SSA awards $2.09M task order for hearing recorder services, highlighting document preparation needs

Contract Overview

Contract Amount: $2,086,848 ($2.1M)

Contractor: Business Support Services of Salem, Inc.

Awarding Agency: Social Security Administration

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER TO FUND VERBATIM HEARING RECORDER SERVICES FOR SSA SUB-REGION R04-3 ALABAMA, MISSISSIPPI AND TENNESSEE HEARING OFFICES.

Place of Performance

Location: MOBILE, MOBILE County, ALABAMA, 36602

State: Alabama Government Spending

Plain-Language Summary

Social Security Administration obligated $2.1 million to BUSINESS SUPPORT SERVICES OF SALEM, INC. for work described as: TASK ORDER TO FUND VERBATIM HEARING RECORDER SERVICES FOR SSA SUB-REGION R04-3 ALABAMA, MISSISSIPPI AND TENNESSEE HEARING OFFICES. Key points: 1. The contract addresses a critical need for verbatim hearing recording services, essential for the Social Security Administration's (SSA) adjudication process. 2. The fixed-price contract type suggests a clear scope of work and potential for cost control, though actual value depends on service delivery. 3. Competition was conducted under 'full and open competition after exclusion of sources,' indicating a broad search for qualified vendors. 4. The duration of one year aligns with typical task order structures for ongoing service needs. 5. The award to Business Support Services of Salem, Inc. represents a specific investment in administrative support for SSA's regional hearing offices. 6. The NAICS code 561410 points to a market segment focused on document preparation and administrative support services.

Value Assessment

Rating: good

The award amount of $2.09 million for a one-year contract for verbatim hearing recorder services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for transcription and recording services suggests that pricing within this range is typical for government agencies requiring accurate and timely documentation of legal proceedings. The firm fixed-price structure provides cost certainty for the government, assuming the scope of work is well-defined and executed efficiently by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This procurement method indicates that the SSA sought proposals from all responsible sources capable of meeting the requirements, but specific sources may have been excluded for reasons not detailed in the provided data. The fact that it was open competition suggests a robust process aimed at achieving fair market prices and selecting the best value offeror.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring the government receives good value for its investment.

Public Impact

Citizens seeking Social Security benefits will benefit from accurate and timely recording of their hearings, which is crucial for fair adjudication. The services delivered include verbatim transcription and recording of hearings for SSA sub-region R04-3, covering Alabama, Mississippi, and Tennessee. The geographic impact is focused on the SSA hearing offices within these three Southern states. The contract supports administrative functions within the SSA, indirectly impacting the workforce by ensuring efficient case processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if hearing complexity exceeds initial estimates, impacting cost-effectiveness.
Reliance on a single contractor for a year could pose risks if performance issues arise.
Ensuring consistent quality and accuracy of verbatim recordings across all hearings is critical.

Positive Signals

The firm fixed-price contract provides budget certainty for the SSA.
Full and open competition suggests a competitive process likely yielded a fair price.
The contract duration allows for stable service provision over the fiscal year.

Sector Analysis

The contract falls within the administrative and support services sector, specifically document preparation and transcription. This market is characterized by numerous providers, ranging from small specialized firms to larger business process outsourcing companies. Government agencies frequently procure these services to manage administrative burdens and ensure accurate record-keeping. The market size for such services is substantial, driven by legal, regulatory, and operational documentation needs across various federal agencies.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside or if Business Support Services of Salem, Inc. is a small business. Therefore, the direct impact on the small business ecosystem and subcontracting opportunities cannot be determined from this information. Further analysis would be needed to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program officials within the Social Security Administration responsible for hearing operations. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver services as specified. Transparency is facilitated through contract databases like FPDS, which publish award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Social Security Administration Hearing Operations
Federal Document Management Services
Legal Transcription Services
Administrative Support Contracts

Risk Flags

Performance Risk
Contractor Dependency Risk
Data Accuracy Risk

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $2.1 million to BUSINESS SUPPORT SERVICES OF SALEM, INC.. TASK ORDER TO FUND VERBATIM HEARING RECORDER SERVICES FOR SSA SUB-REGION R04-3 ALABAMA, MISSISSIPPI AND TENNESSEE HEARING OFFICES.

Who is the contractor on this award?

The obligated recipient is BUSINESS SUPPORT SERVICES OF SALEM, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the track record of Business Support Services of Salem, Inc. with the federal government, particularly with the Social Security Administration?

A review of federal procurement data would be necessary to fully assess the track record of Business Support Services of Salem, Inc. This would involve examining past contract awards, performance evaluations, and any reported issues or disputes. Understanding their history with the SSA specifically, and for similar services, would provide insight into their reliability and capability. Without access to detailed performance history and past contract data, it is difficult to definitively assess their track record. However, the award of this task order suggests they met the SSA's requirements during the competitive process.

How does the awarded price of $2.09 million for one year of hearing recorder services compare to market rates for similar services?

The awarded price of $2.09 million for one year of verbatim hearing recorder services needs to be benchmarked against industry standards and comparable government contracts. Factors influencing this price include the volume of hearings, complexity of cases, required turnaround times for transcripts, and geographic coverage. While the firm fixed-price nature provides cost certainty, a detailed cost analysis comparing per-hearing or per-transcript rates against market benchmarks would be required for a thorough value assessment. Given the specialized nature of legal verbatim recording, the price appears within a plausible range, but precise comparison requires more granular data on service delivery metrics.

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

Key risks include potential performance deficiencies by the contractor, such as inaccurate transcription or missed deadlines, which could delay case processing. Another risk is the potential for cost overruns if the scope of work expands beyond initial estimates, although the firm fixed-price contract aims to mitigate this. Furthermore, reliance on a single vendor for a year could create vulnerabilities if the contractor faces financial instability or operational disruptions. Mitigation strategies likely involve robust performance monitoring by the SSA, clear contract terms and conditions, and contingency planning for service disruptions. The 'full and open competition' aspect also suggests a selection process that prioritized capable and reliable vendors.

How effective is the current method of procuring hearing recorder services for the SSA in ensuring quality and efficiency?

The effectiveness of this procurement method, 'full and open competition after exclusion of sources,' hinges on the execution of the competition. If it successfully attracted a wide range of qualified bidders and resulted in the selection of a high-performing contractor at a competitive price, it is likely effective. The one-year duration of the task order allows for a focused evaluation of performance. Long-term effectiveness would depend on whether this approach consistently yields reliable service providers and meets the SSA's evolving needs for accurate and timely hearing documentation, which is critical for due process.

What has been the historical spending pattern for verbatim hearing recorder services by the Social Security Administration?

To assess historical spending patterns, one would need to analyze SSA's contract data over several preceding fiscal years. This analysis should identify trends in the total amount spent on hearing recorder services, the number of contracts awarded, the types of contractors utilized (e.g., large vs. small businesses), and the prevailing contract types (e.g., fixed-price vs. cost-plus). Understanding these patterns can reveal whether spending has been consistent, increasing, or decreasing, and whether the SSA has historically relied on competitive bidding or sole-source awards for these essential services.

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

Address: 960 BROADWAY NE STE 4-1, SALEM, OR, 97301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,086,848

Exercised Options: $2,086,848

Current Obligation: $2,086,848

Actual Outlays: $154,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321323DR0460002

IDV Type: IDC

Timeline