FEMA awards $64.7M IT services contract to TTEC, highlighting need for rapid response capabilities

Contract Overview

Contract Amount: $64,745,954 ($64.7M)

Contractor: Ttec Government Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-11-08

End Date: 2025-10-25

Contract Duration: 351 days

Daily Burn Rate: $184.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OC3 CALL ORDER 15

Place of Performance

Location: GREENWOOD VILLAGE, ARAPAHOE County, COLORADO, 80111

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $64.7 million to TTEC GOVERNMENT SOLUTIONS LLC for work described as: OC3 CALL ORDER 15 Key points: 1. Contract value of $64.7M suggests a significant need for IT support within FEMA. 2. The 'Other Computer Related Services' NAICS code indicates a broad scope of potential IT functions. 3. A full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration of 351 days points to a medium-term need for these services. 5. The award to TTEC Government Solutions LLC indicates a reliance on established IT service providers. 6. The BPA Call award type suggests this is a task order under a larger agreement. 7. The contract's focus on IT services aligns with ongoing modernization efforts in federal agencies.

Value Assessment

Rating: good

The contract value of $64.7M for IT services appears reasonable given the scope and duration. Benchmarking against similar IT support contracts within DHS or FEMA would provide a more precise value-for-money assessment. The 'Other Computer Related Services' category is broad, making direct per-unit cost comparisons challenging without more specific service details. However, the use of a competitive process suggests that pricing was vetted against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the use of this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency likely sought to maximize competition to ensure the best value.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially leading to cost savings and improved service delivery.

Public Impact

The primary beneficiaries are the Department of Homeland Security and specifically the Federal Emergency Management Agency, which will receive enhanced IT support. Services delivered likely include a range of IT support, potentially encompassing help desk, network management, system maintenance, and other computer-related functions. The geographic impact is likely national, supporting FEMA's mission across the United States. Workforce implications may include the direct employment of IT professionals by TTEC Government Solutions LLC and potential indirect benefits to federal IT staff through improved support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of 'Other Computer Related Services' could lead to scope creep or unexpected costs.
The BPA Call award mechanism, while efficient, might limit the ability to negotiate highly specific terms for this particular task order.
Dependence on a single contractor for critical IT functions could pose a risk if performance issues arise.

Positive Signals

The use of full and open competition suggests a robust vetting process for potential contractors.
The contract is awarded to TTEC Government Solutions LLC, a known entity in government IT services, implying a degree of established capability.
The clear end date provides a defined period for service delivery and future re-evaluation.

Sector Analysis

The IT services sector within the federal government is vast, with agencies consistently seeking support for their complex technological infrastructures. This contract falls under the 'Other Computer Related Services' category, which is broad and can encompass a wide array of IT functions. Comparable spending benchmarks for IT support services within federal agencies often run into the tens or hundreds of millions of dollars annually, depending on the agency's size and mission complexity. FEMA's role in disaster response necessitates robust and reliable IT systems, making this contract a critical component of their operational readiness.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is also unclear if subcontracting opportunities will be directed towards small businesses. Without this information, it is difficult to assess the direct impact on the small business ecosystem. However, the primary contractor, TTEC Government Solutions LLC, may have its own subcontracting goals that could involve small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would typically fall under the Department of Homeland Security's Office of Inspector General, which can investigate potential fraud, waste, or abuse.

Related Government Programs

IT Professional Services
IT Operations and Support
Cloud Computing Services
Cybersecurity Services
Network Infrastructure Support

Risk Flags

Scope Ambiguity Risk
Performance Monitoring Challenges
Potential for Cost Overruns
Dependence on Single Vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $64.7 million to TTEC GOVERNMENT SOLUTIONS LLC. OC3 CALL ORDER 15

Who is the contractor on this award?

The obligated recipient is TTEC GOVERNMENT SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $64.7 million.

What is the period of performance?

Start: 2024-11-08. End: 2025-10-25.

What specific IT services are included under the 'Other Computer Related Services' NAICS code for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide range of IT support functions beyond specialized areas like software development or data processing. For this specific contract with FEMA, 'Other Computer Related Services' likely includes, but is not limited to, IT help desk support, network administration and maintenance, system monitoring and troubleshooting, hardware and software installation and configuration, and potentially IT asset management. Without the detailed statement of work, the precise mix of services remains unspecified. However, given FEMA's mission, these services are critical for maintaining the operational readiness of their IT infrastructure, especially during emergency response operations.

How does the $64.7M contract value compare to FEMA's historical spending on similar IT services?

To accurately compare the $64.7M contract value to FEMA's historical spending, one would need to analyze past contracts awarded under similar NAICS codes (e.g., 541519) or for comparable IT support services. Federal procurement data, such as that found in the Federal Procurement Data System (FPDS), would be essential for this analysis. If FEMA has previously awarded contracts in the range of $50M-$80M for similar IT support over a similar period, then this award would be considered within historical norms. Conversely, if historical spending has been significantly lower or higher, it would warrant further investigation into the reasons for the deviation, such as changes in agency needs, market conditions, or contract scope.

What are the key performance indicators (KPIs) that will be used to measure TTEC Government Solutions LLC's performance under this contract?

Key Performance Indicators (KPIs) for IT services contracts typically focus on service availability, response times, resolution rates, and customer satisfaction. For this FEMA contract, specific KPIs would be detailed in the Performance Work Statement (PWS) or Statement of Work (SOW). Examples of relevant KPIs could include: average response time for help desk tickets, percentage of critical system outages resolved within a defined Service Level Agreement (SLA), uptime percentage for key IT infrastructure, and user satisfaction survey scores. Adherence to these KPIs would directly impact contractor performance evaluations and potentially influence future contract awards or incentive payments.

What is the potential risk associated with the 'Other Computer Related Services' classification being so broad?

The broad classification of 'Other Computer Related Services' (NAICS 541519) presents several potential risks. Firstly, it can lead to ambiguity in the scope of work, potentially resulting in scope creep where the contractor performs services beyond the initially intended or budgeted scope, leading to cost overruns. Secondly, it makes it more challenging for the government to precisely benchmark pricing and evaluate the value for money, as the specific services being procured are not clearly defined. Thirdly, it could allow for the inclusion of services that might be better suited under more specialized NAICS codes, potentially leading to less competitive bidding if contractors specialize in narrower IT service areas. Clear definition and robust oversight are crucial to mitigate these risks.

Given this is a BPA Call Order, what does this imply about the underlying Basic Ordering Agreement (BOA) or Blanket Purchase Agreement (BPA)?

A BPA Call Order signifies that this contract is a task order issued under a pre-existing Blanket Purchase Agreement (BPA). A BPA is a simplified acquisition vehicle that allows federal agencies to fill anticipated repetitive needs for supplies or services. It establishes pre-negotiated prices, terms, and conditions. Issuing a 'call order' means FEMA is exercising an option under that BPA to procure specific services (in this case, IT support) for a defined period and cost. This implies that TTEC Government Solutions LLC has an existing BPA with FEMA or a related agency, and this call order represents a specific order against that agreement. The underlying BPA likely underwent its own competitive process.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70FBTX25Q00000002

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 6312 S FIDDLERS GREEN CIR STE 100N, GREENWOOD VILLAGE, CO, 80111

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: $64,745,954

Exercised Options: $64,745,954

Current Obligation: $64,745,954

Actual Outlays: $33,981,935

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70FBTX21A00000004

IDV Type: BPA

Timeline