SSA awards $22.3M for Pitney Bowes software and maintenance, a recompete of a prior contract

Contract Overview

Contract Amount: $22,343,088 ($22.3M)

Contractor: Immixtechnology Inc

Awarding Agency: Social Security Administration

Start Date: 2014-09-01

End Date: 2019-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RECOMPETE OF SS00-11-31159 SOFTWARE AND MAINTENANCE ON PITNEY BOWES STREAMWEAVER/FINALIST THIS AMENDMENT IS TO ADD ADDITIONAL FUNDS FOR THE AWARD OF A FIVE (5) YEAR UNLIMITED MIPS CONTRACT OF PITNEY BOWES STREAMWEAVER AND FINALIST SOFTWARE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $22.3 million to IMMIXTECHNOLOGY INC for work described as: RECOMPETE OF SS00-11-31159 SOFTWARE AND MAINTENANCE ON PITNEY BOWES STREAMWEAVER/FINALIST THIS AMENDMENT IS TO ADD ADDITIONAL FUNDS FOR THE AWARD OF A FIVE (5) YEAR UNLIMITED MIPS CONTRACT OF PITNEY BOWES STREAMWEAVER AND FINALIST SOFTWARE Key points: 1. The contract represents a significant investment in essential software and maintenance for the Social Security Administration (SSA). 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract, five years, indicates a long-term need for these services. 4. The specific nature of the software (Pitney Bowes StreamWeaver/Finalist) points to a specialized function within SSA's operations. 5. The contract's value of $22.3 million over five years requires careful monitoring for cost-effectiveness. 6. The recompete nature of this award allows for comparison with previous performance and pricing.

Value Assessment

Rating: good

The total award of $22.3 million over five years equates to approximately $4.47 million annually. Benchmarking this against similar software maintenance contracts for large federal agencies is challenging without more specific details on the software's functionality and user base. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The recompete nature of this award allows for a direct comparison to the previous contract's pricing, which would be a key factor in assessing value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a specific type of competitive procurement. While it indicates competition, the 'exclusion of sources' part suggests that certain potential bidders might have been excluded based on specific criteria, possibly related to existing infrastructure or compatibility. The number of bidders is not specified, but the competitive nature should have driven price discovery.

Taxpayer Impact: A competitive award process, even with exclusions, is generally beneficial for taxpayers as it aims to secure the best possible price and value through market forces.

Public Impact

The primary beneficiaries are the employees of the Social Security Administration who will utilize the Pitney Bowes StreamWeaver and Finalist software. The services delivered include the provision of software licenses and ongoing maintenance for critical operational systems. The geographic impact is primarily within the Social Security Administration's operational centers, likely across the United States. Workforce implications include the need for trained personnel to operate and maintain the software, as well as potential impacts on IT support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to reliance on proprietary Pitney Bowes software.
Risk of cost increases in future recompetes if competition diminishes.
Dependence on a single vendor for critical software functionality.
Ensuring adequate technical support and timely software updates over the contract term.

Positive Signals

The contract is a recompete, suggesting a known quantity and potentially stable performance.
Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition, even with exclusions, indicates an effort to leverage market pricing.
The five-year duration provides budget predictability for this essential service.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on software and maintenance services. The market for enterprise software solutions, particularly those involving data processing and workflow management like Pitney Bowes StreamWeaver and Finalist, is substantial. Federal IT spending is a significant portion of the overall federal budget, with agencies constantly seeking to modernize systems and maintain existing infrastructure. This contract represents a small but critical component of the SSA's IT infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, IMMIX TECHNOLOGY INC, is not specified as a small business. Analysis of potential subcontracting opportunities for small businesses would require further investigation into the prime contractor's subcontracting plan, if one exists.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Social Security Administration. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified software and maintenance. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics are not publicly disclosed. The Inspector General's office for the SSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal IT Services Contracts
Software Licensing and Maintenance
Social Security Administration IT Modernization
Enterprise Resource Planning (ERP) Systems Support
Data Processing and Workflow Software

Risk Flags

Potential for vendor lock-in
Reliance on proprietary software
Need for ongoing specialized technical expertise

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $22.3 million to IMMIXTECHNOLOGY INC. RECOMPETE OF SS00-11-31159 SOFTWARE AND MAINTENANCE ON PITNEY BOWES STREAMWEAVER/FINALIST THIS AMENDMENT IS TO ADD ADDITIONAL FUNDS FOR THE AWARD OF A FIVE (5) YEAR UNLIMITED MIPS CONTRACT OF PITNEY BOWES STREAMWEAVER AND FINALIST SOFTWARE

Who is the contractor on this award?

