SSA Awards $2.87M for VHR Services in Southwest Region, Covering 56,278 Hearings
Contract Overview
Contract Amount: $2,871,866 ($2.9M)
Contractor: Stratcomm, Inc.
Awarding Agency: Social Security Administration
Start Date: 2026-02-01
End Date: 2027-01-31
Contract Duration: 364 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: VERBATIM HEARING RECORDER (VHR) SERVICES IN THE SOUTHWEST REGION SUB-REGION 6 (DALLAS) WHICH ENCOMPASSES NEW MEXICO, TEXAS, LOUISIANA, ARKANSAS, AND OKLAHOMA. PROVIDE DIGITAL RECORDING FOR DISABILITY HEARINGS. TASK ORDER FOR 56,278 HEARINGS.
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77042
State: Texas Government Spending
Plain-Language Summary
Social Security Administration obligated $2.9 million to STRATCOMM, INC. for work described as: VERBATIM HEARING RECORDER (VHR) SERVICES IN THE SOUTHWEST REGION SUB-REGION 6 (DALLAS) WHICH ENCOMPASSES NEW MEXICO, TEXAS, LOUISIANA, ARKANSAS, AND OKLAHOMA. PROVIDE DIGITAL RECORDING FOR DISABILITY HEARINGS. TASK ORDER FOR 56,278 HEARINGS. Key points: 1. Contract awarded for Verbatim Hearing Recorder (VHR) services in the Southwest Region. 2. Task order covers 56,278 disability hearings. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. Contract type is Firm Fixed Price, with a duration of 364 days. 5. The awardee is STRATCOMM, INC.
Value Assessment
Rating: good
The contract value of $2.87 million for 56,278 hearings suggests a per-hearing cost of approximately $49.30. This appears reasonable when compared to industry benchmarks for similar transcription and recording services.
Cost Per Unit: $49.30
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. While this indicates competition, the specific exclusion details are not provided, which could impact the breadth of price discovery.
Taxpayer Impact: The firm fixed price contract aims to control costs for a defined scope of services, ensuring taxpayer funds are used efficiently for essential disability hearing recordings.
Public Impact
Ensures accurate digital recording of disability hearings for individuals in New Mexico, Texas, Louisiana, Arkansas, and Oklahoma. Supports the Social Security Administration's mission to process disability claims efficiently. Provides essential documentation for legal and administrative review of hearing outcomes. Impacts claimants and legal representatives who rely on accurate record-keeping.
Waste & Efficiency Indicators
Waste Risk Score: 78 / 10
Warning Flags
- Potential for limited competition due to 'exclusion of sources' clause.
- Reliance on a single vendor for a critical service in a large region.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Clear scope of work for 56,278 hearings.
- Awarded to a single vendor for streamlined service delivery.
Sector Analysis
This contract falls within the Document Preparation Services sector (NAICS 561410), specifically for digital recording of legal proceedings. Spending benchmarks for similar services vary, but the price per hearing appears competitive for specialized audio recording.
Small Business Impact
The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the service favors larger contractors.
Oversight & Accountability
The Social Security Administration is the contracting and awarding agency. Oversight would involve monitoring service delivery, quality of recordings, and adherence to the contract terms to ensure accountability.
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'.
- Lack of detail on small business participation.
- Dependence on a single vendor for a critical regional service.
- Need for clear quality assurance metrics for recording accuracy.
Tags
document-preparation-services, social-security-administration, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $2.9 million to STRATCOMM, INC.. VERBATIM HEARING RECORDER (VHR) SERVICES IN THE SOUTHWEST REGION SUB-REGION 6 (DALLAS) WHICH ENCOMPASSES NEW MEXICO, TEXAS, LOUISIANA, ARKANSAS, AND OKLAHOMA. PROVIDE DIGITAL RECORDING FOR DISABILITY HEARINGS. TASK ORDER FOR 56,278 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 $2.9 million.
What is the period of performance?
Start: 2026-02-01. End: 2027-01-31.
What specific sources were excluded, and what was the justification for their exclusion?
The justification for excluding specific sources under the 'Full and Open Competition After Exclusion of Sources' clause is critical for understanding the true level of competition. Without this information, it's difficult to assess if the exclusion limited price discovery or if it was a necessary measure for specialized requirements. Further details are needed to evaluate the impact on taxpayer value.
How will the quality of the digital recordings be monitored to ensure accuracy and usability for appeals?
Ensuring the quality of Verbatim Hearing Recorder (VHR) services is paramount for the integrity of the disability hearing process. The Social Security Administration must have robust quality assurance protocols in place, including regular audits of recordings, clear performance metrics for STRATCOMM, INC., and a defined process for addressing any recording deficiencies or errors to maintain accountability.
Are there plans to assess the long-term cost-effectiveness of this service delivery model compared to alternative recording or transcription methods?
While this contract provides a fixed price for a defined period, evaluating the long-term cost-effectiveness of digital recording services is prudent. The SSA should consider whether this approach remains the most economical and efficient method for documenting hearings over time, especially as technology evolves. Benchmarking against other potential solutions could reveal opportunities for future savings.
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: $2,871,866
Exercised Options: $2,871,866
Current Obligation: $2,871,866
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 28321323DR0660001
IDV Type: IDC
Timeline
Start Date: 2026-02-01
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-02-26
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