California's electronic birth records contract for SSN issuance valued at $8.1M, awarded via sole-source purchase order

Contract Overview

Contract Amount: $8,134,245 ($8.1M)

Contractor: Public Health, California Department of

Awarding Agency: Social Security Administration

Start Date: 2019-06-29

End Date: 2024-06-28

Contract Duration: 1,826 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CA ENUMERATION AT BIRTH (EAB). CALIFORNIA ELECTRONIC BIRTH RECORDS FOR THE PURPOSE OF OBTAINING SOCIAL SECURITY NUMBER (SSN) AT BIRTH.

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95814

State: California Government Spending

Plain-Language Summary

Social Security Administration obligated $8.1 million to PUBLIC HEALTH, CALIFORNIA DEPARTMENT OF for work described as: CA ENUMERATION AT BIRTH (EAB). CALIFORNIA ELECTRONIC BIRTH RECORDS FOR THE PURPOSE OF OBTAINING SOCIAL SECURITY NUMBER (SSN) AT BIRTH. Key points: 1. The contract focuses on critical infrastructure for birth registration and SSN issuance, a vital government function. 2. Sole-source award suggests potential lack of market competition or unique capabilities required. 3. The duration of nearly five years indicates a long-term need for these services. 4. Performance is tied to the Department of Public Health, California, highlighting a state-federal partnership. 5. The service category points to significant reliance on IT infrastructure and data processing. 6. The firm-fixed-price structure aims to control costs, but the sole-source nature warrants scrutiny.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its sole-source nature and specialized function. The $8.1 million total value over five years, averaging approximately $1.6 million annually, appears reasonable for a statewide electronic records system supporting a critical federal function. However, without competitive bids, it's difficult to ascertain if this represents the best possible price. Comparisons to similar state-level birth record systems or federal IT infrastructure contracts would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means there was no opportunity for multiple vendors to bid, potentially limiting price discovery and innovation. The rationale for sole-sourcing should be clearly documented to ensure it was justified.

Taxpayer Impact: For taxpayers, a sole-source award means there's a reduced likelihood of achieving the lowest possible price through competitive bidding. This could result in higher overall costs for the government and, by extension, taxpayers.

Public Impact

Newborns in California benefit from a streamlined process for obtaining Social Security Numbers at birth. The contract supports the critical public service of vital records management for the state of California. Federal agencies, specifically the Social Security Administration, receive essential data for SSN issuance. The contract ensures the integrity and accessibility of birth records, impacting public health and administrative functions. It supports the IT infrastructure necessary for processing and storing sensitive demographic data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
Sole-source awards require strong justification to ensure taxpayer funds are used efficiently.
Dependence on a single provider for critical infrastructure can pose supply chain risks.

Positive Signals

The contract supports a vital government function: issuing Social Security Numbers at birth.
Firm-fixed-price contract type helps manage cost certainty.
The contract duration suggests a stable, long-term partnership for essential services.

Sector Analysis

This contract falls within the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' sector, a critical component of modern government operations. The market for these services is large and competitive, with numerous providers offering cloud hosting, data management, and IT support. However, contracts tied to specific state-level data integration and unique government processes, like birth records for SSN issuance, can sometimes limit the pool of qualified vendors, leading to sole-source or limited competition awards. Comparable spending benchmarks would typically involve IT infrastructure procurements for large state agencies or federal data processing initiatives.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. Given the nature of the services (data processing, web hosting), it's possible that larger IT service providers are the primary contractors, with potential for small business involvement in subcontracting if specific IT components or specialized services are required.

Oversight & Accountability

The primary oversight for this contract would lie with the Social Security Administration, as the awarding agency, and the California Department of Public Health, as the service provider. As a purchase order, oversight might be less formalized than for larger, competed contracts. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would typically extend to federal funds, so the SSA's IG would likely have oversight capabilities regarding the use of federal funds in this agreement.

