Michigan's Electronic Death Records system receives $2.7M purchase order from Social Security Administration

Contract Overview

Contract Amount: $2,699,682 ($2.7M)

Contractor: Michigan Department of Health and Human Services

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: MICHIGAN (MI) - ELECTRONIC DEATH RECORDS (EDR).

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48933

State: Michigan Government Spending

Plain-Language Summary

Social Security Administration obligated $2.7 million to MICHIGAN DEPARTMENT OF HEALTH AND HUMAN SERVICES for work described as: MICHIGAN (MI) - ELECTRONIC DEATH RECORDS (EDR). Key points: 1. The contract value of $2.7 million for a 3-year period suggests a significant investment in data infrastructure. 2. The sole-source nature of this award warrants scrutiny regarding potential cost efficiencies and market alternatives. 3. Performance risk appears moderate given the established nature of electronic death record systems. 4. This contract supports critical public health data management, aligning with federal data modernization efforts. 5. The award falls within the IT and data processing sector, a common area for federal procurement.

Value Assessment

Rating: fair

The $2.7 million purchase order for a 3-year duration equates to approximately $900,000 annually. Without comparable contract data for similar state-level electronic death record systems procured by federal agencies, a precise value-for-money assessment is challenging. However, the annual cost appears substantial and warrants comparison to industry benchmarks for data processing and hosting services. The fixed-price nature of the contract provides some cost certainty, but the lack of competition raises questions about whether the government secured the most competitive pricing.

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. The justification for a sole-source award typically involves unique capabilities or circumstances where only one vendor can meet the requirement. The lack of competition limits the government's ability to explore a wider range of solutions and potentially achieve lower prices through a competitive bidding process. This approach may be justified if Michigan's Electronic Death Records system possesses unique, indispensable features or if there are specific intergovernmental or contractual reasons for this direct award.

Taxpayer Impact: Taxpayers may not benefit from the most cost-effective solution due to the absence of competitive bidding. This could result in a higher overall cost for the services provided compared to what might have been achieved in an open market scenario.

Public Impact

The primary beneficiary is the Social Security Administration, which will receive critical data for its operations. The contract supports the maintenance and operation of Michigan's Electronic Death Records system, ensuring data integrity and accessibility. Geographic impact is focused on the state of Michigan, but the data has national implications for federal agencies. The contract ensures the continued availability of vital statistics, impacting public health research and policy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Potential for vendor lock-in due to sole-source award.
Reliance on a single state system for critical federal data.

Positive Signals

Supports a critical public health data infrastructure.
Awarded to a state entity, potentially indicating a stable and established provider.
Fixed-price contract offers budget predictability.

Sector Analysis

This contract falls within the broader Information Technology (IT) and Data Processing sector, specifically focusing on data management and hosting services. The market for such services is vast, with numerous providers ranging from large cloud service providers to specialized data management firms. Federal spending in this area is substantial, driven by the need to modernize legacy systems, enhance data security, and improve data analytics capabilities. Comparable spending benchmarks would typically involve analyzing contracts for similar data hosting, processing, and infrastructure management services provided to federal agencies or large state governments.

Small Business Impact

This contract does not appear to involve small business set-asides, as it is a sole-source award to a state entity. There is no indication of subcontracting opportunities for small businesses within this specific award. The focus is on the direct provision of services by the state of Michigan to the Social Security Administration, rather than leveraging the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Social Security Administration. As a purchase order issued under the authority of the agency, it is subject to internal procurement regulations and oversight. Transparency may be limited due to the sole-source nature, but the contract details and performance should be auditable by the agency's Inspector General if deemed necessary. Accountability rests with the Michigan Department of Health and Human Services to deliver the contracted services effectively.

Related Government Programs

Federal Health IT Spending
State Government Data Modernization Initiatives
Social Security Administration IT Procurement
Electronic Health Records Systems

Risk Flags

Sole-source award
Lack of competition
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $2.7 million to MICHIGAN DEPARTMENT OF HEALTH AND HUMAN SERVICES. MICHIGAN (MI) - ELECTRONIC DEATH RECORDS (EDR).

