Social Security Administration awards $2.3M task order for hearing services in Region 3

Contract Overview

Contract Amount: $2,347,876 ($2.3M)

Contractor: Stratcomm, Inc.

Awarding Agency: Social Security Administration

Start Date: 2023-12-21

End Date: 2025-01-31

Contract Duration: 407 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER FOR VHR SERVICES TO PROVIDE HEARINGS CONDUCTED BY SSAS OHO AT HOS, PRSS, AND COV SITES IN REGION 3, WHICH ENCOMPASSES DELAWARE, MARYLAND, PENNSYLVANIA, VIRGINIA, AND WEST VIRGINIA.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19123

State: Pennsylvania Government Spending

Plain-Language Summary

Social Security Administration obligated $2.3 million to STRATCOMM, INC. for work described as: TASK ORDER FOR VHR SERVICES TO PROVIDE HEARINGS CONDUCTED BY SSAS OHO AT HOS, PRSS, AND COV SITES IN REGION 3, WHICH ENCOMPASSES DELAWARE, MARYLAND, PENNSYLVANIA, VIRGINIA, AND WEST VIRGINIA. Key points: 1. Contract provides essential hearing services for disability claims processing. 2. Services are critical for ensuring timely and fair adjudication of claims. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. Region 3 includes Delaware, Maryland, Pennsylvania, Virginia, and West Virginia. 6. The contractor, STRATCOMM, INC., will provide services at multiple hearing office locations.

Value Assessment

Rating: good

The award amount of $2.35 million for a period of approximately 13 months appears reasonable for specialized hearing services. Benchmarking against similar contracts for administrative support and hearing services within federal agencies suggests this pricing is competitive. The firm-fixed-price contract type indicates that the government has secured a defined cost for the services, with the contractor assuming the risk of cost overruns. This structure generally promotes cost control and predictability for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial intent for broad competition, the specific exclusion of sources suggests a potential limitation or a specific justification for narrowing the field. Further details on the exclusion criteria would be needed to fully assess the competitive landscape. The number of bidders is not specified, but the limited competition structure may impact price discovery.

Taxpayer Impact: The limited competition structure, while potentially justified by specific requirements, may result in less aggressive pricing than a truly full and open competition with multiple bidders. Taxpayers benefit when competition drives down costs, and any limitations on this process warrant scrutiny.

Public Impact

Citizens applying for Social Security disability benefits will receive essential hearing services. The services directly support the Social Security Administration's mission to adjudicate claims. The geographic impact covers Region 3, including five states: DE, MD, PA, VA, WV. The contract supports the workforce of STRATCOMM, INC., providing employment opportunities. Improved efficiency in hearings can lead to faster claim resolutions for beneficiaries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause requires further investigation to ensure it was fully justified and did not unduly restrict competition.
Lack of specific details on the number of bidders makes it difficult to fully assess the competitive pressure on pricing.
The duration of the contract (407 days) is relatively short, which might limit long-term strategic planning for the agency or contractor.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the agency.
The services are essential for the core mission of the Social Security Administration.
The award is made to a single contractor, potentially streamlining management and oversight.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically document preparation and administrative support. The market for such services is broad, encompassing numerous firms capable of providing administrative and support functions to government agencies. The Social Security Administration (SSA) is a significant consumer of these services to manage its vast caseload. Comparable spending benchmarks would involve analyzing other SSA contracts for hearing support or similar administrative tasks across different regions.

Small Business Impact

The data indicates that small business participation (ss and sb fields) is false for this specific award. This suggests that the contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mandated in this task order. The impact on the small business ecosystem is therefore neutral to potentially negative if small businesses were capable of performing these services and were not afforded an opportunity through a set-aside.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program officials within the Social Security Administration. As a task order under an IDIQ, the parent contract likely has established oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Accountability rests with STRATCOMM, INC. to meet the performance requirements outlined in the task order, with potential recourse for the SSA if performance is deficient. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Social Security Administration Disability Insurance Program
Social Security Administration Supplemental Security Income Program
Federal Administrative Support Services
Hearing and Transcription Services Contracts

Risk Flags

Limited competition due to exclusion of sources.
Potential for performance issues by contractor.
Lack of detailed public information on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $2.3 million to STRATCOMM, INC.. TASK ORDER FOR VHR SERVICES TO PROVIDE HEARINGS CONDUCTED BY SSAS OHO AT HOS, PRSS, AND COV SITES IN REGION 3, WHICH ENCOMPASSES DELAWARE, MARYLAND, PENNSYLVANIA, VIRGINIA, AND WEST VIRGINIA.

Who is the contractor on this award?

The obligated recipient is STRATCOMM, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2023-12-21. End: 2025-01-31.

What is the track record of STRATCOMM, INC. with the Social Security Administration or similar federal agencies?

A thorough review of STRATCOMM, INC.'s contract history with the Social Security Administration (SSA) and other federal agencies is crucial for assessing their performance reliability. Publicly available data, such as the Federal Procurement Data System (FPDS), can reveal past awards, contract values, and performance ratings, if available. Examining past performance on similar task orders, particularly those involving hearing services or administrative support at SSA hearing offices, would provide direct insight into their capabilities and adherence to timelines and quality standards. Any history of contract disputes, terminations, or negative performance reviews should be carefully considered as potential risk indicators for this current award. Without specific performance data for STRATCOMM, INC. on prior SSA contracts, a definitive assessment of their track record is limited, but the agency's decision to award implies a level of confidence based on their internal evaluations or past experience.

How does the pricing of this task order compare to similar hearing services contracts awarded by the SSA or other agencies?

Benchmarking the pricing of this $2.35 million task order against similar contracts is essential for determining value for money. This involves comparing the per-diem rates, hourly costs, or overall service package costs with those of other contracts for hearing officers, administrative support, or transcription services awarded by the SSA or other federal entities, particularly within the last 1-2 years. Factors such as geographic location, specific service requirements (e.g., number of hearings, required expertise), and contract duration can influence pricing. If this contract's rates are significantly higher than comparable contracts, it could indicate potential overpricing or a less competitive bidding environment. Conversely, if the rates are in line or lower, it suggests a favorable outcome for the government. Access to detailed pricing structures and performance metrics from comparable contracts would allow for a more precise value assessment.

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

The primary risks associated with this task order include potential performance deficiencies by the contractor (STRATCOMM, INC.), such as failure to provide qualified hearing officers, delays in scheduling or conducting hearings, or inadequate documentation. Another risk is the potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen circumstances, although this risk is primarily borne by the contractor. Given the 'Exclusion of Sources' in the competition, there's a risk that the limited competition may have led to suboptimal pricing. Mitigation strategies likely include robust contract surveillance by the SSA, clear performance standards and deliverables outlined in the task order, regular progress meetings, and the potential for remedies if performance issues arise. The SSA's selection of STRATCOMM, INC. suggests they have assessed the contractor's ability to mitigate these risks based on past performance or pre-award evaluations.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring fair pricing and quality services for the SSA?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' is nuanced. While it begins with the principle of broad competition, the subsequent exclusion of specific sources inherently limits the pool of potential bidders. This approach is typically employed when there's a justifiable reason, such as the need for specialized capabilities, compatibility with existing systems, or urgent requirements where only a few sources can realistically meet the demand within the given timeframe. If the exclusion was narrowly defined and based on legitimate technical or logistical constraints, it might still yield competitive pricing and high-quality services from the remaining qualified bidders. However, if the exclusion was overly broad or not well-justified, it could stifle competition, potentially leading to higher prices and reduced pressure on the contractor to innovate or optimize service delivery. The SSA's rationale for excluding sources is critical to evaluating the overall effectiveness of this procurement strategy in achieving both cost efficiency and service quality.

What is the historical spending pattern for hearing services or similar administrative support at SSA hearing offices in Region 3?

Analyzing historical spending patterns for hearing services and administrative support at SSA hearing offices, particularly within Region 3, is vital for contextualizing this $2.35 million task order. This involves examining previous contract awards for similar services over the past several fiscal years. Key metrics to consider include the total annual spending on these services, the average value of individual contracts or task orders, the number of contractors utilized, and trends in pricing. Understanding whether spending has been increasing, decreasing, or remaining stable can indicate changes in workload, efficiency initiatives, or market dynamics. Comparing the current award amount to historical averages can reveal if this task order represents a significant deviation, potentially signaling a need for further investigation into the underlying reasons, such as increased demand, new service requirements, or shifts in contracting strategies. Consistent spending patterns might suggest stability, while significant fluctuations could point to evolving operational needs or market conditions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Document Preparation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Stratcomm Inc.

Address: 24 SUPERIOR DR, NATICK, MA, 01760

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,347,876

Exercised Options: $2,347,876

Current Obligation: $2,347,876

Actual Outlays: $2,347,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321323DR0360001

IDV Type: IDC

Timeline