Social Security Administration awards $2.76M contract for verbatim hearing recorder services in the Northeast

Contract Overview

Contract Amount: $2,764,328 ($2.8M)

Contractor: Stratcomm, Inc.

Awarding Agency: Social Security Administration

Start Date: 2025-11-25

End Date: 2026-12-31

Contract Duration: 401 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NORTHEAST REGION SUB-REGION 2 (NY, NJ, PR, USVI) VERBATIM HEARING RECORDER (VHR) SERVICES. PROVIDE DIGITAL RECORDING FOR DISABILITY HEARINGS. TASK ORDER FOR 48,092 HEARINGS.

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

Social Security Administration obligated $2.8 million to STRATCOMM, INC. for work described as: NORTHEAST REGION SUB-REGION 2 (NY, NJ, PR, USVI) VERBATIM HEARING RECORDER (VHR) SERVICES. PROVIDE DIGITAL RECORDING FOR DISABILITY HEARINGS. TASK ORDER FOR 48,092 HEARINGS. Key points: 1. Contract provides essential digital recording for disability hearings, supporting a critical government function. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps control costs and provides predictability for the agency. 4. The duration of the task order is over a year, indicating a sustained need for these services. 5. The contractor, STRATCOMM, INC., will deliver services across a significant geographic region including New York, New Jersey, Puerto Rico, and the US Virgin Islands. 6. The contract is for a specific number of hearings, allowing for clear performance measurement.

Value Assessment

Rating: good

The contract's fixed-price nature is a positive indicator for cost control. Benchmarking against similar verbatim hearing recorder services is challenging without more granular data on service scope and volume. However, the price per hearing can be estimated. With a total value of $2,764,328.16 for 48,092 hearings, the average cost per hearing is approximately $57.48. This figure should be compared to historical contract data for similar services to assess value for money.

Cost Per Unit: $57.48 per hearing (estimated)

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While the 'exclusion of sources' phrasing might initially raise questions, it typically refers to a process where the agency considered all responsible sources but may have excluded specific types of sources based on pre-defined criteria or prior exclusions. The fact that it's 'full and open' implies a broad solicitation. The number of bidders is not specified, which limits a detailed assessment of competition dynamics. However, the 'full and open' designation generally suggests a robust competitive environment.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

Individuals applying for Social Security disability benefits will benefit from accurate and accessible digital recordings of their hearings. The services ensure that the official record of disability hearings is captured digitally, facilitating appeals and case reviews. The geographic scope covers the Northeast region, including New York, New Jersey, Puerto Rico, and the US Virgin Islands, impacting beneficiaries in these areas. The contract supports the operational capacity of the Social Security Administration to process disability claims efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of competitive intensity.
The 'exclusion of sources' clause requires further clarification to fully understand its implications on competition.
Performance metrics and quality assurance details are not readily available in the provided data.

Positive Signals

The contract is awarded under a 'Full and Open Competition' framework.
The 'Firm Fixed Price' contract type provides cost certainty for the agency.
The task order specifies a defined number of hearings, enabling clear performance tracking.
The contractor is responsible for providing services across a broad geographic area, indicating capacity.

Sector Analysis

The market for document preparation and transcription services, including specialized areas like verbatim hearing recording, is substantial within the professional services sector. This contract falls under the broader category of administrative and support services. The North American Industry Classification System (NAICS) code 561410 (Document Preparation Services) encompasses a wide range of businesses. Spending in this area is driven by the consistent need for accurate record-keeping across various government agencies, particularly those involved in legal, regulatory, and adjudicative processes like the Social Security Administration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, as it was competed broadly and not specifically targeted towards small business participation.

Oversight & Accountability

The Social Security Administration (SSA) is responsible for overseeing this contract. As a task order under a larger contract vehicle, oversight would typically involve contract officers and program managers within the SSA. The 'Firm Fixed Price' nature of the contract provides a degree of cost control. Transparency is facilitated by the public nature of contract awards, though detailed performance reports or specific oversight mechanisms are not detailed here. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Social Security Administration Disability Hearings
Federal Court Reporting Services
Administrative Law Judge Support Services
Document Management Services

Risk Flags

Potential for data integrity issues with digital recordings.
Risk of technological failures impacting service delivery.
Cybersecurity vulnerabilities associated with digital data storage and transmission.
Limited insight into the number of bidders affects competition assessment.
Need for further clarification on 'Exclusion of Sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $2.8 million to STRATCOMM, INC.. NORTHEAST REGION SUB-REGION 2 (NY, NJ, PR, USVI) VERBATIM HEARING RECORDER (VHR) SERVICES. PROVIDE DIGITAL RECORDING FOR DISABILITY HEARINGS. TASK ORDER FOR 48,092 HEARINGS.

Who is the contractor on this award?

The obligated recipient is STRATCOMM, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2025-11-25. End: 2026-12-31.

What is the track record of STRATCOMM, INC. with federal contracts, particularly with the Social Security Administration?

Information regarding STRATCOMM, INC.'s specific track record with federal contracts, especially with the Social Security Administration, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review past performance, contract values, types of services rendered, and any reported issues or awards. Understanding their history with similar services, contract compliance, and client satisfaction would provide crucial context for assessing the reliability and value of this current award. Without this historical data, it's difficult to definitively gauge their performance capabilities beyond the scope of this single award.

How does the estimated cost per hearing ($57.48) compare to similar verbatim hearing recorder contracts?

The estimated cost per hearing of approximately $57.48 is a key metric for value assessment. To benchmark this effectively, it needs to be compared against similar contracts awarded by the Social Security Administration or other federal agencies for verbatim hearing recorder services. Factors influencing cost include geographic location, volume of hearings, specific technology used (e.g., digital vs. stenographic), and turnaround time for transcripts. A thorough comparison would involve analyzing data from contracts with similar scopes of work, durations, and competition levels. If this rate is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing/underbidding.

What are the specific risks associated with relying on digital recording for disability hearings?

The primary risks associated with relying on digital recording for disability hearings revolve around data integrity, accessibility, and technological failures. Risks include potential data corruption, loss of recordings due to hardware or software malfunctions, cybersecurity threats leading to unauthorized access or breaches, and ensuring compatibility with various playback and archival systems. Ensuring the accuracy and completeness of the digital record is paramount, as any deficiencies could impact the fairness of the hearing process and the integrity of appeals. Robust backup procedures, secure storage, and standardized formats are critical mitigation strategies.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring fair pricing and quality?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific agency needs. 'Full and Open' implies that all responsible sources were solicited, which generally promotes competitive pricing and quality. The 'Exclusion of Sources' component suggests that certain types of sources might have been intentionally excluded based on pre-defined criteria (e.g., past performance issues, specific certifications not met). While this can streamline the process by focusing on a qualified pool, it inherently reduces the breadth of competition. The effectiveness in ensuring fair pricing and quality depends heavily on the justification for the exclusions and the rigor of the evaluation process for the remaining bidders. If exclusions are well-justified and the remaining pool is still competitive, it can be effective; otherwise, it risks limiting price discovery.

What is the historical spending trend for verbatim hearing recorder services by the Social Security Administration?

Analyzing historical spending trends for verbatim hearing recorder services by the Social Security Administration is crucial for understanding the scale and consistency of this requirement. This involves examining contract data over several fiscal years to identify patterns in contract values, number of awards, and average costs per hearing. Significant year-over-year increases or decreases could indicate changes in caseloads, policy shifts, or market dynamics. Understanding this trend helps in forecasting future needs and budgeting, and it provides a baseline against which the current $2.76 million award can be assessed for its proportionality within the agency's overall spending on these services.

What are the implications of the contract duration (401 days) on service continuity and potential price fluctuations?

A contract duration of 401 days (approximately 13 months) for verbatim hearing recorder services suggests a stable, ongoing need for these services. This duration provides service continuity for the Social Security Administration, ensuring that disability hearings can be consistently recorded without interruption. From a pricing perspective, a fixed-price contract over this period offers cost certainty to the agency, shielding it from potential market fluctuations in labor or technology costs. For the contractor, it provides a predictable revenue stream. However, a longer duration might also mean missing out on potential cost savings if market rates were to decrease significantly during the contract period, though the fixed-price nature mitigates this risk for the government.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Document Preparation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Stratcomm Inc.

Address: 24 SUPERIOR DR, NATICK, MA, 01760

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,764,328

Exercised Options: $2,764,328

Current Obligation: $2,764,328

Actual Outlays: $153,874

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 28321323DR0260001

IDV Type: IDC

Timeline