Related Government Programs

Social Security Administration IT Services
State Vital Records Modernization Programs
Electronic Health Records Systems
Federal Cloud Computing Strategy Initiatives
Data Management and Processing Services

Risk Flags

Sole-source award lacks competitive pricing.
Potential for vendor lock-in due to single provider.
Cybersecurity risks associated with sensitive personal data.
Dependence on state agency for critical federal function.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $8.1 million to PUBLIC HEALTH, CALIFORNIA DEPARTMENT OF. CA ENUMERATION AT BIRTH (EAB). CALIFORNIA ELECTRONIC BIRTH RECORDS FOR THE PURPOSE OF OBTAINING SOCIAL SECURITY NUMBER (SSN) AT BIRTH.

Who is the contractor on this award?

The obligated recipient is PUBLIC HEALTH, CALIFORNIA DEPARTMENT OF.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.1 million.

What is the period of performance?

Start: 2019-06-29. End: 2024-06-28.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not explicitly state the justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source is available to satisfy the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. For this contract, the specific rationale would likely relate to the unique requirements of integrating California's electronic birth records system with the Social Security Administration's processes for issuing Social Security Numbers at birth. The Department of Public Health may possess or manage a system with specific functionalities or data formats that are not readily replicated by other vendors, necessitating a direct award.

How does the annual cost of this contract compare to similar state-level vital records IT systems?

Direct comparison of the annual cost ($1.6 million average) to similar state-level vital records IT systems is difficult without specific data on those systems. State vital records systems vary significantly in scope, technology, and the services they provide. Factors such as the size of the state's population, the age and complexity of the existing IT infrastructure, and the specific functionalities required (e.g., real-time data exchange, advanced analytics, public portal access) all influence cost. However, for a system supporting critical federal functions like SSN issuance at birth for a large state like California, this annual expenditure may be within a reasonable range, assuming it delivers reliable and secure services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, given its purpose, critical KPIs would likely include data accuracy rates, system uptime and availability, processing times for birth record submissions and SSN linkage, and data security compliance. SLAs would define the expected performance standards for these metrics, potentially including response times for system issues and data breach notification protocols. The Social Security Administration and the California Department of Public Health would be responsible for monitoring adherence to these performance standards.

What is the track record of the contractor (California Department of Public Health) in managing similar IT contracts?

The contractor listed is the 'PUBLIC HEALTH, CALIFORNIA DEPARTMENT OF'. This is a state government agency, not a private sector contractor in the traditional sense. State public health departments are routinely responsible for managing large-scale IT systems related to vital records, disease surveillance, and public health programs. Their track record in managing such systems is generally extensive, though the specific success and efficiency can vary. The focus here is less on a 'contractor's' profit-driven performance and more on the agency's operational effectiveness in fulfilling its public service mandate and meeting federal data exchange requirements.

Are there any identified risks or vulnerabilities associated with the IT infrastructure and data processing services provided under this contract?

Potential risks associated with this contract primarily stem from its sole-source nature and the critical data it handles. Key risks include: 1) Cybersecurity threats: The system processes sensitive personal information, making it a target for data breaches. Robust security measures are paramount. 2) System obsolescence: Without competitive pressure, there's a risk the technology could become outdated if not proactively managed and updated. 3) Vendor lock-in: As a sole-source award, transitioning to a different provider in the future could be complex and costly. 4) Operational disruptions: Any downtime or failure in the electronic birth records system could delay SSN issuance, impacting families and federal processes. Mitigation strategies would involve stringent security protocols, regular system audits, and contingency planning.

What is the historical spending trend for this specific service or function by the Social Security Administration?

The provided data represents a single contract award for $8.1 million from June 2019 to June 2024. It does not offer historical spending trends for this specific function. To assess historical spending, one would need to examine prior contracts or agreements between the Social Security Administration and the California Department of Public Health (or its predecessors) for similar services, or look at the SSA's overall IT infrastructure and data processing expenditures over several fiscal years. Understanding the trend would involve analyzing whether spending on this type of service has increased, decreased, or remained stable over time.

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

Address: 1615 CAPITOL AVE, SACRAMENTO, CA, 95814

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $8,134,245

Exercised Options: $8,134,245

Current Obligation: $8,134,245

Actual Outlays: $8,171,910

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline