The Social Security Administration’s Contract with Four, LLC

Date: 
Tuesday, August 27, 2013
Report Number: 
A-04-13-13046
Report Type: 
Audit Report
Office Affiliation: 

In December 2011, SSA entered into contract number GS-35F-0312U with Four, LLC an authorized International Business Machines (IBM) software reseller under the IBM Software Value Plus for Government Programs. Under the agreement, Four, LLC provides IBM-licensed software and IBM maintenance support and software for the Agency’s mainframe computers and distributed computer system.

This is a 3-year fixed-price contract with 1 base year and two, 1-year option periods. The contract period is December 31, 2011 through December 30, 2014. The total contract cost is approximately $168 million—approximately $56 million per year. The contract has two parts based on the type of software SSA uses.

Our objective was to (1) ensure the Social Security Administration (SSA) received the goods and/or services for which it contracted with Four, LLC and (2) review the services provided by Four, LLC and the related costs charged to SSA for adherence to the negotiated contract terms and applicable regulations.