DHS awards $21.4M for travel management services, with a 4,754-day duration

Contract Overview

Contract Amount: $21,434,335 ($21.4M)

Contractor: Concur Technologies, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2013-05-28

End Date: 2026-06-03

Contract Duration: 4,754 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF - TRAVEL MANAGEMENT SERVICES

Place of Performance

Location: BELLEVUE, KING County, WASHINGTON, 98004

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.4 million to CONCUR TECHNOLOGIES, INC. for work described as: IGF::CT::IGF - TRAVEL MANAGEMENT SERVICES Key points: 1. Contract awarded to Concur Technologies, Inc. for travel management services. 2. The contract has a long duration of 4,754 days, spanning over 13 years. 3. The contract type is Firm Fixed Price, indicating predictable costs for the government. 4. The award was made under Full and Open Competition. 5. The North American Industry Classification System (NAICS) code is 481111 for Scheduled Passenger Air Transportation. 6. The contract is managed by the Transportation Security Administration (TSA) within DHS. 7. The contract value is $21,434,334.53. 8. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

The contract value of $21.4 million over 13 years suggests an average annual spend of approximately $1.65 million for travel management services. Benchmarking this against industry standards for travel management platforms and services is difficult without more specific details on the scope of services provided. However, the long duration could indicate a stable, long-term need for these services. The firm fixed-price nature provides cost certainty, but the overall value-for-money depends heavily on the efficiency and effectiveness of the travel management solutions offered by Concur Technologies, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The TSA's decision to use full and open competition indicates a belief that a competitive process would yield the best results for this requirement.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective travel management solutions for government personnel.

Public Impact

Federal employees traveling for official government business will benefit from streamlined travel booking and management. The services delivered include the management of scheduled passenger air transportation. The contract is managed by the Department of Homeland Security, specifically the Transportation Security Administration. The geographic impact is likely nationwide, supporting federal travel across various locations. The contract supports the operational efficiency of government agencies by facilitating necessary travel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 13 years) may limit flexibility to adopt newer technologies or renegotiate terms if market conditions change significantly.
Dependence on a single vendor for a critical function like travel management could pose risks if the vendor experiences service disruptions or financial instability.
The NAICS code 481111 (Scheduled Passenger Air Transportation) seems specific to air travel, but the contract title 'TRAVEL MANAGEMENT SERVICES' suggests a broader scope; clarity on the full range of services is needed.
Lack of specific performance metrics or service level agreements in the provided data makes it difficult to assess performance quality.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive selection process.
Firm Fixed Price contract type provides cost certainty for the government.
Long-term contract suggests a stable and ongoing need for these services, potentially leading to economies of scale.
Concur Technologies is a well-established provider in the travel management space, suggesting experience and reliability.

Sector Analysis

The travel management services sector is a significant part of the broader business services industry, supporting efficient operations for organizations. Federal spending in this area is crucial for enabling government employees to conduct official duties. The market includes various technology platforms and service providers that handle booking, expense management, and policy compliance. This contract fits within the IT and professional services categories, with a specific focus on travel logistics. Comparable spending benchmarks would typically involve analyzing annual travel expenditures of similar-sized government agencies or large private sector corporations.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss' field being false. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Concur Technologies voluntarily engages small businesses as subcontractors for specific components of the travel management services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Transportation Security Administration (TSA) and the Department of Homeland Security (DHS). Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed price. Transparency is facilitated through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Government Travel Cards
Federal Travel Regulations
Travel Management Systems
Airline Ticket Purchases
Government Employee Travel Expenses

Risk Flags

Long contract duration may reduce flexibility.
Scope of services beyond air travel needs clarification.
Performance metrics not detailed in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.4 million to CONCUR TECHNOLOGIES, INC.. IGF::CT::IGF - TRAVEL MANAGEMENT SERVICES

Who is the contractor on this award?

The obligated recipient is CONCUR TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2013-05-28. End: 2026-06-03.

What is the specific scope of 'Travel Management Services' covered under this contract, beyond just scheduled passenger air transportation?

The provided data indicates the NAICS code is 481111 (Scheduled Passenger Air Transportation), which primarily relates to air travel. However, the contract title is 'TRAVEL MANAGEMENT SERVICES,' suggesting a broader scope that could encompass booking, expense reporting, policy enforcement, duty of care, and reporting analytics for various travel modes (air, hotel, rental cars, etc.). Without the full contract statement of work, it's difficult to ascertain the precise breadth of services. Typically, travel management services aim to centralize and optimize an organization's travel program, potentially including technology platforms for booking and expense management, as well as dedicated support staff. The long duration and significant value suggest a comprehensive service offering rather than just air ticket procurement.

How does the $21.4 million contract value compare to historical spending on travel management services by the TSA or DHS?

To compare the $21.4 million contract value to historical spending, one would need access to historical contract data for the TSA and DHS specifically for travel management services. This would involve querying databases like FPDS or agency-specific procurement records for similar contracts awarded over previous fiscal years. Without this historical context, it's challenging to determine if this award represents an increase, decrease, or stable level of spending. Factors influencing historical spending could include changes in travel volume, policy updates, market price fluctuations, and the consolidation or expansion of travel management services.

What were the key performance indicators (KPIs) or service level agreements (SLAs) established for Concur Technologies, Inc. under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. In a typical travel management services contract, KPIs and SLAs are crucial for measuring the contractor's performance and ensuring value for money. Common metrics might include booking efficiency (e.g., percentage of travel booked online vs. through agents), cost savings achieved (e.g., adherence to negotiated fares), customer satisfaction ratings from travelers, response times for support inquiries, and accuracy of expense reporting. The absence of this information in the summary data makes it difficult to objectively assess the contractor's performance and the overall effectiveness of the service.

Given the 13-year duration, what provisions exist for contract modifications, price adjustments, or termination for convenience?

Long-term contracts, such as this 4,754-day (over 13 years) award, typically include clauses for contract modifications, price adjustments, and termination. Modifications might be allowed under specific circumstances, such as changes in government requirements or technological advancements, often requiring mutual agreement or specific contractual language. Price adjustments, especially in a Firm Fixed Price contract, are usually limited unless tied to specific economic price adjustment clauses, which are less common for service contracts of this nature. Most federal contracts include a 'Termination for Convenience' clause, allowing the government to terminate the contract for its own convenience, usually with provisions for compensating the contractor for work performed and reasonable termination costs.

What is Concur Technologies, Inc.'s track record with federal government contracts, particularly for travel management services?

Concur Technologies, Inc. (now part of SAP Concur) has a significant track record with federal government contracts. They are a major provider of travel, expense, and invoice management solutions. A review of federal procurement data would likely reveal numerous awards to Concur across various agencies for similar services. Their experience typically includes managing large-scale travel programs, integrating with government financial systems, and adhering to federal travel regulations. Agencies often select established vendors like Concur due to their proven platform capabilities, extensive experience, and ability to meet complex security and compliance requirements inherent in government operations.

How does the competition level ('full-and-open') potentially impact the pricing and service quality compared to other competition types?

Awarding a contract under 'full-and-open' competition generally implies that all responsible sources were permitted to submit offers. This broad participation is intended to foster robust competition, which theoretically leads to better pricing, higher quality services, and innovative solutions as vendors vie for the contract. Compared to limited competition or sole-source awards, full-and-open competition provides a stronger basis for price discovery and ensures that the government is not unduly constrained by a lack of vendor options. The effectiveness of this competition in this specific case would depend on the number of actual bidders and the strength of their proposals, but the mechanism itself is designed to benefit taxpayers through market forces.

Industry Classification

NAICS: Transportation and Warehousing › Scheduled Air Transportation › Scheduled Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: SAP SE

Address: 601 108TH AVE NE STE 1000, BELLEVUE, WA, 98004

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

Financial Breakdown

Contract Ceiling: $23,580,190

Exercised Options: $21,434,335

Current Obligation: $21,434,335

Actual Outlays: $4,694,964

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33FY0026

IDV Type: IDC

Timeline