Commerce Department's $3.16M Logistics Contract Awarded to ServiceSource Inc. Under Non-Competed Basis
Contract Overview
Contract Amount: $3,165,066 ($3.2M)
Contractor: Servicesource Inc
Awarding Agency: Department of Commerce
Start Date: 2022-04-01
End Date: 2027-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $1.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ABILITYONE PROGRAM - MOVING AND LOGISTICS CONTRACT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $3.2 million to SERVICESOURCE INC for work described as: ABILITYONE PROGRAM - MOVING AND LOGISTICS CONTRACT Key points: 1. The contract, valued at $3.16 million, is for process, physical distribution, and logistics consulting services. 2. Awarded to ServiceSource Inc., the contract was not competed, raising questions about potential price discovery. 3. The duration of the contract is 1825 days, ending in March 2027. 4. The specific NAICS code (541614) indicates a focus on logistics consulting. 5. The contract type is Firm Fixed Price, which can offer cost certainty but may limit flexibility.
Value Assessment
Rating: questionable
Without competitive bids, it is difficult to assess if the $3.16 million price is optimal. The firm fixed price structure provides some cost certainty, but the lack of competition prevents a direct comparison to market rates for similar logistics consulting services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method bypasses the typical price discovery process inherent in open competition, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these logistics consulting services, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for logistics consulting due to the absence of competitive bidding. The long-term nature of the contract (5 years) means any inefficiencies or overpricing could have a sustained impact. Lack of transparency in the procurement process can erode public trust in government spending. Limited opportunities for other qualified firms to provide these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competed award
- Lack of price transparency
- Potential for overpayment
- Long contract duration
Positive Signals
- Firm Fixed Price contract type
- Clear service description
Sector Analysis
The IT and professional services sector often sees significant government spending. Logistics consulting services, falling under NAICS 541614, are crucial for efficient government operations. Benchmarks for similar non-competed contracts are hard to establish, but competitive bids typically yield better value.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award to ServiceSource Inc. does not appear to prioritize small business participation.
Oversight & Accountability
The non-competed nature of this award warrants closer oversight to ensure the services are necessary and the price is fair. Accountability for the procurement decision and ongoing performance monitoring is crucial.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- No small business participation noted
- Long contract duration without competitive validation
Tags
process-physical-distribution-and-logist, department-of-commerce, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $3.2 million to SERVICESOURCE INC. ABILITYONE PROGRAM - MOVING AND LOGISTICS CONTRACT
Who is the contractor on this award?
The obligated recipient is SERVICESOURCE INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (Office of the Secretary).
What is the total obligated amount?
The obligated amount is $3.2 million.
What is the period of performance?
Start: 2022-04-01. End: 2027-03-31.
What justification was provided for not competing this logistics consulting contract, and how was the fair and reasonable price determined?
The justification for not competing the contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a critical need or lack of available sources. Without this, it's impossible to assess the validity of the price determination process. A fair and reasonable price is usually established through market research, historical data, or comparison with similar contracts, all of which are hindered by the lack of competition.
What are the potential risks associated with awarding a 5-year logistics consulting contract on a sole-source basis?
The primary risk is financial: the government may pay a premium due to the absence of competitive pressure, leading to inefficient use of taxpayer funds. There's also a risk of service stagnation, as the contractor may have less incentive to innovate or improve service delivery without competitive threats. Furthermore, it limits opportunities for other capable firms and can create a perception of favoritism or lack of due diligence in procurement.
How can the effectiveness and value of these logistics consulting services be measured and ensured given the non-competed nature of the award?
Effectiveness and value can be ensured through robust performance metrics and regular oversight. The contracting officer must establish clear deliverables, key performance indicators (KPIs), and quality assurance surveillance plans. Regular reviews of the contractor's performance against these metrics, along with user feedback from the Department of Commerce, are essential. Independent cost-benefit analyses or post-award reviews could also help validate the value received.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 1331L522Q13OS0004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10467 WHITE GRANITE DRIVE, OAKTON, VA, 22124
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,165,066
Exercised Options: $3,165,066
Current Obligation: $3,165,066
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-04-01
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-03-31
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