DHS awards $18.3M contract for remote delivery site services to ServiceSource Inc

Contract Overview

Contract Amount: $18,290,098 ($18.3M)

Contractor: Servicesource Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-01-01

End Date: 2026-09-30

Contract Duration: 637 days

Daily Burn Rate: $28.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONSOLIDATED REMOTE DELIVERY SITE

Place of Performance

Location: CAPITOL HEIGHTS, PRINCE GEORGES County, MARYLAND, 20743

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.3 million to SERVICESOURCE INC for work described as: CONSOLIDATED REMOTE DELIVERY SITE Key points: 1. The contract value represents a significant investment in consolidating remote delivery operations. 2. Competition dynamics for this contract were limited, potentially impacting price discovery. 3. The fixed-price contract type aims to control costs, but requires careful monitoring of scope creep. 4. Performance will be assessed against defined service level agreements for remote site operations. 5. This contract positions ServiceSource Inc. as a key provider for DHS's logistical support. 6. The duration of the contract suggests a long-term need for these specialized services.

Value Assessment

Rating: fair

Benchmarking the value of this $18.3 million contract is challenging without specific performance metrics or comparable contracts. The fixed-price nature suggests an expectation of defined costs, but the absence of detailed pricing breakdowns makes a direct value-for-money assessment difficult. Compared to other large-scale logistical support contracts, the per-unit cost for services rendered would be a critical factor in determining true value. Without more granular data on the scope of 'remote delivery site' services, it's hard to definitively assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the Department of Homeland Security identified ServiceSource Inc. as the only capable or appropriate vendor. This limited competition means that the usual price discovery mechanisms driven by multiple bids were not employed. While sole-source awards can be justified for specialized capabilities or urgent needs, they often result in higher prices than those achieved through open competition.

Taxpayer Impact: Taxpayers may face higher costs due to the lack of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the Department of Homeland Security agencies relying on consolidated remote delivery site operations. Services delivered are expected to streamline logistical processes and potentially improve efficiency in mail and package handling. The geographic impact is centered in Maryland, where the contract is managed. Workforce implications may include the direct employment of individuals by ServiceSource Inc. to manage and operate these sites.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Lack of detailed performance metrics makes it difficult to assess the true value for money.
The broad description of 'remote delivery site' services could lead to scope creep and cost overruns if not tightly managed.

Positive Signals

Fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.
The contract duration suggests a stable, long-term need, allowing for efficient resource planning.
ServiceSource Inc. likely possesses specialized expertise required for these critical logistical functions.

Sector Analysis

The IT and administrative support sector encompasses a wide range of services essential for government operations. Contracts for logistical support, mail handling, and facility management are common. The market size for such services is substantial, with government agencies frequently outsourcing these functions to specialized providers. This contract fits within the broader category of professional, scientific, and technical services, often awarded to firms with demonstrated experience in managing complex operational requirements.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited. The focus appears to be on a prime contractor with the capacity to handle the full scope of services, rather than leveraging the small business ecosystem for specialized tasks.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of Procurement Operations within DHS, with contract specialists monitoring performance and compliance. The fixed-price nature necessitates close monitoring of deliverables and adherence to the contract terms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is generally maintained through contract databases, though specific operational details may be sensitive.

Related Government Programs

Department of Homeland Security Logistics Support Contracts
Federal Mail and Delivery Services
Government Facility Management Services
Remote Operations Support Contracts

Risk Flags

Sole-source award
Lack of detailed performance metrics
Limited transparency on specific services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.3 million to SERVICESOURCE INC. CONSOLIDATED REMOTE DELIVERY SITE

Who is the contractor on this award?

The obligated recipient is SERVICESOURCE INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-09-30.

What specific services are included under 'CONSOLIDATED REMOTE DELIVERY SITE' and what are the key performance indicators (KPIs)?

The provided data does not detail the specific services encompassed by 'CONSOLIDATED REMOTE DELIVERY SITE'. Typically, such contracts involve the management, operation, and maintenance of facilities used for receiving, processing, and dispatching mail, packages, or other materials remotely. Key performance indicators would likely include metrics such as delivery timeliness, accuracy rates, cost per package handled, facility uptime, and adherence to security protocols. Without a Statement of Work or detailed contract clauses, a precise definition of services and KPIs remains unavailable.

How does the $18.3 million contract value compare to historical spending on similar remote delivery site services by DHS or other agencies?

Direct comparison of the $18.3 million contract value to historical spending on similar services is difficult without access to detailed historical contract data for 'remote delivery site' consolidation. The value is substantial, suggesting a significant scope of operations or a long-term commitment. To perform a robust comparison, one would need to identify contracts with comparable service descriptions, durations, and geographic scopes across federal agencies. Factors like inflation, changes in operational requirements, and market competition over time would also need to be considered for an accurate benchmark.

What is the assessed risk level associated with ServiceSource Inc. as a contractor for this type of service?

The provided data does not include specific risk assessments or contractor performance history for ServiceSource Inc. related to this contract. Generally, risk assessment for a sole-source award would involve evaluating the contractor's past performance, financial stability, technical capabilities, and any history of contract disputes or performance issues. Given the sole-source nature, DHS would have likely conducted due diligence to ensure ServiceSource Inc. is capable of meeting the requirements. However, without access to past performance reports (e.g., CPARS) or specific risk mitigation plans, a definitive risk assessment cannot be provided.

What is the expected impact of this contract on the efficiency and cost-effectiveness of DHS's remote delivery operations?

The consolidation of remote delivery sites under a single contract with ServiceSource Inc. is intended to improve efficiency and potentially reduce costs through economies of scale and standardized operations. By centralizing management and operations, DHS aims to streamline processes, reduce redundancies, and leverage the contractor's expertise. The effectiveness will depend on the contractor's ability to meet performance standards and manage costs effectively under the fixed-price agreement. A key indicator of success will be whether the consolidated operations lead to measurable improvements in delivery times, cost per unit, and overall logistical throughput.

What is the rationale behind awarding this contract on a sole-source basis, and what alternatives were considered?

The rationale for a sole-source award is typically based on specific justifications outlined in federal acquisition regulations, such as the existence of unique capabilities, urgent and compelling needs, or the unavailability of other sources. Without the specific justification document (e.g., a Justification and Approval - J&A), the exact reasons remain unknown. Alternatives considered might have included market research to identify potential sources, but if none were found to be capable or available, a sole-source award could be deemed necessary. The limited competition suggests that DHS determined ServiceSource Inc. was the only viable option.

Industry Classification

NAICS: Transportation and Warehousing › Postal Service › Postal Service

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70RDA124R00000002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1100 HAMPTON PARK BLVD, CAPITOL HEIGHTS, MD, 20743

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $68,261,218

Exercised Options: $24,299,750

Current Obligation: $18,290,098

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline