Illinois Spends $2.7M on Electronic Death Records System via Sole-Source Purchase Order
Contract Overview
Contract Amount: $2,733,537 ($2.7M)
Contractor: Department of Public Health Illinois
Awarding Agency: Social Security Administration
Start Date: 2023-12-27
End Date: 2026-12-26
Contract Duration: 1,095 days
Daily Burn Rate: $2.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ILLINOIS (IL)-ELECTRONIC DEATH RECORDS (EDR).
Place of Performance
Location: SPRINGFIELD, SANGAMON County, ILLINOIS, 62702
State: Illinois Government Spending
Plain-Language Summary
Social Security Administration obligated $2.7 million to DEPARTMENT OF PUBLIC HEALTH ILLINOIS for work described as: ILLINOIS (IL)-ELECTRONIC DEATH RECORDS (EDR). Key points: 1. High cost for a single state's data processing services. 2. Lack of competition raises concerns about price discovery. 3. Potential for better value through competitive bidding. 4. IT infrastructure and data hosting are critical but costly sectors.
Value Assessment
Rating: questionable
The $2.7 million price tag for a 3-year contract for electronic death records appears high for a single state's IT infrastructure needs. Benchmarking against similar state-level data processing contracts is difficult without more granular details, but the lack of competition suggests potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under simplified acquisition procedures, indicating a sole-source award. This significantly limits price discovery and competition, potentially leading to a higher cost for taxpayers than if multiple vendors had bid.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible value for the $2.7 million spent on this critical data system.
Public Impact
Essential public health data management system for Illinois. Potential for data security and privacy concerns with sole-source contracts. Impacts the efficiency of vital records processing and public health analysis.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High cost for a single state's IT infrastructure.
- Contract duration of 3 years with no clear performance metrics provided.
Positive Signals
- Ensures continuity of critical electronic death records system.
- Firm fixed price contract provides budget certainty.
Sector Analysis
This contract falls under IT services, specifically data processing and web hosting. Spending benchmarks for state-level vital records systems vary widely, but the lack of competition here is a key concern regardless of sector.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both the awarding agency and the vendor are not specified as small businesses. Further analysis would be needed to determine if small businesses were excluded or had no opportunity to compete.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price is fair and reasonable and that the services meet the state's needs effectively. Accountability for the lack of competition should be investigated.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency on vendor selection
Tags
computing-infrastructure-providers-data-, social-security-administration, il, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $2.7 million to DEPARTMENT OF PUBLIC HEALTH ILLINOIS. ILLINOIS (IL)-ELECTRONIC DEATH RECORDS (EDR).
Who is the contractor on this award?
The obligated recipient is DEPARTMENT OF PUBLIC HEALTH ILLINOIS.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2023-12-27. End: 2026-12-26.
What justification was provided for awarding this contract on a sole-source basis, and were alternative competitive methods explored?
The provided data states the contract was 'NOT COMPETED UNDER SAP,' implying it was likely awarded sole-source due to specific circumstances or vendor capabilities. A thorough review would require accessing the justification documentation to understand why full and open competition or other competitive methods were deemed unsuitable. This is crucial for assessing if taxpayer funds were used efficiently.
How does the per-unit cost or overall contract value compare to similar electronic death record systems in other states or federal agencies?
Without specific performance metrics or detailed service breakdowns, a direct per-unit cost comparison is challenging. However, $2.7 million for a 3-year system for one state's death records seems substantial. Benchmarking against other states' vital records IT systems, considering population size and scope of services, would be necessary to determine if this represents a fair market price or if the sole-source award inflated costs.
What measures are in place to ensure the effectiveness, security, and reliability of the electronic death records system under this sole-source contract?
The contract is firm fixed price, which provides some cost certainty. However, the sole-source nature raises questions about the vendor's incentive to innovate or ensure optimal performance without competitive pressure. Specific Service Level Agreements (SLAs), data security protocols, and contingency plans should be rigorously defined and monitored by the Department of Public Health to guarantee the system's effectiveness and protect sensitive data.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: State of Illinois
Address: 525 W JEFFERSON ST, SPRINGFIELD, IL, 62702
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $4,642,114
Exercised Options: $2,733,537
Current Obligation: $2,733,537
Actual Outlays: $1,592,468
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-12-27
Current End Date: 2026-12-26
Potential End Date: 2028-12-26 00:00:00
Last Modified: 2026-03-03
More Contracts from Department of Public Health Illinois
- Illinois Enumeration AT Birth (EAB). Illinois Electronic Birth Records for the Purpose of Obtaining Social Security Number (SSN) AT Birth — $3.2M (Social Security Administration)
View all Department of Public Health Illinois federal contracts →
Other Social Security Administration Contracts
- Itssc Task Order for Systems — $1.1B (Leidos, Inc.)
- Contractor IS to Provide the Expertise, Technical Knowledge, IT Support Personnel, and Other Related Resources Necessary for Systems Analysis and Testing — $734.1M (Northrop Grumman Systems Corporation)
- Contractor to Provide Development&database Support to Agency's Office of Software Engineering — $593.5M (Leidos, Inc.)
- THE Government Intends to Establish a Single-Award Delivery Order Base Plus Four 1year Option Periods for the Renewal of IBM Software Maintenance and the Purchase of More Additional IBM Software Licenses Against the General Services Administrations Federal Supply Schedule Program. Previous Order SS00-15-30081 — $525.4M (International Business Machines Corporation)
- NEW 66 Month Open-Market Contract for Renewal of CA Software, Support Services, and Maintenance. CA Proprietary Software Products ARE Used Extensively Throughout OUR Mainframe and Distributed Environments AT ALL SSA Data Centers — $419.8M (CA, Inc.)