Department of Defense awards $15.8M task order for administrative management consulting services to Serco Inc

Contract Overview

Contract Amount: $25,744,514 ($25.7M)

Contractor: Serco Inc

Awarding Agency: Department of Defense

Start Date: 2009-02-13

End Date: 2010-02-15

Contract Duration: 367 days

Daily Burn Rate: $70.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Other

Official Description: EXCUTE TO 0015 - OPTION YEAR 2 ON CONTRACT # W52P1J-07-D0010. THIS TASK ORDER IS FUNDED AS AN UCA IN THE AMOUNT OF $15,815,183.00.

Place of Performance

Location: GIBBSBORO, CAMDEN County, NEW JERSEY, 08026

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to SERCO INC for work described as: EXCUTE TO 0015 - OPTION YEAR 2 ON CONTRACT # W52P1J-07-D0010. THIS TASK ORDER IS FUNDED AS AN UCA IN THE AMOUNT OF $15,815,183.00. Key points: 1. Contract value represents a significant investment in management consulting. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The task order is an Unilateral Contractual Action (UCA), which may indicate specific circumstances for its issuance. 4. The duration of the task order is approximately one year. 5. The contract type is Cost No Fee, implying reimbursement of costs without an additional fee. 6. The contractor, Serco Inc., has a history of performing government contracts.

Value Assessment

Rating: fair

The awarded amount of $15.8 million for administrative management and general management consulting services is substantial. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The 'Cost No Fee' contract type suggests that the government will reimburse the contractor for allowable costs incurred, but without a fee, the contractor's incentive might be solely cost control. Further analysis would require understanding the scope of services and comparing them to similar contracts for management consulting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. This generally leads to a more competitive environment, potentially resulting in better pricing and service offerings for the government. The number of bidders is not specified, but the open competition suggests a robust process.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the services rendered. Full and open competition increases the likelihood of receiving multiple proposals, driving down costs and improving the quality of services.

Public Impact

The primary beneficiaries are likely Department of Defense agencies requiring administrative and management consulting expertise. Services delivered are expected to enhance operational efficiency and management practices within the Army. The geographic impact is centered in New Jersey, where the contractor is located. Workforce implications may include the utilization of specialized consultants to support government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost No Fee' contract structure might reduce contractor incentive for aggressive cost management compared to fixed-price contracts.
The use of a Unilateral Contractual Action (UCA) warrants scrutiny to understand the specific circumstances and justification for its issuance.
Lack of detailed performance metrics in the provided data makes it challenging to assess the effectiveness and efficiency of the services.

Positive Signals

Awarded under full and open competition, suggesting a fair and competitive procurement process.
The contractor, Serco Inc., is an established entity with experience in government contracting.
The contract is for administrative management and general management consulting services, which can support critical government functions.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category encompassing a wide range of advisory services. The federal government is a significant consumer of these services, utilizing them for process improvement, strategic planning, and organizational development. Spending in this sector can fluctuate based on agency needs and budget allocations. Comparable spending benchmarks would require detailed analysis of specific service types and agency requirements.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific task order. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the primary award was made to a large business, and the impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the contracting officer (CO) within the Department of the Army. Accountability measures are inherent in the 'Cost No Fee' structure, where costs are reimbursed but without profit, focusing on the necessity and allowability of expenditures. Transparency would be enhanced through contract reporting requirements and potential audits by the Inspector General, though specific oversight details are not provided.

Related Government Programs

Department of Defense Management Consulting Services
Federal Administrative Support Contracts
General Management Consulting Services
Cost-Reimbursement Contracts

Risk Flags

Unilateral Contractual Action (UCA) may indicate non-standard procurement circumstances.
Cost No Fee contract type requires diligent cost oversight.
Limited information on specific deliverables and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to SERCO INC. EXCUTE TO 0015 - OPTION YEAR 2 ON CONTRACT # W52P1J-07-D0010. THIS TASK ORDER IS FUNDED AS AN UCA IN THE AMOUNT OF $15,815,183.00.

Who is the contractor on this award?

The obligated recipient is SERCO INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2009-02-13. End: 2010-02-15.

What is the track record of Serco Inc. in performing similar administrative management and general management consulting services for the federal government?

Serco Inc. has a substantial history of performing various services for the federal government, including those related to management and administrative support. While specific details on past performance for this exact type of task order are not provided in the summary data, Serco is known to operate in areas such as call centers, IT services, and program management for government agencies. Their track record generally involves large-scale contracts across multiple departments. A deeper dive into their contract history, past performance evaluations, and any reported issues or successes would be necessary for a comprehensive assessment of their suitability for this specific task order.

How does the awarded amount of $15.8 million compare to typical spending for similar administrative management consulting services within the Department of Defense?

The $15.8 million awarded for this task order is a significant sum for administrative management and general management consulting services. However, without knowing the precise scope of work, deliverables, and duration beyond the stated end date, direct comparison is challenging. Federal spending on consulting services varies widely based on the complexity of the problem, the expertise required, and the duration of the engagement. To benchmark this value, one would need to identify comparable contracts awarded by the Department of Defense or other agencies for similar services, considering factors like the number of consultants, their labor categories, and the expected outcomes. The 'Cost No Fee' structure also influences how value is perceived, focusing on cost recovery rather than profit margins.

What are the potential risks associated with a 'Cost No Fee' contract type for administrative management consulting?

A 'Cost No Fee' (CNF) contract type, while ensuring the government reimburses allowable costs, can present certain risks. The primary risk is a potential lack of strong contractor incentive to control costs aggressively, as the contractor does not earn a profit margin on top of their costs. This could lead to less efficient resource utilization or a tendency to incur higher costs than might be seen in a fixed-price or cost-plus-incentive-fee contract. For the government, it necessitates robust oversight to ensure that all costs incurred are reasonable, allocable, and necessary for performing the contract. Without a fee, the contractor's motivation might shift from profit maximization to efficient service delivery and maintaining a good relationship for future work.

What does the 'Unilateral Contractual Action' (UCA) designation imply for this task order?

A Unilateral Contractual Action (UCA) typically means that the contract modification or action was issued by the government without the contractor's prior agreement on the specific terms, often due to urgent needs or changes in requirements. In this case, the UCA designation for the $15.8 million task order suggests that the Department of the Army initiated this funding action independently. This could be for various reasons, such as an urgent requirement, a change in scope, or the exercise of an option. While UCAs can be necessary for program flexibility, they warrant careful review to ensure proper justification and that they align with the overall contract strategy and fair competition principles.

How does the geographic location of the contractor (New Jersey) impact the delivery of administrative management consulting services for the Department of Defense?

The contractor, Serco Inc., is located in New Jersey (SN: NEW JERSEY, ST: NJ). The impact of this geographic location on service delivery depends heavily on the nature of the administrative management and general management consulting services required. If the services are primarily advisory, analytical, or can be performed remotely through telework, the physical location may have minimal impact. However, if the services require on-site presence at a Department of Defense facility, the New Jersey location could influence travel costs, logistical planning, and the ability to integrate seamlessly with government personnel. The contract duration of approximately one year (367 days) suggests that sustained on-site presence might be a factor, making the contractor's location a relevant consideration for logistical and cost-efficiency assessments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management 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: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Serco Group PLC (UEI: 298452707)

Address: 20 CLEMENTON RD E 102S, GIBBSBORO, NJ, 08026

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,744,514

Exercised Options: $25,744,514

Current Obligation: $25,744,514

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J07D0010

IDV Type: IDC

Timeline