DoD's $39.87M HR Consulting Contract with SERCO INC Awarded via Full and Open Competition
Contract Overview
Contract Amount: $39,869,968 ($39.9M)
Contractor: Serco Inc
Awarding Agency: Department of Defense
Start Date: 2008-09-30
End Date: 2009-09-29
Contract Duration: 364 days
Daily Burn Rate: $109.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: CONTRACTOR SUPPORT
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $39.9 million to SERCO INC for work described as: CONTRACTOR SUPPORT Key points: 1. The contract awarded to SERCO INC for Human Resources Consulting Services represents a significant investment by the Department of Defense. 2. Competition was full and open, suggesting a robust market for these services, though specific competitor data is not provided. 3. The contract's duration of 364 days and value indicate a focused, short-term need for specialized HR expertise. 4. The sector is primarily professional services, supporting defense operations through HR functions.
Value Assessment
Rating: fair
The contract value of $39.87M for a 364-day duration suggests a substantial per-day cost. Without specific deliverables or benchmarks for HR consulting services of this scale, it's difficult to definitively assess its value against market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically fosters competitive pricing and allows the government to select the best value. The impact on price discovery is generally positive due to multiple bidders vying for the contract.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The competitive nature of the award aims to ensure efficient use of these funds, but the ultimate value depends on the effectiveness of the services rendered.
Public Impact
Defense agencies rely on HR consulting for efficient personnel management, impacting military readiness and civilian workforce operations. The use of external consultants can bring specialized expertise not readily available within the government. Transparency in the competitive bidding process is crucial for public trust in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics or outcome data.
- Potential for cost overruns if scope expands beyond initial HR consulting.
- Limited insight into the specific HR challenges being addressed.
Positive Signals
- Awarded through full and open competition, indicating market availability.
- Contract duration is defined, suggesting a clear objective.
- Managed by the Defense Contract Management Agency, implying oversight.
Sector Analysis
The professional services sector, particularly HR consulting, is a common area for government contracting. Benchmarks for such services vary widely based on specialization and scope, making direct comparison challenging without more detail.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not specify small business participation. This suggests larger, established firms likely competed for and were awarded this significant contract.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, which is responsible for overseeing contract performance and ensuring compliance. Further oversight details, such as specific reporting requirements or audits, are not provided.
Related Government Programs
- Human Resources Consulting Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of specific performance metrics.
- Potential for high cost without clear ROI.
- Limited transparency on specific HR issues addressed.
- No indication of small business involvement.
Tags
human-resources-consulting-services, department-of-defense, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.9 million to SERCO INC. CONTRACTOR SUPPORT
Who is the contractor on this award?
The obligated recipient is SERCO INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $39.9 million.
What is the period of performance?
Start: 2008-09-30. End: 2009-09-29.
What specific HR challenges did the Department of Defense aim to address with this $39.87M contract, and how will the success of SERCO INC's services be measured against these objectives?
The specific HR challenges addressed are not detailed in the provided data. Success measurement would typically involve predefined Key Performance Indicators (KPIs) related to areas like recruitment efficiency, employee retention rates, training program effectiveness, or HR process optimization. Without these KPIs, assessing the contract's value and effectiveness is speculative.
Given the substantial value and the nature of HR consulting, what are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks include the potential for scope creep, vendor lock-in, misalignment of consultant recommendations with agency culture, and insufficient measurable outcomes. Mitigation strategies might involve rigorous contract management, clear performance standards, phased implementation of recommendations, and regular reviews to ensure alignment and value delivery.
How does the use of a full and open competition for HR consulting services impact the overall effectiveness and cost-efficiency for the Department of Defense?
Full and open competition generally enhances effectiveness and cost-efficiency by fostering a competitive environment that drives down prices and encourages innovation. It allows the DoD to select from a wider pool of qualified vendors, increasing the likelihood of finding the best fit for specific HR needs and potentially leading to more impactful solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Serco Group PLC (UEI: 298452707)
Address: 1818 LIBRARY ST STE 1000, RESTON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,575,037
Exercised Options: $39,869,968
Current Obligation: $39,869,968
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-30
Current End Date: 2009-09-29
Potential End Date: 2009-09-29 00:00:00
Last Modified: 2012-04-10
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