Social Security Administration awards $2.3M contract for verbatim hearing recorder services to StratComm, Inc
Contract Overview
Contract Amount: $2,336,366 ($2.3M)
Contractor: Stratcomm, Inc.
Awarding Agency: Social Security Administration
Start Date: 2025-11-24
End Date: 2026-12-31
Contract Duration: 402 days
Daily Burn Rate: $5.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REGION 5-1 (MICHIGAN AND OHIO) VERBATIM HEARING RECORDER (VHR) SERVICES. PROVIDE DIGITAL RECORDING FOR DISABILITY HEARINGS. TASK ORDER FOR 46,155 HEARINGS.
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44113
State: Ohio Government Spending
Plain-Language Summary
Social Security Administration obligated $2.3 million to STRATCOMM, INC. for work described as: REGION 5-1 (MICHIGAN AND OHIO) VERBATIM HEARING RECORDER (VHR) SERVICES. PROVIDE DIGITAL RECORDING FOR DISABILITY HEARINGS. TASK ORDER FOR 46,155 HEARINGS. Key points: 1. Contract awarded for digital recording services for 46,155 disability hearings. 2. StratComm, Inc. is the sole awardee under a full and open competition after exclusion of sources. 3. The contract is for a firm-fixed-price delivery order with an estimated value of $2,336,366.1. 4. Services are required in Region 5-1, covering Michigan and Ohio, with an estimated duration of 402 days.
Value Assessment
Rating: fair
The contract value of $2.3M for approximately 46,000 hearings suggests a per-hearing cost of around $50. This pricing needs to be benchmarked against similar audio recording services for legal or administrative proceedings to assess its competitiveness.
Cost Per Unit: $50.65 per hearing (estimated)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources.' While this indicates competition occurred, the 'exclusion of sources' phrasing warrants further investigation to understand if specific capabilities or prior performance influenced the selection, potentially limiting the breadth of competition.
Taxpayer Impact: Taxpayer funds are being used to procure essential services for disability hearings, aiming for efficient and accurate record-keeping. The value for money will depend on the quality and reliability of the recording services provided.
Public Impact
Ensures accurate and accessible records for disability hearings, crucial for due process. Supports the Social Security Administration's mission to process disability claims efficiently. Provides a critical service that impacts individuals seeking disability benefits. Digital recording enhances the ability to review and manage hearing evidence.
Waste & Efficiency Indicators
Waste Risk Score: 58 / 10
Warning Flags
- Clarity on 'exclusion of sources' in competition method.
- Potential for vendor lock-in if specialized technology is required.
- Dependence on a single vendor for a critical hearing function.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Clear scope for digital recording of hearings.
- Defined service region and duration.
Sector Analysis
The Social Security Administration procures various support services, including administrative and document management. Spending benchmarks for similar audio/video recording services in government or legal sectors can help assess the reasonableness of this contract's value.
Small Business Impact
The data indicates that small business participation was not a factor in this award, as the 'sb' field is false. Further analysis would be needed to determine if opportunities for small businesses were considered or if the nature of the service inherently favors larger entities.
Oversight & Accountability
The award is a delivery order under a larger contract vehicle. Oversight will involve monitoring StratComm, Inc.'s performance against the terms of the delivery order, ensuring timely and accurate digital recording of hearings, and managing payments according to the firm-fixed-price structure.
Related Government Programs
- Document Preparation Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Potential for limited competition due to 'exclusion of sources'.
- Need to validate per-unit cost against market benchmarks.
- Reliance on a single vendor for a critical function.
- Ensuring data integrity and security of recordings.
- Potential for scope creep or unforeseen technical issues.
Tags
document-preparation-services, social-security-administration, oh, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $2.3 million to STRATCOMM, INC.. REGION 5-1 (MICHIGAN AND OHIO) VERBATIM HEARING RECORDER (VHR) SERVICES. PROVIDE DIGITAL RECORDING FOR DISABILITY HEARINGS. TASK ORDER FOR 46,155 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 $2.3 million.
What is the period of performance?
Start: 2025-11-24. End: 2026-12-31.
What specific criteria led to the exclusion of other sources during the full and open competition, and how did this impact the final pricing?
The exclusion of sources during a full and open competition typically implies that certain pre-qualifications, technical requirements, or specific capabilities were mandated, and only vendors meeting these criteria were considered. This can sometimes limit the number of bidders, potentially affecting price discovery. Understanding these specific criteria is crucial to determine if they were justified and if they led to a competitive price or if they inadvertently restricted the market.
How does the per-unit cost of $50.65 for verbatim hearing recording compare to industry standards for similar services, and what is the risk of overpayment?
A per-unit cost of approximately $50.65 for verbatim hearing recording needs to be benchmarked against comparable services in the legal and administrative sectors. If industry standards are significantly lower, there's a risk of overpayment. Factors like the complexity of the recording technology, required turnaround times, and data storage solutions could justify higher costs, but a thorough comparison is necessary to mitigate financial risk.
What measures are in place to ensure the accuracy, security, and accessibility of the digital recordings provided by StratComm, Inc. to maintain the integrity of disability hearings?
Ensuring the accuracy, security, and accessibility of digital recordings is paramount for the integrity of disability hearings. The contract should specify technical standards for audio quality, data encryption, secure storage, and retrieval protocols. The Social Security Administration's oversight should include regular audits of recording quality, data integrity checks, and confirmation of compliance with privacy and security regulations to prevent data loss or unauthorized access.
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: $2,336,366
Exercised Options: $2,336,366
Current Obligation: $2,336,366
Actual Outlays: $49,861
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 28321323DR0560001
IDV Type: IDC
Timeline
Start Date: 2025-11-24
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-02-18
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