DoD's $14.6M Fixed-Price Labor Contract with SERCO SERVICES INC for Consulting Services
Contract Overview
Contract Amount: $14,637,757 ($14.6M)
Contractor: Serco Services Inc
Awarding Agency: Department of Defense
Start Date: 2010-02-24
End Date: 2013-02-28
Contract Duration: 1,100 days
Daily Burn Rate: $13.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FIXED PRICED LABOR
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $14.6 million to SERCO SERVICES INC for work described as: FIXED PRICED LABOR Key points: 1. Contract awarded to SERCO SERVICES INC for administrative and management consulting. 2. Full and open competition was utilized for this contract. 3. The contract duration was 1100 days, ending in February 2013. 4. No small business participation was noted in this award.
Value Assessment
Rating: fair
The contract was awarded using a Firm Fixed Price (FFP) type, which shifts risk to the contractor. However, without specific performance metrics or a detailed breakdown of labor categories and rates, a precise value assessment is challenging. The total award amount of $14.6M over approximately three years suggests a significant investment in consulting services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation to potential offerors. This method generally promotes competitive pricing and allows the government to select the best value. The specific pricing structure and evaluation criteria used during the competition would determine the extent of price discovery.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment. The final price reflects the outcome of this competitive process.
Public Impact
This contract provided administrative and general management consulting services to the Department of the Army. The significant value of the contract suggests a substantial need for external expertise within the DoD. The fixed-price nature of the contract implies a defined scope of work and expected deliverables.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics for value assessment.
- No indication of small business participation.
- Limited insight into the specific consulting services provided.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type shifts risk to contractor.
Sector Analysis
The contract falls under Administrative Management and General Management Consulting Services (NAICS 541611). Spending in this sector within the Department of Defense can be substantial, often driven by needs for strategic planning, organizational efficiency, and program management support. Benchmarks for similar contracts would require detailed analysis of scope and duration.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). This suggests that the scale or nature of the services required may have favored larger, established contracting firms, or that small business set-aside goals were not met for this specific procurement.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract officers, contracting specialists, and technical points of contact responsible for monitoring performance, ensuring compliance with terms, and managing payments. The firm fixed-price nature implies a focus on deliverable achievement.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed service description.
- No small business participation.
- Limited insight into performance metrics.
- Contract duration is substantial, increasing potential for scope creep if not managed tightly.
Tags
administrative-management-and-general-ma, department-of-defense, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to SERCO SERVICES INC. FIXED PRICED LABOR
Who is the contractor on this award?
The obligated recipient is SERCO SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $14.6 million.
What is the period of performance?
Start: 2010-02-24. End: 2013-02-28.
What was the specific nature of the administrative and general management consulting services provided under this contract, and how did they contribute to the Department of the Army's mission?
The provided data lacks specifics on the consulting services rendered. Typically, such contracts could encompass areas like organizational restructuring, process improvement, strategic planning, human capital management, or IT strategy. The contribution to the Army's mission would depend entirely on the defined objectives and deliverables, which are not detailed here. Further analysis would require access to the contract's statement of work.
Given the $14.6M value and firm fixed-price structure, what were the key performance indicators (KPIs) used to measure the success and value of SERCO SERVICES INC's services?
The data does not specify the KPIs used for this contract. Firm fixed-price contracts often rely on the successful completion of defined milestones or deliverables as primary measures of success. However, effective oversight would also involve qualitative assessments of the contractor's performance, adherence to schedule, and the overall impact of their recommendations or services on the Army's operations. Without the SOW, specific KPIs remain unknown.
How did the pricing structure of this firm fixed-price contract ensure cost-effectiveness and prevent potential overruns, especially considering the 1100-day duration?
The firm fixed-price (FFP) structure inherently aims for cost-effectiveness by obligating the contractor to complete the work within the agreed-upon price, absorbing any cost overruns. For a long-duration contract like this (1100 days), effective price discovery during the initial competition is crucial. This involves thorough market research, detailed cost estimations, and competitive bidding to establish a fair and reasonable price upfront, minimizing the risk of overruns for the government.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91WAW08R0008
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Serco Group PLC (UEI: 298452707)
Address: 12012 SUNSET HILLS ROAD, RESTON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,637,757
Exercised Options: $14,637,757
Current Obligation: $14,637,757
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91WAW08D0014
IDV Type: IDC
Timeline
Start Date: 2010-02-24
Current End Date: 2013-02-28
Potential End Date: 2013-02-28 00:00:00
Last Modified: 2014-10-15
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