Texas birth record digitization contract awarded for $8.3M to support SSN issuance

Contract Overview

Contract Amount: $8,302,402 ($8.3M)

Contractor: Department of State Health Services

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: TX ENUMERATION AT BIRTH (EAB). TEXAS ELECTRONIC BIRTH RECORDS FOR THE PURPOSE OF OBTAINING SOCIAL SECURITY NUMBER (SSN) AT BIRTH.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78756

State: Texas Government Spending

Plain-Language Summary

Social Security Administration obligated $8.3 million to DEPARTMENT OF STATE HEALTH SERVICES for work described as: TX ENUMERATION AT BIRTH (EAB). TEXAS ELECTRONIC BIRTH RECORDS FOR THE PURPOSE OF OBTAINING SOCIAL SECURITY NUMBER (SSN) AT BIRTH. Key points: 1. Contract focuses on digitizing birth records to streamline Social Security Number issuance at birth. 2. Sole-source award indicates potential lack of market competition or specific vendor capabilities. 3. Long duration of 5 years suggests a significant, ongoing need for these services. 4. The contract's value is moderate within the context of large-scale data processing and IT services. 5. Performance is tied to the critical function of birth registration and SSN assignment.

Value Assessment

Rating: fair

The contract's value of $8.3 million over five years for digitizing birth records appears reasonable for a sole-source award, given the specialized nature of the service. Benchmarking against similar state-level health data digitization projects is difficult without more specific service details. However, the cost per year is approximately $1.66 million, which is within a typical range for IT infrastructure and data processing services of this scale. The lack of competition, however, limits the ability to definitively assess optimal value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities, proprietary technology, or when there is an urgent need that cannot be met through a competitive process. The lack of competition means that pricing and service levels were not tested against market alternatives, potentially leading to higher costs or less innovation than might be achieved through open bidding.

Taxpayer Impact: For taxpayers, a sole-source award means that the government did not leverage competitive pressures to secure the best possible price or terms. This can result in a higher expenditure than might otherwise be the case, although it may be justified if the vendor's unique qualifications are essential for the program's success.

Public Impact

Citizens of Texas benefit from a streamlined process for obtaining Social Security Numbers for newborns. The Department of State Health Services facilitates accurate and timely birth record management. The Social Security Administration receives digitized records essential for its operations. This contract supports the foundational administrative process of identity and benefit eligibility for new citizens.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential for cost savings.
Long contract duration may reduce flexibility to adapt to new technologies or changing needs.
Dependence on a single vendor for critical birth record data poses a risk if the vendor fails.

Positive Signals

Supports a critical government function (SSN issuance) by ensuring access to vital records.
Digitization of records improves efficiency and accessibility compared to paper-based systems.
The contract is with a state agency (Department of State Health Services), suggesting a direct relationship for essential services.

Sector Analysis

This contract falls within the IT and Data Processing sector, specifically focusing on data management and digitization for government services. The market for such services includes a wide range of companies specializing in cloud hosting, data warehousing, and digital transformation. While specific benchmarks for state-level birth record digitization are scarce, comparable IT service contracts for government agencies can range from hundreds of thousands to millions of dollars annually, depending on scope and complexity. This contract's value aligns with moderate-sized IT service agreements.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded on a sole-source basis to the Department of State Health Services. There is no explicit information regarding subcontracting opportunities for small businesses within this award. The focus is on a direct service provision between state and federal agencies.

Oversight & Accountability

Oversight for this contract would primarily reside with the Social Security Administration, as the end-user agency, and potentially the Department of State Health Services, as the performing agency. Given it's a purchase order between agencies, formal oversight mechanisms like Inspector General reviews might be less direct than for a contract with a private vendor. Transparency is limited by the sole-source nature, but the public interest in accurate birth records and SSN issuance provides a degree of inherent accountability.

Related Government Programs

Vital Records Modernization
Social Security Number Issuance Systems
State Health Information Exchange
Digital Government Services

Risk Flags

Sole-source award
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $8.3 million to DEPARTMENT OF STATE HEALTH SERVICES. TX ENUMERATION AT BIRTH (EAB). TEXAS 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 DEPARTMENT OF STATE HEALTH SERVICES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.3 million.

What is the period of performance?

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

What is the specific technology or process used by the Department of State Health Services to digitize birth records?

The provided data does not specify the exact technology or process used by the Texas Department of State Health Services for digitizing birth records. Typically, such processes involve high-speed scanners, optical character recognition (OCR) software, data validation algorithms, and secure digital storage solutions. The goal is to convert paper or microfilm birth certificates into searchable electronic formats. The effectiveness and efficiency of this digitization are crucial for the Social Security Administration's ability to process SSN applications promptly. Further details would likely be found in internal documentation or service level agreements between the agencies.

How does the cost of this contract compare to similar state-level birth record digitization initiatives?

Direct cost comparisons for state-level birth record digitization are challenging due to variations in contract scope, existing infrastructure, volume of records, and the specific services included (e.g., data entry, indexing, archival). This $8.3 million contract over five years for Texas, a large state, suggests an annual cost of approximately $1.66 million. Without detailed service level agreements or public procurements for similar states, it's difficult to benchmark precisely. However, large-scale data digitization and management projects for government entities often represent significant investments, and this figure appears within a plausible range for such a critical, long-term undertaking.

What are the risks associated with a sole-source award for critical data processing services?

Sole-source awards for critical data processing services carry several risks. Firstly, the absence of competition can lead to inflated prices, as the government cannot leverage market forces to negotiate the best value. Secondly, it limits the government's ability to explore innovative solutions or alternative technologies that other vendors might offer. Thirdly, there's an increased dependency on the single awarded vendor; any disruption in their service, financial instability, or security breach could have severe consequences for the government's operations. Finally, it can create a perception of unfairness or lack of transparency in the procurement process.

What is the historical spending pattern for birth record digitization or related services by the Social Security Administration?

The provided data focuses on a single contract awarded in 2019. It does not offer historical spending patterns for the Social Security Administration (SSA) regarding birth record digitization or similar IT services. SSA's primary function is processing applications for SSNs, retirement, disability, and survivor benefits. While they rely on data from various sources, including state vital records, their direct spending on digitization services for these records might be limited or managed through interagency agreements like this one. Comprehensive historical spending analysis would require access to SSA's broader procurement data over multiple fiscal years.

What are the implications of this contract for the accuracy and timeliness of Social Security Number issuance?

This contract is directly aimed at improving the accuracy and timeliness of Social Security Number (SSN) issuance at birth. By digitizing Texas birth records, the Department of State Health Services provides the Social Security Administration with readily accessible, electronic data. This digitization eliminates the delays associated with manual processing of paper records and reduces the potential for errors introduced during manual data entry. Faster access to verified birth information allows the SSA to process SSN applications more efficiently, ensuring that newborns can receive their essential identification documents sooner, which is critical for accessing various services and benefits.

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: 1100 W 49TH ST, AUSTIN, TX, 78756

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

Financial Breakdown

Contract Ceiling: $8,302,402

Exercised Options: $8,302,402

Current Obligation: $8,302,402

Actual Outlays: $7,652,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline