GSA awards $236.6M contract for contact center services to Inspiritel Inc., with 3,105 days duration

Contract Overview

Contract Amount: $236,582,371 ($236.6M)

Contractor: Inspiritec Inc

Awarding Agency: General Services Administration

Start Date: 2017-08-01

End Date: 2026-01-31

Contract Duration: 3,105 days

Daily Burn Rate: $76.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF OTHER FUNCTION, CUSTOMER CONTACT CENTER (CCC)

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $236.6 million to INSPIRITEC INC for work described as: IGF::OT::IGF OTHER FUNCTION, CUSTOMER CONTACT CENTER (CCC) Key points: 1. Contract value of $236.6M over 3,105 days suggests a significant, long-term need for contact center operations. 2. The contract is a Purchase Order, indicating a specific, defined need rather than a broad service requirement. 3. The fixed price contract type aims to control costs, but requires careful monitoring to ensure value. 4. The duration of the contract (over 8 years) presents potential risks related to technological obsolescence and changing service needs. 5. The absence of small business set-aside flags suggests this contract may not have specifically targeted small business participation. 6. The contract is categorized under Telemarketing Bureaus and Other Contact Centers, a common function within federal agencies.

Value Assessment

Rating: fair

The total contract value of $236.6M over 3,105 days equates to approximately $76,194 per day. Benchmarking this against similar federal contracts for contact center services is challenging without more specific service details. However, the daily rate suggests a substantial operational cost. The firm fixed-price nature provides cost certainty for the government, but the long duration could lead to potential inefficiencies if service requirements evolve significantly or technology advances outpace the contract's scope.

Cost Per Unit: $76,194 per day

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that the General Services Administration (GSA) did not solicit bids from multiple vendors. Sole-source awards are typically justified when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs where competition is not feasible. The lack of competition limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, as the government did not benefit from potential price reductions offered by multiple vendors vying for the contract.

Public Impact

Citizens and federal employees interacting with government agencies will benefit from the contact center services provided. The contract supports essential communication channels for various federal programs, ensuring service delivery. Services are likely delivered across multiple locations or remotely, impacting a broad user base. The contract supports jobs within the contact center industry, both directly with the contractor and potentially indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) increases risk of technological obsolescence and changing service requirements.
Sole-source award limits price discovery and may result in higher costs for taxpayers.
Lack of specific performance metrics in the provided data makes it difficult to assess service quality and efficiency.
Potential for vendor lock-in due to the sole-source nature of the award.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The contract supports essential government functions by ensuring continuity of contact center operations.
The significant contract value suggests a high level of trust and established relationship with the contractor.

Sector Analysis

The federal contact center services sector is a critical component of government operations, facilitating citizen engagement and internal support. This contract falls under the broader IT and administrative services category. The market for these services is competitive, with numerous firms offering solutions ranging from basic call handling to complex customer relationship management. Federal spending in this area is substantial, driven by the need for efficient and accessible communication channels across all agencies. This specific contract with Inspiritel Inc. represents a significant portion of spending within this niche, highlighting the importance of reliable contact center support for the General Services Administration.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This suggests that the procurement process did not prioritize or mandate participation by small businesses. Consequently, there may be limited direct subcontracting opportunities for small businesses under this specific award, unless Inspiritel Inc. voluntarily engages them. The absence of small business focus in this large sole-source contract could represent a missed opportunity to foster small business growth within the federal contact center ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a Purchase Order, it is subject to standard procurement regulations and internal GSA oversight processes. The firm fixed-price nature provides a degree of financial oversight by locking in costs. However, the sole-source award necessitates careful monitoring of performance and adherence to contract terms to ensure accountability and prevent potential overspending or service deficiencies. Transparency is limited due to the non-competitive nature of the award.

