State Department's $137.7M contract for passport information services awarded to Peckham Vocational Industries, Inc

Contract Overview

Contract Amount: $137,707,786 ($137.7M)

Contractor: Peckham Vocational Industries, Inc.

Awarding Agency: Department of State

Start Date: 2008-12-01

End Date: 2013-09-29

Contract Duration: 1,763 days

Daily Burn Rate: $78.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF NATIONAL PASSPORT INFORMATION CENTER

Place of Performance

Location: LANSING, INGHAM County, MICHIGAN, 48906

State: Michigan Government Spending

Plain-Language Summary

Department of State obligated $137.7 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: OPERATION OF NATIONAL PASSPORT INFORMATION CENTER Key points: 1. The contract's value of $137.7 million over nearly five years suggests a significant investment in passport information services. 2. Awarded as 'not available for competition,' this raises questions about the extent of market research and potential for broader competition. 3. The fixed-price contract type aims to control costs, but performance monitoring is crucial to ensure value. 4. The duration of 1763 days indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 561421 points to telephone answering services, a critical but potentially competitive field. 6. The contract's performance period spans a significant portion of the late 2000s and early 2010s, reflecting a stable operational requirement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total award amount of $137.7 million for nearly five years of operation suggests a substantial annual expenditure. However, without details on the volume of calls handled, the complexity of inquiries, or the specific services provided beyond basic answering, a precise value-for-money assessment is difficult. The fixed-price nature of the contract provides some cost certainty, but the absence of readily available comparable contracts makes it hard to definitively state if the pricing is competitive or represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' designation, indicating that the agency determined that full and open competition was not practicable. This could be due to a variety of reasons, such as the unique capabilities of the contractor, urgent needs, or specific government requirements that only one source could meet. The lack of competition means that the pricing and service levels were not tested against the broader market, potentially leading to higher costs or less innovation than might have been achieved through a competitive process.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without a competitive environment, there is less pressure on the contractor to offer the lowest possible price or the most efficient service.

Public Impact

Citizens applying for or inquiring about U.S. passports benefit from the services provided, ensuring access to information and support. The contract supports the operational capacity of the Department of State in managing passport services nationwide. The services likely impact individuals across all U.S. states and territories requiring passport documentation. The contract supports employment opportunities within Peckham Vocational Industries, Inc., contributing to the workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced incentive for efficiency.
Limited transparency into the justification for sole-source award hinders public understanding of procurement decisions.
Absence of performance metrics makes it difficult to assess the effectiveness and quality of services delivered.
The fixed-price contract, while controlling costs, might disincentivize the contractor from exceeding basic service requirements.

Positive Signals

The contract provides a stable, long-term engagement for a specific service, ensuring continuity for passport information operations.
The fixed-price structure offers budget predictability for the Department of State.
The award to Peckham Vocational Industries, Inc. supports a specific mission-oriented organization.

Sector Analysis

The North American Industry Classification System (NAICS) code 561421, Telephone Answering Services, falls within the broader administrative and support services sector. This sector is characterized by a wide range of businesses providing support functions to other organizations. The market for call center and answering services is diverse, ranging from small, specialized firms to large, global providers. Government contracts for such services are common, often involving high volumes of inquiries and requiring robust infrastructure and security protocols. Benchmarking this specific contract's value is difficult without more granular data on call volume and complexity, but it represents a significant portion of federal spending within this niche service area.

Small Business Impact

This contract was awarded to Peckham Vocational Industries, Inc., which is not explicitly identified as a small business in the provided data. The contract details do not indicate any small business set-aside provisions or subcontracting requirements. Therefore, the direct impact on the small business ecosystem appears minimal, and there is no information to suggest that small businesses were specifically targeted for subcontracting opportunities under this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a definitive contract, it implies a level of established terms and conditions. However, the 'not available for competition' status suggests that the initial justification and award process may have bypassed standard competitive oversight. Transparency regarding the specific oversight mechanisms, performance reviews, and any inspector general involvement is limited based on the provided data.

