SSA's $7M contract for wage verification services awarded to Equifax Workforce Solutions for Option Period 3

Contract Overview

Contract Amount: $6,993,424 ($7.0M)

Contractor: Equifax Workforce Solutions LLC

Awarding Agency: Social Security Administration

Start Date: 2025-08-15

End Date: 2025-09-11

Contract Duration: 27 days

Daily Burn Rate: $259.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO FUND OPTION PERIOD 3 FOR BPA CALL AGAINST SET UP 28321322A0004007 FOR THE ONLINE WAGE VERIFICATION SERVICES.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Social Security Administration obligated $7.0 million to EQUIFAX WORKFORCE SOLUTIONS LLC for work described as: TO FUND OPTION PERIOD 3 FOR BPA CALL AGAINST SET UP 28321322A0004007 FOR THE ONLINE WAGE VERIFICATION SERVICES. Key points: 1. Contract provides essential wage verification services, supporting SSA's mission. 2. Awarded to a single vendor, Equifax Workforce Solutions, for a defined period. 3. The contract's value is relatively modest within the context of federal IT services. 4. Fixed-price contract type suggests cost certainty for the government. 5. Option period structure allows for continued service delivery without a new competition. 6. The duration of the option period is short, indicating a potential for re-evaluation. 7. No small business set-aside was utilized for this specific award.

Value Assessment

Rating: good

The contract value of approximately $7 million for a 27-day period appears reasonable for specialized online wage verification services. Benchmarking against similar contracts is challenging due to the specific nature of the service and the short duration. However, the fixed-price contract type provides cost predictability. The award to Equifax, a known entity in this space, suggests a level of confidence in their ability to deliver.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was initiated. This approach is generally favored to ensure the government receives the best value.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

Benefits the Social Security Administration by providing critical data for its programs. Services delivered include online wage verification, crucial for benefit eligibility and fraud prevention. Geographic impact is national, as SSA operates nationwide. Workforce implications are minimal for the government, as the service is outsourced.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor for a critical service could pose a risk if the vendor experiences performance issues or decides not to continue.
The short duration of the option period might indicate a need for reassessment of the service or vendor, potentially leading to future contract changes or competitions.

Positive Signals

Awarded under full and open competition, suggesting a competitive process was utilized.
Fixed-price contract type provides cost certainty.
The vendor, Equifax Workforce Solutions, is an established provider in this market.

Sector Analysis

The North American Industry Classification System (NAICS) code 561611, Investigation and Personal Background Check Services, falls within the broader professional, scientific, and technical services sector. This sector is characterized by a high degree of specialization and innovation. The market for wage verification services is driven by the need for accurate and timely data for various government and private sector applications, including employment screening, background checks, and benefit administration. Spending in this area is often consistent, reflecting ongoing operational needs.

Small Business Impact

This contract was not awarded as a small business set-aside. There is no information provided regarding subcontracting plans. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract were not prioritized through this mechanism.

Oversight & Accountability

Oversight for this contract would typically fall under the Social Security Administration's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through federal procurement databases, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

Social Security Administration IT Services
Federal Background Check Services
Wage and Income Verification Programs

Risk Flags

Potential for vendor lock-in if option periods are consistently exercised without re-competition.
Short contract duration may indicate a need for reassessment or transition planning.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $7.0 million to EQUIFAX WORKFORCE SOLUTIONS LLC. TO FUND OPTION PERIOD 3 FOR BPA CALL AGAINST SET UP 28321322A0004007 FOR THE ONLINE WAGE VERIFICATION SERVICES.

Who is the contractor on this award?

The obligated recipient is EQUIFAX WORKFORCE SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2025-08-15. End: 2025-09-11.

What is the historical spending pattern for online wage verification services by the Social Security Administration?

Historical spending data for this specific contract vehicle (BPA Call against BPA #28321322A0004007) indicates that this is Option Period 3, suggesting prior awards for the same or similar services. The total value of this option period is $6,993,423.94 for a duration of 27 days. To understand the broader historical spending pattern, one would need to examine the value and duration of previous option periods or related contracts for wage verification services awarded by the SSA. Without access to prior award data for this BPA call or other similar contracts, a comprehensive historical spending analysis is not possible. However, the recurring nature of option periods suggests a sustained need and budget allocation for these services over time.

How does the cost per day for this contract compare to industry benchmarks for similar services?

The daily cost for this contract can be estimated by dividing the total award amount by the number of days. $6,993,423.94 / 27 days = approximately $259,015.70 per day. Benchmarking this daily cost against industry standards for online wage verification services is challenging without specific, granular data on comparable contracts or market rates. Factors influencing cost include the volume of verifications, the complexity of data integration, security requirements, and the specific features offered. Given that Equifax Workforce Solutions is a specialized provider, and this is a government contract with associated administrative and compliance overhead, the daily rate may be within a reasonable range for such services. However, a definitive comparison would require access to proprietary market data or a broader analysis of government-wide contracts for similar services.

What are the specific performance metrics and Service Level Agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) for this contract. Typically, contracts for services like online wage verification would include SLAs related to turnaround time for verification requests, accuracy rates, system uptime, and data security. These metrics are crucial for ensuring the Social Security Administration receives timely and reliable data. The effectiveness of the service is measured against these predefined standards. Without the contract's statement of work or performance work statement, a detailed assessment of the SLAs and performance metrics is not possible.

What is Equifax Workforce Solutions' track record with the Social Security Administration and similar government agencies?

Equifax Workforce Solutions is a known entity providing workforce solutions, including wage and employment verification. Their track record with the Social Security Administration (SSA) is indicated by this contract being Option Period 3, suggesting a history of successful service delivery under this or related agreements. Generally, companies like Equifax that secure multi-year or recurring government contracts often have a demonstrated ability to meet federal requirements regarding performance, security, and compliance. A comprehensive assessment would involve reviewing past performance evaluations, any reported issues or disputes, and the duration and scope of their previous work with the SSA and other federal agencies.

Are there any identified risks associated with the sole-source nature of this option period, despite the initial full and open competition?

While the initial award was under full and open competition, this specific option period is being exercised with Equifax Workforce Solutions. If this option period represents a continuation of services without re-competition, the primary risk is the potential for vendor lock-in and reduced leverage in future negotiations. Although the initial competition aimed to secure the best value, extending services with the incumbent vendor without a new competitive process can sometimes lead to higher costs over time if market prices have decreased or better solutions have emerged. The short duration (27 days) might mitigate some of these risks, suggesting a potential for a future re-competition or transition.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1550 PEACHTREE ST NW, ATLANTA, GA, 30309

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,993,424

Exercised Options: $6,993,424

Current Obligation: $6,993,424

Actual Outlays: $6,993,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 28321322A00040007

IDV Type: BPA

Timeline