Treasury's $26.4M temporary help services contract with IAP World Services, Inc. awarded in 2005

Contract Overview

Contract Amount: $26,438,972 ($26.4M)

Contractor: IAP World Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2005-10-01

End Date: 2007-03-31

Contract Duration: 546 days

Daily Burn Rate: $48.4K/day

Number of Offers Received: 16

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA, 20307

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $26.4 million to IAP WORLD SERVICES, INC. for work described as: SUPPORT SERVICES Key points: 1. Contract awarded for temporary staffing solutions to support the Bureau of the Fiscal Service. 2. Duration of 546 days, indicating a medium-term need for support services. 3. Awarded as 'Other Direct Costs' (ODC) under a larger contract vehicle, suggesting it's part of a broader procurement strategy. 4. The contract was awarded in 2005 and completed in 2007, providing historical context for current spending. 5. Focus on temporary help services highlights a need for flexible workforce augmentation. 6. The contract value of approximately $26.4 million suggests a significant scale of support required.

Value Assessment

Rating: fair

The contract value of $26.4 million for temporary help services over 546 days appears substantial. Benchmarking this against similar contracts for temporary staffing in government agencies would be necessary to fully assess value for money. The 'Other Direct Costs' designation might indicate that the pricing structure is tied to a larger master contract, which could influence its competitiveness. Without more granular data on the specific roles and rates, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. As a Time and Materials contract, the pricing is often driven by labor rates and direct costs. The number of bidders and the specific solicitation process would determine the extent of price discovery and potential for cost savings. Further investigation into the contract's award details is needed to understand the competitive landscape.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically leads to lower prices and better service terms, ensuring that federal funds are used more efficiently. Limited or unknown competition could result in higher costs for the government.

Public Impact

Federal agencies, specifically the Bureau of the Fiscal Service, benefit from augmented staffing to meet operational needs. Services delivered include temporary staffing, providing flexibility and specialized skills as required. The geographic impact is centered in the District of Columbia, where the Treasury Department is headquartered. Workforce implications involve the integration of temporary staff alongside permanent federal employees, potentially impacting team dynamics and knowledge transfer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition information hinders assessment of optimal value.
Time and Materials contract type can sometimes lead to cost overruns if not closely managed.
The 'Other Direct Costs' classification requires further scrutiny to understand its full implications.

Positive Signals

Contract successfully provided necessary support services to a key federal agency.
The duration suggests a sustained need that was met by the contractor.
Awarded to a known entity, IAP World Services, Inc., implying some level of pre-qualification or past performance.

Sector Analysis

The temporary help services sector is a significant component of the broader professional, scientific, and technical services industry. Government agencies frequently utilize these services to manage fluctuating workloads, access specialized skills, and control labor costs. Spending in this area is often driven by budget cycles and the need for agile workforce solutions. Comparable spending benchmarks would involve analyzing other federal contracts for temporary staffing across various agencies and departments.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Therefore, it is unlikely that small businesses were specifically targeted for this award. Subcontracting opportunities for small businesses would depend on IAP World Services, Inc.'s internal policies and the specific requirements of the task orders issued under this contract. The impact on the small business ecosystem is likely minimal if no set-aside or subcontracting goals were mandated.

Oversight & Accountability

Oversight for this contract would have been managed by the Bureau of the Fiscal Service, likely through contract officers and program managers. Accountability measures would involve performance reviews, adherence to contract terms, and financial reporting. Transparency is generally facilitated through contract databases like FPDS, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Workforce Augmentation Services
Temporary Staffing Contracts
Professional and Management Support Services
Bureau of the Fiscal Service Operations

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited transparency on competition level.
Need for detailed performance data to assess value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $26.4 million to IAP WORLD SERVICES, INC.. SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is IAP WORLD SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2005-10-01. End: 2007-03-31.

What was the specific nature of the 'Temporary Help Services' provided under this contract?

The contract data indicates the North American Industry Classification System (NAICS) code as 561320, which corresponds to 'Temporary Help Services'. This typically involves providing workers directly to other businesses to augment the client's workforce. These services can range from administrative and clerical support to specialized technical or professional roles, depending on the agency's needs. For the Bureau of the Fiscal Service, this likely involved providing personnel to assist with financial operations, administrative tasks, or other support functions that required flexible staffing solutions beyond the capacity of their permanent workforce.

How does the $26.4 million contract value compare to typical spending on temporary help services by federal agencies?

A contract value of $26.4 million for temporary help services is substantial, suggesting a significant and ongoing need for external staffing support by the Bureau of the Fiscal Service over the contract's duration. To benchmark this, one would need to compare it against average contract values for similar services across different federal agencies and for similar timeframes. Larger agencies or those with complex operational demands might award higher-value contracts. However, without specific comparative data on the number of positions filled, the skill sets required, and the duration of each placement, it's difficult to definitively state if this represents high or low spending relative to peers. It does, however, indicate a considerable investment in flexible staffing.

What are the potential risks associated with a Time and Materials (T&M) contract for temporary help services?

Time and Materials contracts, like the one potentially used here (indicated by 'PT': 'TIME AND MATERIALS'), carry inherent risks, primarily related to cost control. In a T&M structure, the government pays the contractor for the actual labor hours at specified hourly rates and for the cost of materials used. The primary risk is that costs can escalate if the project duration extends beyond initial estimates or if labor hours are not efficiently utilized. For temporary help services, this means the government is exposed to potentially higher costs if the need for temporary staff is prolonged or if the contractor's personnel are not as productive as anticipated. Robust oversight, clear task definitions, and diligent monitoring of hours and expenses are crucial to mitigate these risks and ensure value for money.

What does the 'Other Direct Costs' (ODC) designation imply for this contract?

The 'Other Direct Costs' (ODC) designation, often seen in larger contract vehicles or master agreements, suggests that this specific contract action represents a component of a broader procurement strategy. ODCs typically refer to expenses incurred by the contractor that are directly attributable to the performance of the contract but are not part of the contractor's general overhead or profit. For temporary help services, this could include specific travel expenses, per diem, or other direct costs associated with deploying temporary staff. It implies that the pricing and terms for these ODCs might be governed by a parent contract, potentially influencing the negotiation and oversight process. Understanding the parent contract's terms is key to fully assessing the value and risks associated with these ODCs.

What was the contractor's track record prior to or during this contract?

The contractor identified is IAP World Services, Inc. As a significant government contractor, IAP World Services has a history of performing various support services for federal agencies. Without access to specific performance evaluations or past performance data directly tied to this particular contract (e.g., CPARS reports), it's challenging to provide a detailed assessment of their track record *for this specific engagement*. However, their continued presence as a government contractor suggests a general capacity to meet contractual obligations. A deeper dive into their broader contract history, including any awards or penalties, would offer more insight into their reliability and performance quality.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

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

Contractor Details

Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,781,697

Exercised Options: $26,438,972

Current Obligation: $26,438,972

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: TPD03C0002

IDV Type: IDC

Timeline