Related Government Programs

Department of State Passport Services
Federal Call Center Contracts
Government Administrative Support Services

Risk Flags

Sole-source award may limit cost savings and competition.
Lack of detailed performance data hinders value assessment.
Contract duration is substantial, requiring ongoing oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $137.7 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. OPERATION OF NATIONAL PASSPORT INFORMATION CENTER

Who is the contractor on this award?

The obligated recipient is PECKHAM VOCATIONAL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $137.7 million.

What is the period of performance?

Start: 2008-12-01. End: 2013-09-29.

What specific services were provided under this contract beyond general telephone answering?

The provided data indicates the NAICS code is 561421 (Telephone Answering Services) and the description is 'OPERATION OF NATIONAL PASSPORT INFORMATION CENTER.' This suggests the services went beyond basic call routing or message taking. It likely encompassed providing information to the public regarding passport applications, requirements, processing times, and potentially assisting with status inquiries. The 'National Passport Information Center' implies a centralized hub responsible for a significant volume of public-facing communication related to passport services, requiring trained personnel capable of handling complex queries and providing accurate, up-to-date information.

What was the justification for awarding this contract on a sole-source basis?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not provided in the data. Typically, sole-source awards are made when agencies determine that full and open competition is not practicable. Reasons can include the existence of only one responsible source, urgent and compelling needs, or specific national security requirements. Without further documentation from the Department of State, the precise rationale remains unknown, but it implies that the agency believed Peckham Vocational Industries, Inc. was the only entity capable of meeting the contract's requirements at that time.

How does the contract's duration and value compare to similar federal contracts for call center or information services?

The contract's duration of 1763 days (approximately 4.8 years) and a total value of $137.7 million represent a substantial commitment. Annualized, this contract averaged roughly $28.7 million per year. Comparing this requires access to a broader database of federal contracts. However, for large-scale, mission-critical call center operations supporting millions of citizens, such figures are not entirely uncommon, especially when dealing with sensitive government functions like passport services. The key differentiator here is the sole-source nature, which makes direct value-for-money comparisons with competitively bid contracts more complex.

What performance metrics were likely used to evaluate the success of this contract?

While specific performance metrics are not detailed in the provided data, typical evaluations for a National Passport Information Center contract would likely include: call answer rates (percentage of calls answered within a certain timeframe), average call handling time, customer satisfaction scores (through surveys), first-call resolution rates (percentage of issues resolved on the first contact), accuracy of information provided, and adherence to security protocols. For a sole-source contract, the agency's internal program managers would be responsible for monitoring these metrics to ensure the contractor is meeting the agreed-upon service levels and delivering value.

What is the track record of Peckham Vocational Industries, Inc. in handling large federal contracts?

Peckham Vocational Industries, Inc. has a history of working with the federal government, often focusing on providing employment and training opportunities for individuals with disabilities. While this specific contract for the National Passport Information Center is a significant award, Peckham has experience in various service contracts. Their mission-oriented approach suggests a focus on social impact alongside service delivery. Assessing their overall track record would involve examining past performance reviews, contract modifications, and the successful completion of previous government engagements across different agencies and service types.

How has federal spending on passport information services evolved since the completion of this contract?

This contract concluded in September 2013. Since then, federal spending on passport information services has likely evolved significantly, driven by technological advancements, changes in citizen expectations, and shifts in government service delivery models. We would expect to see increased investment in digital platforms, online self-service options, and potentially more sophisticated CRM (Customer Relationship Management) systems. Furthermore, subsequent contracts may have been competitively bid, potentially leading to different pricing structures and service innovations compared to this sole-source award. Analyzing spending trends post-2013 would reveal shifts towards more integrated and potentially more cost-effective service models.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3510 CAPITAL CITY BLVD, LANSING, MI, 48906

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $250,493,699

Exercised Options: $170,083,774

Current Obligation: $137,707,786

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline