DoD's $20M Office Admin Services Contract Awarded to Serco Inc. Amidst Concerns
Contract Overview
Contract Amount: $19,973,971 ($20.0M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2003-07-23
End Date: 2005-08-31
Contract Duration: 770 days
Daily Burn Rate: $25.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 200312!003431!2100!BK21 !ACA, FORT KNOX !DABK2103C0017 !A!N! !N!P00002 !20030723!20040731!097773022!097773022!077846090!N!RESOURCE CONSULTANTS, INC !2650 PARK TOWER DRIVE !VIENNA !VA!22180!28540!093!21!FORT KNOX !HARDIN !KENTUCKY !+000000628628!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561110!E! !3! ! !C! ! !99990909!B! ! !A! !A!N!R!2!005!B! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: FORT KNOX, HARDIN County, KENTUCKY, 40121
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $20.0 million to SERCO INC for work described as: 200312!003431!2100!BK21 !ACA, FORT KNOX !DABK2103C0017 !A!N! !N!P00002 !20030723!20040731!097773022!097773022!077846090!N!RESOURCE CONSULTANTS, INC !2650 PARK TOWER DRIVE !VIENNA !VA!22180!28540!093!21!FORT KNOX !HARDI… Key points: 1. The contract for office administrative services was awarded to Serco Inc. for $19,973,971.31. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which can incentivize contractor performance but also carries risk. 4. The sector is Other Professional Services, specifically Office Administrative Services, a common government support function.
Value Assessment
Rating: fair
The contract value of $19.97 million for office administrative services appears within a reasonable range for a multi-year federal contract of this nature. Benchmarking against similar contracts would provide a more precise assessment of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently, as the selection process aimed to identify the best value offer.
Public Impact
This contract supports essential administrative functions within the Department of the Army at Fort Knox. The duration of the contract (over two years) indicates a sustained need for these services. The award to Serco Inc., a known government contractor, suggests a level of confidence in their capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can lead to higher costs if not managed carefully.
- Lack of specific performance metrics in the provided data makes it difficult to assess true value.
- The 'Other Professional Services' category is broad and may mask specific cost drivers.
Positive Signals
- Awarded under full and open competition.
- Contract duration of over two years suggests a stable requirement.
- Award to an established contractor.
Sector Analysis
The 'Other Professional Services' sector, encompassing categories like Office Administrative Services (NAICS 561110), represents a significant portion of government spending on support functions. Benchmarks for similar contracts vary widely based on scope and duration.
Small Business Impact
The data does not indicate any specific set-asides for small businesses, nor does it provide information on subcontracting opportunities for small businesses within this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army's oversight mechanisms would be crucial in managing the Cost Plus Award Fee structure to ensure performance targets are met and costs are controlled. Regular performance reviews and audits are standard oversight practices.
Related Government Programs
- Office Administrative Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Award Fee (CPAF) contracts can incentivize performance but may lead to higher costs if not rigorously managed.
- The broad 'Other Professional Services' category lacks specificity, potentially obscuring detailed cost drivers.
- No explicit mention of small business participation or subcontracting goals.
- The contract duration of 770 days (approx. 2 years) is significant, requiring sustained oversight.
Tags
office-administrative-services, department-of-defense, ky, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.0 million to SERCO INC. 200312!003431!2100!BK21 !ACA, FORT KNOX !DABK2103C0017 !A!N! !N!P00002 !20030723!20040731!097773022!097773022!077846090!N!RESOURCE CONSULTANTS, INC !2650 PARK TOWER DRIVE !VIENNA !VA!22180!28540!093!21!FORT KNOX !HARDIN !KENTUCKY !+000000628628!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561110!E! !3! ! !C! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is SERCO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.0 million.
What is the period of performance?
Start: 2003-07-23. End: 2005-08-31.
What specific administrative services are included in this contract, and how do they align with the agency's core mission requirements?
The contract covers 'Office Administrative Services' (NAICS 561110), which typically includes tasks such as clerical support, record management, mail processing, and general office operations. These services are essential for the day-to-day functioning of military installations like Fort Knox, enabling personnel to focus on core defense and training missions by handling routine administrative burdens.
What are the key performance indicators (KPIs) for the Cost Plus Award Fee structure, and how are they measured to ensure contractor accountability?
Specific KPIs for this Cost Plus Award Fee contract are not detailed in the provided data. Typically, such contracts establish metrics related to service delivery timeliness, accuracy, customer satisfaction, and adherence to security protocols. The 'Award Fee' component is contingent upon the contractor meeting or exceeding these pre-defined performance standards, as assessed by the government.
How does the $19.97 million contract value compare to industry benchmarks for similar office administrative support services in the region?
Without specific details on the scope of services, staffing levels, and service level agreements, a precise benchmark comparison is challenging. However, $19.97 million over approximately two years for comprehensive office administrative support at a major installation like Fort Knox is substantial, suggesting a broad range of services or significant personnel involved. Further analysis of contract line item details and market research would be necessary.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Serco Group PLC (UEI: 298452707)
Address: 1818 LIBRARY ST STE 1000, RESTON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-07-23
Current End Date: 2005-08-31
Potential End Date: 2005-08-31 00:00:00
Last Modified: 2010-04-21
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