DHS awarded $528M for administrative support services, primarily in DC, over 8 years

Contract Overview

Contract Amount: $527,915,229 ($527.9M)

Contractor: Cooperative Personnel Services

Awarding Agency: Department of Homeland Security

Start Date: 2003-10-07

End Date: 2011-04-13

Contract Duration: 2,745 days

Daily Burn Rate: $192.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OTHER ADMINISTRATIVE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $527.9 million to COOPERATIVE PERSONNEL SERVICES for work described as: OTHER ADMINISTRATIVE SUPPORT SERVICES Key points: 1. Contract value represents significant investment in administrative support functions. 2. Long duration suggests a need for sustained, ongoing services. 3. Cost-plus award fee structure incentivizes performance but requires careful oversight. 4. Sole contractor indicates potential for limited competition or specialized capabilities. 5. Focus on administrative management points to core operational support for TSA. 6. Geographic concentration in DC highlights proximity to federal agencies.

Value Assessment

Rating: fair

The total award amount of $527.9 million over approximately 8 years (2003-2011) for administrative support services is substantial. Benchmarking this against similar contracts is challenging without more specific service details. However, the Cost Plus Award Fee (CPAF) structure implies that the final cost could vary based on performance, making direct price comparisons difficult. The contract's duration and value suggest it was a significant undertaking for the Transportation Security Administration (TSA).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the data shows only one award was made, suggesting that while the competition was open, only one offeror met the requirements or was selected. The level of competition at the award stage is not explicitly detailed, but the open nature of the solicitation is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to bid, potentially driving down prices and improving service quality through competitive pressure.

Public Impact

Federal agencies, particularly the TSA, benefit from streamlined administrative and management support. Services delivered likely include personnel support, general management consulting, and administrative operations. Geographic impact is concentrated in the District of Columbia, aligning with federal agency locations. Workforce implications involve personnel employed by the contractor to deliver these administrative services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to vendor lock-in and reduced flexibility.
Cost-plus award fee contracts can lead to cost overruns if not managed tightly.
Concentration of services in DC may not reflect broader national needs or opportunities.

Positive Signals

Full and open competition suggests a robust initial bidding process.
Award fee structure incentivizes contractor performance and quality.
Sustained support over many years indicates a reliable service provider.

Sector Analysis

This contract falls within the administrative and support services sector, a broad category encompassing a wide range of professional and management consulting services. The market for these services is large and competitive, with many firms offering specialized expertise. This specific contract, focused on administrative management, likely supported core operational functions of the Transportation Security Administration (TSA). Comparable spending benchmarks would depend on the precise nature of the administrative tasks performed, but federal agencies consistently spend significant amounts on such support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. Given the large dollar value and long duration, it is possible that larger prime contractors were involved. Further analysis would be needed to determine if small businesses participated as subcontractors or if there were opportunities missed for small business engagement.

Oversight & Accountability

The contract utilized a Cost Plus Award Fee (CPAF) structure, which necessitates robust oversight to ensure costs are reasonable and award fees are justified based on performance metrics. The Department of Homeland Security and the Transportation Security Administration would have internal oversight mechanisms. Transparency would be enhanced through regular reporting requirements and performance reviews. The specific jurisdiction of an Inspector General would depend on the agency's structure and the nature of any potential investigations.

Related Government Programs

Administrative Support Services
Management and Consulting Services
Federal Agency Operational Support
Transportation Security Administration Contracts

Risk Flags

Long contract duration
Cost-plus award fee structure
Sole awardee despite full and open competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $527.9 million to COOPERATIVE PERSONNEL SERVICES. OTHER ADMINISTRATIVE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is COOPERATIVE PERSONNEL SERVICES.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $527.9 million.

What is the period of performance?

Start: 2003-10-07. End: 2011-04-13.

What specific administrative management and general management consulting services were provided under this contract?

While the contract is categorized under NAICS code 541611 (Administrative Management and General Management Consulting Services), the specific deliverables are not detailed in the provided data. Typically, services under this code can include organizational planning, business process improvement, human resource management consulting, and general management support. For the Transportation Security Administration (TSA), these services could have ranged from strategic planning and policy development to operational efficiency improvements and administrative process optimization. The Cost Plus Award Fee structure suggests that performance metrics were established, and the contractor's success in meeting these metrics would have influenced the final award fee.

How did the final awarded cost compare to the initial estimated cost, given the Cost Plus Award Fee structure?

The provided data indicates a total award amount of $527,915,229.03. However, it does not specify the initial estimated cost or the breakdown of base cost versus award fee. Cost Plus Award Fee (CPAF) contracts allow for reimbursement of allowable costs plus an incentive fee that is awarded based on the contractor meeting or exceeding performance targets. Without knowing the initial estimate or the specific performance outcomes, it's impossible to definitively state how the final cost compared to the estimate. However, the substantial award amount suggests significant costs were incurred and performance was likely deemed satisfactory to warrant a considerable fee.

What was the performance history of Cooperate Personnel Services (CO) on this contract?

The data indicates that Cooperate Personnel Services (CO) was the sole awardee for this contract, which ran from October 7, 2003, to April 13, 2011. As a Cost Plus Award Fee (CPAF) contract, performance was a critical component, directly influencing the 'award' portion of the fee. While specific performance ratings or detailed historical performance data are not provided, the fact that the contract was fully executed over its duration and reached its substantial award ceiling suggests that the contractor generally met or exceeded the performance expectations set by the Transportation Security Administration (TSA). Agencies typically have formal processes for evaluating contractor performance on CPAF contracts.

Were there any significant cost overruns or performance issues reported during the contract's lifecycle?

The provided summary data does not contain information regarding specific cost overruns or performance issues. However, the Cost Plus Award Fee (CPAF) structure inherently carries a risk of cost growth if not managed diligently. The total award amount of over $527 million represents the final obligated amount, which could be higher than initial estimates due to allowable costs and earned award fees. Without access to contract performance reports, audit findings, or Inspector General reports related to this specific contract, it is not possible to definitively assess whether significant cost overruns or performance issues occurred. Agencies are generally required to document and address such issues.

How does the per-contractor spending on administrative support services for TSA compare to other federal agencies of similar size?

Directly comparing per-contractor spending on administrative support services for TSA to other federal agencies is complex without a standardized benchmark for 'administrative support services' across government. TSA, as a critical security agency, may have unique administrative needs. The $528 million awarded over 8 years to a single contractor for these services is substantial. To make a meaningful comparison, one would need to identify agencies with comparable operational scopes and administrative support requirements, normalize for agency size and mission complexity, and analyze spending patterns for similar service categories (e.g., management consulting, HR support, general administrative functions). This contract's value suggests a significant reliance on external support for these functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: 241 LATHROP WAY, SACRAMENTO, CA, 90

Business Categories: Category Business, Government, Not Designated a Small Business, U.S. Regional/State Government, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $527,915,229

Exercised Options: $527,915,229

Current Obligation: $527,915,229

Timeline