State Dept. awards $75.5M contract to SERCO INC for National Visa Center operations
Contract Overview
Contract Amount: $75,524,999 ($75.5M)
Contractor: Serco Inc
Awarding Agency: Department of State
Start Date: 2011-02-01
End Date: 2012-07-31
Contract Duration: 546 days
Daily Burn Rate: $138.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPERATION OF THE NATIONAL VISA CENTER/KENTUCKY CONSULAR CENTER
Place of Performance
Location: PORTSMOUTH, ROCKINGHAM County, NEW HAMPSHIRE, 03801
Plain-Language Summary
Department of State obligated $75.5 million to SERCO INC for work described as: OPERATION OF THE NATIONAL VISA CENTER/KENTUCKY CONSULAR CENTER Key points: 1. Contract awarded to SERCO INC for $75.5M. 2. Services include operation of the National Visa Center/Kentucky Consular Center. 3. The contract was not competed, raising potential value concerns. 4. Sector is Business Support Services, with limited public data for benchmarking.
Value Assessment
Rating: questionable
The contract value of $75.5M for 1.5 years of service is substantial. Without a competitive bidding process, it's difficult to assess if this price represents fair market value compared to similar operations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential visa processing services.
Public Impact
Impacts the efficiency and effectiveness of U.S. visa processing. Affects individuals and families seeking to enter the United States. Ensures the smooth operation of consular services abroad.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Essential government function supported
- Contract duration aligns with operational needs
Sector Analysis
This contract falls under Business Support Services, specifically related to government administrative operations. Benchmarking is challenging due to the unique nature of visa processing and the lack of competitive data.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small business participation was sought or subcontracted.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. The lack of competition warrants close scrutiny to ensure accountability and value for money.
Related Government Programs
- All Other Business Support Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award process
- No clear small business participation
Tags
all-other-business-support-services, department-of-state, nh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $75.5 million to SERCO INC. OPERATION OF THE NATIONAL VISA CENTER/KENTUCKY CONSULAR CENTER
Who is the contractor on this award?
The obligated recipient is SERCO INC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $75.5 million.
What is the period of performance?
Start: 2011-02-01. End: 2012-07-31.
What is the justification for not competing this significant contract, and how was the price determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require extensive documentation justifying the lack of alternatives. Price reasonableness is usually determined through cost analysis, historical data, or comparison to similar services, but without competition, this assessment is inherently less robust.
What are the risks associated with a sole-source award for critical visa processing operations?
The primary risks include potential overpayment due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in the procurement process. This could lead to suboptimal service delivery or higher long-term costs for the government.
How does the performance of SERCO INC on this contract impact the effectiveness of the National Visa Center?
The provided data does not include performance metrics for SERCO INC. Therefore, it's impossible to assess the direct impact on the effectiveness of the National Visa Center. Performance reviews and user feedback would be necessary to evaluate service quality and operational efficiency.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Serco Group PLC (UEI: 298452707)
Address: 1818 LIBRARY ST STE 1000, RESTON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $80,132,898
Exercised Options: $80,132,898
Current Obligation: $75,524,999
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2011-02-01
Current End Date: 2012-07-31
Potential End Date: 2012-07-31 00:00:00
Last Modified: 2013-10-23
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