State Department Awards $161.6M Contract to Peckham Vocational Industries for Passport Center Support
Contract Overview
Contract Amount: $161,599,443 ($161.6M)
Contractor: Peckham Vocational Industries, Inc.
Awarding Agency: Department of State
Start Date: 2025-09-28
End Date: 2026-09-27
Contract Duration: 364 days
Daily Burn Rate: $444.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
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
Plain-Language Summary
Department of State obligated $161.6 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 supports critical passport information center operations. 2. Sole-source award under AbilityOne program limits competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on providing essential staff, facilities, and technical infrastructure.
Value Assessment
Rating: fair
The contract value of $161.6 million for a 364-day period appears high for telephone answering services. Benchmarking against similar contracts is difficult without more detailed service descriptions and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract is a sole-source award under the AbilityOne program, which is designed to provide employment for individuals with disabilities. While this serves a social good, it inherently limits competition and may not result in the most cost-effective pricing for the government.
Taxpayer Impact: Taxpayer funds are used to procure essential services, with the pricing influenced by the social objectives of the AbilityOne program rather than pure market competition.
Public Impact
Ensures continued operation of the National Passport Information Center, impacting passport application processing and public inquiries. Supports employment opportunities for individuals with disabilities through the AbilityOne program. Government reliance on a single provider for critical infrastructure and support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Reliance on a sole-source provider for essential services.
- Lack of detailed performance metrics for cost-effectiveness assessment.
Positive Signals
- Supports a valuable social program (AbilityOne).
- Ensures continuity of critical government operations.
- Clear contract duration and defined scope of services.
Sector Analysis
The IT services sector, specifically call center and information support, is competitive. However, this contract falls under the AbilityOne program, which prioritizes employment for individuals with disabilities, influencing the procurement method and potentially the cost benchmarks.
Small Business Impact
The AbilityOne program, under which this contract is awarded, specifically aims to create employment opportunities for individuals with significant disabilities. While Peckham Vocational Industries is a participant, the contract is not directly analyzed for broader small business participation.
Oversight & Accountability
The Department of State is responsible for oversight. The AbilityOne program has its own oversight mechanisms through the Committee for Purchase From People Who Are Blind or Otherwise Disabled. Transparency in performance metrics and cost justification is crucial.
Related Government Programs
- Telephone Answering Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Sole-source award limits competitive pricing.
- High contract value for a single year.
- Potential for cost inefficiencies due to lack of market pressure.
- Dependence on a single provider for critical infrastructure.
Tags
telephone-answering-services, department-of-state, dc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $161.6 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 $161.6 million.
What is the period of performance?
Start: 2025-09-28. End: 2026-09-27.
What is the specific breakdown of services provided and how do they align with the $161.6 million cost?
The contract specifies providing staff, facilities, technical infrastructure, supplies, and support services for the National Passport Information Center. A detailed breakdown of costs allocated to each service category would be necessary to fully assess value. Without this, it's difficult to determine if the pricing is justified based on the scope and complexity of operations.
What are the risks associated with a sole-source award for critical passport information services?
The primary risk is the lack of competitive pressure, potentially leading to higher costs and reduced innovation compared to a competitive procurement. There's also a risk of vendor lock-in and potential service disruptions if the sole provider faces operational challenges. Ensuring robust performance standards and contingency plans is vital.
How effective is the AbilityOne program in ensuring both social impact and cost-effectiveness for government services?
The AbilityOne program effectively achieves its social mission of creating employment for individuals with disabilities. However, its impact on cost-effectiveness can vary. Sole-source awards under the program may not always yield the lowest prices achievable through open competition, presenting a trade-off between social good and fiscal efficiency.
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
Solicitation ID: 19AQMM25R0046
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: $881,739,887
Exercised Options: $161,599,443
Current Obligation: $161,599,443
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-09-28
Current End Date: 2026-09-27
Potential End Date: 2030-09-27 00:00:00
Last Modified: 2025-09-29
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