SSA's Ticket to Work Program Manager Contract Awarded to Cognosante, LLC for $72.4M

Contract Overview

Contract Amount: $72,379,992 ($72.4M)

Contractor: Cognosante, LLC

Awarding Agency: Social Security Administration

Start Date: 2021-01-01

End Date: 2026-04-30

Contract Duration: 1,945 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TICKET TO WORK PROGRAM MANAGER - THE CONTRACTOR SHALL CONDUCT OUTREACH ACTIVITIES TO BENEFICIARIES, FACILITATE BENEFICIARY ACCESS TO EMPLOYMENT NETWORKS (ENS), ENSURE TIMELY AND ACCURATE COMMUNICATION BETWEEN ALL PARTIES INVOLVED IN THE TICKET-TO-WO

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $72.4 million to COGNOSANTE, LLC for work described as: TICKET TO WORK PROGRAM MANAGER - THE CONTRACTOR SHALL CONDUCT OUTREACH ACTIVITIES TO BENEFICIARIES, FACILITATE BENEFICIARY ACCESS TO EMPLOYMENT NETWORKS (ENS), ENSURE TIMELY AND ACCURATE COMMUNICATION BETWEEN ALL PARTIES INVOLVED IN THE TICKET-TO-WO Key points: 1. The contract aims to improve beneficiary access to employment networks and facilitate communication. 2. Cognosante, LLC, a large business, was awarded this definitive contract. 3. The contract is a Cost Plus Fixed Fee type, awarded under full and open competition. 4. The program focuses on administrative management and general management consulting services.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar administrative and management consulting services is difficult without more granular data on scope and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the CPFF structure requires diligent oversight to ensure costs remain reasonable and aligned with the fixed fee.

Taxpayer Impact: Taxpayer funds are being used to support employment services for beneficiaries, with the goal of increasing self-sufficiency and reducing reliance on other social programs.

Public Impact

Enhances employment opportunities for Social Security beneficiaries. Facilitates connections between beneficiaries and Employment Networks. Aims to improve communication and coordination among stakeholders. Supports the SSA's mission of promoting economic independence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize contractor to increase costs.
Lack of specific performance metrics makes it difficult to assess contractor effectiveness.
Contract duration is long (1945 days), increasing risk of scope creep or obsolescence.

Positive Signals

Awarded under full and open competition, suggesting fair market pricing.
Program aims to increase beneficiary self-sufficiency, a positive societal outcome.
Contractor has experience in government health and human services programs.

Sector Analysis

This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector can vary widely based on the complexity of the services required. The SSA's program management needs are substantial, justifying the contract value.

Small Business Impact

The contract was awarded to Cognosante, LLC, which is identified as a large business. There is no indication of small business participation or subcontracting goals within the provided data.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates strong government oversight to monitor costs and ensure the contractor is meeting performance objectives. Regular reviews and audits will be crucial for accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Social Security Administration Contracting
Social Security Administration Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Lack of specific performance metrics.
Potential for contractor to increase costs without direct penalty beyond the fixed fee.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $72.4 million to COGNOSANTE, LLC. TICKET TO WORK PROGRAM MANAGER - THE CONTRACTOR SHALL CONDUCT OUTREACH ACTIVITIES TO BENEFICIARIES, FACILITATE BENEFICIARY ACCESS TO EMPLOYMENT NETWORKS (ENS), ENSURE TIMELY AND ACCURATE COMMUNICATION BETWEEN ALL PARTIES INVOLVED IN THE TICKET-TO-WO

Who is the contractor on this award?

The obligated recipient is COGNOSANTE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $72.4 million.

What is the period of performance?

Start: 2021-01-01. End: 2026-04-30.

What specific metrics are used to measure the success of the Ticket to Work Program Manager in facilitating beneficiary employment?

The provided data does not specify the performance metrics used to evaluate the contractor's success. Key performance indicators (KPIs) should ideally include the number of beneficiaries successfully placed in employment, the duration of employment, and beneficiary satisfaction. Without these, assessing the program's effectiveness and the contractor's value is challenging.

How does the Cost Plus Fixed Fee structure mitigate the risk of cost overruns for this program?

The CPFF structure inherently carries a risk of cost overruns as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation relies heavily on robust government oversight, detailed cost tracking, and clear definition of allowable costs. The fixed fee provides some incentive for efficiency, but the primary control lies in the contracting officer's ability to manage and audit costs.

What is the expected return on investment for the taxpayer in terms of increased self-sufficiency for beneficiaries?

The expected return on investment is the long-term reduction in Social Security benefit payouts as beneficiaries gain sustainable employment. While the initial contract cost is significant, successful program outcomes should lead to greater taxpayer savings over time by decreasing reliance on disability or retirement benefits.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 28321321R00000001

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3110 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $76,203,327

Exercised Options: $72,379,992

Current Obligation: $72,379,992

Actual Outlays: $61,195,931

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $6,760,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline