Leidos awarded $29.3M for scanning services, supporting SSA's medical evidence processing

Contract Overview

Contract Amount: $29,278,670 ($29.3M)

Contractor: Leidos Government Services, Inc.

Awarding Agency: Social Security Administration

Start Date: 2008-09-01

End Date: 2009-08-31

Contract Duration: 364 days

Daily Burn Rate: $80.4K/day

Pricing Type: NOT REPORTED

Sector: Other

Official Description: SCANNING SERVICES OF MEDICAL EVIDENCE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $29.3 million to LEIDOS GOVERNMENT SERVICES, INC. for work described as: SCANNING SERVICES OF MEDICAL EVIDENCE Key points: 1. Contract provides essential support for the Social Security Administration's disability determination process. 2. Long-term contract indicates a consistent need for these specialized scanning services. 3. The award to a single large contractor suggests potential for economies of scale. 4. Performance context is critical given the sensitive nature of medical evidence. 5. Sector positioning is within business support services, crucial for administrative functions. 6. The BPA structure allows for flexibility in task orders over its duration.

Value Assessment

Rating: good

The contract value of $29.3 million over one year for scanning services appears reasonable given the specialized nature of handling medical evidence. Benchmarking against similar large-scale document scanning and management contracts for government agencies suggests that pricing is likely competitive, especially considering the security and compliance requirements inherent in processing sensitive health information. The use of a Blanket Purchase Agreement (BPA) also implies that pricing is established through pre-negotiated terms, which can offer cost efficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this specific BPA award is not detailed in the provided data. However, BPAs are typically established under existing contract vehicles, which may have undergone a competitive process. The nature of specialized scanning services for sensitive medical evidence might limit the number of qualified bidders. Further investigation into the underlying contract vehicle and the specific solicitation for this BPA would be needed to fully assess the competition dynamics and its impact on price discovery.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition generally leads to lower prices and better service quality. If this BPA was established through a highly competitive process, taxpayers benefit from cost savings. Conversely, limited competition could result in higher costs.

Public Impact

Beneficiaries include individuals applying for Social Security benefits who require timely processing of their medical evidence. Services delivered involve the scanning, indexing, and management of critical medical documentation. Geographic impact is national, supporting the Social Security Administration's nationwide operations. Workforce implications include the need for skilled personnel to handle sensitive data securely and efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the specialized nature of the service and long-term contract.
Data security and privacy risks associated with handling sensitive medical evidence require stringent oversight.
Dependence on a single contractor could lead to reduced leverage in future negotiations if competition is limited.

Positive Signals

Long-standing contract suggests consistent performance and reliability from the contractor.
BPA structure allows for flexibility and potential cost savings through pre-negotiated rates.
Specialized nature of the service indicates a focused expertise being leveraged.

Sector Analysis

This contract falls within the Business Support Services sector, specifically focusing on document management and scanning. This sector is vital for government operations, enabling efficient processing of vast amounts of information. The market for such services is competitive, with many firms offering varying degrees of specialization. Comparable spending benchmarks would involve looking at other federal contracts for large-scale document digitization and records management, particularly those involving sensitive data like medical or legal records.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). The award to a large contractor like Leidos suggests that small businesses may not have been primary bidders or subcontractors on this specific award. Future analysis could explore subcontracting opportunities for small businesses within the broader BPA framework, if applicable, and assess the overall impact on the small business ecosystem within the document scanning and support services industry.

Oversight & Accountability

Oversight for this contract would primarily reside with the Social Security Administration's contracting officers and program managers. Accountability measures are typically embedded within the BPA's task orders, including performance standards, delivery schedules, and quality control requirements. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Social Security Administration Disability Insurance Program
Federal Records Management Services
Healthcare Document Processing Contracts
Business Process Outsourcing for Government Agencies

Risk Flags

Data Security and Privacy Compliance
Performance Reliability and Timeliness
Potential for Cost Overruns
Contractor Lock-in Risk

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $29.3 million to LEIDOS GOVERNMENT SERVICES, INC.. SCANNING SERVICES OF MEDICAL EVIDENCE

Who is the contractor on this award?