The obligated recipient is IMMIXTECHNOLOGY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2014-09-01. End: 2019-08-31.

What is the specific functionality of Pitney Bowes StreamWeaver and Finalist software, and how critical is it to the SSA's operations?

Pitney Bowes StreamWeaver and Finalist are typically used for document processing, mailstream management, and data analytics. StreamWeaver is often associated with managing and optimizing document output and distribution, while Finalist is known for its address verification and data quality capabilities. For the Social Security Administration, these tools are likely critical for processing vast amounts of constituent mail, ensuring accurate address data for communications and benefits distribution, and potentially for data analysis related to program eligibility and operations. Their importance lies in maintaining the integrity and efficiency of communication channels and data management, which are fundamental to the SSA's mission of serving the public.

How does the pricing of this $22.3 million contract compare to similar software and maintenance contracts for other federal agencies?

Directly comparing the $22.3 million price tag for this five-year contract to similar software and maintenance contracts across federal agencies is challenging without detailed knowledge of the specific software modules, user licenses, service level agreements, and the scale of deployment at the SSA. However, the annual cost of approximately $4.47 million falls within the range for enterprise-level software solutions for large government organizations. To perform a robust comparison, one would need to identify contracts for comparable software (e.g., document management, data quality, workflow automation) from other agencies, normalize for contract duration, scope of services, and the size/complexity of the agency using the software. Factors like the number of users, required uptime, and support levels significantly influence pricing.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this contract?

While specific KPIs are not detailed in the award abstract, typical performance indicators for software maintenance and support contracts include metrics related to software uptime and availability, response times for technical support requests, resolution times for reported issues, the timeliness and quality of software updates and patches, and adherence to service level agreements (SLAs). For a system like StreamWeaver/Finalist, KPIs might also focus on the efficiency of document processing, the accuracy of address verification, and the successful implementation of new features or configurations. The contracting officer's representative (COR) at the SSA would be responsible for monitoring these KPIs and ensuring the contractor meets the contractual obligations.

What is the historical spending pattern for this specific software or its predecessor at the SSA?

This contract is a recompete of SS00-11-31159, indicating a history of procuring software and maintenance for Pitney Bowes StreamWeaver/Finalist from this vendor or under this specific contract vehicle. The award abstract itself shows this is a "RECOMPETE OF SS00-11-31159 SOFTWARE AND MAINTENANCE ON PITNEY BOWES STREAMWEAVER/FINALIST". To understand the historical spending pattern, one would need to examine the total value and duration of the predecessor contract (SS00-11-31159) and any prior related contracts. This would reveal trends in annual spending, potential increases or decreases in contract value over time, and the consistency of the SSA's investment in this particular software solution.

Are there any identified risks associated with the contractor, IMMIX TECHNOLOGY INC, based on their past performance or financial stability?

The provided data abstract does not contain information regarding the past performance or financial stability of IMMIX TECHNOLOGY INC. A comprehensive risk assessment would require accessing contractor performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS), financial health assessments, and any relevant past performance issues or disputes. As this is a recompete, the SSA would have historical data on IMMIX TECHNOLOGY INC's performance under the previous contract (SS00-11-31159). The decision to award this new contract suggests that, based on available information, the contractor was deemed capable of meeting the requirements.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: SSA-RFQ-14-1571

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arrow Electronics, Inc. (UEI: 049159957)

Address: 8444 WESTPARK DR STE 200, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,343,088

Exercised Options: $22,343,088

Current Obligation: $22,343,088

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $17,432,839

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG07DA20B

IDV Type: GWAC

Timeline