SSA's $137M R&D Contract with ABT GLOBAL LLC: Long-Term Engagement Raises Oversight Questions
Contract Overview
Contract Amount: $136,978,818 ($137.0M)
Contractor: ABT Global LLC
Awarding Agency: Social Security Administration
Start Date: 2009-12-07
End Date: 2022-12-31
Contract Duration: 4,772 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IMPLEMENTATION AND EVALUATION
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138
Plain-Language Summary
Social Security Administration obligated $137.0 million to ABT GLOBAL LLC for work described as: IMPLEMENTATION AND EVALUATION Key points: 1. Significant long-term spending of $137M on R&D services. 2. Full and open competition was used, suggesting a competitive bidding process. 3. The contract spans over 13 years, indicating a sustained relationship. 4. Potential for cost overruns with a Cost Plus Fixed Fee (CPFF) structure.
Value Assessment
Rating: questionable
The contract's duration and CPFF structure warrant scrutiny. While competition was full and open, the extended period may obscure true value compared to shorter-term, fixed-price engagements. Benchmarking against similar R&D contracts of shorter duration is difficult due to the long timeframe.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust process to solicit bids. However, the extended duration of over 13 years might have limited the impact of price discovery over time, as market conditions and needs likely evolved significantly.
Taxpayer Impact: Taxpayer funds are committed over a long period for R&D services. The CPFF structure requires careful monitoring to ensure costs remain reasonable and aligned with project objectives.
Public Impact
Long-term commitment of taxpayer funds for research and development. Potential for evolving research needs over a 13+ year contract. The CPFF contract type necessitates diligent oversight to control costs. ABT Global LLC has been the sole awardee for this extensive period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended contract duration
- Cost Plus Fixed Fee structure
- Lack of small business participation
- Limited visibility on R&D effectiveness over time
Positive Signals
- Full and open competition utilized
- Clear agency (SSA) and NAICS code provided
Sector Analysis
This contract falls under Research and Development in the Social Sciences and Humanities (NAICS 541720). Spending in this sector can vary widely, but long-term engagements like this, especially with a CPFF structure, require careful justification and oversight to ensure alignment with evolving agency needs and efficient use of funds.
Small Business Impact
The data indicates that small business participation was not a factor in this contract (ss: false, sb: false). This suggests the contract was not specifically structured to encourage small business involvement, which could be a missed opportunity for economic development.
Oversight & Accountability
The extensive duration of this contract (over 13 years) raises questions about ongoing oversight and accountability. Regular reviews of performance, cost controls, and the continued necessity of the services are crucial to ensure taxpayer funds are used effectively and efficiently.
Related Government Programs
- Research and Development in the Social Sciences and Humanities
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Extended contract duration raises concerns about adaptability and potential for complacency.
- CPFF structure requires diligent oversight to control costs effectively.
- Lack of small business participation noted.
- Potential for scope creep over a long-term engagement.
- Need for clear performance metrics and regular evaluation of R&D outcomes.
- Limited transparency on specific R&D achievements.
Tags
research-and-development-in-the-social-s, social-security-administration, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $137.0 million to ABT GLOBAL LLC. IMPLEMENTATION AND EVALUATION
Who is the contractor on this award?
The obligated recipient is ABT GLOBAL LLC.
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $137.0 million.
What is the period of performance?
Start: 2009-12-07. End: 2022-12-31.
What specific R&D objectives has this contract achieved over its 13-year lifespan, and how has the agency ensured these objectives remained relevant?
The provided data does not detail the specific R&D objectives or achievements. A thorough review would require access to contract performance reports, milestone completions, and agency assessments of the research outcomes. The long duration necessitates periodic re-evaluation of objectives to ensure continued alignment with SSA's strategic goals and evolving research landscape.
How has the Cost Plus Fixed Fee (CPFF) structure been managed to prevent cost overruns and ensure value for money, given the contract's significant value and duration?
Managing a CPFF contract over 13 years requires robust cost tracking, regular audits, and stringent change control processes. The agency must actively monitor ABT Global LLC's expenditures against the fixed fee, ensuring all costs are reasonable, allocable, and allowable. Benchmarking against industry standards for similar R&D efforts, adjusted for inflation and scope, would be essential.
What is the rationale for maintaining such a long-term relationship with a single contractor for R&D services, especially considering the potential for market shifts and technological advancements?
The rationale likely stems from the specialized nature of the R&D required by the Social Security Administration and the deep institutional knowledge ABT Global LLC may have developed. However, agencies should periodically reassess if full and open competition for specific project phases or new research areas could yield better value or introduce innovative approaches from a wider pool of contractors.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Social Sciences and Humanities
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 55 WHEELER ST, CAMBRIDGE, MA, 02138
Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $139,224,662
Exercised Options: $139,224,662
Current Obligation: $136,978,818
Actual Outlays: $10,419,927
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-12-07
Current End Date: 2022-12-31
Potential End Date: 2022-12-31 00:00:00
Last Modified: 2022-11-15
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