SSA's $50M Folder Storage Contract Awarded to Advancia Ahtna JV, LLC for National Records Center Operations

Contract Overview

Contract Amount: $50,284,159 ($50.3M)

Contractor: Advancia Ahtna JV, LLC

Awarding Agency: Social Security Administration

Start Date: 2017-09-29

End Date: 2023-04-28

Contract Duration: 2,037 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE OBJECTIVE OF THE CONTRACT IS TO OBTAIN SUPPORT SERVICES FOR THE MANAGEMENT OF SSA NRC FOLDER STORAGE OPERATION. THE SERVICES WILL BE PERFORMED AT SOCIAL SECURITY ADMINISTRATION'S (SSA) NATIONAL RECORDS CENTER (NRC), LOCATED IN AN UNDERGROUND FACILITY IN INDEPENDENCE, MISSOURI, WHEREIN MILLIONS OF TITLE II SOCIAL SECURITY AND TITLE XVI SUPPLEMENT SECURITY INCOME FOLDERS ARE RECEIVED, STORED, AND MANAGED. IGF::CT::IGF

Place of Performance

Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056

State: Missouri Government Spending

Plain-Language Summary

Social Security Administration obligated $50.3 million to ADVANCIA AHTNA JV, LLC for work described as: THE OBJECTIVE OF THE CONTRACT IS TO OBTAIN SUPPORT SERVICES FOR THE MANAGEMENT OF SSA NRC FOLDER STORAGE OPERATION. THE SERVICES WILL BE PERFORMED AT SOCIAL SECURITY ADMINISTRATION'S (SSA) NATIONAL RECORDS CENTER (NRC), LOCATED IN AN UNDERGROUND FACILITY IN INDEPENDENCE, MISSOURI… Key points: 1. The contract focuses on essential support services for managing millions of Social Security and SSI folders at the National Records Center. 2. Operations are centralized at a secure, underground facility in Independence, Missouri, highlighting the critical nature of data preservation. 3. The award was made under a full and open competition, suggesting a robust market for these specialized archival services. 4. A significant number of bidders participated, indicating a competitive landscape for federal records management. 5. The contract duration of over 2000 days points to a long-term need for these services. 6. The fixed-price contract type aims to provide cost certainty for the government. 7. The services are crucial for maintaining access to vital beneficiary records.

Value Assessment

Rating: good

The contract value of approximately $50.3 million over its period of performance appears reasonable given the specialized nature of managing millions of sensitive federal records in a secure, underground facility. Benchmarking against similar large-scale archival and records management contracts is challenging due to the unique requirements of the SSA's National Records Center. However, the fixed-price contract type suggests an effort to control costs. The absence of specific performance metrics in the provided data makes a detailed value assessment difficult, but the long duration implies a sustained need and potentially stable pricing.

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,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 9 bidders suggests a healthy level of competition for this specialized service. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value for managing these critical federal records.

Public Impact

Beneficiaries of Social Security and SSI programs benefit indirectly through the secure and accessible storage of their vital records. The contract ensures the continued operation of the National Records Center, a critical federal archive. Services are geographically concentrated in Independence, Missouri, supporting local operations and potentially local employment. The contract supports the operational needs of the Social Security Administration in managing its vast repository of beneficiary information.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized facility requirements.
Reliance on a single contractor for long-term management of millions of sensitive records.
Ensuring consistent data integrity and security over the contract's extended duration.

Positive Signals

Full and open competition likely drove competitive pricing.
Fixed-price contract provides cost predictability.
Long-term contract indicates a stable and essential service requirement.
Award to a joint venture may indicate capacity building and diverse ownership.

Sector Analysis

This contract falls within the Libraries and Archives sector (NAICS 519120), which encompasses establishments primarily engaged in maintaining and providing access to collections of documents, historical records, and other materials. The federal government, particularly agencies like the Social Security Administration, relies heavily on such services for the long-term storage and management of vast amounts of data. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of federal records management and the specific security requirements of the SSA's underground facility. However, the scale of this contract reflects the significant investment required for secure, large-volume archival operations.

Small Business Impact

The provided data indicates that the prime contractor is Advancia Ahtna JV, LLC, a joint venture. While the contract itself was not set aside for small businesses (ss: false, sb: false), the joint venture structure suggests potential opportunities for small business participation through subcontracting. Further analysis would be needed to determine the extent of small business subcontracting commitments and their impact on the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Social Security Administration's contracting officers and program managers. The Inspector General's office for the SSA would also have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract. Transparency is facilitated through contract award databases, but detailed operational oversight mechanisms are not specified in the provided data.

Related Government Programs

Federal Records Centers Program
Social Security Administration IT and Administrative Support
Government Archival Services
Secure Document Storage Contracts

Risk Flags

Long contract duration may increase risk of cost misalignment or technological obsolescence.
Reliance on a single contractor for critical records management.
Potential for performance degradation over an extended period.
Need for robust ongoing oversight to ensure continued value and security.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $50.3 million to ADVANCIA AHTNA JV, LLC. THE OBJECTIVE OF THE CONTRACT IS TO OBTAIN SUPPORT SERVICES FOR THE MANAGEMENT OF SSA NRC FOLDER STORAGE OPERATION. THE SERVICES WILL BE PERFORMED AT SOCIAL SECURITY ADMINISTRATION'S (SSA) NATIONAL RECORDS CENTER (NRC), LOCATED IN AN UNDERGROUND FACILITY IN INDEPENDENCE, MISSOURI, WHEREIN MILLIONS OF TITLE II SOCIAL SECURITY AND TITLE XVI SUPPLEMENT SECURITY INCOME FOLDERS ARE RECEIVED, STORED, AND MANAGED. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is ADVANCIA AHTNA JV, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $50.3 million.

What is the period of performance?

Start: 2017-09-29. End: 2023-04-28.

What is the historical spending pattern for SSA's National Records Center storage operations?

Historical spending data for the SSA's National Records Center storage operations prior to this $50.3 million contract (2017-2023) is not detailed in the provided information. However, the duration of this definitive contract (2037 days, approximately 5.6 years) and its fixed-price nature suggest a consistent and significant budget allocation for these essential services. To understand historical patterns, one would need to examine previous contracts for similar services, potentially looking at annual obligations, contract modifications, and the number of incumbent contractors over time. This would reveal trends in cost escalation, service scope changes, and the overall investment in maintaining the physical and digital archives critical to the SSA's mission.

How does the per-unit cost of storing a folder under this contract compare to industry benchmarks?

Determining a precise per-unit cost for storing a folder under this contract is not feasible with the provided data. The total contract value is $50,284,158.91, and while the contract mentions 'millions of Title II Social Security and Title XVI Supplement Security Income folders,' the exact number of folders managed throughout the contract period is not specified. Furthermore, the contract covers 'support services for the management' of the storage operation, which likely includes more than just physical space rental per folder. Industry benchmarks for archival storage vary widely based on factors like security, accessibility, digitization, and the specific type of records. Without a clear unit count (e.g., cost per cubic foot, cost per document box, or cost per digitized record) and a breakdown of the services included, a direct comparison to market rates is not possible.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the key performance indicators (KPIs) used to evaluate Advancia Ahtna JV, LLC's performance under this contract. Typically, for records management and archival services, KPIs might include metrics related to retrieval times for requested files, accuracy rates in filing and retrieval, compliance with security protocols, data integrity checks, response times to inquiries, and adherence to preservation standards. The effectiveness of the contract's value for money is intrinsically linked to how well the contractor meets these performance expectations. Without access to the contract's statement of work (SOW) or performance-based metrics, a thorough assessment of performance quality and its impact on overall value is limited.

What is the track record of Advancia Ahtna JV, LLC in managing similar large-scale federal records contracts?

Information regarding the specific track record of Advancia Ahtna JV, LLC in managing similar large-scale federal records contracts is not detailed in the provided data. As a joint venture, its experience would be a combination of its constituent partners' histories. Advancia, Inc. and Ahtna, Inc. are the likely partners. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contracts awarded to this JV or its partners, and any reported issues or successes in managing sensitive federal information and large archival operations. Understanding their prior experience is crucial for gauging their capability to fulfill the demanding requirements of the SSA's National Records Center.

What are the potential risks associated with the long duration (over 2000 days) of this contract?

The long duration of this contract, exceeding 2000 days, presents several potential risks. Firstly, there's the risk of technological obsolescence; storage and management technologies may evolve significantly over the contract period, potentially making the current methods less efficient or secure. Secondly, contractor performance can degrade over time, or key personnel might leave, impacting service quality. Thirdly, long-term fixed-price contracts can become misaligned with market rates if costs fluctuate unexpectedly, potentially leading to the government overpaying or the contractor cutting corners. Finally, a prolonged reliance on a single contractor for such a critical function could create vendor lock-in, making future transitions more complex and costly.

Industry Classification

NAICS: Information › Other Information Services › Libraries and Archives

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: SSA-RFP-R07-17-1001

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 755 RESEARCH PKWY STE 150, OKLAHOMA CITY, OK, 73104

Business Categories: Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,070,669

Exercised Options: $50,284,159

Current Obligation: $50,284,159

Actual Outlays: $32,817,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline