DOL's $126M Transition Assistance Program contract awarded to SERCO INC for HR consulting services

Contract Overview

Contract Amount: $126,438,479 ($126.4M)

Contractor: Serco Inc

Awarding Agency: Department of Labor

Start Date: 2019-09-30

End Date: 2025-01-31

Contract Duration: 1,950 days

Daily Burn Rate: $64.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: LABOR HOURS

Sector: Other

Official Description: DOL VETERANS EMPLOYMENT AND TRAINING SERVICE (VETS) - TRANSITION ASSISTANCE PROGRAM (TAP)

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 $126.4 million to SERCO INC for work described as: DOL VETERANS EMPLOYMENT AND TRAINING SERVICE (VETS) - TRANSITION ASSISTANCE PROGRAM (TAP) Key points: 1. The contract's value of $126.4 million over its period of performance suggests a significant investment in veteran employment services. 2. The use of 'Delivery Order' under a broader contract indicates a flexible approach to service acquisition, potentially allowing for adjustments based on evolving needs. 3. The contract's duration of approximately 5.5 years (from Sep 2019 to Jan 2025) allows for sustained program support and evaluation. 4. The 'Human Resources Consulting Services' classification (NAICS 541612) points to a focus on professional services related to workforce development and transition support. 5. The contract was awarded through full and open competition, suggesting a robust process to ensure fair pricing and quality. 6. The absence of small business set-aside flags indicates that the primary award was not specifically targeted towards small businesses, though subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract's total value of $126.4 million for HR consulting services related to veteran transition assistance appears substantial. Benchmarking this against similar large-scale government programs for workforce development or transition services would be necessary for a precise value-for-money assessment. However, the duration of the contract (over 5 years) suggests a commitment to long-term support, which can be cost-effective if it leads to improved veteran outcomes. The pricing structure, likely based on labor hours, needs careful monitoring to ensure efficiency and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically involves a formal solicitation process, evaluation of proposals, and selection of the best value offer. The fact that it was competed openly suggests a competitive environment that should, in theory, drive down prices and improve service quality. The number of bidders (9) is a positive indicator of a healthy competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better service delivery, maximizing the return on public investment.

Public Impact

Veterans transitioning from military service are the primary beneficiaries, receiving support to find civilian employment. The services delivered likely include career counseling, resume writing assistance, job search strategies, and information on educational and training opportunities. The contract's impact is primarily national, supporting veterans across the United States, with a specific mention of the District of Columbia as the place of performance. The contract supports a segment of the workforce development sector, potentially creating or sustaining jobs within the contractor's organization and related service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements are not clearly defined and managed.
Reliance on a single contractor for a critical veteran support program could pose a risk if performance falters.
Ensuring consistent quality of service delivery across all geographic locations and for all transitioning service members.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The substantial contract value indicates a significant commitment to supporting veterans' transition to civilian life.
The long-term nature of the contract allows for sustained program impact and potential for continuous improvement.

Sector Analysis

The Human Resources Consulting Services sector (NAICS 541612) encompasses a broad range of professional services aimed at improving organizational effectiveness, including workforce planning, talent management, and employee relations. Government spending in this area often supports critical functions like personnel management, training, and transition services. This contract fits within the broader landscape of government efforts to support its workforce, particularly transitioning service members, by leveraging specialized expertise to enhance employment outcomes.

Small Business Impact

This contract was not awarded as a small business set-aside, as indicated by 'ss': false and 'sb': false. This means the primary competition was open to all eligible businesses, including large corporations. While there is no direct set-aside for small businesses, the prime contractor, SERCO INC, may engage small businesses for subcontracting opportunities to fulfill specific aspects of the contract. The extent of small business participation will depend on SERCO's subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Mechanisms likely include regular performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Labor would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Labor - Veterans Employment and Training Service (VETS)
Transition Assistance Program (TAP)
Department of Defense - Transition Assistance Programs
Department of Veterans Affairs - Employment Services

Risk Flags

Contract Duration
Single Prime Contractor
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $126.4 million to SERCO INC. DOL VETERANS EMPLOYMENT AND TRAINING SERVICE (VETS) - TRANSITION ASSISTANCE PROGRAM (TAP)

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 $126.4 million.

What is the period of performance?

Start: 2019-09-30. End: 2025-01-31.

What is the historical spending trend for the Transition Assistance Program (TAP) under the Department of Labor?

