Treasury's $10M temporary staffing contract with Kelly Services shows potential for cost savings through better competition

Contract Overview

Contract Amount: $9,999,283 ($10.0M)

Contractor: Kelly Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2005-10-01

End Date: 2007-09-30

Contract Duration: 729 days

Daily Burn Rate: $13.7K/day

Number of Offers Received: 16

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUPPORT SERVICES

Place of Performance

Location: BREA, ORANGE County, CALIFORNIA, 92821

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $10.0 million to KELLY SERVICES, INC. for work described as: SUPPORT SERVICES Key points: 1. Contract awarded in 2005 for temporary staffing services, indicating a long-standing need. 2. The contract's value suggests a significant reliance on external workforce augmentation. 3. The limited competition level raises questions about optimal price discovery. 4. Performance context is limited without specific task orders or delivery metrics. 5. Sector positioning is within administrative and support services, a common area for federal contracting. 6. Risk indicators include potential for cost overruns due to non-competitive award and lack of detailed performance data.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific task order details or comparable contracts from the same period. However, a $10 million expenditure over two years for temporary staffing services suggests a substantial investment. The pricing structure, likely time and materials, can lead to cost variability. Without more granular data on the types of positions filled and the duration of assignments, a definitive value-for-money assessment is difficult. Further analysis would require comparing the hourly rates to market benchmarks for similar roles during the contract period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract award. If it was competed, the number of bidders and the nature of the solicitation (e.g., full and open, limited) would be crucial for assessing price discovery. A sole-source or limited competition award might indicate a lack of available vendors or specific requirements, potentially leading to higher costs for the government. Conversely, a robust competition typically drives down prices and ensures a wider pool of qualified contractors.

Taxpayer Impact: The level of competition directly impacts taxpayer value. More competitive solicitations generally result in lower prices, meaning taxpayer dollars are stretched further. Limited competition can lead to higher costs, reducing the overall efficiency of government spending.

Public Impact

Federal agencies, particularly the Bureau of the Fiscal Service, benefit from access to temporary staff to meet fluctuating workload demands. Services delivered include filling administrative, clerical, and potentially specialized temporary roles. The geographic impact is primarily California, where the contract was administered. Workforce implications include providing employment opportunities for individuals seeking temporary federal positions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality and effectiveness of the temporary staff provided.
The contract duration of two years, with a potential for extensions, could lead to long-term reliance on temporary staff rather than permanent hires, potentially impacting institutional knowledge.
Without clear competition details, there's a risk that the government did not secure the most cost-effective rates for the services rendered.

Positive Signals

The contract successfully provided necessary support services to the Department of the Treasury, ensuring operational continuity.
The use of temporary staffing services allows agencies to maintain flexibility in managing their workforce size and skill sets.
The existence of a contract for these services indicates a structured approach to meeting temporary staffing needs.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on temporary help services. This sector is characterized by its responsiveness to economic fluctuations and varying demand for labor. Federal spending in this area often supports agencies in managing peak workloads, covering staff absences, or acquiring specialized skills for short-term projects. Comparable spending benchmarks would involve analyzing other federal contracts for temporary staffing services across different agencies and time periods to assess cost-effectiveness and market rates.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting goals. If small businesses were not specifically targeted or included, it could limit their participation in federal contracting opportunities. Analysis of subcontracting plans would be necessary to understand the extent to which small businesses benefited from this contract. Without this information, the impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the Bureau of the Fiscal Service, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures would be tied to the delivery of services as specified in task orders. Transparency is generally facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Temporary Staffing Services
Professional and Administrative Support Services
Federal Workforce Augmentation
Procurement of Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing without clear benchmarks.
Lack of detailed performance data hinders assessment of service quality.
Ambiguity regarding the level of competition raises concerns about price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $10.0 million to KELLY SERVICES, INC.. SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is KELLY 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 $10.0 million.

What is the period of performance?

Start: 2005-10-01. End: 2007-09-30.

What was the specific nature of the temporary help services provided under this contract, and were there any performance issues reported?

The data indicates the contract was for 'Temporary Help Services' (NAICS code 561320) and awarded under the 'SUPPORT SERVICES' category. However, specific details regarding the types of roles filled (e.g., administrative, IT, specialized) or any reported performance issues are not available in the provided data. Without access to individual task orders or performance reports, it's impossible to assess the quality of services rendered or identify any problems encountered during the contract's execution. Further investigation into contract performance files or agency records would be necessary to answer this question comprehensively.

How did the pricing structure (Time and Materials) compare to other federal temporary staffing contracts awarded during the same period?

The contract utilized a 'TIME AND MATERIALS' (PT) pricing structure. Assessing its competitiveness requires comparing the hourly rates billed by Kelly Services to market benchmarks for similar temporary staffing roles (e.g., administrative assistants, clerks, program support staff) during the 2005-2007 period. Without access to specific rate schedules or data from comparable federal contracts awarded concurrently, it's difficult to definitively state whether the pricing was advantageous. Time and Materials contracts can be cost-effective when the scope of work is uncertain, but they also carry a risk of cost escalation if not closely managed and monitored against established ceilings and market rates.

What was the competitive landscape for this contract, and what does the number of bidders (if known) imply about price discovery?

The provided data indicates 'no' (NO) equal to 16, which likely refers to the number of offers received or bidders. If 16 offers were received, this suggests a reasonably competitive solicitation process. A higher number of bidders generally leads to better price discovery, as contractors are incentivized to offer competitive rates to win the award. However, the 'unknown' (st) competition level in the 'ca' field suggests ambiguity. If the competition was indeed robust with 16 offers, it would imply that the government likely received fair market pricing. If the competition was limited or sole-source, the price discovery would be less effective, potentially leading to higher costs.

What is the historical spending pattern for temporary staffing services by the Bureau of the Fiscal Service or the Department of the Treasury?

This contract represents a $9.99 million expenditure over two years (October 2005 - September 2007) for temporary staffing. To understand the historical spending pattern, one would need to examine prior and subsequent contracts for similar services awarded to the Bureau of the Fiscal Service and the broader Department of the Treasury. Analyzing trends in contract values, durations, and the number of awards over time would reveal whether reliance on temporary staffing has increased, decreased, or remained consistent. This context is crucial for assessing the significance of this particular contract within the agency's overall procurement strategy for support services.

Are there any indications of contractor performance issues or contract modifications that significantly altered the original scope or cost?

The provided data does not contain information regarding contract modifications, task order details, or any reported performance issues with Kelly Services, Inc. for this specific contract. Without access to the contract's official file, including any amendments, delivery reports, or performance evaluations, it is impossible to determine if the scope or cost deviated significantly from the original award. Such information would typically be found in agency procurement records or through specific data requests.

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

Address: 999 WEST BIG BEAVER ROAD, TROY, MI, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,432,150

Exercised Options: $9,999,283

Current Obligation: $9,999,283

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: TPD03C0003

IDV Type: IDC

Timeline