Treasury's Mint contract for call center services awarded to Novitex Government Solutions for $23.6M

Contract Overview

Contract Amount: $23,657,233 ($23.7M)

Contractor: Novitex Government Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2011-10-01

End Date: 2012-09-30

Contract Duration: 365 days

Daily Burn Rate: $64.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MONTHLY FIXED FEE FOR FY 2012 (3 MONTHS&3 DAYS @ $25,532.50 / MONTH = $ 79,150.75) COTR: GAIL CRAIG CONTRACT# TM-HQ-08-C-0074 CLIN 101 CALL CENTER MONTHY OPERATING FEE BILLABLE MONTHLY.

Place of Performance

Location: PLAINFIELD, HENDRICKS County, INDIANA, 46168

State: Indiana Government Spending

Plain-Language Summary

Department of the Treasury obligated $23.7 million to NOVITEX GOVERNMENT SOLUTIONS, LLC for work described as: MONTHLY FIXED FEE FOR FY 2012 (3 MONTHS&3 DAYS @ $25,532.50 / MONTH = $ 79,150.75) COTR: GAIL CRAIG CONTRACT# TM-HQ-08-C-0074 CLIN 101 CALL CENTER MONTHY OPERATING FEE BILLABLE MONTHLY. Key points: 1. The contract's value of $23.6 million over its period of performance suggests a significant investment in call center operations. 2. The fixed-price contract type indicates that the contractor bears the risk of cost overruns, potentially leading to greater efficiency. 3. The contract was awarded under full and open competition, implying a competitive bidding process that should have yielded fair market pricing. 4. The duration of the contract (365 days) is relatively short, which may limit long-term strategic planning but allows for frequent re-evaluation of needs. 5. The North American Industry Classification System (NAICS) code 561499 suggests a broad scope for 'All Other Business Support Services,' requiring clear performance metrics. 6. The contract's performance period spans FY 2012, providing a specific timeframe for evaluating service delivery and contractor performance. 7. The presence of a Contracting Officer's Representative (COTR) indicates active government oversight of the contractor's performance.

Value Assessment

Rating: fair

The total award amount of $23.6 million for a one-year call center service contract appears substantial. Without specific performance metrics or service level agreements, it is difficult to benchmark the value for money. The fixed-price nature of the contract is a positive indicator for cost control, as the contractor assumes the risk of cost overruns. However, the absence of detailed cost breakdowns or comparisons to similar contracts makes a definitive assessment of pricing efficiency challenging. The provided data does not offer enough detail to compare against market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process designed to foster price discovery and ensure the government receives competitive pricing. The number of bidders is not specified, but the 'full and open' designation implies that multiple offers were likely received, increasing the likelihood of a competitive outcome. This approach generally leads to better value for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it drives down prices through market forces. It ensures that the government is not overpaying for services and that taxpayer funds are used efficiently by selecting the most cost-effective and capable offeror.

Public Impact

The primary beneficiaries of this contract are the users of the United States Mint's services who require assistance via call centers. The contract delivers essential call center operations, likely including customer inquiries, order processing, and information dissemination. The geographic impact is primarily focused on supporting the United States Mint's operations, with potential for remote work impacting various locations. The workforce implications include the direct employment of individuals by Novitex Government Solutions to staff the call center operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality and efficiency of the call center services provided.
The fixed-price contract, while shifting risk, could incentivize cost-cutting that might impact service quality if not closely monitored.
The broad NAICS code (561499) for 'All Other Business Support Services' may indicate a lack of specificity in the contract's scope, potentially leading to ambiguity.
The short contract duration (1 year) might lead to a focus on short-term service delivery rather than long-term strategic improvements in customer support.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should have resulted in fair pricing.
The fixed-price contract type places cost risk on the contractor, potentially promoting efficiency and cost control.
The presence of a Contracting Officer's Representative (COTR) indicates active government oversight to ensure contract compliance and performance.
The contract is for essential business support services, indicating a clear need and purpose for the expenditure.

Sector Analysis

The contract falls within the Business Support Services sector, specifically call center operations. This sector is characterized by a wide range of providers, from large BPOs to specialized firms. The market size for business support services is substantial, with significant government spending allocated annually. This contract represents a portion of the government's investment in maintaining customer service infrastructure. Comparable spending benchmarks for call center services can vary widely based on complexity, volume, and service level agreements, but a $23.6 million award for a year of operation suggests a significant scale of service.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Novitex Government Solutions, LLC, is likely a large business, and any subcontracting would be at their discretion, not mandated by a small business set-aside. This means opportunities for small businesses would depend on Novitex's procurement practices.

Oversight & Accountability

Oversight for this contract is provided by the Contracting Officer's Representative (COTR), Gail Craig, who is responsible for monitoring performance and ensuring compliance with contract terms. The fixed-price nature of the contract inherently includes accountability for cost management by the contractor. Transparency is facilitated by the contract award data being publicly available. Specific details on Inspector General jurisdiction or additional oversight mechanisms are not provided in the data, but standard government contracting regulations would apply.

