Report Summary
Social Security Administration Office of the Inspector General

March 2010

The Social Security Administration’s Contract with Bankers Business Management Services, Inc., Contract Number SS00-08-60085


To determine whether
(1) the contractor was complying with the contract terms and applicable regulations and (2) Social Security Administration (SSA) personnel were properly monitoring the contract.


On May 9, 2008, SSA awarded a fixed-price contract to Bankers Business Management Services, Inc., (BBMS) for mail services.  The BBMS contract was awarded to provide all necessary personnel and supervision (unless otherwise furnished by the Government) to collect, process, and deliver mail at SSA Headquarters, which includes buildings located in SSA’s central complex and approximately 10 outlying buildings for the SSA contract.  The contract period includes 1 base year and 6 option years.  The total cost to the Government for full performance of this contract would be
$9.6 million.

To view the full report, visit

Our Findings

We determined that BBMS was performing all tasks required by the contract and complying with the contract terms and applicable regulations.  We also determined that SSA personnel were properly monitoring the contract.  We observed the timeliness of mail delivery and collection and tested for the accuracy of mail delivery.  We found the mail was delivered and collected timely and accurately, with some instances of misdirected and undelivered mail.   

We did identify areas where improvements could be made.  During our observations of the work activity in the Annex Building mail center, we found disposal of undelivered mail that was considered sensitive waste. We found the BBMS contract makes no mention of how BBMS should dispose of undelivered mail.  Our review of safety and security in the central mailroom found there was no sign to clearly indicate where the fire extinguisher was located, and the BBMS had no training with the device.  We found the delivery door malfunctioned and did not lock.

Our Recommendations

We made three recommendations to the Agency, to (1) modify the contract to include procedures for the disposal of undeliverable mail; (2) install a large, elevated sign to clearly identify the fire extinguisher’s location, and train select BBMS staff on how to use the fire extinguisher; and (3) repair the malfunctioning door lock or determine whether a new door would be a better solution.  SSA agreed with all of our recommendations.