EPA awards $2.77M contract for air program support to SERCO INC, with 1961 days duration

Contract Overview

Contract Amount: $2,766,748 ($2.8M)

Contractor: Serco Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2021-03-18

End Date: 2026-07-31

Contract Duration: 1,961 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: AIR (OAQPS) PROGRAM SUPPORT R4

Place of Performance

Location: ATHENS, CLARKE County, GEORGIA, 30605

State: Georgia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $2.8 million to SERCO INC for work described as: AIR (OAQPS) PROGRAM SUPPORT R4 Key points: 1. Contract value appears moderate for specialized program support services. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. Performance duration of over five years suggests a need for sustained support. 4. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Geographic focus on Georgia (GA) for this specific order. 6. Labor hours pricing model used, which can offer flexibility but requires careful monitoring.

Value Assessment

Rating: good

The contract value of $2.77 million over approximately 5.4 years (1961 days) translates to an average annual value of around $512,000. This seems reasonable for specialized program support, though direct comparisons are difficult without knowing the specific tasks. The use of labor hours (LABOR HOURS) suggests a flexible approach, but the overall value should be benchmarked against similar EPA program support contracts to ensure cost-effectiveness. Without more granular data on the labor categories and rates, a precise per-unit cost comparison is challenging.

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 offers. This suggests a robust bidding process. The number of bidders is not specified, but a full and open competition generally fosters a competitive environment, which is beneficial for price discovery and potentially leads to more favorable pricing for the government compared to limited or sole-source procurements.

Taxpayer Impact: A full and open competition maximizes the opportunity for multiple companies to bid, increasing the likelihood of securing the best value and price for taxpayer dollars.

Public Impact

The Environmental Protection Agency (EPA) benefits from sustained support for its air quality programs. Services delivered likely include administrative, technical, or analytical support crucial for program operations. Geographic impact is noted as Georgia (GA) for this specific delivery order. Workforce implications may involve specialized technical or administrative personnel employed by SERCO INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours pricing can lead to cost overruns if not managed tightly.
The long duration of the contract (over 5 years) requires ongoing vigilance to ensure continued value.
Specific details of the 'air (OAQPS) program support' are not fully elaborated, making it hard to assess the full scope of work.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
The contract is a delivery order, which often implies it's part of a pre-competed IDIQ, potentially offering efficiencies.
The contractor, SERCO INC, is likely experienced in providing government support services.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically related to environmental consulting and support. The NAICS code 541380 (Testing Laboratories and Services) suggests a focus on technical analysis or laboratory support. Spending in this category is substantial across the federal government, supporting regulatory functions, research, and program management. This contract appears to be a component of the EPA's broader efforts to manage and regulate air quality, fitting within the agency's core mission.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside requirements for this particular award. The focus was on full and open competition, which may or may not have involved small businesses as prime contractors or subcontractors depending on the bidding landscape.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA) contracting officers and program managers. As a delivery order under a potential IDIQ, there may be established oversight mechanisms within the parent contract. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would involve performance reviews and adherence to contract terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

EPA Air Quality Management Contracts
Environmental Consulting Services
Federal Program Support Contracts
IDIQ Contract Vehicles

Risk Flags

Potential for scope creep due to long duration.
Need for rigorous oversight of labor hours to control costs.
Uncertainty in specific service details without SOW.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $2.8 million to SERCO INC. AIR (OAQPS) PROGRAM SUPPORT R4

Who is the contractor on this award?

The obligated recipient is SERCO INC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2021-03-18. End: 2026-07-31.

What specific services does SERCO INC provide under this 'AIR (OAQPS) PROGRAM SUPPORT R4' contract?

The contract description 'AIR (OAQPS) PROGRAM SUPPORT R4' and the NAICS code 541380 (Testing Laboratories and Services) suggest that SERCO INC is likely providing technical, analytical, or administrative support related to the EPA's Office of Air and Radiation's (OAR) programs, potentially including data analysis, testing, reporting, or project management assistance. The 'R4' designation might refer to a specific task order or a phase within a larger program. Without access to the detailed statement of work (SOW) for this delivery order, the precise nature of the services remains somewhat generalized. However, given the EPA's mission, these services are critical for regulatory compliance, policy development, and the overall management of air quality initiatives.

How does the $2.77 million contract value compare to similar EPA program support contracts?

Benchmarking the $2.77 million contract value requires comparing it to similar contracts for program support within the EPA or other environmental agencies. Contracts for specialized technical and administrative support can vary widely based on scope, duration, and required expertise. An average annual value of approximately $512,000 for a five-year support contract appears moderate, not excessively high or low, for specialized government services. However, a more precise comparison would involve analyzing contracts with similar NAICS codes (e.g., 541380, 541620 - Environmental Consulting Services) and similar agencies, considering factors like the number of labor hours, labor categories, and specific deliverables. Without such a detailed comparative analysis, it's difficult to definitively state if this represents excellent or questionable value.

What are the potential risks associated with a 1961-day (over 5 years) contract duration for program support?

A contract duration exceeding five years, like this 1961-day award, presents several potential risks. Firstly, the scope of work may evolve significantly over such a long period due to changing regulatory requirements, technological advancements, or shifts in agency priorities. This could lead to scope creep or the need for costly contract modifications. Secondly, maintaining consistent performance quality from the contractor over an extended duration can be challenging. Thirdly, long-term reliance on a single contractor might reduce flexibility and hinder the adoption of new approaches or technologies. Finally, the government risks locking into potentially suboptimal pricing if market rates decrease over the contract's life. Robust contract management, regular performance reviews, and clear modification clauses are essential to mitigate these risks.

What is the significance of this contract being a 'Delivery Order' (aw: DELIVERY ORDER)?

The designation 'DELIVERY ORDER' indicates that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract. IDIQs allow agencies to procure services or supplies over a period of time from a pre-selected pool of contractors. Issuing a delivery order means that a specific quantity of goods or services has been ordered and will be delivered or performed. This approach often streamlines the procurement process for recurring needs, as the initial competition to establish the IDIQ vehicle has already occurred. It allows the EPA to efficiently obtain necessary support without conducting a full, separate competition for each individual requirement.

How does the 'Labor Hours' (pt: LABOR HOURS) pricing model impact cost control and value for money?

The 'Labor Hours' pricing model means the government pays for the actual time spent by contractor personnel on the contract, multiplied by agreed-upon hourly rates. This model offers flexibility, particularly when the exact amount of effort required is uncertain at the outset, as is common in program support. However, it shifts the primary cost control burden to the government's oversight. Without diligent monitoring of hours worked, task completion, and the appropriateness of labor categories, there is a risk of cost overruns. To ensure value for money, the government must closely track effort, ensure efficient work practices by the contractor, and have well-defined performance metrics. Comparing the effective hourly rates to market benchmarks for similar skill sets is also crucial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 12930 WORLDGATE DR STE 600, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $3,479,095

Exercised Options: $3,479,095

Current Obligation: $2,766,748

Actual Outlays: $2,260,650

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 68HE0121D0003

IDV Type: IDC

Timeline