DOT awards $111M contract for customer insurance and registration support services to Senture LLC

Contract Overview

Contract Amount: $111,319,018 ($111.3M)

Contractor: Senture LLC

Awarding Agency: Department of Transportation

Start Date: 2020-02-04

End Date: 2025-08-03

Contract Duration: 2,007 days

Daily Burn Rate: $55.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CUSTOMER INSURANCE AND REGISTRATION INFORMATION SUPPORT (CIRIS)SERVICES CONTRACT

Place of Performance

Location: LONDON, LAUREL County, KENTUCKY, 40741

State: Kentucky Government Spending

Plain-Language Summary

Department of Transportation obligated $111.3 million to SENTURE LLC for work described as: CUSTOMER INSURANCE AND REGISTRATION INFORMATION SUPPORT (CIRIS)SERVICES CONTRACT Key points: 1. The contract value of $111.3 million over its potential period of performance represents a significant investment in IT support services. 2. Competition dynamics indicate a full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. The contract duration of approximately 5.5 years (from Feb 2020 to Aug 2025) allows for sustained service delivery. 5. The North American Industry Classification System (NAICS) code 541519 for 'Other Computer Related Services' places this contract within a broad IT services category. 6. The award to Senture LLC, a single entity, highlights the concentration of large IT service contracts within specific vendors.

Value Assessment

Rating: good

Benchmarking the value of this contract requires detailed comparison to similar IT support services contracts. However, the firm-fixed-price structure suggests an attempt to control costs. The contract's duration and scope indicate a substantial need for these services by the Federal Motor Carrier Safety Administration (FMCSA). Without specific per-unit cost data or comparison to market rates for similar IT support functions, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a reasonable level of competition for this IT support services requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down prices and encourages innovation from multiple vendors.

Public Impact

The Federal Motor Carrier Safety Administration (FMCSA) benefits from enhanced IT support for its critical customer insurance and registration information systems. This contract ensures the continued operation and maintenance of vital systems that support the regulation and safety of commercial motor vehicles. The services delivered are crucial for maintaining accurate and accessible data related to trucking companies and their insurance compliance. The geographic impact is national, as FMCSA's operations and data management are federal in scope. Workforce implications may include the direct employment of IT professionals by Senture LLC and indirectly support roles within the FMCSA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance degrades.
The broad scope of 'Other Computer Related Services' might obscure specific performance metrics if not clearly defined.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Firm-fixed-price contract type helps manage cost uncertainty for the government.
The contract duration allows for stability and continuity of essential IT services.
The contractor, Senture LLC, has a track record of performing government contracts, suggesting some level of established capability.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer-related services. The market for government IT support is substantial, with agencies increasingly relying on external vendors for specialized expertise. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by federal agencies for similar functions, such as database management, system maintenance, and customer support portals. The Department of Transportation, like many large federal entities, outsources a significant portion of its IT needs to manage complex systems and ensure operational efficiency.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The award to Senture LLC, a single entity, suggests that the primary contractor is likely a larger firm. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though subcontracting opportunities could exist if not explicitly excluded.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation and the Federal Motor Carrier Safety Administration (FMCSA) contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal IT Services Contracts
Department of Transportation IT Modernization
Commercial Motor Vehicle Safety Systems
Government Customer Relationship Management Systems
IT Support Services for Regulatory Agencies

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical IT functions
Scope definition clarity for 'Other Computer Related Services'

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $111.3 million to SENTURE LLC. CUSTOMER INSURANCE AND REGISTRATION INFORMATION SUPPORT (CIRIS)SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is SENTURE LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Motor Carrier Safety Administration).

What is the total obligated amount?

The obligated amount is $111.3 million.

What is the period of performance?

Start: 2020-02-04. End: 2025-08-03.

What is Senture LLC's track record with federal IT contracts, particularly those of similar scope and value?

Senture LLC has a history of performing federal contracts, including IT support and customer service functions. While specific details on past performance for contracts of this exact $111 million scale and duration are not provided in this summary, their engagement with government agencies suggests a baseline capability. Analyzing their past performance reviews, any contract disputes, and the types of services previously rendered would offer a more comprehensive understanding of their reliability and expertise. Government contract databases often contain performance ratings and award histories that can be consulted for a deeper dive into their track record.

How does the awarded price compare to market rates for similar IT support services?

A precise comparison of the awarded price to market rates is difficult without granular data on the specific services rendered and their associated costs. However, the contract's firm-fixed-price nature and the fact that it was awarded under full and open competition with four bidders suggest that the pricing was deemed competitive at the time of award. To conduct a thorough benchmark, one would need to analyze industry reports on IT service costs, consult with subject matter experts, and compare the contract's deliverables against similar services procured by other federal agencies or large commercial entities. The number of bidders can be an indicator of market interest and potential price competitiveness.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

The provided data does not specify the key performance indicators (KPIs) for this contract. Typically, for IT support services, KPIs would include metrics such as system uptime, response times for technical issues, resolution rates, customer satisfaction scores, and adherence to security protocols. Performance monitoring would be conducted by the Federal Motor Carrier Safety Administration (FMCSA) contracting officer's representative (COR) through regular reviews of contractor reports, system performance data, and potentially site visits or user feedback mechanisms. The contract's statement of work (SOW) would detail these specific performance expectations and monitoring procedures.

What is the historical spending pattern for customer insurance and registration information support services at FMCSA?

Historical spending data for customer insurance and registration information support services at the Federal Motor Carrier Safety Administration (FMCSA) is not detailed in the provided information. To ascertain this, one would need to access historical federal procurement databases (like FPDS-NG) and filter for contracts awarded by FMCSA under relevant NAICS codes (e.g., 541519) and service descriptions related to insurance and registration support. Analyzing past awards, their values, durations, and the contractors involved would reveal trends in spending, identify potential increases or decreases in investment, and highlight any shifts in procurement strategies over time.

What are the potential risks associated with relying on a single contractor for these critical IT services?

Relying on a single contractor, Senture LLC, for critical IT services like customer insurance and registration information support presents several potential risks. These include vendor lock-in, where the government becomes overly dependent on the incumbent contractor, potentially limiting future competition and negotiation leverage. There's also the risk of performance degradation if the contractor faces financial difficulties, staffing issues, or a decline in service quality. Furthermore, a single point of failure could arise if the contractor experiences a major operational disruption. Mitigating these risks often involves robust contract management, clear performance expectations, contingency planning, and ensuring adequate competition in future procurement cycles.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 460 INDUSTRIAL BLVD, LONDON, KY, 40741

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $123,524,891

Exercised Options: $111,319,018

Current Obligation: $111,319,018

Actual Outlays: $105,598,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0623R

IDV Type: FSS

Timeline