VA awards $70.1M contract for call center staffing, with 15 bids received

Contract Overview

Contract Amount: $70,124,878 ($70.1M)

Contractor: Bowen Consulting Group, Inc., the

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-08-03

End Date: 2025-02-05

Contract Duration: 2,013 days

Daily Burn Rate: $34.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CALL CENTER STAFFING SUPPORT

Place of Performance

Location: SHEPHERDSTOWN, JEFFERSON County, WEST VIRGINIA, 25443

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $70.1 million to BOWEN CONSULTING GROUP, INC., THE for work described as: CALL CENTER STAFFING SUPPORT Key points: 1. Contract value of $70.1M over its period of performance suggests significant operational support needs. 2. The award to Bowen Consulting Group, Inc. indicates a focus on established providers for critical services. 3. A high number of bids (15) points to a competitive market for call center staffing. 4. The contract's duration and firm fixed-price nature aim to provide cost predictability. 5. Performance is located in West Virginia, potentially impacting regional employment and economic activity. 6. The use of a definitive contract suggests a need for ongoing, flexible support.

Value Assessment

Rating: good

The contract value of $70.1M for call center staffing over approximately 5.75 years (August 2019 to February 2025) averages to about $12.2M annually. Benchmarking this against similar large-scale call center support contracts for federal agencies is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to control costs. The number of bidders implies a healthy market, which typically leads to more competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had restrictions, the final award was open to all eligible bidders. The receipt of 15 bids is a strong indicator of robust competition within the call center services market. This level of participation suggests that the government received a wide range of offers, increasing the likelihood of securing favorable pricing and service terms.

Taxpayer Impact: A competitive bidding process with 15 offers generally benefits taxpayers by driving down prices and encouraging innovation from contractors seeking to win the award.

Public Impact

Veterans will benefit from improved access to information and services through enhanced call center operations. The contract supports essential communication channels for the Department of Veterans Affairs. Services are primarily delivered in West Virginia, potentially creating local jobs and economic stimulus. The contract ensures continuity of operations for critical VA contact center functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality fluctuations given the scale of operations.
Dependence on a single contractor for critical veteran communication channels.
Geographic concentration in West Virginia may limit broader reach or diverse talent pools.

Positive Signals

High number of bidders indicates a competitive market, likely leading to better value.
Firm fixed-price contract provides cost certainty for the VA.
Long-term contract (over 5 years) allows for stable service delivery and relationship building.

Sector Analysis

The call center and telemarketing services sector is a significant part of the broader business services industry. Federal spending in this area supports various government functions, from citizen inquiries to technical support. This contract fits within the government's ongoing need for efficient communication infrastructure. Comparable spending benchmarks are difficult to establish without knowing the exact scope and service level agreements, but $70.1M over nearly six years represents a substantial investment in maintaining critical contact center operations.

Small Business Impact

This contract was awarded under full and open competition, and there is no explicit indication of a small business set-aside. While the prime contractor is Bowen Consulting Group, Inc., the scale of the contract suggests potential opportunities for small businesses to participate as subcontractors, particularly in specialized support roles or regional service delivery within West Virginia. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms likely include performance monitoring, quality assurance reviews, and regular reporting requirements stipulated in the contract. The firm fixed-price nature provides a degree of financial oversight. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not be publicly accessible.

Related Government Programs

VA Customer Support Services
Federal Contact Center Operations
Outsourced Call Center Services
Veteran Outreach Programs

Risk Flags

Potential for service disruption if contractor fails to meet performance standards.
Reliance on a single contractor for critical communication functions.
Geographic concentration risk in West Virginia.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $70.1 million to BOWEN CONSULTING GROUP, INC., THE. CALL CENTER STAFFING SUPPORT

Who is the contractor on this award?

The obligated recipient is BOWEN CONSULTING GROUP, INC., THE.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $70.1 million.

What is the period of performance?

Start: 2019-08-03. End: 2025-02-05.

What is the historical spending trend for call center staffing support by the Department of Veterans Affairs?

Analyzing historical spending for call center staffing by the VA requires aggregating data across multiple contract vehicles and fiscal years. While this specific $70.1M contract runs from 2019 to 2025, the VA has consistently invested in call center operations to serve veterans. Past spending patterns would likely show a steady demand, with fluctuations based on program expansions, legislative changes affecting veteran benefits, and the adoption of new communication technologies. Without access to a comprehensive historical database filtered for 'call center staffing' or similar NAICS codes (like 561422), a precise trend analysis is difficult. However, the significant value of this single contract suggests that call center support is a substantial and ongoing expenditure for the VA, likely in the tens to hundreds of millions annually when all related contracts are considered.

How does the per-hour cost of this contract compare to industry benchmarks for similar call center services?

Determining the precise per-hour cost requires knowing the total number of labor hours anticipated under the $70.1M contract. If we assume an average annual value of approximately $12.2M and estimate a typical full-time employee cost (including overhead and profit) in the range of $50-$80 per hour for government contracting, this contract could support roughly 30,000 to 47,000 labor hours annually. Industry benchmarks for outsourced call center agents can vary widely based on skill level, location, and service complexity, ranging from $25-$60+ per hour for basic inbound calls to significantly higher rates for specialized support. Given the government context and potential for complex inquiries, the implied hourly rate likely falls within the mid-to-upper end of this range, suggesting a potentially competitive but not necessarily low-cost arrangement.

What are the key performance indicators (KPIs) used to measure the success of this call center staffing contract?

Key Performance Indicators (KPIs) for a contract like this typically focus on service quality, efficiency, and customer satisfaction. Common KPIs would likely include: Average Speed of Answer (ASA), Abandonment Rate (percentage of calls dropped before reaching an agent), First Call Resolution (FCR) rate, Average Handle Time (AHT), Agent Occupancy, and Customer Satisfaction (CSAT) scores derived from post-call surveys. The VA would monitor these metrics closely to ensure that veterans receive timely, accurate, and satisfactory support. Penalties or incentives might be tied to performance against these KPIs, ensuring the contractor meets or exceeds the contracted service levels.

What is the track record of Bowen Consulting Group, Inc. in performing similar federal contracts?

Bowen Consulting Group, Inc. has a history of performing federal contracts, primarily within the Department of Veterans Affairs and other civilian agencies. Their contract portfolio often includes administrative support, IT services, and program management. Publicly available data indicates they have held numerous contracts, some of significant value, related to operational support and staffing. Assessing their specific track record for large-scale call center operations requires a deeper dive into past performance evaluations and contract completion data. However, being awarded a $70.1M contract by the VA suggests they have demonstrated capability and reliability in meeting the agency's requirements, at least to the satisfaction of the contracting officers involved in this procurement.

Are there any specific risks associated with the geographic concentration of this contract in West Virginia?

The primary risk associated with concentrating this call center staffing contract in West Virginia relates to talent acquisition and retention. If the local labor market becomes saturated or experiences high turnover, it could impact service quality and operational continuity. Additionally, reliance on a single geographic location can make the operation more vulnerable to localized disruptions, such as natural disasters or significant economic changes. While it may offer economic benefits to the region, it could also limit the diversity of the workforce and potentially restrict access to a wider talent pool compared to a geographically dispersed model.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10X19R0016

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 CENTER ST STE 103, STAFFORD, VA, 22556

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $70,124,878

Exercised Options: $70,124,878

Current Obligation: $70,124,878

Actual Outlays: $41,444,808

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline