Treasury's $14.6M Contract for Temporary Help Services with Kelly Services, Inc. Raises Questions on Value and Competition
Contract Overview
Contract Amount: $14,603,427 ($14.6M)
Contractor: Kelly Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-04-01
End Date: 2007-03-31
Contract Duration: 364 days
Daily Burn Rate: $40.1K/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, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $14.6 million to KELLY SERVICES, INC. for work described as: SUPPORT SERVICES Key points: 1. The contract value of $14.6 million for temporary staffing services is significant. 2. Competition details are unclear, potentially impacting price discovery and taxpayer value. 3. The use of Time and Materials pricing may present cost control risks. 4. This falls within the broader professional and business services sector.
Value Assessment
Rating: questionable
The contract's Time and Materials pricing structure, without a clear ceiling or fixed price component, makes a direct value assessment difficult. Benchmarking against similar temporary staffing contracts would be necessary to determine if the $14.6 million expenditure represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type and award details do not specify the competition method used. If this was not a full and open competition, it could limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The lack of clear competition and potential for unmanaged costs under a T&M contract could result in inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying above market rates due to unclear competition. The effectiveness of temporary staffing services is dependent on vendor performance and government oversight. Government agencies rely on such services to fill critical staffing gaps, impacting operational efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition transparency
- Time and Materials pricing model
- Potential for cost overruns
Positive Signals
- Provides essential staffing support
- Contract duration aligns with potential needs
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically temporary help services. Spending in this category is common across federal agencies to manage fluctuating workforce needs and specialized skill requirements.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities or if the prime contractor is a small business. Analysis of small business participation is crucial for equitable distribution of federal contracts.
Oversight & Accountability
Oversight of this contract would focus on ensuring the necessity of temporary staff, the reasonableness of hourly rates, and the efficient delivery of services. The Bureau of the Fiscal Service's role in managing financial operations necessitates robust oversight of service contracts.
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 unmanaged costs due to T&M pricing
- Absence of clear performance metrics
- Uncertainty regarding small business participation
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 $14.6 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 $14.6 million.
What is the period of performance?
Start: 2006-04-01. End: 2007-03-31.
What was the specific justification for the procurement method used, and how was price reasonableness determined for this Time and Materials contract?
The justification for the procurement method and the process for determining price reasonableness are critical missing pieces of information. For Time and Materials contracts, agencies typically establish an estimated cost and a ceiling price, and require contractors to maintain records to substantiate their labor hours and costs. Without this documentation, it's difficult to assess if the $14.6 million was a fair price.
What performance metrics were established to ensure the effectiveness and value of the temporary staffing services provided by Kelly Services, Inc.?
Effectiveness is typically measured by the successful placement of qualified personnel who meet the agency's needs, the timeliness of staffing, and the overall satisfaction of the hiring managers. Key performance indicators (KPIs) might include fill rates, retention rates, and feedback from end-users. Without defined metrics, it's challenging to objectively assess the value delivered against the contract's cost.
What is the typical market rate for similar temporary staffing services in the Maryland region, and how does this contract's estimated cost compare?
Benchmarking against market rates is essential for evaluating contract value. The average hourly rates for temporary administrative, clerical, and professional staff can vary significantly based on skill level and demand. A comprehensive market analysis, considering prevailing wages and agency markups for similar services in Maryland, would be needed to determine if the $14.6 million expenditure was competitive.
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: $14,791,250
Exercised Options: $14,603,427
Current Obligation: $14,603,427
Parent Contract
Parent Award PIID: TPD03C0003
IDV Type: IDC
Timeline
Start Date: 2006-04-01
Current End Date: 2007-03-31
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2013-11-29
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