North Carolina's Electronic Death Registration System contract awarded for $2.7M, lacks competition
Contract Overview
Contract Amount: $2,717,293 ($2.7M)
Contractor: Dhhs State Public Health LAB
Awarding Agency: Social Security Administration
Start Date: 2023-12-27
End Date: 2026-12-26
Contract Duration: 1,095 days
Daily Burn Rate: $2.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NORTH CAROLINA (NC) - ELECTRONIC DEATH REGISTRATION (EDR)
Place of Performance
Location: RALEIGH, WAKE County, NORTH CAROLINA, 27607
Plain-Language Summary
Social Security Administration obligated $2.7 million to DHHS STATE PUBLIC HEALTH LAB for work described as: NORTH CAROLINA (NC) - ELECTRONIC DEATH REGISTRATION (EDR) Key points: 1. Contract value of $2.7M over 3 years. 2. No competition reported for this award. 3. Potential risk due to sole-source nature. 4. IT services sector, specifically data processing and hosting.
Value Assessment
Rating: questionable
The contract value of $2.7M for a 3-year period for EDR services appears high given the lack of competitive bidding. Benchmarking against similar state-level public health IT systems is difficult without more data, but the absence of competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded as a sole-source purchase order. This limits price discovery and may not yield the best value for taxpayers.
Taxpayer Impact: The lack of competition for this $2.7M contract means taxpayers may not be receiving the most cost-effective solution for the Electronic Death Registration System.
Public Impact
Impacts the accuracy and efficiency of death record keeping in North Carolina. Potential for outdated technology or services due to lack of competitive pressure. State residents rely on this system for vital statistics and public health tracking.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Essential public health service
- Firm fixed price contract
Sector Analysis
This contract falls within the IT sector, specifically data processing and web hosting, for a public health application. Spending benchmarks for similar state-level vital records systems are not readily available, but IT infrastructure for government services often sees significant investment.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The award was made via a purchase order, which typically has less stringent oversight than other contract types. The sole-source nature warrants scrutiny to ensure the state received fair value.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency in procurement
Tags
computing-infrastructure-providers-data-, social-security-administration, nc, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $2.7 million to DHHS STATE PUBLIC HEALTH LAB. NORTH CAROLINA (NC) - ELECTRONIC DEATH REGISTRATION (EDR)
Who is the contractor on this award?
The obligated recipient is DHHS STATE PUBLIC HEALTH LAB.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2023-12-27. End: 2026-12-26.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award is critical for understanding why competition was bypassed. Without a clear and documented rationale, such as a unique capability or urgent need, it raises concerns about the procurement process and potential missed opportunities for cost savings through competitive bidding.
What are the risks associated with a sole-source IT contract for a critical system like EDR?
Sole-source contracts for critical IT systems like the Electronic Death Registration system carry risks of vendor lock-in, higher costs due to lack of competition, and potential stagnation in service quality or technological advancement. Without competitive pressure, the vendor may have less incentive to innovate or offer competitive pricing, potentially impacting long-term system effectiveness and taxpayer value.
How does this contract ensure the effectiveness and reliability of North Carolina's death registration process?
The effectiveness and reliability of this contract depend heavily on the vendor's performance and the terms of the firm fixed-price agreement. While the fixed price provides cost certainty, the lack of competition means oversight must be particularly diligent to ensure the vendor meets all service level agreements and maintains the integrity and availability of the EDR system.
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: 4312 DISTRICT DR, RALEIGH, NC, 27607
Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $4,593,401
Exercised Options: $2,717,293
Current Obligation: $2,717,293
Actual Outlays: $1,693,831
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-12-27
Current End Date: 2026-12-26
Potential End Date: 2028-12-26 00:00:00
Last Modified: 2026-03-06
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