Virginia's Electronic Death Registration system contract awarded for $2.01M to support SSA's data processing needs

Contract Overview

Contract Amount: $2,010,902 ($2.0M)

Contractor: Virginia Department of Health

Awarding Agency: Social Security Administration

Start Date: 2023-12-27

End Date: 2026-12-26

Contract Duration: 1,095 days

Daily Burn Rate: $1.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VIRGINIA: ELECTRONIC DEATH REGISTRATION (EDR)

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23230

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $2.0 million to VIRGINIA DEPARTMENT OF HEALTH for work described as: VIRGINIA: ELECTRONIC DEATH REGISTRATION (EDR) Key points: 1. The contract value appears reasonable for a three-year term supporting critical data infrastructure. 2. Competition dynamics for this contract are not fully detailed, but it was competed under SAP. 3. Key risk indicators include the reliance on a single vendor for a critical data system. 4. Performance context suggests a need for robust data processing and hosting services. 5. This contract positions the Virginia Department of Health as a key provider of vital statistics infrastructure.

Value Assessment

Rating: good

The contract value of approximately $2.01 million over three years for electronic death registration services appears to be within a reasonable range for similar government IT infrastructure contracts. Benchmarking against other state-level health data systems or federal data processing contracts would provide a more precise value-for-money assessment. The fixed-price nature of the purchase order suggests that costs are largely predictable, which is a positive indicator for budget management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a procurement valued below the threshold for full and open competition. While the specific number of bidders is not provided, SAP typically involves a more streamlined process that may limit the pool of potential offerors compared to larger, more formal solicitations. This approach is often used for smaller value contracts where extensive competition might not be cost-effective.

Taxpayer Impact: Competing under SAP suggests that while some level of competition was sought, it may not have yielded the lowest possible price compared to a full and open competition. Taxpayers benefit from the efficiency of SAP for smaller procurements, but the potential for higher prices due to limited bidder engagement is a consideration.

Public Impact

Citizens of Virginia benefit from a modernized and efficient system for registering deaths, ensuring accurate vital statistics. The contract supports the critical function of data processing and web hosting for vital records. Geographic impact is primarily within Virginia, but the data collected has national implications for public health. Workforce implications include the need for IT professionals to manage and maintain the electronic registration system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the specialized nature of the EDR system.
Reliance on a single vendor for critical data processing could pose a risk if the vendor experiences performance issues or financial instability.
Limited competition under SAP might result in a less than optimal price for taxpayers.

Positive Signals

The contract supports a critical public health function, ensuring accurate vital statistics.
The fixed-price contract provides cost certainty for the duration of the agreement.
The use of SAP suggests an effort to procure services efficiently for a moderate contract value.

Sector Analysis

The contract falls within the IT and data processing sector, specifically focusing on government services related to vital statistics. The market for cloud computing, data hosting, and specialized software solutions for government agencies is robust. Comparable spending benchmarks would involve looking at other state or federal contracts for similar vital records management systems or data processing services, which often range from hundreds of thousands to several million dollars annually depending on scope and complexity.

Small Business Impact

There is no indication that this contract included a small business set-aside. The primary contractor is not specified, but given the nature of the service (computing infrastructure, data processing), it is plausible that larger IT service providers or specialized software companies would be involved. Subcontracting opportunities for small businesses might exist if the prime contractor engages them for specific components of the service, but this is not explicitly stated.

Oversight & Accountability

Oversight for this contract would likely be managed by the Virginia Department of Health and the Social Security Administration, as they are the contracting agency and the agency benefiting from the service, respectively. Accountability measures would be embedded in the purchase order terms and conditions, including performance standards and delivery schedules. Transparency is facilitated by the contract's public availability, allowing for scrutiny of its terms and value.

Related Government Programs

National Vital Statistics System
Electronic Health Records (EHR) Systems
State Public Health Data Infrastructure
Government Cloud Computing Services

Risk Flags

Limited competition
Data security and privacy concerns
Vendor performance dependency

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $2.0 million to VIRGINIA DEPARTMENT OF HEALTH. VIRGINIA: ELECTRONIC DEATH REGISTRATION (EDR)

Who is the contractor on this award?

The obligated recipient is VIRGINIA DEPARTMENT OF HEALTH.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2023-12-27. End: 2026-12-26.

What is the track record of the awarded contractor in providing similar electronic death registration or vital statistics data processing services?

The provided data does not specify the name of the awarded contractor, only the contracting agency (Virginia Department of Health) and the benefiting agency (Social Security Administration). Without the contractor's name, it is impossible to assess their specific track record in providing electronic death registration (EDR) or similar vital statistics data processing services. A thorough analysis would require identifying the prime contractor and then researching their past performance on government contracts, particularly those involving sensitive data management, system uptime, and compliance with health data regulations. This would include reviewing past performance evaluations, any contract disputes, and their experience with state or federal vital records systems.

How does the per-unit cost or overall value of this contract compare to similar state-level electronic death registration systems?

The contract value of $2.01 million over three years equates to approximately $670,000 per year. Benchmarking this against similar state-level electronic death registration (EDR) systems is challenging without specific data on other states' contracts. However, EDR systems involve significant IT infrastructure, software development/maintenance, data processing, and hosting. Costs can vary widely based on the state's population, the system's complexity, the level of integration with other health IT systems, and the procurement approach. Generally, state-level IT contracts of this nature can range from several hundred thousand to several million dollars annually. This contract appears to be in a moderate range, suggesting potentially good value if it meets all performance requirements effectively.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential vendor lock-in due to the specialized nature of the EDR system, reliance on a single vendor for critical data processing which could lead to service disruptions if the vendor fails, and potential data security breaches. Mitigation strategies would typically involve robust Service Level Agreements (SLAs) with clear performance metrics and penalties, regular security audits, contingency planning for service continuity, and potentially building in options for data portability or transition to another vendor. The contract's fixed-price nature helps mitigate cost overrun risks for the government. The limited competition under SAP could also be seen as a risk if it leads to suboptimal pricing.

How effective is the Social Security Administration's use of this contract to ensure accurate and timely death data?

The effectiveness of the SSA's use of this contract hinges on the performance of the Electronic Death Registration (EDR) system managed by the Virginia Department of Health. The SSA relies on accurate and timely death data for various program integrity functions, including managing Social Security benefits and preventing fraud. If the EDR system is reliable, secure, and provides timely data feeds to the SSA, then the contract is effective. Key performance indicators (KPIs) within the contract, such as data accuracy rates, processing turnaround times, and system uptime, would be crucial metrics to assess effectiveness. Without access to these performance metrics, a definitive judgment on effectiveness cannot be made.

What has been the historical spending pattern for electronic death registration or similar vital statistics systems in Virginia or for the SSA?

The provided data only pertains to this specific contract awarded in late 2023. Historical spending patterns for Virginia's electronic death registration (EDR) or similar vital statistics systems are not detailed here. To understand historical spending, one would need to examine previous contracts awarded by the Virginia Department of Health for EDR or related IT services, as well as any direct spending by the Social Security Administration on data acquisition or processing related to vital statistics. Analyzing trends in spending over multiple years would reveal whether costs have increased, decreased, or remained stable, and whether the scope of services has evolved.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2001 MAYWILL ST, RICHMOND, VA, 23230

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $3,403,615

Exercised Options: $2,010,902

Current Obligation: $2,010,902

Actual Outlays: $1,096,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline