State Department awards $158.5M contract for passport information center services to Peckham Vocational Industries

Contract Overview

Contract Amount: $158,523,818 ($158.5M)

Contractor: Peckham Vocational Industries, Inc.

Awarding Agency: Department of State

Start Date: 2024-09-28

End Date: 2025-09-27

Contract Duration: 364 days

Daily Burn Rate: $435.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE STAFF, FACILITIES, TECHNICAL INFRASTRUCTURE, SUPPLIES, AND SUPPORT SERVICES TO PLAN AND OPERATE THE NATIONAL PASSPORT INFORMATION CENTER (NPIC). PERFORMANCE IS IN THE UNITED STATES OF AMERICA UNDER THE ABILITYONE PROGRAM USING SOURCE AMERICA

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $158.5 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: PROVIDE STAFF, FACILITIES, TECHNICAL INFRASTRUCTURE, SUPPLIES, AND SUPPORT SERVICES TO PLAN AND OPERATE THE NATIONAL PASSPORT INFORMATION CENTER (NPIC). PERFORMANCE IS IN THE UNITED STATES OF AMERICA UNDER THE ABILITYONE PROGRAM USING SOURCE AMERICA Key points: 1. Contract leverages the AbilityOne program, aiming to provide employment for individuals with disabilities. 2. The fixed-price contract structure offers cost certainty for the government. 3. Performance is concentrated within the United States, supporting domestic operations. 4. The contract duration is one year, with potential for extensions. 5. The service category is telephone answering services, crucial for passport inquiries. 6. This award represents a significant investment in essential government support functions.

Value Assessment

Rating: good

The contract's value of $158.5 million for a one-year term for national passport information center services appears reasonable given the scope. Benchmarking against similar large-scale call center or information support contracts is challenging without more specific service level agreements and performance metrics. However, the use of the AbilityOne program, which often involves specialized labor, can influence cost structures. The firm-fixed-price nature provides predictability, but detailed cost breakdowns are not publicly available to fully assess profit margins or efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded under the AbilityOne program. The AbilityOne program mandates that federal agencies purchase products and services from non-profit agencies that employ individuals with disabilities. While this ensures a specific social outcome, it bypasses traditional competitive bidding processes, meaning the government does not explore pricing or service options from the broader market.

Taxpayer Impact: Taxpayers benefit from the social mission of the AbilityOne program, which supports employment for individuals with disabilities. However, the lack of competition means there is no direct price comparison to ensure the most cost-effective solution is obtained through market forces.

Public Impact

Citizens seeking information and assistance regarding U.S. passports benefit from the services provided. The National Passport Information Center (NPIC) will maintain its operational capacity. Individuals with disabilities employed through Peckham Vocational Industries and Source America gain valuable employment opportunities. The contract supports domestic jobs within the United States, specifically in the District of Columbia. The Department of State ensures continuity of essential public-facing services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits potential cost savings for taxpayers.
Reliance on a single provider for critical information services could pose a risk if performance falters.
The specific performance metrics and quality assurance mechanisms are not detailed publicly.

Positive Signals

Directly supports the social mission of the AbilityOne program, creating employment for individuals with disabilities.
The firm-fixed-price contract provides budget certainty for the Department of State.
Peckham Vocational Industries has a track record of providing services under federal contracts.

Sector Analysis

The contract falls within the administrative support and call center services sector. This sector is characterized by a high volume of transactions, a need for efficient communication systems, and a focus on customer service. The federal government is a significant consumer of such services, often outsourcing to meet specialized needs or fulfill social mandates like the AbilityOne program. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of passport information and the specific requirements of the AbilityOne program.

Small Business Impact

This contract is awarded under the AbilityOne program, which prioritizes employment for individuals with disabilities through participating non-profit agencies. While Peckham Vocational Industries is the prime contractor, the program's structure inherently involves a social enterprise model rather than traditional small business set-asides. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but the primary focus is on the employment mission of the designated non-profit.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As an AbilityOne contract, there is also oversight from the Committee for Purchase From People Who Are Blind or Severely Disabled and Source America. Transparency is limited by the non-competitive nature of the award, with detailed performance metrics and financial audits not readily available to the public. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

AbilityOne Program Contracts
Federal Call Center Services
Department of State Support Services
Information Services Contracts

Risk Flags

Sole-source award
Lack of public performance metrics
Potential for higher costs due to non-competitive award

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $158.5 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. PROVIDE STAFF, FACILITIES, TECHNICAL INFRASTRUCTURE, SUPPLIES, AND SUPPORT SERVICES TO PLAN AND OPERATE THE NATIONAL PASSPORT INFORMATION CENTER (NPIC). PERFORMANCE IS IN THE UNITED STATES OF AMERICA UNDER THE ABILITYONE PROGRAM USING SOURCE AMERICA

Who is the contractor on this award?

The obligated recipient is PECKHAM VOCATIONAL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $158.5 million.

What is the period of performance?

Start: 2024-09-28. End: 2025-09-27.

What is the historical spending pattern for similar passport information center services by the Department of State?

Historical spending data for similar passport information center services by the Department of State is not readily available in the public domain. Contracts under the AbilityOne program are often awarded through a different mechanism than standard competitive procurements, making direct historical comparisons difficult. However, the scale of this $158.5 million award for a one-year term suggests a significant and ongoing need for these services. Past contracts for similar functions, if they existed and were competitively bid, would likely show variations in cost based on contract scope, duration, and market conditions. The current award's value should be assessed in the context of the specific requirements and the unique sourcing mandated by the AbilityOne program, which prioritizes employment for individuals with disabilities.

How does the cost per unit for this contract compare to industry benchmarks for call center services?

A direct comparison of the cost per unit for this contract to general industry benchmarks for call center services is challenging due to several factors. Firstly, the contract is awarded under the AbilityOne program, which mandates the use of non-profit agencies employing individuals with disabilities. This social mission can influence labor costs and operational structures differently than purely commercial call centers. Secondly, the specific services provided for the National Passport Information Center (NPIC) likely involve specialized knowledge and security protocols related to passport applications and inquiries, which may command different pricing than general customer service. Without detailed breakdowns of service levels, call volumes, and labor mix, a precise per-unit cost benchmark (e.g., cost per call, cost per inquiry handled) against the broader market is not feasible. The firm-fixed-price nature suggests the government has accepted a set price for the defined scope.

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

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) associated with this Department of State contract are not publicly disclosed in the provided data. Typically, for call center and information services contracts, KPIs might include metrics such as average speed of answer, call abandonment rate, first call resolution rate, customer satisfaction scores, and accuracy of information provided. SLAs define the acceptable performance thresholds for these KPIs. Given the critical nature of passport information, it is expected that the Department of State has established rigorous performance standards. However, the details of these standards and how they are monitored and enforced under this AbilityOne contract are not publicly available, limiting a full assessment of service quality and efficiency.

What is Peckham Vocational Industries' track record with similar government contracts, particularly under the AbilityOne program?

Peckham Vocational Industries, Inc. is a recognized participant in the AbilityOne program and has a history of securing and performing federal contracts. As a non-profit agency, its mission is to provide employment for individuals with significant disabilities. Information available suggests they have successfully managed contracts for various services, including administrative support, manufacturing, and logistics, for multiple federal agencies. Their experience under the AbilityOne program specifically indicates a capability to meet the program's unique requirements, which include employing a certain percentage of individuals with disabilities and adhering to program regulations. While specific details on past performance metrics for similar large-scale information services contracts are not detailed here, their continued awards suggest a satisfactory performance history in meeting both government requirements and their social mission objectives.

What are the potential risks associated with a sole-source award for critical government support services?

The primary risk associated with a sole-source award for critical government support services, such as those provided under the AbilityOne program, is the potential lack of price competition. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective pricing available in the market. Another risk is vendor lock-in; the government becomes dependent on a single provider, which could lead to complacency or reduced incentive for innovation and efficiency from the contractor. Furthermore, if the sole-source provider experiences performance issues, financial instability, or operational disruptions, there are limited immediate alternatives for service continuity, potentially impacting essential government functions. Robust oversight and clear performance management are crucial to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3510 CAPITAL CITY BLVD, LANSING, MI, 48906

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $158,523,818

Exercised Options: $158,523,818

Current Obligation: $158,523,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline