OPM awards $24.6M HR support contract to SERCO SERVICES INC, highlighting training and development needs

Contract Overview

Contract Amount: $24,600,046 ($24.6M)

Contractor: Serco Services Inc

Awarding Agency: Office of Personnel Management

Start Date: 2012-09-05

End Date: 2013-09-04

Contract Duration: 364 days

Daily Burn Rate: $67.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HR SUPPORT SERVICE (HC)IGF::CL::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $24.6 million to SERCO SERVICES INC for work described as: HR SUPPORT SERVICE (HC)IGF::CL::IGF Key points: 1. Contract value appears reasonable given the scope of professional development and training services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of one year with a firm-fixed-price structure indicates predictable costs. 4. This award falls within the professional and management development training sector, a key area for government workforce. 5. The geographic focus on Washington D.C. suggests services tailored to federal agencies in the capital. 6. No small business set-aside was utilized, indicating the primary awardee was not a small business.

Value Assessment

Rating: good

The contract value of $24.6 million for a one-year period for HR support services, specifically professional and management development training, seems aligned with market rates for similar government contracts. Benchmarking against other federal training contracts of comparable scope and duration would provide a more precise value assessment. The firm-fixed-price structure helps control costs for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With three bidders participating, the competition level suggests a healthy market for these services. This process is designed to foster price discovery and ensure the government receives competitive offers.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by driving down costs and encouraging innovation among contractors vying for the award.

Public Impact

Federal employees, particularly those in management and professional roles, are the primary beneficiaries of enhanced training and development. The services delivered include professional and management development training, aimed at improving workforce skills and agency performance. The contract has a geographic impact focused on the District of Columbia, serving federal agencies located there. Workforce implications include the potential for improved employee performance, career advancement, and retention within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Dependence on a single contractor for critical HR support services could pose a risk if performance falters.

Positive Signals

Award to an established contractor like Serco Services Inc. suggests a level of confidence in their capabilities.
The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition indicates a robust selection process.

Sector Analysis

This contract falls within the Professional and Management Development Training sector, a segment of the broader professional services industry. This sector is crucial for government agencies seeking to enhance employee skills, leadership capabilities, and overall organizational effectiveness. The market size for federal training services is substantial, with agencies consistently investing in workforce development to meet evolving mission requirements and regulatory changes. Comparable spending benchmarks would involve analyzing other contracts for similar training and HR support services across various federal agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates no subcontracting goals for small businesses were specified. This suggests that the primary focus was on securing the best value through open competition, rather than specifically targeting small business participation. The impact on the small business ecosystem is neutral in this instance, as there was no explicit mechanism to channel work towards them through this specific award.

Oversight & Accountability

The Office of Personnel Management (OPM) is responsible for the oversight of this contract. As a firm-fixed-price contract, the primary accountability measure is the delivery of specified training and HR support services within the agreed-upon budget and timeframe. Transparency is facilitated through contract award databases. While no specific Inspector General jurisdiction is mentioned for this particular award, OPM's Office of Inspector General typically oversees agency operations and expenditures.

Related Government Programs

Federal Workforce Training Programs
Human Capital Management Services
Professional Development Contracts
Government Employee Training

Risk Flags

Contract Performance Risk
Vendor Lock-in Potential
Service Disruption Risk

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $24.6 million to SERCO SERVICES INC. HR SUPPORT SERVICE (HC)IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is SERCO SERVICES INC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2012-09-05. End: 2013-09-04.

What is the track record of SERCO SERVICES INC in delivering federal HR support and training services?

Serco Services Inc. has a significant history of performing government contracts, including those related to HR support and professional services. Their experience often spans various agencies and functional areas, indicating a capacity to manage complex requirements. To assess their specific track record for this contract, a review of past performance evaluations, any reported contract disputes, and the successful completion of similar training and development projects would be necessary. Data on their performance on previous OPM contracts, if any, would be particularly relevant. A deeper dive would involve examining contract close-out data and any debriefings provided to unsuccessful bidders in similar procurements.

How does the awarded price of $24.6 million compare to similar HR support contracts awarded by OPM or other federal agencies?

The awarded price of $24.6 million for a one-year HR support and training contract needs to be benchmarked against comparable federal procurements. Factors such as the specific services included (e.g., leadership training, technical skills development, onboarding), the number of employees served, the duration of the contract, and the geographic scope are critical for a fair comparison. Without access to detailed pricing structures of similar contracts, a precise comparison is difficult. However, for a contract of this nature and duration, the amount appears within a reasonable range, assuming a substantial number of federal employees are targeted for development. Further analysis would involve identifying contracts with similar NAICS codes (611430) and service descriptions.

What are the key performance indicators (KPIs) used to measure the success of this HR support contract?

While the provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract, typical metrics for HR support and professional development contracts include participant satisfaction rates (through post-training surveys), completion rates of training modules, demonstrated improvement in skills or knowledge (assessed via tests or performance reviews), and the achievement of specific learning objectives outlined in the contract. The agency likely tracks metrics related to the overall effectiveness of the training in improving employee performance and agency outcomes. The firm-fixed-price nature suggests that meeting defined service levels and deliverables is paramount.

What is the historical spending pattern for HR support and training services at OPM?

Analyzing historical spending patterns for HR support and training at OPM would provide context for the $24.6 million award. This involves examining OPM's budget allocations and contract awards over several fiscal years for similar services. Understanding whether this award represents an increase, decrease, or stable level of investment in workforce development is crucial. Trends in spending can indicate shifts in agency priorities, the impact of budget cycles, or changes in the contracting strategy. A comprehensive review would look at the number of contracts awarded, their values, and the types of services procured within the HR and training domain.

What are the potential risks associated with relying on a single contractor for this HR support service?

The primary risks associated with relying on a single contractor, even one with a strong track record like Serco Services Inc., include potential disruptions to service delivery if the contractor faces financial difficulties, operational issues, or personnel changes. There's also a risk of complacency or reduced innovation over time if competition is not consistently reintroduced. Furthermore, if the contract scope is not meticulously defined, there could be scope creep or disputes over deliverables. The government's ability to transition to a new contractor, should the need arise, could also be impacted by the integration of proprietary systems or processes.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Serco Group PLC (UEI: 298452707)

Address: 12012 SUNSET HILLS RD 8TH FL, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,600,046

Exercised Options: $24,600,046

Current Obligation: $24,600,046

Parent Contract

Parent Award PIID: OPM020700008

IDV Type: IDC

Timeline