Related Government Programs

Federal Call Center Services
Business Support Services Contracts
Department of the Treasury Contracts
United States Mint Procurement
Information Technology Support Services

Risk Flags

Broad NAICS code may obscure specific service details.
Lack of detailed performance metrics in summary data.
Short contract duration may limit long-term strategic value.
No explicit small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $23.7 million to NOVITEX GOVERNMENT SOLUTIONS, LLC. MONTHLY FIXED FEE FOR FY 2012 (3 MONTHS&3 DAYS @ $25,532.50 / MONTH = $ 79,150.75) COTR: GAIL CRAIG CONTRACT# TM-HQ-08-C-0074 CLIN 101 CALL CENTER MONTHY OPERATING FEE BILLABLE MONTHLY.

Who is the contractor on this award?

The obligated recipient is NOVITEX GOVERNMENT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2011-10-01. End: 2012-09-30.

What is the historical spending pattern for call center services by the United States Mint?

Analyzing historical spending patterns for call center services by the United States Mint is crucial for understanding the context of the $23.6 million award to Novitex Government Solutions. Without access to specific historical data for this contract or similar contracts, it's challenging to provide a precise trend. However, federal agencies typically award contracts for call center operations on an annual or multi-year basis. Spending can fluctuate based on agency needs, budget allocations, and the scope of services required. If this $23.6 million represents a significant increase or decrease compared to previous years, it would warrant further investigation into the reasons behind the change, such as expanded services, new initiatives, or cost-saving measures. A review of prior contract awards for similar services would reveal whether this amount is typical, an outlier, or indicative of a growing requirement.

How does the pricing of this contract compare to similar call center service contracts awarded by other federal agencies?

Benchmarking the pricing of this $23.6 million call center contract against similar federal awards requires access to a broader dataset of government contracts. Factors influencing price include the number of agents, hours of operation, complexity of inquiries handled, technology used, and geographic location of service delivery. A contract for basic inbound call handling might be priced lower per hour or per call than one involving complex technical support or multilingual services. Given the 'full and open competition' designation, it suggests the pricing should be competitive. However, without specific details on the service levels and scope, a direct comparison is difficult. If comparable contracts for similar volumes and service complexities exist, analyzing their award values and contract types (e.g., fixed-price vs. cost-plus) would provide valuable insights into whether Novitex Government Solutions' pricing is within the expected market range for federal call center services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a call center services contract, typical KPIs would likely include metrics such as average speed of answer (ASA), first call resolution (FCR) rate, customer satisfaction (CSAT) scores, abandonment rate, and average handle time (AHT). SLAs define the minimum acceptable performance levels for these KPIs. The presence of a Contracting Officer's Representative (COTR) suggests that performance is being monitored against defined standards. The absence of this information in the summary data makes it difficult to fully assess the contractor's performance obligations and the government's expectations regarding service quality and efficiency.

What is Novitex Government Solutions, LLC's track record with federal contracts, particularly in call center operations?

Novitex Government Solutions, LLC's track record with federal contracts is a critical factor in assessing the risk and potential success of this $23.6 million award. Information on their past performance, including previous call center contracts, contract values, agencies served, and any history of performance issues or awards, would provide valuable context. A company with a proven history of successfully delivering similar services under federal contracts would generally be considered a lower risk. Conversely, a lack of relevant experience or a history of performance problems could raise concerns. Further investigation into Novitex's contract history, including any past performance evaluations or contract disputes, would be necessary for a comprehensive risk assessment.

What is the potential impact of this contract on small businesses, considering it was not a small business set-aside?

Since this contract was awarded under 'full and open competition' and is not designated as a small business set-aside, its direct impact on small businesses is limited to potential subcontracting opportunities. The prime contractor, Novitex Government Solutions, LLC, is not mandated to subcontract with small businesses. Therefore, any involvement of small businesses would depend on Novitex's own procurement strategy and their need for specialized services that they cannot provide internally. If Novitex actively seeks to engage small businesses as subcontractors, it could provide valuable contract experience and revenue streams for those firms. However, without specific subcontracting plans or goals outlined in the contract, the direct positive impact on the small business ecosystem is uncertain and relies heavily on the prime contractor's practices.

What specific services are included under the 'All Other Business Support Services' NAICS code for this contract?

The NAICS code 561499, 'All Other Business Support Services,' is a broad category that encompasses a wide range of services not specifically classified elsewhere. For this contract with the United States Mint, it likely includes the core functions of a call center, such as receiving and processing inquiries, providing information, handling customer service issues, and potentially managing inbound or outbound calls related to Mint products or services. However, the generality of the NAICS code means that the specific scope of work, deliverables, and performance standards would be detailed in the contract's Statement of Work (SOW). Without the SOW, it's difficult to ascertain the full extent of services, which could range from basic customer support to more complex tasks like order fulfillment assistance or complaint resolution.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pitney Bowes Inc. (UEI: 001161793)

Address: 4200 PARLIAMENT PL STE 204, LANHAM SEABROOK, MD, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,657,233

Exercised Options: $23,657,233

Current Obligation: $23,657,233

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TMHQ08C0074

IDV Type: IDC

Timeline