TSA's $26.7M contract for contact center services awarded to Kech Inc. amid full and open competition

Contract Overview

Contract Amount: $26,733,134 ($26.7M)

Contractor: Kech Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-15

End Date: 2027-04-14

Contract Duration: 1,460 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TSA CONTACT CENTER (TCC) IS TO PROVIDE A WIDE RANGE OF AUTOMATED AND MANUAL CUSTOMER SUPPORT SERVICES TO RESPOND TO INQUIRIES ABOUT TSA PROGRAMS AND POLICIES.

Place of Performance

Location: WILLIAMSBURG, WHITLEY County, KENTUCKY, 40769

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.7 million to KECH INC for work described as: TSA CONTACT CENTER (TCC) IS TO PROVIDE A WIDE RANGE OF AUTOMATED AND MANUAL CUSTOMER SUPPORT SERVICES TO RESPOND TO INQUIRIES ABOUT TSA PROGRAMS AND POLICIES. Key points: 1. Contract aims to enhance customer support for TSA programs and policies through automated and manual services. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract duration of 1460 days (4 years) indicates a long-term need for consistent customer support. 4. Firm Fixed Price contract type helps mitigate cost overrun risks for the government. 5. The North American Industry Classification System (NAICS) code 561422 points to specialized telemarketing and contact center operations. 6. Geographic location in Kentucky (KY) may offer insights into regional operational costs and labor markets.

Value Assessment

Rating: good

The total contract value of $26.7 million over four years averages to approximately $6.68 million annually. Benchmarking this against similar government contracts for contact center services requires detailed analysis of scope and service levels. However, given the firm fixed-price nature, the government has a predictable cost structure. Without specific per-call or per-interaction cost data, a precise value-for-money assessment is challenging, but the competitive award process suggests a reasonable market price was likely achieved.

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 presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and services to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive award process as it typically drives down costs and ensures the government receives the best value for its investment in essential services like customer support.

Public Impact

Travelers and the public benefit from improved access to information regarding TSA programs and policies. Automated and manual customer support services will be delivered, addressing a wide range of inquiries. The contract's geographic impact is primarily centered in Kentucky, where the contractor is based. Workforce implications include job creation within Kech Inc. and potentially supporting industries in Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality fluctuations over the 4-year contract term.
Reliance on a single contractor for critical public-facing communication.
Ensuring consistent adherence to TSA policies and procedures across all support interactions.

Positive Signals

Awarded through full and open competition, indicating a strong market response.
Firm Fixed Price contract type provides cost certainty.
Long-term contract duration allows for stable service provision and potential for relationship building.

Sector Analysis

The contact center and telemarketing services sector is a significant part of the business services industry. Government agencies increasingly rely on these services to manage public inquiries efficiently. This contract fits within the broader IT and business support services market, where government spending is substantial. Comparable spending benchmarks would involve analyzing other federal contracts for similar customer support functions across various agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor, Kech Inc., is not explicitly identified as a small business in the provided snippet. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The impact on the broader small business ecosystem would depend on whether Kech Inc. utilizes small business subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security and the Transportation Security Administration. Accountability measures are embedded within the contract's performance work statement and terms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Homeland Security Customer Service Contracts
Transportation Security Administration Support Services
Federal Contact Center Services
Government Telemarketing Services

Risk Flags

Potential for service quality issues over a long-term contract.
Dependence on a single vendor for critical public interface.
Need for robust ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.7 million to KECH INC. TSA CONTACT CENTER (TCC) IS TO PROVIDE A WIDE RANGE OF AUTOMATED AND MANUAL CUSTOMER SUPPORT SERVICES TO RESPOND TO INQUIRIES ABOUT TSA PROGRAMS AND POLICIES.

Who is the contractor on this award?

The obligated recipient is KECH INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2023-04-15. End: 2027-04-14.

What is the track record of Kech Inc. in performing similar federal contracts?

Information regarding Kech Inc.'s specific track record with federal contracts is not detailed in the provided data snippet. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Federal procurement databases and past performance questionnaires are typically used to evaluate a contractor's reliability and capability. Without this specific data, it is difficult to definitively assess their experience level for this TSA contract.

How does the average annual cost of this contract compare to similar TSA or DHS contact center services?

The contract value of approximately $26.7 million over four years equates to an average annual cost of roughly $6.68 million. To benchmark this effectively, one would need to compare it with other TSA or DHS contracts for contact center services, considering variations in scope, volume of inquiries, service level agreements (SLAs), and the mix of automated versus live agent support. If comparable contracts exist with similar parameters, an analysis of their annual costs could reveal whether Kech Inc.'s contract represents a competitive price point. The firm fixed-price nature suggests a degree of cost certainty, but the value proposition hinges on the quality and efficiency of the services delivered.

What are the primary risks associated with this contract and how are they being mitigated?

Key risks include potential degradation of service quality over the contract's four-year term, reliance on a single vendor for critical public communication, and ensuring consistent adherence to TSA policies. Mitigation strategies are likely embedded in the contract's performance standards, SLAs, and reporting requirements. The firm fixed-price structure helps mitigate financial risks for the government. Regular performance reviews and potential penalties for non-compliance would further address service quality risks. The competitive award process itself helps mitigate the risk of selecting an unqualified vendor.

How effective is the current TSA contact center operation in meeting public demand for information?

The effectiveness of the current TSA contact center operation in meeting public demand is not directly quantifiable from the provided data. However, the renewal or establishment of a significant four-year contract valued at $26.7 million suggests a continued and substantial need for these services. The contract's objective to provide a 'wide range of automated and manual customer support services' indicates an effort to address diverse public inquiries. Performance metrics within the contract, such as response times, resolution rates, and customer satisfaction scores, would be crucial indicators of its effectiveness, but these are not detailed here.

What are the historical spending patterns for TSA contact center services?

Historical spending patterns for TSA contact center services are not provided in the data snippet. To analyze this, one would need to examine previous contract awards for similar services by the TSA over several fiscal years. This would involve looking at the total amount spent, the number of contracts awarded, the duration and value of those contracts, and the contractors involved. Understanding historical spending can reveal trends in demand, pricing, and contractor utilization, providing context for the current $26.7 million award.

What specific performance metrics will be used to evaluate Kech Inc.'s success?

The provided data does not specify the exact performance metrics that will be used to evaluate Kech Inc.'s success. Typically, government contracts of this nature include detailed Service Level Agreements (SLAs) and Key Performance Indicators (KPIs). These often cover aspects such as average call/inquiry handling time, first contact resolution rates, customer satisfaction scores, system uptime, and adherence to security protocols. The TSA would monitor these metrics throughout the contract period to ensure Kech Inc. is meeting its obligations.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 965 S HIGHWAY 25 W, WILLIAMSBURG, KY, 40769

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $52,286,834

Exercised Options: $37,784,152

Current Obligation: $26,733,134

Actual Outlays: $20,415,581

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D004F

IDV Type: FSS

Timeline