Department of Education awards $42.8M for back-office contact center support, utilizing full and open competition

Contract Overview

Contract Amount: $42,815,341 ($42.8M)

Contractor: F.H. Cann & Associates, Inc.

Awarding Agency: Department of Education

Start Date: 2023-05-05

End Date: 2024-11-04

Contract Duration: 549 days

Daily Burn Rate: $78.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO ISSUE IDENTICAL STEADY-STATE TASK ORDERS FOR NON-SERVICING CONTACT CENTER SUPPORT BACK-OFFICE PROCESSING TO ALL BPO PROVIDERS.

Place of Performance

Location: NORTH ANDOVER, ESSEX County, MASSACHUSETTS, 01845

State: Massachusetts Government Spending

Plain-Language Summary

Department of Education obligated $42.8 million to F.H. CANN & ASSOCIATES, INC. for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO ISSUE IDENTICAL STEADY-STATE TASK ORDERS FOR NON-SERVICING CONTACT CENTER SUPPORT BACK-OFFICE PROCESSING TO ALL BPO PROVIDERS. Key points: 1. Contract focuses on steady-state task orders for non-servicing back-office processing. 2. F.H. Cann & Associates, Inc. secured this delivery order under a larger contract vehicle. 3. The contract type is Firm Fixed Price, indicating predictable costs for the government. 4. Competition was full and open, suggesting a robust bidding process. 5. The duration of the order is approximately 18 months, aligning with operational needs. 6. This award falls under Financial Transactions Processing, Reserve, and Clearinghouse Activities. 7. The contract is a Delivery Order, not a new standalone contract. 8. The base contract likely has multiple task orders issued against it.

Value Assessment

Rating: good

The award amount of $42.8 million for back-office contact center support appears reasonable given the scope and duration. As a delivery order against a potentially larger contract vehicle, direct comparison of the total value is difficult without knowing the ceiling of the parent contract. However, the firm fixed-price nature suggests that the government has locked in costs for the defined services. Benchmarking against similar back-office processing contracts would provide further insight into value for money, but the competitive nature of the award 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 a bid. The presence of multiple bidders (implied by 'full and open') typically leads to more competitive pricing and a wider range of solutions. The specific number of bidders is not provided, but the chosen procurement method suggests a healthy competitive environment for this type of service.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value for its investment in essential back-office support services.

Public Impact

The Department of Education benefits from efficient and cost-effective back-office processing for its contact center operations. Students and other stakeholders may experience improved service delivery indirectly through streamlined administrative functions. The contract supports financial transactions processing, crucial for the department's operational integrity. The primary geographic impact is likely within the operational centers of F.H. Cann & Associates, Inc., potentially supporting jobs in that region. Workforce implications include the employment of individuals to perform back-office processing tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'steady-state' requirements are not clearly defined and managed.
Dependence on a single contractor for critical back-office functions could pose a risk if performance issues arise.
The effectiveness of 'full and open competition' is dependent on the clarity and completeness of the solicitation documents.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Awarded under a competitive process, suggesting potential for good value.
The contract addresses a clear need for back-office support, which is essential for operational efficiency.

Sector Analysis

This contract falls within the Business Process Outsourcing (BPO) sector, specifically focusing on back-office financial transactions processing. The broader BPO market is substantial, with significant government spending allocated to outsourcing various administrative and support functions. This contract represents a portion of the government's investment in ensuring efficient financial operations, comparable to spending in areas like customer service support and data processing across multiple federal agencies.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no mention of a small business set-aside. This suggests that the contract was not specifically targeted towards small businesses. While F.H. Cann & Associates, Inc. may be a small business itself, the award mechanism did not prioritize small business set-asides. Subcontracting opportunities for small businesses are not explicitly detailed in this data, but are typically encouraged or mandated in larger federal contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Education's contracting officers and program managers. As a delivery order against a potentially larger contract vehicle, oversight mechanisms are likely established within the parent contract's terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the performance of this contract.