Analyzing historical spending for the Transition Assistance Program (TAP) under the Department of Labor provides crucial context for the current $126.4 million award to SERCO INC. While specific year-over-year figures for TAP alone are not directly provided in the abbreviated data, understanding the program's budget trajectory is essential. Generally, government investments in veteran transition services fluctuate based on defense spending levels, troop drawdowns, and legislative priorities. A consistent or increasing trend in funding suggests a sustained commitment to supporting service members' civilian careers. Conversely, a declining trend might indicate shifting priorities or a belief that existing programs are sufficient. Without detailed historical data, it's difficult to definitively state if this $126.4 million represents an increase, decrease, or stable level of investment compared to previous years or similar contracts. Further research into DOL's annual budget allocations for VETS and TAP would be necessary to establish these patterns and assess the long-term financial commitment to this critical program.

How does the per-unit cost or cost-effectiveness of SERCO INC's services compare to other government contractors providing similar transition assistance?

Determining the precise per-unit cost or cost-effectiveness of SERCO INC's services under this $126.4 million contract requires detailed performance metrics and cost breakdowns that are not available in the provided data. The contract is for 'Human Resources Consulting Services' under a 'Labor Hours' pricing structure, making direct per-unit comparisons challenging without knowing the specific units of service (e.g., number of veterans counseled, workshops delivered, successful job placements). To benchmark SERCO's value, one would need to compare their cost per veteran served, cost per successful placement, or cost per service hour against similar contracts awarded by the Department of Labor or other agencies like the Department of Defense, which also runs transition assistance programs. Factors such as the scope of services, geographic reach, and the complexity of veteran needs addressed would influence these costs. A comprehensive analysis would involve examining contractor performance reports, pricing structures of comparable contracts, and potentially independent cost-benefit analyses to ascertain if the government is receiving optimal value for its investment.

What are the key performance indicators (KPIs) used to measure the success of this contract and SERCO INC's performance?

The success of this $126.4 million contract for the Transition Assistance Program (TAP) is likely measured through a set of Key Performance Indicators (KPIs) designed to assess the effectiveness of SERCO INC's human resources consulting services in aiding veterans' transition to civilian employment. While specific KPIs are not detailed in the provided data, common metrics for such programs include: the number of veterans participating in the program, the percentage of veterans who secure employment within a specified timeframe (e.g., 6 months post-transition), the average salary of placed veterans, the number of veterans utilizing training or educational resources, and participant satisfaction surveys. Performance might also be evaluated based on the timeliness and quality of counseling sessions, workshops conducted, and the development of personalized career plans. SERCO INC's adherence to contractual obligations, responsiveness to veteran needs, and overall contribution to positive employment outcomes for transitioning service members would be critical components of performance evaluation, likely reviewed through regular reporting and performance assessments by the Department of Labor.

What is SERCO INC's track record with the Department of Labor and other federal agencies for similar HR consulting or workforce development contracts?

SERCO INC has a significant track record of performing contracts with various U.S. federal agencies, including the Department of Labor (DOL). While the provided data focuses on this specific $126.4 million TAP contract, SERCO's broader portfolio often includes services related to human resources, workforce development, and support for government programs. To assess their track record specifically for DOL and similar HR consulting/workforce development contracts, one would typically review contract databases (like FPDS or SAM.gov) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. SERCO's experience often spans areas such as call center operations, IT support, and program management, which can overlap with the skills required for effective transition assistance. A thorough review would aim to identify patterns of successful delivery, adherence to timelines and budgets, and the quality of services rendered on comparable government contracts to gauge their reliability and expertise in this domain.

What are the potential risks associated with a sole contractor (SERCO INC) managing such a large-scale veteran transition program?

While this contract was awarded through full and open competition, SERCO INC is the prime contractor responsible for delivering services under this $126.4 million award. A primary risk associated with relying on a single entity for a large-scale program like veteran transition assistance is the potential for service disruption if the contractor experiences financial difficulties, operational failures, or significant performance issues. This could lead to gaps in support for transitioning service members, potentially impacting their ability to find meaningful employment. Another risk is a lack of innovation or complacency over the contract's long duration, as a sole contractor might face less pressure to continuously improve services compared to a more competitive environment. Furthermore, if SERCO INC's performance falters, the government faces the challenge of potentially needing to re-compete the contract or transition services to another provider, which can be time-consuming and costly, further disrupting support for veterans.

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: 1605DC-19-R-00023

Offers Received: 9

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: $140,131,671

Exercised Options: $132,300,521

Current Obligation: $126,438,479

Actual Outlays: $97,185,754

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $39,603,489

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