SSA Abandoned $160 Million+ Next Generation Telephony Project
Apr 23, 2025
FOR IMMEDIATE RELEASE
April 23, 2025
Media Inquiries: [email protected]
SSA’s Project Resulted in Increased Wait
Times, Disconnected Calls, Unanswered Calls, and Customer Dissatisfaction
Key
findings from a Social Security Administration (SSA) Office of the Inspector
General (OIG) Audit Report (02234) revealed SSA’s contract for an updated
telephone system with Verizon Business Network Services, Inc. (Verizon) lacked
sufficient performance-based quality standards and associated incentives. These
deficiencies prevented the Agency from holding Verizon accountable for
resolving issues identified during the contract’s design and implementation
phases.
In
February 2020, SSA signed an Indefinite Delivery Quality contract with Verizon
to support the Next Generation Telephone Project (NGTP) to replace and
modernize the legacy telephone system. NGTP was to be a unified communication
enterprise solution to increase communication capabilities and productivity,
meet growing customer demands, and reduce costs. Verizon’s responsibilities
were to design, implement, test, transition, train, operate, and maintain the
NGTP solution. Verizon was to acquire all necessary hardware, software, and
services. In November 2023, SSA completed transitioning the National 800-Number
Network to the NGTP platform.
SSA’s
telephone services are an essential way for individuals to get assistance with
benefits and other vital services. As the public is becoming more familiar with
modern information technology, SSA determined there was an emerging requirement
to develop a more technological/innovative option to communicating with the
Agency.
While
SSA received some of the agreed-upon contract deliverables from Verizon, they had
concerns with NGTP meeting all SSA requirements/needs throughout the design
phase. SSA struggled to hold Verizon accountable for resolving system- issues before
agreeing to transition to NGTP because the contract lacked robust quality
performance standards for NGTP’s design, build, and implementation.
The
NGTP contract lacked a true performance-based work statement and payment
schedule as detailed in the Federal Acquisition Regulation and SSA’s
Acquisition Handbook. Without adequate requirements tied to incentives and
disincentives, SSA lacked the ability to enforce contract requirements and hold
Verizon accountable for performance deficiencies. According to SSA, the unmet
system requirements hindered its ability to serve the public, resulting in
increased call wait times and disconnected or unanswered calls.
On
August 22, 2024, after only ten months and because of continued issues, SSA
transitioned the National 800-Number Network from NGTP to a different platform.
As of March 2025, SSA had paid over $160 million to Verizon for NGTP platform
deliverables, operations and maintenance, help desk, and other costs. The final
contract option year concluded on March 8, 2025, and SSA did not exercise
additional option years.
The
audit found if SSA included more robust quality standards within the contract,
it could have better enforced compliance. SSA risks having to pay the full cost
for a product it determined did not meet its needs and that it is no longer
using.
The National
Defense Authorization Act for Fiscal Year 2023 (NDAA), Pub. L. 117-263, section
5274, amended the Inspector General Act of 1978 to establish a requirement
when an OIG specifically identifies non-governmental organizations (NGOs) or
business entities (BEs) in an audit, evaluation, inspection, or other non-investigative
reports, the NGOs or BEs must be notified of the report and given 30 days after
publication to review the subject report and provide written, clarifying
information. SSA OIG will post Verizon’s response once provided.
SSA
OIG made two recommendations to improve SSA’s contract procedures in the future.
See the full report here.
Read a PDF press release here.
Read more from the SSA: Read More