The obligated recipient is LEIDOS GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2008-09-01. End: 2009-08-31.

What is the historical spending pattern for medical evidence scanning services by the Social Security Administration?

Historical spending data for medical evidence scanning services by the Social Security Administration reveals a consistent reliance on external contractors to manage the high volume of documentation required for disability claims. While this specific $29.3 million award covers a one-year period, the Social Security Administration (SSA) has historically allocated significant resources to document processing and management. The use of a Blanket Purchase Agreement (BPA) with Leidos Government Services, Inc., suggests a long-term relationship, likely built upon previous contracts or task orders for similar services. Analyzing spending trends over multiple years would show fluctuations based on claim volume, policy changes, and technological advancements in scanning and data management. The duration of the BPA (established in 2008 and potentially renewed or extended) indicates a sustained need and budget allocation for these critical support functions, underscoring the importance of efficient and secure medical evidence processing for the agency's core mission.

How does the contractor's track record influence the assessment of this contract's value?

Leidos Government Services, Inc. is a large, established government contractor with a broad portfolio of services, including IT, logistics, and technical support. Their extensive experience in serving federal agencies, including the Social Security Administration, suggests a degree of reliability and familiarity with government contracting requirements and performance expectations. A strong track record can positively influence the assessment of a contract's value by indicating a lower risk of performance failures, delays, or cost overruns. However, value is also contingent on competitive pricing and efficient service delivery. While Leidos's size and experience may suggest stability, the specific performance metrics and pricing under this particular BPA would be crucial for a definitive value assessment. Without detailed performance reports or cost comparisons, the track record provides a baseline indicator of potential, rather than a conclusive measure of achieved value for money.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this medical evidence scanning contract revolve around data security and privacy, performance quality, and potential cost overruns. Handling sensitive Protected Health Information (PHI) necessitates stringent adherence to HIPAA and other privacy regulations. A breach could result in significant legal penalties, reputational damage, and loss of public trust. Performance risks include potential delays in scanning and indexing, which could impede the Social Security Administration's disability determination process, impacting claimants. Cost risks might arise from unforeseen increases in document volume or inefficiencies in the scanning process. Mitigation strategies typically involve robust security protocols, background checks for personnel, regular audits, clear performance standards within the BPA task orders, service level agreements (SLAs), and strong oversight from the contracting agency. The contractor's established presence and experience may also contribute to risk mitigation through proven processes and established security infrastructure.

How does this contract compare to other federal contracts for similar document scanning and management services?

Comparing this $29.3 million, one-year BPA for medical evidence scanning to other federal contracts requires analyzing scope, volume, and service complexity. Contracts for general document scanning might be less expensive per page if they lack the specialized requirements of handling medical records, which demand strict compliance with HIPAA and robust data security measures. Large-scale digitization projects for agencies like the National Archives or the Department of Defense might involve higher total dollar values but could differ in their specific service components (e.g., archival preservation vs. active claims processing). The use of a BPA structure suggests a pre-negotiated framework, potentially offering better rates than a fully competed, standalone contract if the underlying vehicle was competitive. Benchmarking would ideally involve comparing the per-page scanning cost, indexing accuracy rates, turnaround times, and security compliance measures against similar contracts awarded to other large service providers within the federal government.

What is the potential impact of this contract on the efficiency of the Social Security Administration's disability determination process?

This contract has a direct and significant potential impact on the efficiency of the Social Security Administration's (SSA) disability determination process. By outsourcing the scanning, indexing, and management of medical evidence, the SSA can leverage specialized expertise and technology to process these critical documents more rapidly and accurately. Efficient handling of medical records is fundamental to timely disability claim adjudication. Delays in receiving or processing evidence can lead to backlogs, longer waiting times for applicants, and increased administrative burden. A well-executed scanning service ensures that adjudicators have timely access to complete and organized medical information, enabling them to make informed decisions. The long-term nature of the BPA suggests that the SSA views this service as essential for maintaining operational efficiency and managing the substantial workload associated with disability claims processing.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1 CURIE CT, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: SS000540013

IDV Type: BPA

Timeline