Related Government Programs

Financial Transactions Processing Services
Contact Center Support Services
Back-Office Administrative Support
Business Process Outsourcing Contracts
Department of Education Financial Management

Risk Flags

Potential for performance issues impacting financial operations.
Risk of scope creep if requirements are not tightly managed.
Dependence on contractor's operational stability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $42.8 million to F.H. CANN & ASSOCIATES, INC.. THE PURPOSE OF THIS REQUIREMENT IS TO ISSUE IDENTICAL STEADY-STATE TASK ORDERS FOR NON-SERVICING CONTACT CENTER SUPPORT BACK-OFFICE PROCESSING TO ALL BPO PROVIDERS.

Who is the contractor on this award?

The obligated recipient is F.H. CANN & ASSOCIATES, INC..

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $42.8 million.

What is the period of performance?

Start: 2023-05-05. End: 2024-11-04.

What is the track record of F.H. Cann & Associates, Inc. with the Department of Education and other federal agencies?

F.H. Cann & Associates, Inc. has a history of performing services for federal agencies, including the Department of Education. Analyzing their past performance on similar contracts, particularly those involving financial transactions processing or back-office support, is crucial. This includes reviewing past performance evaluations, any documented issues or disputes, and their overall success rate in meeting contract requirements. A review of their federal contract history would reveal the types and values of previous awards, the agencies they have served, and the duration of those engagements. Understanding their experience with firm-fixed-price contracts and delivery orders specifically would also provide insight into their capability to manage this type of award effectively.

How does the value of this delivery order compare to other similar back-office processing contracts awarded by the Department of Education or other agencies?

To benchmark the value of this $42.8 million delivery order, a comparative analysis of similar back-office processing contracts is necessary. This would involve identifying contracts with comparable scopes of work, such as financial transactions processing, data entry, or administrative support, awarded by the Department of Education or other federal agencies within the last 1-3 years. Key metrics for comparison would include the total contract value, duration, number of task orders issued, and the pricing structure (e.g., firm-fixed-price, cost-plus). If available, per-unit costs for specific services (e.g., per transaction processed, per call handled) would offer a more granular comparison. The 'full and open competition' aspect suggests that the pricing should be market-driven, but direct comparisons are essential to confirm value for money.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential performance deficiencies by the contractor, leading to delays or errors in financial transactions processing. Another risk is the potential for scope creep if the definition of 'steady-state task orders' is not rigorously managed, potentially increasing costs or requiring additional resources. Contractor viability and financial stability are also risks, although typically vetted during the initial contract award. Mitigation strategies likely include robust performance monitoring by the Department of Education, clear definition and management of task order requirements, and adherence to the firm-fixed-price structure which limits cost overruns. Contractual remedies for non-performance and regular performance reviews are standard mitigation measures.

How effective is the 'full and open competition' approach in ensuring the best value for this specific type of back-office support service?

The 'full and open competition' approach is generally considered the most effective method for ensuring best value, as it maximizes the pool of potential bidders and fosters price competition. For back-office support services like financial transactions processing, where the requirements can be clearly defined, this method allows multiple vendors to propose solutions and pricing. The effectiveness hinges on the clarity and completeness of the solicitation documents and the evaluation criteria used. If the competition yields multiple qualified bidders offering competitive pricing, it strongly suggests that the government is receiving good value. However, the actual effectiveness can only be fully assessed by examining the number of bids received and the final negotiated prices against market benchmarks.

What is the historical spending pattern for similar back-office processing contracts at the Department of Education?

Analyzing historical spending patterns for similar back-office processing contracts at the Department of Education is crucial for context. This involves examining data from previous years to understand the volume of spending on these types of services, the primary contractors utilized, and the average duration and value of such contracts. Trends in spending, such as increases or decreases, can indicate shifts in departmental strategy or operational needs. Understanding how this $42.8 million award fits into the broader historical spending picture helps assess whether it represents a typical investment, an expansion of services, or a consolidation. It also provides a baseline for evaluating future contract awards in this category.

Industry Classification

NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Financial Transactions Processing, Reserve, and Clearinghouse Activities

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 OSGOOD ST STE 2-120, NORTH ANDOVER, MA, 01845

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

Financial Breakdown

Contract Ceiling: $42,815,341

Exercised Options: $42,815,341

Current Obligation: $42,815,341

Actual Outlays: $45,207,084

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 91003120D0008

IDV Type: IDC

Timeline