DoD's $13.1M contract for switchboard operations awarded to National Industries for the Blind, raising value-for-money questions

Contract Overview

Contract Amount: $13,147,850 ($13.1M)

Contractor: National Industries for the Blind

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2011-03-31

Contract Duration: 1,277 days

Daily Burn Rate: $10.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SWITCHBOARD OPERATIONS (BASIC PERIOD 01 OCT 07 - 30 SEP 08)

Place of Performance

Location: TRAVIS AFB, SOLANO County, CALIFORNIA, 94535

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to NATIONAL INDUSTRIES FOR THE BLIND for work described as: SWITCHBOARD OPERATIONS (BASIC PERIOD 01 OCT 07 - 30 SEP 08) Key points: 1. The contract's value-for-money is questionable given the lack of competitive bidding and the extended duration. 2. Competition dynamics are limited, with the contract being awarded on a non-competitive basis. 3. Risk indicators include potential overpayment due to lack of competition and the long contract term. 4. Performance context is difficult to assess without clear benchmarks or comparative data. 5. The contract falls within the administrative support services sector, specifically telephone answering services. 6. The award to a single entity without competition warrants further scrutiny regarding pricing and efficiency.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the absence of competitive bids and limited public data on comparable services. The fixed price nature suggests a predetermined cost, but without market comparisons or performance metrics, it's difficult to ascertain if the $13.1 million over its extended period represents a fair price. The lack of competition could lead to inflated costs compared to what might be achieved in a more open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This limits the opportunity for multiple vendors to bid, which typically drives down prices and encourages innovation. The rationale for a sole-source award is not provided in the data, but it often stems from unique capabilities, urgent needs, or specific socio-economic program requirements.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Public Impact

The primary beneficiary is the National Industries for the Blind, an organization that employs individuals with blindness. The contract delivers essential telephone answering and switchboard operations services to the Department of the Air Force. The geographic impact is primarily within the operational areas served by the Department of the Air Force. The contract supports employment opportunities for individuals with blindness, aligning with socio-economic objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Extended contract duration without clear performance reviews raises concerns about sustained value.
Absence of detailed performance metrics makes it hard to gauge service effectiveness.
Sole-source nature limits transparency in cost justification.

Positive Signals

Supports a socio-economic goal by employing individuals with blindness.
Provides essential communication services to a critical government agency.
The contractor has a long-standing relationship with the government, suggesting some level of reliability.

Sector Analysis

This contract falls within the broader administrative and support services sector, specifically focusing on call center and telephone answering services. The market for these services is competitive, with numerous providers ranging from large corporations to specialized firms. Government contracts in this space often involve significant volume and require robust infrastructure. Benchmarking against similar government contracts for call center operations would typically consider factors like call volume, complexity of services, and geographic reach.

Small Business Impact

While this contract was awarded to the National Industries for the Blind, which is a large organization, the data does not indicate any specific small business set-aside provisions or subcontracting requirements. The focus appears to be on the organization's mission to employ individuals with blindness rather than on direct small business participation. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the execution of this contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the lack of readily available performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Call Center Services
Administrative Support Contracts
Department of Defense Communications Services
Non-Competitive Contract Awards

Risk Flags

Sole-source award lacks competitive pricing.
Extended contract duration without clear performance benchmarks.
Limited transparency on cost justification and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to NATIONAL INDUSTRIES FOR THE BLIND. SWITCHBOARD OPERATIONS (BASIC PERIOD 01 OCT 07 - 30 SEP 08)

Who is the contractor on this award?

The obligated recipient is NATIONAL INDUSTRIES FOR THE BLIND.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2007-10-01. End: 2011-03-31.

What is the historical spending pattern for switchboard operations by the Department of the Air Force?

Analyzing historical spending for switchboard operations by the Department of the Air Force is crucial for understanding trends and identifying potential cost efficiencies. Without specific historical data for this exact contract or category, we can infer that the Air Force, as a large military branch, likely has consistent needs for communication services. The current contract's value of approximately $13.1 million over its initial period suggests a significant ongoing requirement. Examining prior contracts for similar services, including those awarded competitively and non-competitively, would reveal whether spending has increased, decreased, or remained stable. This historical context is vital for assessing whether the current award represents a reasonable investment or a potential area for cost reduction through competitive sourcing or process improvements.

How does the pricing of this contract compare to similar government contracts for telephone answering services?

Directly comparing the pricing of this contract to similar government contracts for telephone answering services is challenging due to its sole-source nature and the lack of detailed performance metrics. Typically, competitive solicitations allow for price discovery, revealing market rates. In a sole-source scenario, especially one awarded to an organization with a specific mission like National Industries for the Blind, the pricing might be influenced by factors beyond pure market competition, such as labor costs associated with employing individuals with blindness. To perform a robust comparison, one would need access to detailed cost breakdowns, service level agreements, and data from recently competed contracts for similar volumes and complexities of service. Without this, assessing whether the $13.1 million represents fair and reasonable pricing is speculative.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not include specific performance metrics or service level agreements (SLAs) for this contract. Typically, government contracts outline key performance indicators (KPIs) such as call answer times, call abandonment rates, accuracy of information provided, and customer satisfaction. These metrics are essential for evaluating the contractor's performance and ensuring the government receives the services it is paying for. The absence of this information makes it difficult to objectively assess the effectiveness and efficiency of the switchboard operations provided by National Industries for the Blind. A thorough review of the contract documentation would be necessary to identify any established SLAs and the mechanisms for performance monitoring and enforcement.

What is the rationale behind awarding this contract on a sole-source basis?

The rationale for awarding this contract on a sole-source basis is not explicitly detailed in the provided data. Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when a public exigency requires immediate delivery. In this case, it's possible the award was made under statutory authority related to the Javits-Wagner-O'Day Act, which directs federal agencies to procure specified products and services from non-profit agencies employing individuals with blindness or severe disabilities. Understanding the specific justification is critical for assessing whether the non-competitive award was appropriate and if it aligns with the government's best interest in terms of cost and performance.

What is the track record of National Industries for the Blind in fulfilling similar government contracts?

National Industries for the Blind (NIB) has a long-standing history of fulfilling government contracts, particularly those aimed at employing individuals with blindness. NIB is a major source for government agencies seeking to meet their procurement goals under the Javits-Wagner-O'Day (JWOD) Act. Their track record generally involves providing a range of services, including call center operations, manufacturing, and administrative support. While specific performance details for this particular $13.1 million switchboard operations contract are not provided, NIB's overall experience suggests a capacity to manage such requirements. Government performance evaluations and past performance reviews, if available, would offer more granular insights into their reliability, quality of service, and adherence to contract terms on similar engagements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1310 BRADDOCK PLACE, ALEXANDRIA, VA, 08

Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,141,991

Exercised Options: $13,147,850

Current Obligation: $13,147,850

Contract Characteristics

Cost or Pricing Data: NO

Timeline