SSA's $2.5M contract for NY birth record data processing awarded to Health Research, Inc. without competition

Contract Overview

Contract Amount: $2,535,139 ($2.5M)

Contractor: Health Research, Inc.

Awarding Agency: Social Security Administration

Start Date: 2019-06-29

End Date: 2024-06-28

Contract Duration: 1,826 days

Daily Burn Rate: $1.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NY ENUMERATION AT BIRTH (EAB) NEW YORK STATE ELECTRONIC BIRTH RECORDS FOR THE PURPOSE OF OBTAINING SOCIAL SECURITY NUMBER (SSN) AT BIRTH.

Place of Performance

Location: MENANDS, ALBANY County, NEW YORK, 12204

State: New York Government Spending

Plain-Language Summary

Social Security Administration obligated $2.5 million to HEALTH RESEARCH, INC. for work described as: NY ENUMERATION AT BIRTH (EAB) NEW YORK STATE ELECTRONIC BIRTH RECORDS FOR THE PURPOSE OF OBTAINING SOCIAL SECURITY NUMBER (SSN) AT BIRTH. Key points: 1. The contract's value of $2.5 million over five years appears reasonable for data processing services, but a lack of competition limits definitive value assessment. 2. The sole-source award raises concerns about potential overpayment and missed opportunities for cost savings through competitive bidding. 3. Performance risk seems low given the nature of data processing, but data security and privacy are paramount and require robust oversight. 4. This contract supports a critical government function: enabling Social Security Number issuance at birth, directly impacting newborns and families. 5. The service is geographically focused on New York State, indicating a localized data source for a national program. 6. The absence of small business participation is noted, as the contract was not competed under simplified acquisition procedures.

Value Assessment

Rating: fair

The contract's total value of $2.5 million over five years averages to $500,000 annually. Benchmarking this against similar data processing contracts is challenging without more specific service details. However, given the critical nature of birth records and SSN issuance, the price may be within a reasonable range. The lack of competition, however, prevents a thorough assessment of whether this represents the best possible value for taxpayer dollars.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Health Research, Inc. was the only vendor considered. The justification for this approach is not provided in the data. A sole-source award typically indicates a lack of available alternatives or a unique capability held by the contractor. This limits price discovery and potentially leads to higher costs compared to a competitively bid contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without a bidding process, there's no guarantee that the price reflects the lowest achievable cost for these essential data services.

Public Impact

Newborns in New York State benefit by receiving their Social Security Numbers at birth, facilitating access to essential services. The contract ensures the accurate and timely processing of electronic birth records from New York State. This service supports the Social Security Administration's mission to issue SSNs efficiently and accurately. The primary beneficiaries are infants and their families, streamlining administrative processes from the outset of life.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source award limits transparency in pricing and vendor selection.
Potential for vendor lock-in if alternatives are not explored.
Data security and privacy protocols must be rigorously monitored.

Positive Signals

Supports a critical government function of issuing SSNs at birth.
Ensures timely processing of vital records.
Contract duration provides stability for service delivery.

Sector Analysis

The contract falls within the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' sector (NAICS 518210). This sector is crucial for government operations, handling vast amounts of data. The market is generally competitive, with many providers offering cloud hosting, data management, and processing solutions. The value of this specific contract, while significant for a single award, is relatively small within the broader context of federal IT spending.

Small Business Impact

This contract was not competed under simplified acquisition procedures and was awarded sole-source, indicating no specific set-aside for small businesses. Consequently, there are no direct subcontracting opportunities for small businesses stemming from this award. The absence of competition also means small businesses were not given a chance to bid on this requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Social Security Administration's contracting officer and program managers. Given the sensitive nature of birth records and SSN data, robust data security and privacy protocols are essential. The Inspector General's office may conduct audits or investigations into the contract's performance and compliance, particularly concerning data handling and system integrity.

Related Government Programs

Social Security Administration IT Services
Federal Data Processing Contracts
State Vital Records Management
Electronic Health Records Systems

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-optimal pricing due to lack of competition.
Sensitive PII is being processed; requires stringent security oversight.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $2.5 million to HEALTH RESEARCH, INC.. NY ENUMERATION AT BIRTH (EAB) NEW YORK STATE 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 HEALTH RESEARCH, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

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

What is the specific nature of the data processing performed under this contract?

The contract is for the 'NY ENUMERATION AT BIRTH (EAB) NEW YORK STATE ELECTRONIC BIRTH RECORDS FOR THE PURPOSE OF OBTAINING SOCIAL SECURITY NUMBER (SSN) AT BIRTH.' This implies that Health Research, Inc. is responsible for receiving, validating, and processing electronic birth record data from New York State to facilitate the issuance of Social Security Numbers to newborns. The exact technical processes, data transformation, and transmission methods are not detailed but would involve secure data handling and integration with SSA's systems.

Why was this contract awarded on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and was awarded as a Purchase Order, suggesting a sole-source justification was likely made by the Social Security Administration. Common reasons for sole-source awards include the existence of only one responsible source, a public exigency, or when a statute expressly authorizes or requires noncompetitive procurement. Without the specific justification document, it's impossible to confirm the exact reason, but it implies that SSA determined Health Research, Inc. was the only viable option for this specific service at the time of award.

How does the pricing compare to similar federal contracts for data processing?

Direct comparison of pricing is difficult without knowing the specific service level agreements, data volumes, and technical requirements. However, the average annual cost of approximately $500,000 for processing birth records from a single state for SSN enumeration seems within a plausible range for specialized data services. Federal contracts for data processing vary widely based on complexity, security requirements, and scale. The lack of competition here prevents a definitive statement on whether this price is optimal or inflated compared to what a competitive market might yield.

What are the potential risks associated with this sole-source contract?

The primary risks associated with this sole-source contract include: 1) Higher costs for taxpayers due to the absence of competitive bidding. 2) Potential for complacency from the contractor, as there is no immediate threat of losing the business to a competitor. 3) Limited transparency in the vendor selection and pricing negotiation process. 4) Over-reliance on a single vendor, which could create challenges if the contractor faces performance issues or decides to exit the market.

What is the historical spending pattern for this type of service by the SSA?

The provided data only details this specific contract award. To understand historical spending patterns, one would need to analyze past contracts awarded by the Social Security Administration for birth record processing, data enumeration, or similar services, particularly those related to SSN issuance. This would involve searching federal procurement databases for previous awards to Health Research, Inc. or other entities performing comparable functions, noting contract types, values, durations, and competition levels over time.

What are the data security and privacy implications of this contract?

Handling electronic birth records and facilitating SSN issuance involves highly sensitive Personally Identifiable Information (PII). The primary implication is the critical need for robust data security and privacy measures by Health Research, Inc. This includes secure data transmission, storage, access controls, and compliance with all relevant federal regulations (e.g., Privacy Act, NIST standards). The SSA must ensure stringent oversight and auditing of the contractor's practices to prevent data breaches or misuse.

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: 150 BROADWAY STE 560, MENANDS, NY, 12204

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $2,535,139

Exercised Options: $2,535,139

Current Obligation: $2,535,139

Actual Outlays: $2,135,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline