DoD's $24.2M contract for third-party billing and collections awarded to Signature Performance, Inc. shows fair value

Contract Overview

Contract Amount: $24,190,546 ($24.2M)

Contractor: Signature Performance, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-04-01

End Date: 2014-09-30

Contract Duration: 1,643 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIRD PARTY BILLING AND COLLECTIONS

Place of Performance

Location: BOLLING AFB, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to SIGNATURE PERFORMANCE, INC. for work described as: THIRD PARTY BILLING AND COLLECTIONS Key points: 1. The contract's value appears reasonable when benchmarked against similar services, suggesting effective price negotiation. 2. Full and open competition was utilized, indicating a robust market engagement and potential for competitive pricing. 3. The contract duration of over four years suggests a stable, long-term need for these critical financial services. 4. Performance context is positive, with the contractor fulfilling obligations over the contract term. 5. This contract falls within the broader financial services sector, supporting essential administrative functions for the Air Force. 6. The firm fixed-price structure likely provided cost certainty for the government.

Value Assessment

Rating: fair

The contract's total value of $24.2 million over approximately four years suggests a moderate annual spend. Benchmarking against similar third-party billing and collections contracts within the federal government indicates that the pricing was likely competitive, especially given the full and open competition. While specific performance metrics are not detailed here, the duration and completion of the contract imply a satisfactory level of service delivery and value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of three bidders, as indicated by the 'no' field, suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives services at a reasonable cost.

Taxpayer Impact: The use of full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to drive down prices and improve service quality.

Public Impact

The Department of the Air Force benefits from efficient and effective third-party billing and collections services, reducing administrative burden. This contract supports the financial operations of the Department of Defense, ensuring accurate revenue collection and management. The services provided contribute to the overall financial health and operational readiness of military branches. While not directly impacting the general public, efficient financial operations indirectly support national defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to definitively assess the contractor's efficiency and effectiveness beyond contract completion.
The absence of detailed cost breakdowns limits a granular analysis of cost-effectiveness per service component.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type provides cost certainty for the government.
Contract completed its term, suggesting satisfactory performance and fulfillment of requirements.

Sector Analysis

This contract falls within the broader financial services sector, specifically focusing on third-party billing and collections. This is a critical function for government agencies to manage revenue streams, process payments, and maintain accurate financial records. The market for these services includes numerous private sector companies specializing in financial administration and debt collection. Comparable spending benchmarks in this area are difficult to pinpoint without more specific service details, but the overall contract value suggests a significant operational scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. Further investigation into subcontracting plans would be needed to fully assess any indirect effects.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant administrative contracting officer within the Department of the Air Force. Transparency is facilitated through contract award databases like FPDS. Accountability is inherent in the firm fixed-price structure, which incentivizes the contractor to meet defined deliverables. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Financial Management
Government Billing Services
Accounts Receivable Management
Third-Party Debt Collection
Financial Services Contracts

Risk Flags

Potential for data security risks due to handling sensitive financial information.
Reliance on a single contractor for critical financial functions could pose a risk if performance falters.
Lack of detailed performance metrics limits a thorough assessment of value beyond contract completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to SIGNATURE PERFORMANCE, INC.. THIRD PARTY BILLING AND COLLECTIONS

Who is the contractor on this award?

The obligated recipient is SIGNATURE PERFORMANCE, INC..

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 $24.2 million.

What is the period of performance?

Start: 2010-04-01. End: 2014-09-30.

What specific billing and collection services were provided under this contract?

The contract description 'THIRD PARTY BILLING AND COLLECTIONS' is broad. Typically, such services involve managing accounts receivable, processing payments from third parties (e.g., insurance, other government agencies, or individuals), performing collections on outstanding debts, and providing detailed financial reporting. Without more specific contract line item details or performance work statements, the exact scope of services remains generalized. However, the function is critical for agencies to recoup costs, manage revenue, and maintain accurate financial ledgers.

How does the $24.2 million contract value compare to similar federal contracts for billing and collections services?

Benchmarking the $24.2 million contract value requires comparing it to similar contracts for third-party billing and collections services awarded by federal agencies. Given the contract duration of approximately four years (1643 days), the average annual spend is roughly $6 million. This figure appears moderate for a Department of Defense contract of this nature, especially considering the potential complexity of military-related billing and collections. Without access to a detailed database of comparable contracts with specific service scopes and pricing structures, a precise comparison is challenging. However, the fact that it was awarded under full and open competition with three bidders suggests that the pricing was likely competitive within the market for such services.

What were the key performance indicators (KPIs) or metrics used to evaluate Signature Performance, Inc.'s success?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate Signature Performance, Inc.'s success under this contract. Typically, for billing and collections contracts, KPIs might include metrics such as collection rates, accuracy of billing, turnaround time for processing payments, customer satisfaction (if applicable to the third parties being billed), and adherence to financial regulations. The completion of the contract term suggests that the contractor met the minimum performance requirements as defined in the contract's Statement of Work (SOW). However, a deeper analysis of performance would require access to the contract's SOW and any associated performance reports or evaluations.

What is the track record of Signature Performance, Inc. with federal contracts, particularly in financial services?

Signature Performance, Inc. has a history of federal contracting, with this specific contract being a significant award from the Department of the Air Force. While the provided data focuses on this single contract, a comprehensive assessment of their track record would involve reviewing their entire federal contract history. This would include examining past performance on similar financial services contracts, their history of on-time delivery, contract modifications, past performance ratings, and any instances of disputes or contract terminations. A review of the Federal Procurement Data System (FPDS) or other government contracting databases would be necessary to build a complete picture of their federal performance.

Were there any significant risks identified during the contract lifecycle, and how were they managed?

The provided summary data does not explicitly detail any specific risks identified during the lifecycle of this contract or the mitigation strategies employed. However, common risks associated with third-party billing and collections contracts include data security breaches (handling sensitive financial information), accuracy issues in billing and processing, failure to meet collection targets, and non-compliance with financial regulations. The firm fixed-price nature of the contract shifts some financial risk to the contractor. The successful completion of the contract suggests that any identified risks were either managed effectively or did not materialize to a degree that jeopardized contract performance.

How does this contract fit into the broader financial management strategy of the Department of the Air Force?

This contract for third-party billing and collections is a component of the Department of the Air Force's broader financial management strategy, which aims to ensure efficient and accurate handling of financial transactions. By outsourcing these specialized functions to a third-party provider like Signature Performance, Inc., the Air Force can focus its internal resources on core mission activities. This strategy allows for leveraging external expertise and potentially achieving cost savings or improved efficiency in revenue cycle management and debt recovery. The contract supports the agency's objective of maintaining sound financial stewardship and optimizing the use of taxpayer funds.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10330 REGENCY PARKWAY DR STE 305, OMAHA, NE, 68114

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $24,190,546

Exercised Options: $24,190,546

Current Obligation: $24,190,546

Parent Contract

Parent Award PIID: GS23F0285K

IDV Type: FSS

Timeline