Who is the contractor on this award?

The obligated recipient is MICHIGAN DEPARTMENT OF HEALTH AND HUMAN SERVICES.

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 track record of the Michigan Department of Health and Human Services in managing and providing electronic death record data to federal agencies?

The Michigan Department of Health and Human Services (MDHHS) is responsible for maintaining the state's vital records, including death records. While specific details of their track record in providing data to the Social Security Administration (SSA) under formal agreements are not publicly detailed in this award notice, MDHHS has a statutory obligation to manage these records. Their experience would likely stem from routine state operations and potentially prior data-sharing agreements. The SSA's decision to award a sole-source contract suggests a level of confidence in MDHHS's capability to fulfill the requirement, possibly based on existing relationships or the unique nature of Michigan's system. Further investigation into MDHHS's past performance metrics and any formal audits or reviews related to data management and sharing would provide a more comprehensive understanding of their track record.

How does the annual cost of $900,000 for this contract compare to similar data processing and hosting services for state-level vital statistics?

Benchmarking the annual cost of $900,000 for Michigan's Electronic Death Records (EDR) system is challenging without specific comparable contract data. Federal contracts for IT infrastructure, data processing, and web hosting can vary widely based on scope, security requirements, and service level agreements. However, for context, large-scale cloud hosting services for government agencies can range from tens of thousands to millions of dollars annually, depending on data volume, processing needs, and uptime guarantees. If this $900,000 primarily covers data hosting, maintenance, and basic processing for a state's death records, it might be within a reasonable range, especially if it includes specialized functionalities or high security. However, without detailed service descriptions and market analysis, it's difficult to definitively assess if this represents excellent, fair, or questionable value for money compared to alternative solutions or other states' systems.

What are the specific risks associated with awarding a sole-source contract for critical data infrastructure like electronic death records?

The primary risk associated with a sole-source award for critical data infrastructure is the potential for inflated costs due to a lack of competition. Without competing bids, the government may not achieve the most favorable pricing or terms. Another significant risk is vendor lock-in, where the government becomes dependent on a single provider, making it difficult and costly to switch vendors in the future, even if performance or pricing becomes unsatisfactory. There's also a risk that the chosen vendor may not be the most innovative or efficient provider available in the market. Furthermore, sole-source awards can sometimes raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or missed opportunities for other qualified vendors.

What is the historical spending pattern of the Social Security Administration on electronic death records or similar data management services?

Analyzing the Social Security Administration's (SSA) historical spending on electronic death records (EDR) or similar data management services requires access to detailed procurement data beyond this single award. Federal agencies like the SSA typically spend significant amounts on IT infrastructure, data processing, and database management to support their core missions. EDR data is crucial for SSA operations, particularly for managing benefits and preventing fraud. It is likely that the SSA has existing contracts or agreements, potentially with various states or data providers, for accessing vital statistics and death information. Understanding the historical spending patterns would involve examining prior contracts for data acquisition, system maintenance, and data analytics related to mortality data, and comparing these expenditures over time and across different contract types (e.g., competitive vs. sole-source).

How does the duration of this contract (3 years) impact the overall value and risk assessment?

The 3-year duration of this contract provides a moderate period for the Social Security Administration (SSA) to utilize the services of the Michigan Department of Health and Human Services (MDHHS) for electronic death records. A longer duration can offer stability and predictability for both parties, potentially leading to better planning and execution. For the SSA, it ensures continuity of critical data access. However, a longer term also increases the financial commitment and the risk of being locked into a contract that may become less cost-effective or technologically outdated over time, especially given the rapid pace of change in IT. The fixed-price nature mitigates some financial risk, but the lack of competition means the value proposition is fixed without the potential for price reductions through re-competition. A 3-year term is a common duration for such services, balancing stability with the opportunity to reassess needs and market conditions.

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: 235 S GRAND AVE, LANSING, MI, 48933

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

Financial Breakdown

Contract Ceiling: $4,584,764

Exercised Options: $2,699,682

Current Obligation: $2,699,682

Actual Outlays: $1,701,475

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline