SSA awards $14.3M contract to Mathematica Inc. for consulting services
Contract Overview
Contract Amount: $14,318,233 ($14.3M)
Contractor: Mathematica Inc.
Awarding Agency: Social Security Administration
Start Date: 2003-05-15
End Date: 2013-07-31
Contract Duration: 3,730 days
Daily Burn Rate: $3.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: PRINCETON, MERCER County, NEW JERSEY, 08540
Plain-Language Summary
Social Security Administration obligated $14.3 million to MATHEMATICA INC. for work described as: Key points: 1. Contract awarded to a single, established vendor. 2. Services fall under a broad consulting category. 3. Long duration suggests potential for significant ongoing costs. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $14.3M over 10 years averages to $1.43M annually. Without specific deliverables or benchmarks, it's difficult to assess value. The 'COST PLUS FIXED FEE' structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long duration and specific nature of consulting services may limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are being used for consulting services. The value and efficiency of these services will determine the ultimate taxpayer impact.
Public Impact
Impacts Social Security Administration's operational efficiency. Potential for long-term reliance on a single contractor. Transparency of consulting outcomes is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years)
- Cost-plus contract type
- No small business participation
Positive Signals
- Full and open competition
- Established contractor
Sector Analysis
This contract falls under Other Scientific and Technical Consulting Services. Spending in this sector can vary widely based on agency needs, but long-term, high-value contracts warrant close scrutiny for efficiency and necessity.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could indicate a lack of outreach or specific requirements that favor larger firms.
Oversight & Accountability
The long duration of this contract necessitates robust oversight from the Social Security Administration to ensure continued value, adherence to scope, and cost control. Regular performance reviews are essential.
Related Government Programs
- Other Scientific and Technical Consulting Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Long contract duration
- Cost-plus contract type
- Lack of small business participation
- Vague service description
- Potential for cost overruns
Tags
other-scientific-and-technical-consultin, social-security-administration, nj, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $14.3 million to MATHEMATICA INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is MATHEMATICA INC..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $14.3 million.
What is the period of performance?
Start: 2003-05-15. End: 2013-07-31.
What specific technical consulting services were provided, and how did they demonstrably improve the SSA's operations or efficiency?
The provided data lacks specifics on the nature of the 'Other Scientific and Technical Consulting Services.' To assess value, detailed reports on deliverables, achieved outcomes, and quantifiable improvements in SSA operations directly attributable to Mathematica's work would be required. Without this, it's challenging to confirm if the $14.3M investment yielded commensurate benefits.
Given the 'COST PLUS FIXED FEE' structure and 10-year duration, what mechanisms are in place to mitigate potential cost overruns and ensure continued cost-effectiveness?
Cost-plus contracts inherently carry a risk of overruns. The SSA must have stringent oversight, including regular audits, detailed performance metrics, and clear change control processes. Fixed fee components help, but the 'cost plus' element requires active management to prevent scope creep and ensure the contractor remains incentivized to control expenses throughout the decade-long engagement.
How does the SSA ensure that the services provided remain relevant and effective over the 10-year contract period, especially in a rapidly evolving technological and regulatory landscape?
Maintaining relevance over a decade requires proactive contract management. The SSA should implement phased reviews, incorporate mechanisms for adapting service scope based on evolving needs, and potentially include options for technology refresh or service modernization. Regular performance evaluations against updated objectives are critical to ensure the consulting services continue to align with the SSA's strategic goals and operational realities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Mathematica Inc (UEI: 154125140)
Address: 600 ALEXANDER PARK, PRINCETON, NJ, 12
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,176,851
Exercised Options: $12,957,045
Current Obligation: $14,318,233
Timeline
Start Date: 2003-05-15
Current End Date: 2013-07-31
Potential End Date: 2013-07-31 00:00:00
Last Modified: 2013-07-16
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