SSA awards $3.69M Microsoft contract for court hearing recording and transcription services

Contract Overview

Contract Amount: $3,691,886 ($3.7M)

Contractor: Microsoft Corporation

Awarding Agency: Social Security Administration

Start Date: 2025-12-16

End Date: 2026-10-05

Contract Duration: 293 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT CONSULTING SERVICES (MCS) FOR COURT HEARING RECORDING AND TRANSCRIPTION USING MICROSOFT TECHNOLOGIES.

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $3.7 million to MICROSOFT CORPORATION for work described as: MICROSOFT CONSULTING SERVICES (MCS) FOR COURT HEARING RECORDING AND TRANSCRIPTION USING MICROSOFT TECHNOLOGIES. Key points: 1. Contract leverages existing Microsoft technologies for court hearing recording and transcription. 2. Sole-source award raises questions about potential cost savings through competition. 3. The contract duration of 293 days suggests a focused, short-term need. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The award is for Computer Systems Design Services, aligning with IT infrastructure needs. 6. No small business set-aside indicates a focus on large prime contractors.

Value Assessment

Rating: fair

The contract value of $3.69 million for less than a year of service appears high for a sole-source award. Benchmarking against similar IT services contracts for recording and transcription is difficult without more detailed service descriptions. However, the reliance on Microsoft technologies might imply integration benefits that offset some of the cost. Further analysis would be needed to determine if this represents good value for money compared to alternative solutions or competitive bids.

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's product or service is uniquely required, or in cases of urgent need. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, the Social Security Administration may not have secured the most cost-effective solution available in the market.

Public Impact

The Social Security Administration benefits directly from enhanced court hearing recording and transcription capabilities. Improved audio and transcription services can lead to more accurate record-keeping and case processing. The contract supports the administration's internal operations and legal proceedings. Workforce implications are minimal as this appears to be a technology service rather than a large labor acquisition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source award.
Reliance on a single vendor may create future lock-in and limit flexibility.
The specific value of the contract may be high for the duration of service provided.

Positive Signals

Utilizes existing Microsoft technologies, potentially streamlining integration and reducing implementation time.
Firm fixed-price contract provides cost certainty for the agency.
Contract is awarded to a well-established technology provider (Microsoft Corporation).

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry. The market for such services is vast, encompassing solutions for data management, software development, and IT consulting. The Social Security Administration's need for specialized recording and transcription services using Microsoft technologies is a niche within this broader sector. Comparable spending benchmarks are difficult to establish without more specific details on the scope of services, but IT services represent a substantial portion of federal IT spending.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Microsoft Corporation, will be performing the majority of the work. The absence of small business participation in this specific award means no direct benefit to the small business ecosystem through this particular contract.

Oversight & Accountability

Oversight for this contract will likely fall under the Social Security Administration's internal procurement and program management offices. As a sole-source award, the justification and necessity of the services will be subject to internal review. Transparency regarding the specific performance metrics and outcomes will depend on the SSA's reporting practices. There is no explicit mention of an Inspector General's direct involvement in this specific award, but their oversight functions may extend to the program area.

Related Government Programs

Federal IT Services Contracts
Computer Systems Design Services
Audio and Video Recording Services
Transcription Services
Microsoft Technology Contracts

Risk Flags

Sole-source award may result in higher costs.
Lack of competition limits price discovery.
Potential for vendor lock-in with proprietary technology.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $3.7 million to MICROSOFT CORPORATION. MICROSOFT CONSULTING SERVICES (MCS) FOR COURT HEARING RECORDING AND TRANSCRIPTION USING MICROSOFT TECHNOLOGIES.

Who is the contractor on this award?

The obligated recipient is MICROSOFT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2025-12-16. End: 2026-10-05.

What is the specific justification for awarding this contract on a sole-source basis to Microsoft Corporation?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this justification, it is difficult to assess whether this was the most appropriate procurement method. The reliance on 'Microsoft Technologies' suggests a potential need for proprietary integration or specific expertise that only Microsoft can provide, but this would need to be formally documented and validated.

How does the pricing of this contract compare to similar services for court hearing recording and transcription?

Direct comparison of pricing is challenging without detailed service scope and market data for similar sole-source awards. However, the contract value of $3.69 million for a period of approximately 10 months (293 days) suggests a significant investment. Generally, sole-source awards tend to be more expensive than competitively procured contracts due to the lack of price pressure from multiple bidders. To assess value, one would need to benchmark against competitively awarded contracts for similar IT services, considering factors like the volume of hearings, transcription accuracy requirements, and technology platforms used.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

The provided data does not specify the key performance indicators (KPIs) or the methodology for performance measurement. For a contract involving court hearing recording and transcription, typical KPIs might include audio clarity, transcription accuracy rates, turnaround time for transcriptions, system uptime, and user satisfaction. The Social Security Administration would be responsible for monitoring these aspects to ensure the contractor, Microsoft Consulting Services, meets the contract requirements. The firm fixed-price nature of the contract implies that the contractor is responsible for delivering the specified services within the agreed-upon price.

What is the historical spending pattern for court hearing recording and transcription services by the Social Security Administration?

The provided data does not offer historical spending patterns for court hearing recording and transcription services by the Social Security Administration. To understand historical spending, one would need to access historical contract databases and search for similar procurements over previous fiscal years. Analyzing this history would help determine if this $3.69 million award represents an increase, decrease, or consistent level of investment in these services. It would also reveal if previous contracts were competitively awarded or sole-source.

What is the risk associated with relying on Microsoft technologies for such a critical function?

The primary risk associated with relying on Microsoft technologies for court hearing recording and transcription is vendor lock-in. If the SSA becomes heavily dependent on Microsoft's proprietary solutions, switching to alternative vendors in the future could be complex and costly. Other risks include potential security vulnerabilities inherent in any software platform, the possibility of future price increases by Microsoft, and the risk that Microsoft may discontinue or alter the specific services used. However, using a well-established vendor like Microsoft also brings benefits such as extensive support, regular updates, and a wide ecosystem of related services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 MICROSOFT WAY, REDMOND, WA, 98052

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

Financial Breakdown

Contract Ceiling: $3,691,886

Exercised Options: $3,691,886

Current Obligation: $3,691,886

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321324D00060001

IDV Type: IDC

Timeline