Treasury's OCC awards $2.65M contract for call center services to Magellan Solutions USA Inc
Contract Overview
Contract Amount: $2,651,469 ($2.7M)
Contractor: Magellan Solutions USA Inc.
Awarding Agency: Department of the Treasury
Start Date: 2022-03-28
End Date: 2027-03-31
Contract Duration: 1,829 days
Daily Burn Rate: $1.4K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OCC OMBUDSMAN CALL CENTER
Place of Performance
Location: PALM COAST, FLAGLER County, FLORIDA, 32164
State: Florida Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.7 million to MAGELLAN SOLUTIONS USA INC. for work described as: OCC OMBUDSMAN CALL CENTER Key points: 1. Contract awarded to Magellan Solutions USA Inc. for telephone answering services. 2. The contract has a total value of $2,651,468.71 and runs until March 2027. 3. The procurement method was 'NOT COMPETED UNDER SAP', raising potential competition concerns. 4. The service falls under the 'Telephone Answering Services' NAICS code (561421).
Value Assessment
Rating: questionable
The contract's value of $2.65M over five years for call center services needs comparison against similar government contracts. Without competitive bidding, it's difficult to ascertain if this pricing represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP, indicating a limited competition approach. This method may not have explored the full range of potential vendors, potentially impacting price discovery and overall value for the government.
Taxpayer Impact: The lack of full and open competition could result in taxpayers paying more than necessary for these call center services.
Public Impact
Citizens seeking assistance from the Office of the Comptroller of the Currency may experience service disruptions or lower quality if the chosen vendor is not optimal. The use of limited competition for essential services like call centers can set a precedent for future procurements, potentially reducing overall government efficiency. Transparency in government spending is crucial; limited competition contracts warrant closer scrutiny to ensure accountability and prevent potential misuse of funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about best value.
- Lack of transparency in pricing.
- Potential for higher costs due to non-competitive award.
Positive Signals
- Contract supports essential government function (call center).
- Clear contract duration and end date.
Sector Analysis
The IT services sector, particularly call center operations, is highly competitive. Government contracts in this area typically undergo rigorous competitive bidding to ensure cost-effectiveness and quality.
Small Business Impact
There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis is needed to determine if opportunities were missed.
Oversight & Accountability
The 'NOT COMPETED UNDER SAP' designation suggests that standard competitive procedures were bypassed. Oversight is needed to ensure this decision was justified and that the contract terms are being met effectively.
Related Government Programs
- Telephone Answering Services
- Department of the Treasury Contracting
- Office of the Comptroller of the Currency Programs
Risk Flags
- Lack of full and open competition.
- Potential for inflated pricing.
- Limited transparency in procurement justification.
- No clear indication of small business participation.
Tags
telephone-answering-services, department-of-the-treasury, fl, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.7 million to MAGELLAN SOLUTIONS USA INC.. OCC OMBUDSMAN CALL CENTER
Who is the contractor on this award?
The obligated recipient is MAGELLAN SOLUTIONS USA INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2022-03-28. End: 2027-03-31.
What specific justification was provided for not competing this contract under SAP, and how does it align with federal procurement regulations for limited competition?
The provided data states 'NOT COMPETED UNDER SAP,' implying a deviation from standard competitive procedures. Federal regulations allow for limited competition under specific circumstances, such as when only one source can fulfill the requirement or in cases of urgent need. A thorough review of the contract file would be necessary to ascertain the exact justification and its compliance with FAR Part 6.
How does the awarded price of $2.65M compare to industry benchmarks for similar call center services, considering the contract's duration and scope?
Without access to detailed performance metrics and service level agreements, a precise benchmark is difficult. However, for a five-year contract of this value, it's crucial to compare the per-call cost, agent availability, and service quality against publicly available data for similar government and commercial call center contracts to assess value for money.
What mechanisms are in place to ensure the quality and effectiveness of the call center services provided by Magellan Solutions USA Inc. under this contract?
The contract type is 'FIRM FIXED PRICE,' which shifts some risk to the contractor. However, the government should have established performance standards and monitoring processes. Regular performance reviews, customer satisfaction surveys, and adherence to defined service level agreements are key indicators of service quality and effectiveness.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2527 S HARBOR CITY BLVD, MELBOURNE, FL, 32901
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $2,661,469
Exercised Options: $2,651,469
Current Obligation: $2,651,469
Actual Outlays: $1,975,678
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-03-28
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-03-27
More Contracts from Magellan Solutions USA Inc.
- Bronx Switchboard Service — $3.6M (Department of Veterans Affairs)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)