SSA Spends $77M on BMC Software Maintenance Renewal Over 4 Years
Contract Overview
Contract Amount: $77,055,068 ($77.1M)
Contractor: BMC Software, Inc.
Awarding Agency: Social Security Administration
Start Date: 2010-12-01
End Date: 2014-11-30
Contract Duration: 1,460 days
Daily Burn Rate: $52.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BMC MAINTENANCE RENEWAL
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77042
State: Texas Government Spending
Plain-Language Summary
Social Security Administration obligated $77.1 million to BMC SOFTWARE, INC. for work described as: BMC MAINTENANCE RENEWAL Key points: 1. Significant expenditure on software maintenance, highlighting reliance on BMC. 2. BMC Software is a major player in IT management solutions. 3. Potential risk of vendor lock-in and escalating maintenance costs. 4. IT sector spending on enterprise software is substantial and growing.
Value Assessment
Rating: fair
The contract value of $77M over four years averages $19.26M annually. Without specific benchmarks for BMC maintenance renewals, it's difficult to definitively assess pricing, but this represents a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the renewal nature implies a potential for limited options if the agency is tied to a specific vendor's ecosystem.
Taxpayer Impact: Taxpayers are funding a significant software maintenance contract. The effectiveness of the competition in securing the best price is key to minimizing taxpayer burden.
Public Impact
Ensures continued operation of critical IT infrastructure for the Social Security Administration. Supports the agency's ability to manage its complex software environment. Potential for cost savings if competition was robust and pricing was aggressively negotiated.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value may indicate potential for cost overruns or inefficiencies.
- Reliance on a single vendor for critical software maintenance.
- Long-term commitment could limit flexibility in adopting new technologies.
Positive Signals
- Awarded under full and open competition, suggesting a fair process.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the IT sector, specifically software maintenance and support. Spending on enterprise software licenses and maintenance is a significant portion of IT budgets for large government agencies like the SSA.
Small Business Impact
The data does not indicate any specific participation or benefit for small businesses in this contract. The vendor, BMC Software, Inc., is a large enterprise software company.
Oversight & Accountability
The Social Security Administration is responsible for overseeing this contract. Regular performance reviews and cost analysis would be crucial to ensure value for money and accountability.
Related Government Programs
- Computer and Software Stores
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- High contract value.
- Potential for vendor lock-in.
- Reliance on a single software provider.
- Long contract duration.
- Limited visibility into specific maintenance cost breakdowns.
Tags
computer-and-software-stores, social-security-administration, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $77.1 million to BMC SOFTWARE, INC.. BMC MAINTENANCE RENEWAL
Who is the contractor on this award?
The obligated recipient is BMC SOFTWARE, INC..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $77.1 million.
What is the period of performance?
Start: 2010-12-01. End: 2014-11-30.
What is the benchmark cost for BMC software maintenance renewals of this scale?
Determining a precise benchmark for BMC software maintenance renewals of this scale is challenging without access to proprietary pricing data or detailed market analysis. However, industry averages for enterprise software maintenance typically range from 15-25% of the initial software license cost annually. Given the contract value, it's crucial for the SSA to have validated that this renewal rate aligns with or is favorable compared to market standards and previous contract periods.
What are the risks associated with a long-term renewal of BMC software maintenance?
Long-term renewals of software maintenance, especially with a single vendor like BMC, carry risks of vendor lock-in, where switching to alternative solutions becomes prohibitively expensive or complex. This can lead to inflated future costs as the vendor may have less incentive to offer competitive pricing. Additionally, it can stifle innovation if the agency is unable to adopt newer, potentially more cost-effective or feature-rich technologies from other providers.
How effectively did the full and open competition ensure optimal value for taxpayers?
While the contract was awarded under full and open competition, the effectiveness in ensuring optimal value for taxpayers hinges on the specifics of the bidding process and the agency's negotiation strategy. A robust competition should drive down prices. However, for specialized software maintenance, the pool of qualified bidders might be limited, potentially reducing competitive pressure. The SSA would need to demonstrate that the awarded price was indeed the best value achievable through the competitive process.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2101 CITYWEST BOULEVARD, HOUSTON, TX, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $77,055,068
Exercised Options: $77,055,068
Current Obligation: $77,055,068
Parent Contract
Parent Award PIID: GS35F0340W
IDV Type: FSS
Timeline
Start Date: 2010-12-01
Current End Date: 2014-11-30
Potential End Date: 2014-11-30 00:00:00
Last Modified: 2013-11-15
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