Related Government Programs

GSA Customer Contact Center Services
Federal Telecommunications Services
Government IT Support Contracts
Administrative Support Services

Risk Flags

Sole-source award
Long contract duration
Potential for technological obsolescence
Limited transparency due to non-competitive award

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $236.6 million to INSPIRITEC INC. IGF::OT::IGF OTHER FUNCTION, CUSTOMER CONTACT CENTER (CCC)

Who is the contractor on this award?

The obligated recipient is INSPIRITEC INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $236.6 million.

What is the period of performance?

Start: 2017-08-01. End: 2026-01-31.

What specific services are included under this $236.6M contract for contact center operations?

The provided data indicates the contract is for 'CUSTOMER CONTACT CENTER (CCC)' services, falling under the North American Industry Classification System (NAICS) code 561422 for Telemarketing Bureaus and Other Contact Centers. While the specific scope of services is not detailed, typical offerings for such federal contracts include inbound and outbound call handling, customer support, technical assistance, appointment scheduling, information dissemination, and potentially multi-channel support (e.g., email, chat). The significant value and long duration suggest a comprehensive and ongoing operational requirement for GSA's contact center needs, likely supporting a wide range of citizen and internal agency interactions.

How does the daily cost of $76,194 compare to industry benchmarks for similar federal contact center contracts?

The calculated daily cost of approximately $76,194 for this contract is substantial. Benchmarking this figure accurately requires detailed comparison with contracts for similar scope, complexity, and service level agreements within the federal government. However, this daily rate suggests a high volume of activity or a complex service offering. Without specific details on call volume, average handling time, staffing levels, and technology employed, it's difficult to definitively state if this represents excellent or questionable value. Generally, higher daily costs can be justified by advanced technology, specialized support, or extensive staffing to handle peak demands. Further analysis would involve comparing this rate against publicly available contract data for comparable services from agencies like the Department of Veterans Affairs or the Social Security Administration.

What are the primary risks associated with a sole-source award of this magnitude and duration?

The primary risks associated with this sole-source award are significant. Firstly, the lack of competition means the government did not benefit from a competitive bidding process, potentially leading to a higher price than could have been achieved through open competition. Secondly, the long duration of over 8 years (3,105 days) increases the risk of technological obsolescence. The contact center landscape evolves rapidly, and the technology or processes used at the start of the contract may be outdated by its end. Thirdly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance issues arise or better solutions become available. Finally, without competitive pressure, there's a reduced incentive for the contractor to innovate or proactively improve service delivery beyond the minimum contractual requirements.

What is the historical spending pattern for contact center services by the General Services Administration?

Historical spending data for GSA's contact center services is not directly available in the provided snippet. However, the award of a $236.6 million contract indicates a substantial and ongoing investment in these capabilities. Federal agencies, including GSA, increasingly rely on robust contact center operations to manage citizen inquiries, provide support, and facilitate communication. Spending in this area typically fluctuates based on agency needs, program expansions, and technological shifts. To understand GSA's historical spending, one would need to analyze procurement databases for similar contracts awarded over previous fiscal years, looking for trends in contract values, durations, and types of services procured within the contact center domain.

What are the implications of the 'Firm Fixed Price' contract type for government oversight?

The 'Firm Fixed Price' (FFP) contract type has significant implications for government oversight. FFP contracts establish a ceiling price that cannot be increased except under specific, extraordinary circumstances outlined in the contract. This provides the government with cost certainty and shifts the risk of cost overruns to the contractor. For oversight, this means the focus is less on monitoring the contractor's costs and more on ensuring the contractor meets the defined scope, quality standards, and delivery schedules. Government personnel must diligently track performance against contract requirements, conduct quality assurance checks, and manage any contract modifications. While cost is largely fixed, oversight is crucial to ensure the contractor is delivering the contracted services effectively and efficiently, and that the FFP structure is not leading to compromises in quality to maintain profitability.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: ID03170025

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 340 N 12TH ST STE 200, PHILADELPHIA, PA, 19107

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

Financial Breakdown

Contract Ceiling: $362,866,748

Exercised Options: $236,583,043

Current Obligation: $236,582,371

Actual Outlays: $121,790,993

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline