Treasury's OCC awards $2.65M contract for call center services to Magellan Solutions USA Inc

Contract Overview

Contract Amount: $2,651,469 ($2.7M)

Contractor: Magellan Solutions USA Inc.

Awarding Agency: Department of the Treasury

Start Date: 2022-03-28

End Date: 2027-03-31

Contract Duration: 1,829 days

Daily Burn Rate: $1.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OCC OMBUDSMAN CALL CENTER

Place of Performance

Location: PALM COAST, FLAGLER County, FLORIDA, 32164

State: Florida Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.7 million to MAGELLAN SOLUTIONS USA INC. for work described as: OCC OMBUDSMAN CALL CENTER Key points: 1. Contract awarded to Magellan Solutions USA Inc. for telephone answering services. 2. The contract has a total value of $2,651,468.71 and runs until March 2027. 3. The procurement method was 'NOT COMPETED UNDER SAP', raising potential competition concerns. 4. The service falls under the 'Telephone Answering Services' NAICS code (561421).

Value Assessment

Rating: questionable

The contract's value of $2.65M over five years for call center services needs comparison against similar government contracts. Without competitive bidding, it's difficult to ascertain if this pricing represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This method may not have explored the full range of potential vendors, potentially impacting price discovery and overall value for the government.

Taxpayer Impact: The lack of full and open competition could result in taxpayers paying more than necessary for these call center services.

Public Impact

Citizens seeking assistance from the Office of the Comptroller of the Currency may experience service disruptions or lower quality if the chosen vendor is not optimal. The use of limited competition for essential services like call centers can set a precedent for future procurements, potentially reducing overall government efficiency. Transparency in government spending is crucial; limited competition contracts warrant closer scrutiny to ensure accountability and prevent potential misuse of funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector, particularly call center operations, is highly competitive. Government contracts in this area typically undergo rigorous competitive bidding to ensure cost-effectiveness and quality.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis is needed to determine if opportunities were missed.

Oversight & Accountability

The 'NOT COMPETED UNDER SAP' designation suggests that standard competitive procedures were bypassed. Oversight is needed to ensure this decision was justified and that the contract terms are being met effectively.

Related Government Programs

Risk Flags

Tags

telephone-answering-services, department-of-the-treasury, fl, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.7 million to MAGELLAN SOLUTIONS USA INC.. OCC OMBUDSMAN CALL CENTER

Who is the contractor on this award?

The obligated recipient is MAGELLAN SOLUTIONS USA INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2022-03-28. End: 2027-03-31.

What specific justification was provided for not competing this contract under SAP, and how does it align with federal procurement regulations for limited competition?

The provided data states 'NOT COMPETED UNDER SAP,' implying a deviation from standard competitive procedures. Federal regulations allow for limited competition under specific circumstances, such as when only one source can fulfill the requirement or in cases of urgent need. A thorough review of the contract file would be necessary to ascertain the exact justification and its compliance with FAR Part 6.

How does the awarded price of $2.65M compare to industry benchmarks for similar call center services, considering the contract's duration and scope?

Without access to detailed performance metrics and service level agreements, a precise benchmark is difficult. However, for a five-year contract of this value, it's crucial to compare the per-call cost, agent availability, and service quality against publicly available data for similar government and commercial call center contracts to assess value for money.

What mechanisms are in place to ensure the quality and effectiveness of the call center services provided by Magellan Solutions USA Inc. under this contract?

The contract type is 'FIRM FIXED PRICE,' which shifts some risk to the contractor. However, the government should have established performance standards and monitoring processes. Regular performance reviews, customer satisfaction surveys, and adherence to defined service level agreements are key indicators of service quality and effectiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesBusiness Support ServicesTelephone Answering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2527 S HARBOR CITY BLVD, MELBOURNE, FL, 32901

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,661,469

Exercised Options: $2,651,469

Current Obligation: $2,651,469

Actual Outlays: $1,975,678

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2022-03-28

Current End Date: 2027-03-31

Potential End Date: 2027-03-31 00:00:00

Last Modified: 2026-03-27

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