Treasury's Mint contract for call center services awarded to Novitex Government Solutions for over $22.8M

Contract Overview

Contract Amount: $22,881,367 ($22.9M)

Contractor: Novitex Government Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2013-10-01

End Date: 2014-09-30

Contract Duration: 364 days

Daily Burn Rate: $62.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF ORDER FULFILLMENT AND CALL CENTER SERVICES

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $22.9 million to NOVITEX GOVERNMENT SOLUTIONS, LLC for work described as: IGF::CT::IGF ORDER FULFILLMENT AND CALL CENTER SERVICES Key points: 1. The contract value of over $22.8 million for a one-year period suggests a significant operational scale. 2. Awarded under full and open competition, indicating a broad market search for the best value. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. The 'All Other Business Support Services' NAICS code covers a wide range of potential activities. 5. The contract was awarded in October 2013, with performance concluding in September 2014. 6. The contractor, Novitex Government Solutions, LLC, secured this award.

Value Assessment

Rating: fair

Benchmarking the value-for-money for this specific contract is challenging without detailed service level agreements and performance metrics. The total award of over $22.8 million for a single year of call center operations is substantial. However, without comparable contract data for similar scope and scale within the US Mint or other Treasury bureaus, a precise value assessment is difficult. The firm-fixed-price structure implies that the contractor is responsible for managing costs to meet the agreed-upon price, which can be a positive indicator if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 5 bidders indicates a competitive environment. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie for the award. The specific details of the solicitation and evaluation criteria would further illuminate the quality of the competition.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective solution for essential government services.

Public Impact

The United States Mint benefits from outsourced call center operations, potentially improving efficiency and customer service. Services delivered likely include handling inquiries related to mint products, orders, and general government information. The geographic impact is primarily focused on supporting the operations of the US Mint, with potential national reach for customer interactions. Workforce implications may include the creation or maintenance of jobs within Novitex Government Solutions, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data makes it difficult to assess the quality of services rendered.
The broad NAICS code 'All Other Business Support Services' could obscure the specific nature and complexity of the services provided.
Without knowing the specific call volumes and complexity of inquiries, it's hard to judge if the $22.8M award represents efficient spending.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type transfers cost overrun risk to the contractor.
The contract was awarded to a single vendor, Novitex Government Solutions, LLC, indicating a clear point of accountability.

Sector Analysis

The Business Support Services sector encompasses a wide array of services essential for government operations, including customer service, administrative support, and logistical functions. This contract falls within this broad category, specifically addressing call center needs for the United States Mint. The market for such services is competitive, with numerous providers ranging from small businesses to large corporations. Government spending in this area is consistent, as agencies rely on these services to manage public interactions and internal operations efficiently. Comparable spending benchmarks would typically involve analyzing other government contracts for similar call center or customer support services across various agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and was not awarded to a small business (ss: false). Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from this specific award. The focus was on full and open competition, likely prioritizing the best overall value proposition from the entire market.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the United States Mint and the Department of the Treasury. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver services as specified to receive payment. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract details, value, and parties involved. Specific Inspector General jurisdiction would depend on whether the contract fell under any specific audit initiatives or investigations related to Treasury operations.

Related Government Programs

Treasury Department IT Support Services
US Mint Customer Relationship Management
Federal Call Center Operations
Business Process Outsourcing for Government Agencies

Risk Flags

Broad NAICS code may obscure specific service details.
Lack of performance metrics in summary data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $22.9 million to NOVITEX GOVERNMENT SOLUTIONS, LLC. IGF::CT::IGF ORDER FULFILLMENT AND CALL CENTER SERVICES

Who is the contractor on this award?

The obligated recipient is NOVITEX GOVERNMENT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2013-10-01. End: 2014-09-30.

What was the specific scope of services provided under this contract?

The provided data classifies this contract under NAICS code 561499, 'All Other Business Support Services,' and identifies the service as 'IGF::CT::IGF ORDER FULFILLMENT AND CALL CENTER SERVICES.' While this indicates call center and order fulfillment functions, the precise details of the services—such as the types of inquiries handled (e.g., product information, order status, payment issues), operating hours, languages supported, and specific order fulfillment processes—are not detailed in the summary data. These specifics would typically be outlined in the contract's Statement of Work (SOW) and Service Level Agreements (SLAs), which are crucial for understanding the full scope and complexity of the work performed by Novitex Government Solutions, LLC.

How does the $22.8 million award compare to other federal call center contracts?

Directly comparing the $22.8 million award for a single year of call center services to other federal contracts requires access to a comprehensive database of similar procurements with detailed scope and performance metrics. However, for context, federal spending on call center and customer support services can vary significantly based on agency size, complexity of services, number of inquiries, and required service levels. A contract of this magnitude suggests a substantial operation, potentially handling a high volume of inquiries or complex customer service requirements for the United States Mint. Without specific benchmarks for comparable agencies or contract types (e.g., firm-fixed-price vs. cost-plus), it's difficult to definitively state whether this represents a high, low, or average cost per service unit.

What is Novitex Government Solutions, LLC's track record with federal contracts?

The provided data indicates that Novitex Government Solutions, LLC was awarded this specific contract. To assess their broader track record, one would need to examine their contract history across various federal agencies. This would involve looking at the number of contracts awarded, their values, the types of services provided, performance ratings (if available), and any history of contract modifications, disputes, or terminations. A thorough review would help determine if Novitex has a consistent record of successful contract performance, particularly in areas relevant to call center operations and order fulfillment, and whether they have experience with similar-sized or complex government procurements.

What were the key performance indicators (KPIs) for this contract?

The summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) that were established for this contract. Typically, call center contracts include metrics such as average speed of answer, first call resolution rate, customer satisfaction scores, abandonment rate, and order accuracy. The firm-fixed-price nature of the contract implies that Novitex Government Solutions, LLC was responsible for meeting certain performance standards to earn the full contract value. Without access to the SOW or performance reports, it is impossible to assess whether these KPIs were met or how effectively the contractor performed against expectations.

How has federal spending on business support services evolved over time?

Federal spending on business support services, including call centers and order fulfillment, has generally trended upwards over the past decade, driven by increasing demand for efficient public services and the government's reliance on outsourcing to manage operational complexities. Agencies often seek to leverage private sector expertise and technology to improve service delivery and reduce internal overhead. This trend is influenced by factors such as technological advancements in communication platforms, the need for specialized customer service skills, and budget allocations for agency operations. While specific figures for 'All Other Business Support Services' fluctuate, the overall category represents a significant portion of government spending on operational support.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pitney Bowes Government Solutions, Inc (UEI: 121733018)

Address: 4200 PARLIAMENT PL STE 204, LANHAM SEABROOK, MD, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,881,367

Exercised Options: $22,881,367

Current Obligation: $22,881,367

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TMHQ08C0074

IDV Type: IDC

Timeline