GSA's $27.3M Call Center Contract with InspiriTec Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $27,286,361 ($27.3M)

Contractor: Inspiritec Inc

Awarding Agency: General Services Administration

Start Date: 2016-03-28

End Date: 2017-12-31

Contract Duration: 643 days

Daily Burn Rate: $42.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF , CONSOLIDATED CALL CENTER (CCC) SERVICES. TRANSFER OF CONTRACT H9821013C0001 SHELL CONTRACT CREATED TO ACCOMMODATE CWS GSH9821013C0001

Place of Performance

Location: FORT KNOX, MEADE County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

General Services Administration obligated $27.3 million to INSPIRITEC INC for work described as: IGF::OT::IGF , CONSOLIDATED CALL CENTER (CCC) SERVICES. TRANSFER OF CONTRACT H9821013C0001 SHELL CONTRACT CREATED TO ACCOMMODATE CWS GSH9821013C0001 Key points: 1. The contract, a transfer from a previous shell, raises questions about its original justification and competitive process. 2. Lack of readily available competition data suggests potential limitations in price discovery. 3. The fixed-price contract type offers some cost certainty, but value for money needs further assessment. 4. The telemarketing and contact center sector is competitive, making the lack of competition notable.

Value Assessment

Rating: questionable

The contract value of $27.3M over its period of performance appears significant for call center services. Without comparable contract data or detailed cost breakdowns, it's difficult to benchmark against industry standards or similar government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was a transfer and noted as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competitive process. This raises concerns about whether the government secured the best possible price and terms.

Taxpayer Impact: The lack of robust competition may have resulted in taxpayers paying more than necessary for these call center services.

Public Impact

Citizens relying on government call centers may experience service continuity, but the value received is uncertain. The procurement process raises questions about agency efficiency and responsible use of taxpayer funds. Future contracts in this space may be influenced by the transparency and competitiveness of this award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition justification
Limited transparency in award process
Potential for overpayment due to limited competition

Positive Signals

Fixed-price contract provides some cost predictability
Contract served a specific need for call center operations

Sector Analysis

The Telemarketing Bureaus and Other Contact Centers sector (NAICS 561422) is generally characterized by a moderate to high degree of competition. Government spending in this area typically leverages competitive bidding to achieve cost efficiencies.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the justification was sound and that the government obtained fair value. Accountability for the procurement decision rests with the General Services Administration.

Related Government Programs

Telemarketing Bureaus and Other Contact Centers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of competitive justification
Potential for inflated pricing
Limited transparency in award process
Uncertainty of best value realization

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $27.3 million to INSPIRITEC INC. IGF::OT::IGF , CONSOLIDATED CALL CENTER (CCC) SERVICES. TRANSFER OF CONTRACT H9821013C0001 SHELL CONTRACT CREATED TO ACCOMMODATE CWS GSH9821013C0001

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 $27.3 million.

What is the period of performance?

Start: 2016-03-28. End: 2017-12-31.

What was the specific justification for awarding this contract without full and open competition, and was it adequately documented?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A thorough review would be needed to examine the specific justification cited by the General Services Administration (GSA) at the time of award. This typically involves documenting why full and open competition was not feasible or not in the government's best interest, such as citing urgent needs or unique capabilities.

How does the per-unit cost or overall value of these call center services compare to similar contracts awarded competitively?

Benchmarking this $27.3M contract against competitively awarded contracts is challenging without more granular data. Key metrics like cost per call, cost per agent hour, or customer satisfaction scores from comparable contracts would be necessary. The lack of competition here makes direct value assessment difficult.

What measures were in place to ensure service quality and effectiveness given the limited competition?

While the contract type is fixed-price, which can incentivize performance, the effectiveness of the services hinges on the specific performance standards and Service Level Agreements (SLAs) outlined in the contract. Oversight mechanisms by GSA would be crucial to monitor quality and ensure the contractor met all requirements.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Inspiritec, Inc. (UEI: 112952432)

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: $108,138,504

Exercised Options: $27,424,283

Current Obligation: $27,286,361

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GSH9821013C0001

IDV Type: IDC

Timeline