Social Security Administration awards $2.17M contract for verbatim hearing recorder services to Business Support Services of Salem, Inc

Contract Overview

Contract Amount: $2,170,740 ($2.2M)

Contractor: Business Support Services of Salem, Inc.

Awarding Agency: Social Security Administration

Start Date: 2025-12-02

End Date: 2026-12-31

Contract Duration: 394 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOUTHEAST REGION (SUB-REGION 4-1 GA FL) VERBATIM HEARING RECORDER (VHR) SERVICES. TASK ORDER FOR OPTION YEAR 2. INCREMENTALLY FUNDED THROUGH JANUARY 30, 2026.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33634

State: Florida Government Spending

Plain-Language Summary

Social Security Administration obligated $2.2 million to BUSINESS SUPPORT SERVICES OF SALEM, INC. for work described as: SOUTHEAST REGION (SUB-REGION 4-1 GA FL) VERBATIM HEARING RECORDER (VHR) SERVICES. TASK ORDER FOR OPTION YEAR 2. INCREMENTALLY FUNDED THROUGH JANUARY 30, 2026. Key points: 1. Contract awarded through full and open competition, indicating a competitive bidding process. 2. The contract is for verbatim hearing recorder services, a critical function for administrative law proceedings. 3. Incremental funding suggests a phased approach to resource allocation over the contract period. 4. The contract duration is approximately 1.3 years, aligning with the option year. 5. The service area is specified as Florida, indicating a regional focus for service delivery. 6. The North American Industry Classification System (NAICS) code 561410 points to document preparation services.

Value Assessment

Rating: good

The contract value of $2.17 million for approximately 1.3 years of verbatim hearing recorder services appears reasonable given the specialized nature of the work. Benchmarking against similar contracts for these services is challenging without more specific details on service volume and complexity. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which implies that while the competition was open, specific sources may have been excluded based on prior performance or other criteria. The number of bidders is not specified, but the 'full and open' designation generally suggests a robust competitive environment, which should lead to better price discovery and value for the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

Individuals involved in Social Security Administration hearings will benefit from accurate and timely transcription of proceedings. The services ensure the integrity and legal defensibility of administrative law decisions. The geographic impact is focused on Florida, supporting SSA operations within that state. The contract supports a specialized workforce in document preparation and transcription services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if service demands exceed initial projections under a firm-fixed-price contract.
Dependence on a single contractor for critical transcription services in a specific region.
Risk of performance issues if the contractor's capacity is insufficient for peak demand.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Firm-fixed-price contract shifts cost risk to the contractor.
Option year award indicates satisfaction with previous performance.

Sector Analysis

The market for verbatim hearing recorder services is a niche within the broader administrative and support services sector. This contract falls under NAICS code 561410 (Document Preparation Services). The demand for such services is driven by legal and administrative processes across various government agencies. Comparable spending benchmarks are difficult to establish without detailed service level agreements, but the overall market is characterized by specialized providers capable of meeting strict accuracy and timeliness requirements.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the competition was open to all eligible offerors, and the primary awardee is likely a larger entity or one that did not require small business participation to meet the solicitation requirements.

Oversight & Accountability

The Social Security Administration is responsible for overseeing this contract. Oversight mechanisms would typically include performance monitoring, quality assurance checks, and adherence to contract terms. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Social Security Administration Hearing Operations
Administrative Law Judge Hearings
Document Transcription Services
Federal Contract Services

Risk Flags

Potential for performance issues if contractor capacity is strained.
Limited geographic scope may reduce overall competition.
Firm-fixed-price contracts can be less flexible for scope changes.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $2.2 million to BUSINESS SUPPORT SERVICES OF SALEM, INC.. SOUTHEAST REGION (SUB-REGION 4-1 GA FL) VERBATIM HEARING RECORDER (VHR) SERVICES. TASK ORDER FOR OPTION YEAR 2. INCREMENTALLY FUNDED THROUGH JANUARY 30, 2026.

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 $2.2 million.

What is the period of performance?

Start: 2025-12-02. End: 2026-12-31.

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

Analyzing historical spending for verbatim hearing recorder services by the Social Security Administration requires access to detailed contract databases and budget allocations. Generally, agencies like the SSA utilize such services to ensure accurate record-keeping for administrative hearings. Spending can fluctuate based on the volume of cases, the complexity of hearings, and the number of contractors engaged. Option year awards, like this one, often indicate a level of satisfaction with the incumbent contractor's performance and pricing, suggesting a degree of continuity in spending for these services. Without specific historical data, it's difficult to pinpoint exact trends, but the need for these services is consistent with the SSA's mission.

How does the pricing of this contract compare to similar verbatim hearing recorder services awarded by other federal agencies?

Direct price comparison for verbatim hearing recorder services is complex due to variations in contract scope, service level agreements (SLAs), geographic coverage, and the specific requirements of each agency. This contract, valued at approximately $2.17 million for a period of about 1.3 years, is a firm-fixed-price award. To benchmark effectively, one would need to compare metrics such as cost per hearing hour, cost per page transcribed, or cost per diem for court reporters, factoring in differences in demand and market conditions across regions. Agencies like the Department of Justice or the Department of Labor, which also conduct hearings, might have comparable contracts. However, without detailed service metrics and specific contract terms, a precise comparison is not feasible.

What is the track record of Business Support Services of Salem, Inc. in performing similar government contracts?

Assessing the track record of Business Support Services of Salem, Inc. requires reviewing their past performance on federal contracts, particularly those involving verbatim hearing recorder services or similar document preparation and transcription tasks. Information on past performance is typically available through federal procurement databases like SAM.gov or through agency-specific performance evaluations. An option year award, as indicated here, often suggests that the contractor has met or exceeded performance expectations on previous task orders or contract periods. Further investigation would involve looking for any past performance issues, awards, or significant contract modifications to gain a comprehensive understanding of their reliability and capability.

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

Potential risks for this contract include performance failures (e.g., inaccurate or delayed transcriptions), cost overruns if the firm-fixed-price model is not well-managed by the contractor, and potential disruptions if the contractor faces staffing shortages. Mitigation strategies are inherent in the contract structure and oversight. The firm-fixed-price nature places the financial risk on the contractor. The Social Security Administration's oversight, including performance monitoring and quality control, is crucial for ensuring service delivery meets standards. The award through full and open competition also suggests a pool of qualified vendors, reducing reliance on a single, potentially underperforming entity.

How does the geographic scope (Florida) influence the cost and competition for these services?

The geographic scope being limited to Florida influences both cost and competition by defining the specific market the contractor must serve. For competition, it narrows the pool of potential bidders to those with established operations or the capacity to deploy resources within Florida. This could potentially reduce the number of highly competitive bids compared to a nationwide contract. For cost, regional market rates for skilled labor (court reporters, transcriptionists) and operational overhead within Florida will be key determinants. If Florida has a higher cost of living or a more competitive labor market for these specialized skills, it could lead to higher pricing compared to regions with lower costs.

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

Solicitation ID: 28321323RR0400003

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: $2,170,740

Exercised Options: $2,170,740

Current Obligation: $2,170,740

Actual Outlays: $161,644

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321323DR0460003

IDV Type: IDC

Timeline