HHS Awards $13.4M Contact Center Contract to Peckham Vocational Industries, Inc
Contract Overview
Contract Amount: $13,432,626 ($13.4M)
Contractor: Peckham Vocational Industries, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2022-06-01
End Date: 2026-02-28
Contract Duration: 1,368 days
Daily Burn Rate: $9.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SOURCEAMERICA CONTACT CENTER
Place of Performance
Location: LONDON, LAUREL County, KENTUCKY, 40741
State: Kentucky Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $13.4 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: SOURCEAMERICA CONTACT CENTER Key points: 1. Contract awarded to Peckham Vocational Industries, Inc. for $13.4M. 2. The contract is for Telemarketing Bureaus and Other Contact Centers services. 3. The contract duration is 1368 days. 4. The contract was not competed. 5. The contract is a Firm Fixed Price type.
Value Assessment
Rating: fair
The contract value of $13.4M for a period of over 3 years for contact center services appears to be within a reasonable range for similar government contracts. However, without specific details on the scope of services and performance metrics, a precise comparison is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach may limit price discovery and potentially lead to higher costs compared to a fully competitive process.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these contact center services.
Public Impact
Citizens may interact with this contact center for services related to Medicare and Medicaid. The contract supports a specific vendor, Peckham Vocational Industries, Inc., which may have implications for other potential service providers. The duration of the contract suggests a long-term reliance on this specific provider for essential services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Award to a vocational industry, potentially supporting a mission-driven organization.
Sector Analysis
The IT and administrative support sector, particularly contact centers, is a significant area of government spending. Benchmarks for similar contracts vary widely based on service complexity, volume, and technology used.
Small Business Impact
The contract was awarded to Peckham Vocational Industries, Inc., which is a large business. There is no indication of small business subcontracting goals or participation in this award.
Oversight & Accountability
The lack of competition raises questions about the oversight applied to justify a sole-source award. Further review would be needed to ensure the government received fair value and that the procurement process was appropriately managed.
Related Government Programs
- Telemarketing Bureaus and Other Contact Centers
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated costs due to lack of competitive bidding.
- Lack of transparency regarding the justification for sole-source procurement.
- Need for robust performance monitoring to ensure value for taxpayer money.
Tags
telemarketing-bureaus-and-other-contact-, department-of-health-and-human-services, ky, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.4 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. SOURCEAMERICA CONTACT CENTER
Who is the contractor on this award?
The obligated recipient is PECKHAM VOCATIONAL INDUSTRIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $13.4 million.
What is the period of performance?
Start: 2022-06-01. End: 2026-02-28.
What specific services are included in this $13.4M contract, and how do they align with CMS's mission?
The contract is for 'Telemarketing Bureaus and Other Contact Centers' services. While the exact scope is not detailed, it likely involves handling inquiries, providing information, and potentially processing applications or claims related to Medicare and Medicaid programs. The alignment with CMS's mission would depend on the efficiency and effectiveness of these contact center operations in serving beneficiaries and stakeholders.
What justification was provided for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award is critical for ensuring fair pricing and value. Without this information, it's impossible to assess if there were unique capabilities, urgent needs, or other factors that legitimately precluded competition. This lack of transparency is a significant risk indicator for potential overspending and reduced innovation.
How will the effectiveness and efficiency of Peckham Vocational Industries, Inc.'s contact center services be measured and evaluated throughout the contract period?
Performance metrics and evaluation methods are crucial for any government contract, especially a sole-source award. Key performance indicators (KPIs) such as call answer rates, resolution times, customer satisfaction scores, and adherence to privacy regulations should be established and rigorously monitored. Regular performance reviews will be essential to ensure the contractor is meeting expectations and delivering value.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3510 CAPITAL CITY BLVD, LANSING, MI, 48906
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,680,553
Exercised Options: $13,432,626
Current Obligation: $13,432,626
Actual Outlays: $7,420,683
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-06-01
Current End Date: 2026-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-02-19
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