Treasury's Mint contract for call center services awarded to Novitex Government Solutions for $22.7M

Contract Overview

Contract Amount: $22,719,669 ($22.7M)

Contractor: Novitex Government Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2012-10-01

End Date: 2013-09-30

Contract Duration: 364 days

Daily Burn Rate: $62.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF ORDER FULFILLMENT AND CALL CENTER SERVICES

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $22.7 million to NOVITEX GOVERNMENT SOLUTIONS, LLC for work described as: IGF::CT::IGF ORDER FULFILLMENT AND CALL CENTER SERVICES Key points: 1. The contract value represents a significant investment in essential business support services for the U.S. Mint. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract's duration and fixed-price nature indicate a predictable cost structure. 4. Performance was awarded to a single entity, Novitex Government Solutions, LLC. 5. The North American Industry Classification System (NAICS) code 561499 points to a broad range of business support activities. 6. The contract was awarded under the 'Other Business Support Services' category.

Value Assessment

Rating: fair

Benchmarking the value-for-money for this specific contract is challenging without detailed service level agreements and performance metrics. The total award amount of $22.7 million over one year suggests a substantial operational cost. Comparing it to similar call center contracts across government agencies would require a detailed analysis of scope, volume, and complexity. However, the firm-fixed-price structure provides cost certainty for the government.

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 offers. This typically leads to a more robust selection process and potentially better pricing due to market forces. The record shows 5 bids were received, suggesting a healthy level of interest and competition for this requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality through innovation.

Public Impact

The primary beneficiaries are the U.S. Mint and its stakeholders, who receive essential call center and order fulfillment services. Services delivered include customer support, order processing, and potentially other business support functions. The geographic impact is national, supporting the U.S. Mint's operations across the country. Workforce implications include the creation or maintenance of jobs within Novitex Government Solutions, potentially in Maryland where the contract is managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is not closely monitored.
Reliance on a single vendor for critical customer-facing operations.
Ensuring consistent service quality across all call center interactions.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm-fixed-price contract provides budget certainty.
Multiple bids received suggest market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the broader Business Support Services sector, which encompasses a wide range of activities that enable organizations to operate efficiently. The U.S. Mint's need for call center and order fulfillment services is a common requirement across many government agencies and private sector entities. Comparable spending benchmarks would typically be found by analyzing other government contracts for similar NAICS codes (e.g., 561421 - Telephone Answering Services, 561439 - Other Business Support Services).

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, if Novitex Government Solutions chose to engage them. Without specific subcontracting plans or goals, it's difficult to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Mint's contracting officers and program managers. Accountability measures are embedded within the contract's performance standards and the firm-fixed-price structure, which incentivizes the contractor to meet defined requirements. Transparency is generally facilitated through contract award databases and public reporting, though specific performance data may not always be publicly available.

Related Government Programs

U.S. Mint Operations
Federal Call Center Services
Government Order Fulfillment
Business Support Services Contracts

Risk Flags

Performance Risk: Ensuring consistent service quality and meeting all contractual obligations.
Data Security Risk: Protecting sensitive customer information handled by the call center.
Operational Risk: Potential for service disruptions impacting customer experience and order fulfillment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $22.7 million to NOVITEX GOVERNMENT SOLUTIONS, LLC. IGF::CT::IGF ORDER FULFILLMENT AND CALL CENTER SERVICES

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 $22.7 million.

What is the period of performance?

Start: 2012-10-01. End: 2013-09-30.

What was the specific scope of services provided under this contract?

The contract, identified by the description 'IGF::CT::IGF ORDER FULFILLMENT AND CALL CENTER SERVICES', indicates a dual focus on both order fulfillment and call center operations. This likely encompassed a range of activities such as receiving and processing customer orders for U.S. Mint products (e.g., coins, medals), managing customer inquiries via phone, email, or other channels, providing information about products and services, handling customer complaints, and potentially managing returns or exchanges. The specific details of service level agreements (SLAs), operating hours, and the types of products handled would define the precise scope, but the core functions revolve around customer interaction and transactional processing.

How does the $22.7 million award compare to historical spending on similar services by the U.S. Mint?

To accurately compare the $22.7 million award to historical spending, one would need to examine prior contracts for order fulfillment and call center services awarded by the U.S. Mint. This analysis should account for inflation, changes in the scope of services, and the volume of transactions over time. If previous contracts were significantly lower or higher, it could indicate shifts in operational needs, market pricing, or the contractor's efficiency. Without access to the Mint's historical procurement data for these specific services, a direct comparison is not feasible. However, a single-year award of this magnitude suggests a substantial and ongoing requirement for these support functions.

What were the key performance indicators (KPIs) used to evaluate Novitex Government Solutions' performance?

While the specific KPIs are not detailed in the provided data, typical performance indicators for call center and order fulfillment contracts include metrics such as average call handling time, first call resolution rate, customer satisfaction scores (CSAT), order accuracy rate, on-time delivery rate, and adherence to schedule. For order fulfillment, accuracy in picking, packing, and shipping orders is paramount. For call centers, efficiency in resolving customer issues and maintaining high satisfaction levels are critical. The firm-fixed-price nature of the contract implies that meeting predefined performance standards was a condition of payment.

Were there any specific risks identified during the procurement process for this contract?

The provided data does not explicitly list risks identified during the procurement. However, common risks associated with large-scale call center and order fulfillment contracts include potential disruptions in service delivery, data security breaches related to customer information, failure to meet performance standards, and cost overruns if the fixed-price model is not well-defined. The fact that the contract was awarded through full and open competition with multiple bidders suggests that the government sought to mitigate risks by selecting the offer that best met its requirements and offered the most competitive price. Post-award, ongoing risk management would involve monitoring performance and addressing any emerging issues.

What is the significance of the NAICS code 561499 in understanding the contract's purpose?

The North American Industry Classification System (NAICS) code 561499, 'All Other Business Support Services,' is a broad category that encompasses a variety of services not classified elsewhere. For this contract, it signifies that the U.S. Mint required a comprehensive suite of business support functions that likely extended beyond basic call center operations or simple order processing. This could include services like data entry, document management, customer relationship management support, or other administrative tasks essential for the Mint's operations. The broadness of the code suggests flexibility in the services provided but also necessitates clear definition within the contract's statement of work to ensure alignment with the Mint's specific needs.

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: $22,719,669

Exercised Options: $22,719,669

Current Obligation: $22,719,669

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TMHQ08C0074

IDV Type: IDC

Timeline