SSA Spends $108M on Folder Storage Support Services via Sole-Source Contract
Contract Overview
Contract Amount: $107,929,892 ($107.9M)
Contractor: Ahtna Engineering Services, LLC
Awarding Agency: Social Security Administration
Start Date: 2007-08-01
End Date: 2017-09-30
Contract Duration: 3,713 days
Daily Burn Rate: $29.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SSANRC-FOLDER STORAGE SUPPORT SERVICES
Place of Performance
Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056
State: Missouri Government Spending
Plain-Language Summary
Social Security Administration obligated $107.9 million to AHTNA ENGINEERING SERVICES, LLC for work described as: SSANRC-FOLDER STORAGE SUPPORT SERVICES Key points: 1. Significant spending on facilities support services over a decade. 2. Lack of competition raises concerns about potential overpayment. 3. Long contract duration may indicate a need for ongoing services. 4. Firm Fixed Price contract type offers some cost certainty.
Value Assessment
Rating: questionable
The contract value of $108M over 10 years is substantial for facilities support. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on a $108M contract likely resulted in higher costs for taxpayers than a competitively awarded contract would have.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract (10 years) suggests a critical, ongoing need for these services. The specific nature of 'folder storage support' warrants further investigation into its necessity and potential for modernization or alternative solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- High contract value
Positive Signals
- Firm Fixed Price contract type
Sector Analysis
Facilities Support Services (NAICS 561210) encompass a broad range of services for maintaining and operating buildings. Spending in this sector can vary widely based on facility size and complexity. This contract's value is significant for this category.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for not competing the award was sound.
Related Government Programs
- Facilities Support Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Sole-source award
- Lack of competition
- High contract value
- Long contract duration
Tags
facilities-support-services, social-security-administration, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $107.9 million to AHTNA ENGINEERING SERVICES, LLC. SSANRC-FOLDER STORAGE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is AHTNA ENGINEERING SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $107.9 million.
What is the period of performance?
Start: 2007-08-01. End: 2017-09-30.
What was the justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A full analysis would require accessing the contract file to determine the specific justification, such as a critical need, lack of qualified sources, or national security concerns. Without this justification, it's impossible to fully assess the necessity of the sole-source award.
How does the per-unit cost of this contract compare to industry benchmarks for similar facilities support services?
Benchmarking the per-unit cost is challenging without more granular data on the specific services provided (e.g., square footage maintained, number of folders stored, specific support tasks). The total contract value of $108M over 10 years, awarded sole-source, raises a red flag suggesting potential overpayment compared to what might be achieved through competition.
What is the long-term strategy for folder storage support services within the Social Security Administration?
The 10-year duration of this contract suggests a long-term reliance on these services. It would be prudent for the SSA to evaluate if digital transformation or other modern solutions could reduce the need for physical folder storage and associated support, potentially leading to cost savings and improved efficiency in the future.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 560 E 34TH AVE STE 101, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $107,929,892
Exercised Options: $107,929,892
Current Obligation: $107,929,892
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-08-01
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2017-09-18
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