DHS awards $3.07M for travel services, highlighting rapid deployment needs

Contract Overview

Contract Amount: $3,072 ($3.1K)

Contractor: Concur Technologies, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-09

End Date: 2022-12-22

Contract Duration: 13 days

Daily Burn Rate: $236/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRAVEL RESERVATION AND SUPPORT SERVICES

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25403

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3,072 to CONCUR TECHNOLOGIES, INC. for work described as: TRAVEL RESERVATION AND SUPPORT SERVICES Key points: 1. Contract focuses on essential travel support, indicating a need for agile logistical capabilities. 2. Short duration suggests a need for immediate, short-term support rather than long-term infrastructure. 3. Firm-fixed-price structure aims to control costs for a defined scope of services. 4. Competition was robust, potentially leading to favorable pricing for the government. 5. The contract's value is modest, suggesting it's part of a larger travel support framework. 6. Performance is concentrated in West Virginia, indicating a specific regional operational focus.

Value Assessment

Rating: good

The contract value of $3.07 million for a 13-day period for travel reservation and support services appears reasonable given the short timeframe and the nature of emergency response support. Benchmarking against similar short-term, high-urgency travel contracts is difficult due to the specialized nature of FEMA's needs. However, the firm-fixed-price contract type suggests that costs were well-defined upfront, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature suggests that FEMA sought the best value from the market. This approach typically fosters price discovery and encourages competitive pricing.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by ensuring that the government receives competitive pricing and a wider range of service options, maximizing the efficient use of public funds.

Public Impact

Federal Emergency Management Agency (FEMA) personnel and potentially disaster response teams benefit from streamlined travel arrangements. Services include reservation and support for scheduled passenger air transportation. Geographic impact is focused on West Virginia (WV) for this specific delivery order. Workforce implications are minimal, as this contract supports existing personnel rather than creating new roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may limit long-term strategic planning for travel support.
Concentration in a single state could indicate a specific, localized need that may not reflect broader requirements.

Positive Signals

Full and open competition suggests a robust market response and potential for cost savings.
Firm-fixed-price contract provides cost certainty for the government.
Rapid award period (delivery order issued and completed within same month) indicates responsiveness to urgent needs.

Sector Analysis

The travel reservation and support services sector is a critical component of government operations, enabling personnel to carry out missions across various agencies. This contract falls under the broader transportation and logistics industry. Spending in this area is often driven by operational tempo, emergency response needs, and the geographic distribution of federal employees and activities. Comparable spending benchmarks are difficult to establish without more context on the specific services rendered and the scale of travel managed.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation or subcontracting requirements within this specific delivery order. Further analysis would be needed to determine if small businesses were involved as subcontractors or if this contract is part of a larger vehicle that includes small business goals.

Oversight & Accountability

As a delivery order under a larger contract vehicle (implied by 'delivery order'), oversight is likely managed through the terms and conditions of the base contract. The firm-fixed-price nature provides a degree of financial oversight by setting a ceiling on costs. Transparency is generally facilitated by contract award databases, though specific performance metrics and detailed spending breakdowns may not always be publicly available.

Related Government Programs

Government Travel Services
Logistics and Transportation Support
Emergency Response Services
Department of Homeland Security Contracts
Federal Aviation Administration Services

Risk Flags

Short contract duration may limit long-term strategic planning.
Potential for price inflation on short-term, high-urgency contracts.
Geographic concentration may not reflect broader agency needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3,072 to CONCUR TECHNOLOGIES, INC.. TRAVEL RESERVATION AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CONCUR TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $3,072.

What is the period of performance?

Start: 2022-12-09. End: 2022-12-22.

What is the typical duration and value range for FEMA's travel reservation and support service contracts?

FEMA's travel support needs can vary significantly based on the nature and scale of emergencies. Contracts for travel reservation and support services can range from short-term, rapid-response orders like this one (13 days, $3.07M) to longer-term agreements supporting ongoing operations. Typical durations might span a few weeks for immediate disaster relief efforts to several months or even years for sustained support. Values can fluctuate widely; while this $3.07M order is substantial for its short period, larger contracts supporting widespread deployments could reach tens or hundreds of millions of dollars over their lifecycle. The specific services required, such as airfare, lodging, ground transportation, and 24/7 support, also influence both duration and cost.

How does the firm-fixed-price (FFP) contract type impact cost control for travel services?

A firm-fixed-price (FFP) contract is advantageous for cost control because it establishes a final negotiated price that is not subject to adjustment based on the contractor's cost experience in performing the work. For travel services, this means the contractor assumes the risk of cost overruns. The government knows the maximum cost upfront. This structure incentivizes the contractor to manage their own costs efficiently to maximize profit. For FEMA, this is particularly useful for predictable service needs within a defined period, like this 13-day order, ensuring budget certainty and preventing unexpected increases in the cost of travel arrangements.

What are the potential risks associated with a short-duration contract for essential services like travel support?

Short-duration contracts, like this 13-day order, carry specific risks. One primary risk is the potential for service disruption if follow-on contracts are not awarded or executed promptly, leaving a gap in essential support. There's also a risk that contractors may inflate prices for short-term engagements due to the limited opportunity for profit and the need to mobilize resources quickly. Furthermore, a short timeframe might not allow for thorough vetting of contractor performance or the development of deep institutional knowledge, potentially leading to less optimized service delivery compared to longer-term partnerships. The rapid turnaround also limits the government's ability to conduct extensive performance evaluations.

What does the geographic focus on West Virginia (WV) suggest about FEMA's operational activities?

The specific mention of West Virginia (WV) as the performance location for this $3.07M travel services contract suggests a concentrated operational focus or requirement within that state during the period of December 9-22, 2022. This could be related to disaster response efforts (e.g., recovery from floods, storms), ongoing federal programs requiring personnel presence in the state, or support for specific FEMA facilities or initiatives located in West Virginia. Without additional context, it's difficult to pinpoint the exact reason, but it indicates a targeted deployment or support need rather than a nationwide requirement for this particular delivery order.

How does 'Scheduled Passenger Air Transportation' differ from other travel support services in federal contracts?

Scheduled Passenger Air Transportation refers specifically to the booking and management of flights on commercial airlines operating on published schedules. This is a core component of government travel but is distinct from broader travel support services, which might also encompass hotel accommodations, rental vehicles, ground transportation (taxis, shuttles), per diem management, and travel policy compliance. Federal contracts for travel support can be comprehensive, covering all aspects of a trip, or specialized, focusing on a single element like air travel. This contract's NAICS code (481111) confirms its focus is primarily on air passenger transport.

Industry Classification

NAICS: Transportation and Warehousing › Scheduled Air Transportation › Scheduled Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: SAP SE

Address: 601 108TH AVE NE STE 1000, BELLEVUE, WA, 98004

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

Financial Breakdown

Contract Ceiling: $3,072

Exercised Options: $3,072

Current Obligation: $3,072

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33FY0026

IDV Type: IDC

Timeline