State Department's $463M NPIC Contract with Peckham Vocational Industries Under Scrutiny for Competition and Value

Contract Overview

Contract Amount: $463,456,929 ($463.5M)

Contractor: Peckham Vocational Industries, Inc.

Awarding Agency: Department of State

Start Date: 2019-05-01

End Date: 2024-09-27

Contract Duration: 1,976 days

Daily Burn Rate: $234.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO PROVIDE PERSONNEL, FACILITIES, TECHNICAL INFRASTRUCTURE, SUPPLIES, AND SUPPORT SERVICES REQUIRED TO PLAN AND OPERATE THE NATIONAL PASSPORT INFORMATION CENTER (NPIC). CONTRACT PERFORMANCE IS IN THE UNITED STATES OF AMERICA UNDER THE ABILITYONE PROGRAM USING SOURCE AMERICA.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $463.5 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: TO PROVIDE PERSONNEL, FACILITIES, TECHNICAL INFRASTRUCTURE, SUPPLIES, AND SUPPORT SERVICES REQUIRED TO PLAN AND OPERATE THE NATIONAL PASSPORT INFORMATION CENTER (NPIC). CONTRACT PERFORMANCE IS IN THE UNITED STATES OF AMERICA UNDER THE ABILITYONE PROGRAM USING SOURCE AMERICA. Key points: 1. The contract supports critical passport information center operations. 2. Competition is limited due to the AbilityOne program and Source America. 3. Risk exists in ensuring optimal value and efficient service delivery. 4. The IT services sector is heavily reliant on such support contracts.

Value Assessment

Rating: questionable

The contract's total value of over $463 million over its duration is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar services, raising questions about whether the government is receiving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract is not available for competition, likely due to its designation under the AbilityOne program, which prioritizes employment for individuals with disabilities. While this serves a social good, it limits price discovery and potentially reduces competitive pressure to lower costs.

Taxpayer Impact: Taxpayer funds are used for this contract, and while it supports a valuable social program, the lack of competition means there's a risk of overpayment compared to a fully competitive scenario.

Public Impact

Ensures the operational continuity of the National Passport Information Center. Supports employment opportunities for individuals with disabilities through the AbilityOne program. Impacts the efficiency and accessibility of passport services for the public. Highlights the government's commitment to social programs alongside essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for suboptimal value
Lack of transparent pricing benchmarks

Positive Signals

Supports a vital government function
Fulfills social objectives via AbilityOne
Long-term contract stability

Sector Analysis

This contract falls within the IT services and support sector, specifically focusing on call center operations and infrastructure. Benchmarks for similar large-scale government IT support contracts vary widely, but the unique nature of AbilityOne contracts makes direct comparison challenging.

Small Business Impact

The contract is awarded under the AbilityOne program, which prioritizes specific types of organizations. While this program aims to support individuals with disabilities, it does not directly address opportunities for small businesses in the traditional sense.

Oversight & Accountability

Oversight is crucial to ensure that Peckham Vocational Industries, Inc. is meeting all performance requirements and that the contract remains aligned with its objectives. The Department of State is responsible for monitoring this contract's execution and value.

Related Government Programs

Telephone Answering Services
Department of State Contracting
Department of State Programs

Risk Flags

Limited competition
Potential for higher costs
Lack of performance benchmarks
Contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $463.5 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. TO PROVIDE PERSONNEL, FACILITIES, TECHNICAL INFRASTRUCTURE, SUPPLIES, AND SUPPORT SERVICES REQUIRED TO PLAN AND OPERATE THE NATIONAL PASSPORT INFORMATION CENTER (NPIC). CONTRACT PERFORMANCE IS IN THE UNITED STATES OF AMERICA UNDER THE ABILITYONE PROGRAM USING SOURCE AMERICA.

Who is the contractor on this award?

The obligated recipient is PECKHAM VOCATIONAL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $463.5 million.

What is the period of performance?

Start: 2019-05-01. End: 2024-09-27.

How does the government ensure fair pricing and value for money when contracting under the AbilityOne program, given the inherent limitations on competition?

Ensuring fair pricing under the AbilityOne program often relies on established pricing structures and historical data, alongside government oversight to confirm performance standards are met. Agencies may conduct market research on comparable services, even if not directly competitive, to inform negotiations. The social mission is a key factor, but agencies still strive for efficient use of taxpayer funds through performance metrics and regular contract reviews.

What are the primary risks associated with a sole-source or limited-competition contract for essential government services like the NPIC?

The primary risks include potential overpayment due to lack of competitive pressure, reduced incentive for innovation or efficiency improvements by the contractor, and a diminished ability to adapt to changing technological landscapes or service demands. There's also a risk that the contractor may not be the most capable or cost-effective provider available in the broader market.

To what extent does the social benefit of the AbilityOne program justify potential cost inefficiencies compared to a fully competitive contract?

The justification involves balancing social good with fiscal responsibility. The AbilityOne program provides significant employment for individuals with disabilities, a key societal benefit. The government's approach is to ensure that while supporting this mission, the contract still delivers necessary services effectively and at a reasonable cost, often through performance-based metrics and ongoing oversight to mitigate potential inefficiencies.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3510 CAPITAL CITY BLVD, LANSING, MI, 48906

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $464,552,904

Exercised Options: $463,456,929

Current Obligation: $463,456,929

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline