Treasury's $15M Temporary Help Services Contract with Kelly Services: Analysis of Value, Competition, and Oversight

Contract Overview

Contract Amount: $15,002,404 ($15.0M)

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: $27.4K/day

Number of Offers Received: 16

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUPPORT SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $15.0 million to KELLY SERVICES, INC. for work described as: SUPPORT SERVICES Key points: 1. The contract awarded to Kelly Services, Inc. for Temporary Help Services represents a significant expenditure of $15,004,240.47. 2. Analysis of competition is limited due to the absence of specific contract award details. 3. Potential risks include ensuring cost-effectiveness and appropriate utilization of temporary staff. 4. The IT sector is not directly applicable, but administrative support services are crucial for agency operations.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure can lead to cost overruns if not closely monitored. Benchmarking against similar T&M contracts for temporary staffing services is essential to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The award method is not specified, making it difficult to assess the level of competition and the effectiveness of price discovery. If sole-source or limited competition, it may have resulted in higher costs.

Taxpayer Impact: Taxpayer funds were used for this contract. Without clear competition, there's a risk that taxpayers did not receive the best possible value.

Public Impact

Ensures operational continuity by providing necessary staffing support to the Bureau of the Fiscal Service. Potential for increased administrative burden and costs if not managed efficiently. Impact on employee morale and organizational culture due to the use of temporary staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency in award process.
Potential for cost escalation with T&M pricing.
Dependency on a single vendor for critical support.

Positive Signals

Provides essential staffing to meet agency needs.
Contract duration allowed for sustained support.

Sector Analysis

This contract falls under administrative and support services, specifically temporary staffing. Benchmarks for such services vary widely based on skill level and duration, but agencies typically aim for competitive rates to control costs.

Small Business Impact

The data does not indicate whether small businesses were involved in subcontracting opportunities. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight of this contract would involve monitoring the vendor's performance, adherence to T&M rates, and the necessity of the temporary staff provided. The Bureau of the Fiscal Service is responsible for this oversight.

Related Government Programs

Temporary Help Services
Department of the Treasury Contracting
Bureau of the Fiscal Service Programs

Risk Flags

Lack of transparency regarding competition.
Potential for cost overruns due to T&M pricing.
Absence of performance metrics for temporary staff.
Unclear impact on small businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $15.0 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 $15.0 million.

What is the period of performance?

Start: 2006-04-01. End: 2007-09-30.

What was the specific justification for the contract award method, and how did it ensure fair pricing?

The provided data does not specify the award method or justification. Understanding this is crucial for assessing if the government secured competitive pricing. Without this information, it's difficult to determine if the $15M expenditure represents good value or if alternative, more cost-effective procurement strategies were overlooked.

What mechanisms were in place to control costs under the Time and Materials pricing structure?

Time and Materials contracts carry inherent risks of cost escalation. Effective oversight would require rigorous tracking of hours, labor categories, and material costs, along with clear ceilings and regular performance reviews to ensure the agency wasn't overpaying for the services rendered.

How effectively did the temporary staff provided by Kelly Services contribute to the Bureau of the Fiscal Service's mission?

The data does not offer insights into the performance or impact of the temporary staff. Evaluating their effectiveness would necessitate reviewing performance metrics, employee feedback, and the extent to which they fulfilled critical operational needs without compromising quality or long-term agency goals.

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: $15,036,398

Exercised Options: $15,002,404

Current Obligation: $15,002,404

Parent Contract

Parent Award PIID: TPD03C0003

IDV Type: IDC

Timeline