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The Development and Award of the SSA Systems Engineering and Integration Contract

Published: Nov 06, 1985. Publicly Released: Nov 06, 1985.
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Highlights

Testimony was given on the development and award of a Social Security Administration (SSA) systems engineering and integration contract to a prime contractor and its subcontractor. GAO found several irregular procurement practices which continued for 2 years preceding the contract award, including: (1) subcontractor personnel were given office space at SSA even though they had no contracts or formal relationship with SSA; (2) the subcontractor had the opportunity to develop relationships with key SSA staff; (3) the subcontractor obtained special knowledge of SSA automatic data processing problems through the performance of two brief sole-source consulting contracts; and (4) several SSA officials accepted numerous restaurant meals from the subcontractor. GAO found that the subcontractor's presence at SSA initially was associated with the President's transition efforts at SSA; however, SSA officials could not explain why the subcontractor remained in their offices for 2 years. The subcontractor stated that it had been providing free services to SSA during the period. Finally, GAO found that critical components of the modernization program were seriously behind schedule, and the original cost estimate of $500 million through March 1987 was increased to $863 million through September 1989, due in part to poor SSA contract administration.

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