep if maintenance requirements are not clearly defined.
Dependency on a single contractor for critical network infrastructure maintenance.

Positive Signals

Competitive award process, even with a limited number of bidders, suggests some level of market engagement.
Firm-fixed-price contract provides cost predictability for the government.
The contract addresses a specific need for 'Ethernet Bridge Replacement Maintenance', indicating a targeted investment.

Sector Analysis

The 'Other Computer Related Services' sector encompasses a wide range of IT support and maintenance activities. This contract likely falls within the network infrastructure segment, focusing on the hardware and associated services for data transmission. The market for such services is competitive, with numerous providers offering solutions for network upgrades and maintenance. Benchmarking this contract's value against similar large-scale network hardware replacement and maintenance projects within federal IT spending would provide further context on its cost-effectiveness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, if Affigent, LLC engages in such practices. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem. The focus appears to be on larger, established vendors capable of handling significant IT infrastructure projects.

Oversight & Accountability

Oversight for this contract would typically be managed by the Social Security Administration's contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is generally facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Infrastructure Modernization Programs
Network Equipment Procurement and Maintenance
Telecommunications Services Contracts
IT Services for Federal Agencies

Risk Flags

Limited Competition
Potential Value Concerns
Geographic Specificity (Alaska)

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $63.5 million to AFFIGENT, LLC. ETHERNET BRIDGE REPLACEMENT MAINTENANCE

Who is the contractor on this award?

The obligated recipient is AFFIGENT, LLC.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $63.5 million.

What is the period of performance?

Start: 2009-02-01. End: 2011-03-31.

What specific Ethernet bridge technology was replaced or maintained under this contract, and what was the justification for the replacement?

The provided data does not specify the exact Ethernet bridge technology involved in this contract. The justification for replacement would typically stem from obsolescence, performance degradation, security vulnerabilities, or the need to upgrade to a more efficient or capable system. For a contract valued at $63.4 million, the justification would likely be tied to maintaining the operational integrity and security of critical SSA network infrastructure, particularly given its importance for processing benefits and managing citizen data. Understanding the specific technology and the rationale for its replacement is crucial for assessing the necessity and value of the expenditure.

How does the per-unit cost of the Ethernet bridges or the maintenance services compare to market rates or similar government contracts?

The provided data does not include per-unit cost information, making a direct comparison to market rates or similar government contracts impossible. The total contract value of $63.4 million is for the overall 'Ethernet Bridge Replacement Maintenance' over a period of approximately two years. To assess per-unit costs, one would need details on the number of units replaced or maintained, the specific model of the bridges, and the scope of the maintenance services. Without this granular data, it is difficult to benchmark the value effectively. Future analysis should seek to obtain this level of detail to ensure fair pricing.

What was the track record of Affigent, LLC in fulfilling similar large-scale IT infrastructure maintenance contracts prior to this award?

The provided data does not include information on Affigent, LLC's specific track record for similar contracts. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government or commercial projects of comparable size and scope. For a contract of this magnitude ($63.4 million), the Social Security Administration would have likely conducted a review of Affigent's past performance as part of the source selection process. Further investigation into their performance history would be beneficial for understanding potential risks and reliability.

What are the key performance indicators (KPIs) used to measure the success of this Ethernet bridge replacement and maintenance contract?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for network maintenance and replacement contracts, KPIs might include network uptime percentages, mean time to repair (MTTR) for failures, successful implementation of upgrades, adherence to security protocols, and user satisfaction. The firm-fixed-price nature of the contract suggests that performance would be tied to successful delivery and functionality of the replaced or maintained equipment and services according to defined specifications. Without explicit KPIs, assessing the contract's effectiveness relies on broader project completion metrics.

How has the Social Security Administration's spending on Ethernet bridge replacement and maintenance evolved over the past five years, and does this contract represent a significant deviation?

The provided data only pertains to a single contract awarded to Affigent, LLC from 2009 to 2011. It does not offer historical spending patterns for the Social Security Administration (SSA) in this category. To understand the evolution of spending and whether this contract represents a deviation, one would need to analyze SSA's procurement data for similar services over multiple fiscal years. This would involve looking at contracts for network infrastructure, hardware maintenance, and related IT services to identify trends in spending levels, contractor choices, and contract types.

What are the potential risks associated with relying on Affigent, LLC for critical network infrastructure maintenance in Alaska, considering the geographic location?

Potential risks associated with Affigent, LLC maintaining critical network infrastructure in Alaska include logistical challenges due to the remote and often harsh environment, potentially leading to higher costs and longer response times for on-site support. Dependence on a single contractor for such a vital function also poses a risk if the contractor experiences financial instability, operational issues, or fails to meet performance standards. Furthermore, ensuring adequate security protocols are maintained across potentially dispersed locations in Alaska requires diligent oversight. The limited competition (3 bidders) might also suggest fewer options for contingency planning if issues arise with the primary contractor.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SSA-RFQ-09-1166

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 3201 C ST, STE 400C, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $63,450,067

Exercised Options: $63,450,067

Current Obligation: $63,450,067

Parent Contract

Parent Award PIID: NNG07DA19B

IDV Type: GWAC

Timeline