Treasury's $10.1M Contract for Temporary Help Services with Kelly Services, Inc. Raises Oversight Questions
Contract Overview
Contract Amount: $10,099,168 ($10.1M)
Contractor: Kelly Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-04-01
End Date: 2007-09-30
Contract Duration: 547 days
Daily Burn Rate: $18.5K/day
Number of Offers Received: 16
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: SUPPORT SERVICES
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $10.1 million to KELLY SERVICES, INC. for work described as: SUPPORT SERVICES Key points: 1. The contract value of $10.1 million for temporary staffing services is significant. 2. Kelly Services, Inc. is a large, established provider in the staffing industry. 3. The contract's duration of 547 days and Time and Materials pricing model present potential cost escalation risks. 4. The 'MD' contract type suggests a specific type of procurement, potentially limiting broader competition.
Value Assessment
Rating: fair
The Time and Materials pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not closely managed. Benchmarking against similar temporary staffing contracts would be necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type 'MD' and the lack of explicit competition details make it difficult to assess the procurement method. If competition was limited, it could impact price discovery and potentially lead to less favorable pricing for the government.
Taxpayer Impact: The government paid $10.1 million for temporary staffing. Without clear competition, taxpayers may have overpaid if more cost-effective options were available.
Public Impact
Taxpayers funded $10.1 million for temporary staffing services over 18 months. The Bureau of the Fiscal Service utilized external staffing to meet operational needs. The contract's duration and payment structure warrant scrutiny for efficiency and cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear competition details
- Time and Materials pricing model
- Potential for cost overruns
Positive Signals
- Contract awarded to a reputable provider
- Provided necessary support services
Sector Analysis
The temporary help services sector is competitive, with many large and small providers. Government contracts in this area typically aim for cost-effectiveness through competitive bidding and managed service agreements.
Small Business Impact
The data does not indicate if small businesses were involved in subcontracting or if this contract was specifically set aside for small business participation. Larger contracts often have subcontracting goals.
Oversight & Accountability
The 'MD' contract type and the Time and Materials pricing model necessitate robust oversight to ensure fair pricing and prevent scope creep. Tracking hours and materials diligently is crucial for accountability.
Related Government Programs
- Temporary Help Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Lack of transparency in competition
- Potential for cost overruns due to T&M
- Long contract duration without clear performance benchmarks
- Absence of small business participation details
Tags
temporary-help-services, department-of-the-treasury, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $10.1 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 $10.1 million.
What is the period of performance?
Start: 2006-04-01. End: 2007-09-30.
Was the Time and Materials pricing model the most cost-effective approach for these temporary staffing needs, or could a fixed-price contract have yielded better value?
The Time and Materials (T&M) model offers flexibility, which can be beneficial for unpredictable needs. However, it shifts cost risk to the government. Without detailed performance metrics and comparison to fixed-price bids for similar services, it's difficult to definitively state if it was the most cost-effective. Robust oversight is essential to manage T&M contracts effectively.
What specific procurement procedures were followed, and did they ensure adequate competition to achieve fair market prices for temporary staffing?
The provided data does not specify the procurement method beyond 'MD'. If this was not a full and open competition, the government may not have received the best possible pricing. Understanding the justification for any limited competition is key to assessing price discovery and taxpayer impact.
How effectively was the contract managed to ensure the services provided met the Bureau of the Fiscal Service's needs within the allocated budget?
Effective contract management for T&M involves diligent tracking of hours, rates, and materials, along with performance monitoring. The $10.1 million expenditure over 547 days suggests significant resource allocation. Assessing the quality of services rendered and adherence to budget requires access to performance reports and oversight documentation.
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: $10,108,119
Exercised Options: $10,099,168
Current Obligation: $10,099,168
Parent Contract
Parent Award PIID: TPD03C0003
IDV Type: IDC
Timeline
Start Date: 2006-04-01
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2013-11-29
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