DHS awarded $34M for business support services, with Serco Inc. as the primary contractor

Contract Overview

Contract Amount: $33,958,322 ($34.0M)

Contractor: Serco Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-21

End Date: 2008-11-30

Contract Duration: 436 days

Daily Burn Rate: $77.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: Other

Official Description: SERVICE CENTER OPERATIONS SUPPORT SERVICES (SCOSS)

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75227

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.0 million to SERCO SERVICES INC for work described as: SERVICE CENTER OPERATIONS SUPPORT SERVICES (SCOSS) Key points: 1. The contract value of $34 million for business support services appears reasonable given the duration and scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded as a delivery order, indicating it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. The services provided fall under 'All Other Business Support Services,' a broad category. 5. The contract duration of approximately 14 months (September 2007 to November 2008) is relatively short. 6. The award was made in Texas, suggesting a specific geographic focus for service delivery.

Value Assessment

Rating: good

The total award of $33,958,322.40 for SCOSS services over roughly 14 months represents a significant investment in operational support. Benchmarking this against similar broad business support service contracts is challenging due to the varied nature of 'All Other Business Support Services.' However, the contract was awarded through full and open competition, which typically drives more competitive pricing. The per-year cost averages around $24 million, which seems within a reasonable range for comprehensive operational support for a federal agency like USCIS, though specific service metrics would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement strategy, meaning all responsible sources were permitted to submit a bid. The data indicates 13 bids were received, signifying a robust level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie to offer the most competitive terms.

Taxpayer Impact: The strong competition in this procurement is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that taxpayer funds are being utilized efficiently by leveraging market forces to secure the best value.

Public Impact

Citizens and immigrants may benefit indirectly through improved operational efficiency of USCIS services. The contract supports essential business operations, ensuring continuity and effectiveness of agency functions. Services were likely delivered in Texas, impacting the local economy and workforce in that region. The contract supported roles within 'All Other Business Support Services,' potentially creating or sustaining jobs in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and effectiveness of the services delivered.
The broad nature of 'All Other Business Support Services' could lead to scope creep or misinterpretation of requirements.
Reliance on a single delivery order under a potential IDIQ may not fully capture the long-term value or cost-effectiveness.
Limited contract duration might indicate a need for ongoing re-competition or potential instability for the contractor.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Multiple bids received (13) suggest strong market interest and competitive pricing.
The contractor, Serco Services Inc., has a history of performing government contracts, implying some level of established capability.
The contract supports critical functions for U.S. Citizenship and Immigration Services, contributing to agency mission success.

Sector Analysis

The contract falls within the Business Support Services sector, a broad category encompassing a wide range of administrative, operational, and management support functions for organizations. This sector is crucial for enabling government agencies to operate efficiently. Comparable spending benchmarks are difficult to establish precisely due to the 'All Other' classification, but the overall market for business support services is substantial, with numerous companies offering specialized and generalist services. This contract represents a portion of the federal government's investment in outsourcing non-core operational functions.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and did not involve small business subcontracting (sb: false). Therefore, this award did not directly benefit the small business ecosystem through set-asides or mandated subcontracting goals. The focus was on full and open competition, likely favoring larger, established service providers capable of meeting the extensive requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers within U.S. Citizenship and Immigration Services. As a delivery order under a potential IDIQ, oversight mechanisms would be tied to the performance requirements and delivery schedules outlined in the order. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Support Services
Administrative and Facilities Support Services
Professional Services Contracts
Outsourced Business Operations

Risk Flags

Broad service category may lead to scope definition challenges.
Contract duration is relatively short, potentially impacting long-term service stability.
Lack of specific performance metrics in summary data hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.0 million to SERCO SERVICES INC. SERVICE CENTER OPERATIONS SUPPORT SERVICES (SCOSS)

Who is the contractor on this award?

The obligated recipient is SERCO SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2007-09-21. End: 2008-11-30.

What is the track record of Serco Services Inc. in performing similar federal contracts, particularly in business support services?

Serco Services Inc. has a significant history of performing various federal contracts across multiple agencies, including defense, civilian, and intelligence sectors. Their portfolio often includes complex service delivery, facility management, IT support, and operational support. For business support services specifically, Serco has been involved in contracts ranging from call center operations to administrative support and program management. While this particular contract was awarded in 2007, Serco's continued presence in the federal contracting space suggests a generally accepted capability to meet government requirements. However, a detailed review of past performance evaluations, any past disputes, or contract terminations would be necessary for a comprehensive assessment of their track record on similar SCOSS-type services.

How does the awarded amount of $33.9 million compare to the estimated value or budget for similar business support service contracts at DHS or USCIS?

Directly comparing the $33.9 million award to specific budget estimates for similar contracts is challenging without access to internal agency budgeting documents or more granular contract data. However, the contract was awarded through full and open competition with 13 bids, indicating that the market perceived the government's estimate (if one was formally established and shared) as reasonable or that the competition drove prices down to a competitive level. The average annual cost of approximately $24 million ($33.9M / ~1.4 years) for comprehensive business support services for a major agency like USCIS is substantial but not necessarily out of line, considering the scale of operations such services typically entail. Benchmarking against other broad 'business support services' contracts is difficult due to the varied nature of services encompassed.

What are the primary risks associated with a contract for 'All Other Business Support Services'?

Contracts classified under 'All Other Business Support Services' carry inherent risks due to their broad and often undefined scope. Key risks include scope creep, where the contractor is asked to perform services beyond the original intent, leading to cost overruns or schedule delays. There's also a risk of poor performance if the contractor lacks the specific expertise required for certain nuanced support functions, or if the government fails to clearly articulate requirements. Furthermore, the lack of specialized focus can make it harder to measure performance effectively, potentially leading to a perception of poor value for money. Ensuring clear performance work statements (PWS) and robust oversight are critical to mitigating these risks.

What was the historical spending pattern for Service Center Operations Support Services (SCOSS) prior to this award?

The provided data focuses on a single award from 2007-2008 and does not offer historical spending patterns for SCOSS. To determine historical spending, one would need to query contract databases (like FPDS or USASpending) for previous awards under the same or similar contract vehicles, or for related service categories by USCIS or DHS. Without this historical context, it's impossible to ascertain if this $33.9 million award represented an increase, decrease, or stable level of spending for these types of services. Understanding past investments would provide crucial context for evaluating the current contract's significance and value.

How did the competition level (13 bidders) impact the final price and terms of this contract?

A high level of competition, indicated by 13 bidders for this contract, generally exerts downward pressure on pricing. Contractors are incentivized to offer more competitive rates and favorable terms to win the award. This suggests that the final negotiated price is likely closer to the market's true cost for delivering these services, rather than being inflated due to a lack of alternatives. Furthermore, robust competition can lead to better innovation and service quality as bidders differentiate themselves. For taxpayers, this means their money is more likely to be spent efficiently, securing good value for the services rendered. The government benefits from a wider pool of potential solutions and a stronger negotiating position.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 13

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)

Evaluated Preference: NONE

Contractor Details

Parent Company: Serco Group PLC (UEI: 298452707)

Address: 12012 SUNSET HILLS ROAD, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,958,322

Exercised Options: $33,958,322

Current Obligation: $33,958,322

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSSCCG07D00006

IDV Type: IDC

Timeline