Department of Labor awards $44.7M contract to SERCO INC for HR consulting to aid transitioning service members

Contract Overview

Contract Amount: $44,721,169 ($44.7M)

Contractor: Serco Inc

Awarding Agency: Department of Labor

Start Date: 2024-09-25

End Date: 2026-09-24

Contract Duration: 729 days

Daily Burn Rate: $61.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Other

Official Description: TO SUPPORT THE ENHANCEMENT OF THE TAP, VETS REQUIRES A CONTRACTOR TO PROVIDE TRANSITIONING SERVICE MEMBERS AND THEIR SPOUSES ON HOW TO ENRICH THEIR SKILLS, TO SECURE MEANINGFUL AND SUCCESSFUL CAREERS IN THE CIVILIAN LABOR FORCE, RESEARCH AND IDENTIFY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $44.7 million to SERCO INC for work described as: TO SUPPORT THE ENHANCEMENT OF THE TAP, VETS REQUIRES A CONTRACTOR TO PROVIDE TRANSITIONING SERVICE MEMBERS AND THEIR SPOUSES ON HOW TO ENRICH THEIR SKILLS, TO SECURE MEANINGFUL AND SUCCESSFUL CAREERS IN THE CIVILIAN LABOR FORCE, RESEARCH AND IDENTIFY Key points: 1. Contract aims to equip service members and spouses with skills for civilian careers. 2. SERCO INC, a large business, is the awardee. 3. The contract falls under Human Resources Consulting Services. 4. Spending is concentrated in Washington D.C.

Value Assessment

Rating: good

The contract value of $44.7 million over two years appears reasonable for comprehensive HR consulting services. Benchmarking against similar large-scale transition assistance programs would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method is expected to yield competitive pricing.

Taxpayer Impact: Taxpayer funds are being used to enhance career readiness for transitioning service members and their families, potentially leading to increased economic productivity.

Public Impact

Supports military personnel transitioning to civilian life. Aims to improve employment outcomes for veterans and their spouses. Invests in workforce development and career services. Enhances the effectiveness of the Transition Assistance Program (TAP).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in transition assistance services.
Reliance on a single contractor for critical support services.

Positive Signals

Focus on critical veteran employment needs.
Utilizes a competitive award process.
Clear contract duration and defined objectives.

Sector Analysis

This contract falls within the Human Resources Consulting Services sector, which supports organizations in managing their workforce. Spending in this sector is often tied to government initiatives focused on personnel development and transition support.

Small Business Impact

The awardee, SERCO INC, is a large business. There is no indication that small businesses were specifically targeted or subcontracted for this particular award, which could be an area for future consideration.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Standard oversight mechanisms should be in place to ensure performance and proper use of funds.

Related Government Programs

Human Resources Consulting Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for contractor lock-in.
Dependence on contractor's ability to adapt to market changes.
Ensuring equitable access for all transitioning members and spouses.
Measuring the true long-term impact on career success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $44.7 million to SERCO INC. TO SUPPORT THE ENHANCEMENT OF THE TAP, VETS REQUIRES A CONTRACTOR TO PROVIDE TRANSITIONING SERVICE MEMBERS AND THEIR SPOUSES ON HOW TO ENRICH THEIR SKILLS, TO SECURE MEANINGFUL AND SUCCESSFUL CAREERS IN THE CIVILIAN LABOR FORCE, RESEARCH AND IDENTIFY

Who is the contractor on this award?

The obligated recipient is SERCO INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $44.7 million.

What is the period of performance?

Start: 2024-09-25. End: 2026-09-24.

What specific metrics will be used to measure the success of the career enrichment and placement services provided under this contract?

Success metrics should focus on tangible outcomes such as job placement rates, salary levels achieved by transitioning members and spouses, and retention rates in civilian employment. Tracking the number of individuals who utilize the services and their subsequent career progression will be crucial for evaluating the program's effectiveness and the contractor's performance.

How will the Department of Labor ensure that the services provided remain relevant to the evolving civilian labor market throughout the contract period?

Regular performance reviews and feedback mechanisms involving transitioning service members, employers, and industry experts are essential. The contract should include provisions for the contractor to adapt its curriculum and services based on labor market trends and feedback, ensuring the skills taught are in demand.

What is the anticipated long-term impact of this contract on reducing veteran unemployment rates and improving their integration into the civilian workforce?

This contract is expected to contribute to reducing veteran unemployment by providing targeted skill development and career guidance. By fostering successful career transitions, it aims to enhance veterans' long-term earning potential and reduce reliance on public assistance, thereby improving their overall economic integration and societal contribution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605C4-24-Q-00015

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $189,994,822

Exercised Options: $73,181,135

Current Obligation: $44,721,169

Actual Outlays: $35,438,718

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $13,328,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02Q16DCR0066

IDV Type: IDC

Timeline