CPSC awards $3.9M contract to Fedtec LLC for toll-free hotline management and operations

Contract Overview

Contract Amount: $3,939,144 ($3.9M)

Contractor: Fedtec LLC

Awarding Agency: Consumer Product Safety Commission

Start Date: 2021-09-28

End Date: 2026-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EO14042 PERSONNEL, EQUIPMENT, PHONE LINES, TRAINING AND THE FACILITY TO MANAGE AND OPERATE A TOLL-FREE TELEPHONE HOTLINE.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Consumer Product Safety Commission obligated $3.9 million to FEDTEC LLC for work described as: EO14042 PERSONNEL, EQUIPMENT, PHONE LINES, TRAINING AND THE FACILITY TO MANAGE AND OPERATE A TOLL-FREE TELEPHONE HOTLINE. Key points: 1. Contract awarded to Fedtec LLC for essential hotline services. 2. Limited competition due to contract type, potentially impacting price discovery. 3. Risk of overpayment exists given the lack of competitive bidding. 4. Services fall under 'All Other Support Services' sector.

Value Assessment

Rating: fair

The contract value of $3.9M over 5 years for hotline services appears reasonable, but without competitive benchmarks, a precise assessment is difficult. Pricing for similar support services can vary widely based on scope and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This lack of competition may have prevented the government from obtaining the best possible price through a competitive bidding process.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down costs.

Public Impact

Ensures continued public access to CPSC information and support. Supports consumer safety by providing a channel for inquiries and reporting. Maintains operational continuity for a critical public service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing

Positive Signals

Essential public service provision
Dedicated vendor for continuity

Sector Analysis

This contract falls under 'All Other Support Services,' a broad category. Benchmarks for similar hotline management contracts are not readily available, making direct comparison challenging. The value is moderate for a multi-year support service.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The award is a Purchase Order, which typically involves less extensive documentation than larger contract vehicles. Oversight will focus on service delivery and adherence to the firm fixed price terms.

Related Government Programs

All Other Support Services
Consumer Product Safety Commission Contracting
Consumer Product Safety Commission Programs

Risk Flags

Limited competition
Potential for price inefficiency
Lack of small business participation
Absence of detailed cost breakdown

Frequently Asked Questions

What is this federal contract paying for?

Consumer Product Safety Commission awarded $3.9 million to FEDTEC LLC. EO14042 PERSONNEL, EQUIPMENT, PHONE LINES, TRAINING AND THE FACILITY TO MANAGE AND OPERATE A TOLL-FREE TELEPHONE HOTLINE.

Who is the contractor on this award?

The obligated recipient is FEDTEC LLC.

Which agency awarded this contract?

Awarding agency: Consumer Product Safety Commission (Consumer Product Safety Commission).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2021-09-28. End: 2026-09-27.

What is the estimated cost per call or per minute of service, and how does it compare to industry averages?

The provided data does not include per-call or per-minute cost breakdowns. To assess value, a detailed analysis of call volume, average call duration, and staffing levels would be required. Industry averages for similar outsourced call center services can range significantly, making a direct comparison difficult without more granular data on service delivery.

What specific factors justified the 'not available for competition' determination, and were alternatives explored?

The justification for limiting competition is not detailed in the provided data. Typically, such determinations are based on factors like urgent need, unique capabilities of a single source, or specific government-required technical standards. A thorough review of the contract file would be necessary to understand the rationale and confirm that no viable competitive alternatives were overlooked.

How will the effectiveness of the hotline service be measured and evaluated throughout the contract period?

Effectiveness is likely measured through metrics such as call answer rates, average wait times, call resolution rates, and customer satisfaction surveys. The CPSC should have performance standards outlined in the contract. Regular performance reviews and monitoring of these key performance indicators are crucial to ensure the service meets its objectives and provides value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

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

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: 8260 GREENSBORO DR STE 150, MCLEAN, VA, 22102

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,939,144

Exercised Options: $3,939,144

Current Obligation: $3,939,144

Actual Outlays: $3,493,993

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline