Serco Inc. awarded $44.6M for Navy personnel command support, with 12 bids received

Contract Overview

Contract Amount: $44,646,605 ($44.6M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2015-03-01

End Date: 2019-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF IDENTIFICATION CARD ADMINISTRATION SUPPORT SERVICES FOR THE NAVY PERSONNEL COMMAND.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.6 million to SERCO INC for work described as: IGF::OT::IGF IDENTIFICATION CARD ADMINISTRATION SUPPORT SERVICES FOR THE NAVY PERSONNEL COMMAND. Key points: 1. Contract value appears reasonable given the duration and scope of support services. 2. Strong competition with 12 bidders suggests a healthy market for these services. 3. No immediate risk indicators identified, but performance history should be monitored. 4. Services support critical Navy personnel functions, indicating a stable demand. 5. Positioned within the defense IT and administrative support sector. 6. Contract type is Firm Fixed Price, which transfers risk to the contractor.

Value Assessment

Rating: good

The total award of $44.6 million over four years for Identification Card Administration Support Services for the Navy Personnel Command is within a reasonable range for similar government support contracts. Benchmarking against contracts for administrative and IT support services for large personnel databases suggests competitive pricing. The firm fixed-price contract type further indicates that the contractor is responsible for managing costs to meet the agreed-upon price, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 12 bids received. The high number of bidders indicates a robust and competitive market for these specialized support services. This level of competition is beneficial for price discovery and likely resulted in a more favorable price for the government compared to a sole-source or limited competition scenario.

Taxpayer Impact: The extensive competition for this contract suggests that taxpayer dollars were used efficiently, as multiple companies vied to provide the services at the best possible price.

Public Impact

Directly benefits Navy personnel by ensuring efficient and accurate identification card administration. Services delivered include the management and support of identification card systems and processes. Geographic impact is primarily within the Navy Personnel Command's operational areas. Workforce implications include the potential for Serco Inc. to employ administrative and technical staff to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a fair and accessible process.
Firm Fixed Price contract type shifts cost overrun risk to the contractor.
Contract duration of four years provides stability for service delivery.
Multiple bidders suggest a competitive environment that can drive efficiency.

Sector Analysis

This contract falls within the broader defense IT and administrative services sector. The market for such services is substantial, driven by the ongoing need for personnel management and support within military branches. Comparable spending benchmarks for similar administrative support and IT services for large government organizations often range in the tens to hundreds of millions of dollars annually, depending on scope and complexity. This contract represents a moderate-sized award within this sector.

Small Business Impact

There is no indication that this contract included specific small business set-asides. Given the nature of the services, it is possible that small businesses could participate as subcontractors to the prime contractor, Serco Inc. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the relevant contracting officers within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract terms, requiring Serco Inc. to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics are not detailed here.

Related Government Programs

Navy Personnel Command Services
Defense Identification Systems
Military Personnel Administration Support
IT Support Services for Government

Risk Flags

Contract performance monitoring is essential.
Data security protocols must be rigorously enforced.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.6 million to SERCO INC. IGF::OT::IGF IDENTIFICATION CARD ADMINISTRATION SUPPORT SERVICES FOR THE NAVY PERSONNEL COMMAND.

Who is the contractor on this award?

The obligated recipient is SERCO INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $44.6 million.

What is the period of performance?

Start: 2015-03-01. End: 2019-02-28.

What is Serco Inc.'s track record with similar government contracts, particularly within the Department of Defense?

Serco Inc. has a significant history of performing various service contracts for the U.S. government, including substantial work within the Department of Defense. Their portfolio often includes areas like IT support, facility management, and operational support services. While specific performance details for each contract are not publicly detailed in this summary, their continued awards suggest a general capability to meet contractual requirements. However, like many large government contractors, Serco has faced scrutiny and contract challenges on certain engagements in the past. A deeper dive into contract performance reports, past performance questionnaires, and any documented disputes or corrective actions would be necessary for a comprehensive assessment of their track record on this specific type of service.

How does the $44.6 million award compare to the average cost of similar identification card administration support services for other military branches or federal agencies?

Benchmarking this $44.6 million award requires comparing it to contracts of similar scope, duration, and complexity across federal agencies. Contracts for large-scale personnel identification and administration support can vary widely. For a four-year period, this award averages approximately $11.15 million per year. This figure appears competitive when considering the extensive requirements of managing identification systems for a major military command, which often involves secure database management, card production, and user support. Similar contracts for other branches or agencies, such as those supporting the Army or Air Force personnel databases, would provide a more direct comparison. Without specific details on the number of personnel supported or the technological sophistication of the systems, a precise comparison is difficult, but the award seems aligned with the scale of such operations.

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

The primary risks associated with this contract include potential performance failures by the contractor (Serco Inc.), such as delays in card issuance, system outages, or data security breaches. Another risk is cost overruns if the firm fixed-price contract is not managed effectively by the contractor. Mitigation strategies are inherent in the contract structure and oversight. The firm fixed-price nature transfers significant cost risk to Serco. The Department of the Navy and the Defense Contract Management Agency (DCMA) provide oversight, monitoring performance against contract requirements and potentially imposing penalties or exercising termination clauses for persistent failures. Robust security protocols and regular audits are expected to mitigate data security risks. The competitive award process also helps mitigate the risk of selecting an unqualified vendor.

What is the expected effectiveness of these services in supporting the Navy's personnel management objectives?

The effectiveness of these services is crucial for the seamless operation of the Navy Personnel Command. Reliable identification card administration ensures that authorized personnel have proper access to facilities, systems, and benefits, which is fundamental for daily operations and security. Efficient processing of new cards, renewals, and replacements minimizes disruptions for sailors and civilian staff. Furthermore, secure and accurate identification systems contribute to overall force protection and accountability. The contract's success hinges on Serco Inc.'s ability to maintain high uptime for systems, process requests promptly, and adhere to stringent security protocols. Effective service delivery directly supports the Navy's objective of maintaining an accurate and secure personnel database, facilitating efficient management and deployment of its workforce.

How has federal spending on Navy personnel support services evolved over the past five years, and does this contract represent a trend?

Analyzing federal spending trends for Navy personnel support services requires a broader look at the Department of the Navy's budget allocations for personnel administration, IT support, and related services. While this specific contract award of $44.6 million over four years is a significant sum, it represents a portion of the overall spending. Spending in this category is generally driven by the size of the Navy's active and reserve force, evolving technological requirements for personnel management, and security mandates. Spending in this area tends to be relatively stable, as personnel support is a core function. However, shifts towards digital solutions, enhanced cybersecurity, and data analytics in personnel management could influence future contract values and scopes. This contract, awarded in 2015, reflects the ongoing need for robust administrative and IT support for personnel functions during that period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002414R3426

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Serco Group PLC (UEI: 298452707)

Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,646,605

Exercised Options: $44,646,605

Current Obligation: $44,646,605

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4114

IDV Type: IDC

Timeline