DHS awards $230M contract for COVID-19 funeral assistance contact center services

Contract Overview

Contract Amount: $229,750,988 ($229.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-02-15

End Date: 2023-08-14

Contract Duration: 910 days

Daily Burn Rate: $252.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE CONTRACTOR WILL PROVIDE A CONTACT CENTER UNDER THE GSA AUTOMATED CONTACT CENTER SOLUTIONS CONTRACTS FOR FUNERAL SERVICES ASSISTANCE TO SURVIVING FAMILY MEMBERS OF THE COVID-19 DISASTERS.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $229.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE CONTRACTOR WILL PROVIDE A CONTACT CENTER UNDER THE GSA AUTOMATED CONTACT CENTER SOLUTIONS CONTRACTS FOR FUNERAL SERVICES ASSISTANCE TO SURVIVING FAMILY MEMBERS OF THE COVID-19 DISASTERS. Key points: 1. Contract aims to provide critical support to families affected by COVID-19. 2. Services include call center operations and assistance with funeral expenses. 3. Contract awarded under GSA's Automated Contact Center Solutions (ACCS) vehicle. 4. Performance period spans over 2.5 years, indicating a significant operational commitment. 5. The contract's value suggests a substantial need for these support services.

Value Assessment

Rating: good

The contract value of $229.8 million over approximately 2.5 years for contact center services is substantial. Benchmarking against similar large-scale government contact center operations suggests this is within a reasonable range for comprehensive support, especially considering the sensitive nature of the services provided. The use of a GSA schedule vehicle implies pre-negotiated rates, which can offer some assurance of fair pricing, though specific unit costs would require further analysis against comparable ACCS task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of 4 bids (no=4) suggests a healthy level of interest and competition for this significant requirement, likely driving more favorable pricing than a sole-source award.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

Surviving family members of COVID-19 victims will benefit from direct assistance and guidance. The contract delivers essential contact center services, including information dissemination and application support. Services are likely to have a national geographic impact, supporting families across the United States. The contract supports a workforce involved in customer service and administrative support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the volume of inquiries or complexity of assistance needs increases beyond initial projections.
Reliance on a single contractor for a critical and sensitive service could pose a risk if performance falters.
Ensuring consistent quality of service and empathy from contact center agents is paramount given the user base.

Positive Signals

Awarded under a GSA schedule, suggesting adherence to established procurement standards.
Full and open competition indicates a robust bidding process, likely yielding competitive pricing.
The contract duration allows for sustained support to a population in need.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on contact center solutions. The government's reliance on IT services for citizen engagement and support continues to grow. The GSA ACCS contract vehicle is designed to streamline the procurement of these services, offering a range of capabilities from basic call routing to complex virtual agent solutions. The market for contact center services is competitive, with numerous providers offering cloud-based and on-premise solutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb=false). While the primary awardee is a large corporation, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will likely be managed by the Federal Emergency Management Agency (FEMA) within the Department of Homeland Security. The contract's performance will be monitored through regular reporting, service level agreements, and potentially site visits. The use of a GSA schedule implies adherence to certain oversight standards, and the contract type (Time and Materials) necessitates careful monitoring of labor hours and costs.

Related Government Programs

COVID-19 Relief Programs
Federal Emergency Management Agency (FEMA) Assistance Programs
GSA Automated Contact Center Solutions (ACCS)
Department of Homeland Security Citizen Services

Risk Flags

Performance Risk
Cost Overrun Risk (T&M contract)
Data Security and Privacy Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $229.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE CONTRACTOR WILL PROVIDE A CONTACT CENTER UNDER THE GSA AUTOMATED CONTACT CENTER SOLUTIONS CONTRACTS FOR FUNERAL SERVICES ASSISTANCE TO SURVIVING FAMILY MEMBERS OF THE COVID-19 DISASTERS.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $229.8 million.

What is the period of performance?

Start: 2021-02-15. End: 2023-08-14.

What is the track record of General Dynamics Information Technology, Inc. in providing similar contact center services to government agencies?

General Dynamics Information Technology, Inc. (GDIT) has a significant track record in providing IT services, including contact center solutions, to various government agencies. They have experience with large-scale support operations, often involving complex technical requirements and high volumes of customer interactions. Their past performance on contracts for agencies like the Department of Defense and other civilian departments demonstrates their capability to manage substantial IT infrastructure and service delivery. Specific to contact centers, GDIT has been involved in projects requiring 24/7 support, multilingual capabilities, and integration with various government databases. While this specific contract focuses on a unique and sensitive area (COVID-19 funeral assistance), GDIT's broad experience in government IT services suggests a foundational capability to execute the required tasks.

How does the awarded amount compare to other large federal contact center contracts?

The awarded amount of approximately $230 million for this contact center contract is substantial, reflecting the scale and duration of the services required. Large federal contact center contracts can range widely, but those supporting critical public services or large citizen populations often reach into the hundreds of millions of dollars over several years. For instance, contracts for IRS customer service, Social Security Administration support, or large-scale disaster response hotlines can be of similar magnitude. The value is also influenced by the complexity of the services, the required staffing levels, and the technology employed. Given that this contract is for a national-level response to a major disaster (COVID-19) and involves sensitive personal information and financial assistance, the $230 million figure appears commensurate with the scope and importance of the undertaking.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential performance issues in delivering empathetic and accurate support to grieving families, challenges in managing a large contact center workforce, and the possibility of increased demand exceeding initial projections. Mitigations likely involve stringent performance metrics and service level agreements (SLAs) tied to agent training, response times, and resolution rates. The use of a GSA schedule implies that the contractor has met certain standards. Furthermore, the contract's full and open competition suggests a competitive landscape that incentivizes good performance. FEMA's oversight role is crucial for monitoring contractor performance and addressing any deficiencies promptly. The Time and Materials (T&M) contract type, while offering flexibility, requires diligent monitoring of labor hours to prevent cost overruns.

How effective is the GSA ACCS contract vehicle in facilitating efficient procurement for services like this?

The GSA Automated Contact Center Solutions (ACCS) contract vehicle is designed to streamline the procurement of contact center services, offering agencies a pre-competed, flexible, and efficient way to acquire these solutions. By using ACCS, agencies like FEMA can bypass lengthy traditional procurement processes, access a range of pre-vetted vendors, and leverage established contract terms and conditions. This can lead to faster award times and potentially better pricing due to the aggregated purchasing power and competition inherent in the schedule. For a critical and time-sensitive need like COVID-19 funeral assistance, ACCS allows for rapid deployment of necessary services. The vehicle supports various contract types and acquisition strategies, providing flexibility to meet specific agency requirements.

What are the historical spending patterns for contact center services within FEMA or DHS?

Historical spending on contact center services within FEMA and DHS would likely show a trend of increasing investment in citizen-facing technology and support, particularly in response to major events or disasters. FEMA, in particular, manages numerous programs requiring significant public interaction, such as disaster relief applications, FEMA assistance programs, and public information hotlines. Spending patterns would fluctuate based on the scale and frequency of disasters and the agency's evolving mission priorities. Contracts for these services often involve significant dollar values, especially when they are national in scope and require 24/7 operations. The COVID-19 pandemic undoubtedly spurred a need for expanded contact center capabilities across the government, likely leading to a surge in related spending, as evidenced by this contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70FB8021Q00000002

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $233,986,529

Exercised Options: $229,750,988

Current Obligation: $229,750,988

Actual Outlays: $36,073

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $66,679,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F393CA

IDV Type: FSS

Timeline