DHS's $40.2M contract for records support services awarded to Serco Services Inc. shows potential value concerns

Contract Overview

Contract Amount: $40,257,593 ($40.3M)

Contractor: Serco Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2008-08-19

End Date: 2009-03-30

Contract Duration: 223 days

Daily Burn Rate: $180.5K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: Other

Official Description: RECORDS SUPPORT SERVICES

Place of Performance

Location: LEES SUMMIT, JACKSON County, MISSOURI, 64063

State: Missouri Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.3 million to SERCO SERVICES INC for work described as: RECORDS SUPPORT SERVICES Key points: 1. The contract's duration of 223 days for a significant dollar amount suggests a potentially high daily burn rate. 2. Limited competition or sole-source awards can lead to inflated pricing and reduced value for taxpayer dollars. 3. The absence of small business set-aside flags potential missed opportunities for smaller enterprises. 4. Performance context is limited due to the short duration and lack of detailed performance metrics provided. 5. This contract falls within the administrative services sector, supporting core government functions. 6. The BPA Call award type indicates a specific call against a broader agreement, potentially limiting direct comparison.

Value Assessment

Rating: fair

The contract's value of over $40 million for a period of less than a year raises questions about efficiency. Without detailed performance metrics or comparisons to similar services, it's difficult to definitively assess value for money. The per-diem cost appears high, suggesting that either the services were highly specialized or there may be an opportunity for cost optimization in future procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically should lead to competitive pricing. However, the number of bidders is not specified, making it difficult to gauge the true level of competition. A robust competition with multiple qualified bidders typically drives down costs and improves service quality.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to bid, potentially leading to lower prices and better services.

Public Impact

Citizens and immigration services benefit from efficient and organized record-keeping, crucial for processing applications and maintaining accurate data. The services delivered include office administrative support, directly impacting the operational efficiency of USCIS. The geographic impact is primarily within the operational scope of U.S. Citizenship and Immigration Services, likely supporting federal agencies nationwide. Workforce implications may include the employment of administrative staff by the contractor, Serco Services Inc., to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High dollar value for a short contract duration may indicate potential inefficiencies or a premium paid for rapid service.
Lack of detailed performance metrics makes it challenging to assess the contractor's effectiveness and value delivered.
The absence of small business participation could mean missed opportunities for economic inclusion and potentially higher costs.

Positive Signals

Awarded through full and open competition, suggesting a fair process and potential for competitive pricing.
The contractor, Serco Services Inc., is a known entity in government contracting, implying some level of established capability.
The contract supports essential administrative functions for a critical agency like USCIS.

Sector Analysis

This contract falls within the administrative and support services sector, a broad category encompassing a wide range of services essential for government operations. The market for these services is competitive, with many firms capable of providing records management and office support. Benchmarking this contract's value is challenging without more specific service details, but the overall administrative services market is substantial, supporting numerous federal agencies.

Small Business Impact

The contract does not indicate any small business set-aside provisions, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses may be limited unless they are part of a larger subcontracting plan not detailed here. This could represent a missed opportunity to leverage the agility and innovation of the small business sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security and U.S. Citizenship and Immigration Services. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight information is often internal.

Related Government Programs

Federal Records Management Services
Office Administrative Support Contracts
Department of Homeland Security Contracts
U.S. Citizenship and Immigration Services Support

Risk Flags

High Daily Burn Rate
Limited Performance Data
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.3 million to SERCO SERVICES INC. RECORDS SUPPORT SERVICES

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 $40.3 million.

What is the period of performance?

Start: 2008-08-19. End: 2009-03-30.

What was the specific nature of the records support services provided under this contract?

The data indicates the contract was for 'RECORDS SUPPORT SERVICES' and falls under the North American Industry Classification System (NAICS) code 561110, which is 'Office Administrative Services'. This suggests the services likely involved managing, organizing, storing, retrieving, and potentially digitizing physical or electronic records for U.S. Citizenship and Immigration Services (USCIS). These services are critical for maintaining the integrity and accessibility of immigration case files, application data, and other vital documentation managed by USCIS. The exact scope could range from simple filing and retrieval to more complex data management and archival solutions, depending on the specific requirements outlined in the BPA Call.

How does the per-day cost of this contract compare to industry benchmarks for similar services?

The contract value was $40,257,593.02 over a duration of 223 days. This equates to a daily cost of approximately $180,527. While this figure seems high, a direct comparison to industry benchmarks for 'Office Administrative Services' or 'Records Support Services' is difficult without more granular data on the specific tasks performed, the number of personnel involved, and the complexity of the records managed. General administrative support services can vary widely in cost. However, for context, many large-scale IT or specialized professional services contracts might have daily rates in the tens of thousands, but a total daily burn rate of over $180,000 suggests either a very large workforce, highly specialized skills, or potentially a less efficient service delivery model for the scope of work.

What is Serco Services Inc.'s track record with federal contracts, particularly within DHS?

Serco Services Inc. (now often referred to as Serco Inc.) is a significant federal contractor with a long history of performance across various government agencies, including the Department of Homeland Security (DHS). They have held numerous contracts spanning areas such as IT services, call centers, transportation management, and defense support. While specific performance details for every contract are not publicly available, Serco's continued success in winning and performing on large federal contracts suggests a generally acceptable track record. However, like any large contractor, they may have faced scrutiny or performance issues on specific projects, which would typically be documented in past performance reviews during recompetes or through Inspector General reports.

Were there any specific performance issues or successes noted during the execution of this contract?

The provided data does not contain specific details regarding performance issues or successes during the execution of this particular contract. The data points primarily focus on the contract's award details, value, duration, and competition type. Comprehensive performance evaluations are typically documented in internal government reports, contractor performance assessment reporting (CPAR) systems, or through contract close-out documentation. Without access to these specific records, it is impossible to assess the qualitative performance outcomes of Serco Services Inc. under this $40.2 million BPA Call.

How has USCIS's spending on records support services evolved over time, and does this contract represent a significant shift?

The provided data is for a single contract awarded in 2008 and ending in 2009. To understand the evolution of USCIS spending on records support services, a broader analysis of historical spending patterns would be required. This would involve examining contracts awarded over multiple fiscal years, identifying trends in contract values, types of services procured, and the contractors utilized. This specific $40.2 million contract, while substantial for its time, may represent a typical or even below-average spend depending on USCIS's overall budget and operational needs during that period. Without comparative data, it's difficult to determine if this contract signifies a significant shift in USCIS's approach to records management.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

Parent Company: Serco Group PLC (UEI: 298452707)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Parent Contract

Parent Award PIID: HSSCCG05A0031

IDV Type: BPA

Timeline