DHS awards $10M+ for travel services, with over 2,500 days of performance remaining

Contract Overview

Contract Amount: $10,048,240 ($10.0M)

Contractor: Concur Technologies, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-06-10

End Date: 2026-06-03

Contract Duration: 2,550 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF - E-GOVERNMENT TRAVEL AND SUPPORT SERVICES UNDER THE ETS2 MASTER CONTRACT (GS-33F-Y0026) FOR DEPARTMENTAL MANAGEMENT OPERATIONS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.0 million to CONCUR TECHNOLOGIES, INC. for work described as: IGF::OT::IGF - E-GOVERNMENT TRAVEL AND SUPPORT SERVICES UNDER THE ETS2 MASTER CONTRACT (GS-33F-Y0026) FOR DEPARTMENTAL MANAGEMENT OPERATIONS. Key points: 1. Value for money appears fair, given the firm-fixed-price structure and the duration of the contract. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and a significant contract value. 4. Performance context is within departmental management operations, focusing on air transportation. 5. Sector positioning is within government administrative services, specifically travel and support.

Value Assessment

Rating: fair

The contract value of over $10 million for travel and support services is substantial. While a direct comparison to similar contracts is difficult without more specific service details, the firm-fixed-price nature suggests a degree of cost control. The benchmark for per-unit costs, such as airfare, would typically be assessed against government travel regulations and negotiated rates with airlines. The duration of the contract (over 2,500 days) implies a need for ongoing services, but the total value spread over this period needs careful monitoring to ensure continued value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but a full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use this procurement method suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting a wider range of offers and potentially driving down costs through competitive pressures.

Public Impact

Department of Homeland Security personnel benefit from streamlined travel and support services. Services delivered include scheduled passenger air transportation and related support. Geographic impact is likely nationwide, supporting the operational needs of DHS across various locations. Workforce implications are indirect, supporting the efficiency of DHS employees by managing travel logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 2,500 days) increases the risk of price escalation or service degradation over time.
The significant contract value necessitates robust oversight to ensure funds are used efficiently.
Dependence on a single contract for essential travel services could pose a risk if the contractor underperforms.

Positive Signals

Firm-fixed-price contract type helps to control costs and provides budget certainty.
Full and open competition suggests a competitive market was leveraged, potentially leading to better value.
The contract is for essential departmental management operations, indicating a clear need for the services.

Sector Analysis

This contract falls within the broader government administrative and support services sector, specifically focusing on travel management. The market for travel management services for government agencies is competitive, with numerous providers offering a range of solutions. Comparable spending benchmarks would involve analyzing other large federal contracts for travel services, considering factors like the scope of services, number of users, and contract duration. The North American Industry Classification System (NAICS) code 481111 (Scheduled Passenger Air Transportation) indicates a focus on air travel procurement.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of small business subcontracting requirements (ss: false). This suggests that the primary contractor, Concur Technologies, Inc., is likely a large business, and the contract did not include specific provisions to ensure small business participation. Consequently, the direct impact on the small business ecosystem for this specific award appears minimal, though the prime contractor may engage small businesses as subcontractors without a formal set-aside.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security's contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services within agreed-upon parameters. Transparency is facilitated through contract award databases, though detailed performance metrics and spending breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Federal Supply Schedule Contracts
Department of Defense Travel Services
Travel Management Centers (TMCs)
E-Government Initiatives

Risk Flags

Long contract duration
Significant contract value
Potential for price fluctuations in air travel market

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.0 million to CONCUR TECHNOLOGIES, INC.. IGF::OT::IGF - E-GOVERNMENT TRAVEL AND SUPPORT SERVICES UNDER THE ETS2 MASTER CONTRACT (GS-33F-Y0026) FOR DEPARTMENTAL MANAGEMENT OPERATIONS.

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2019-06-10. End: 2026-06-03.

What is the historical spending pattern for travel services under the ETS2 Master Contract by the Department of Homeland Security?

The provided data indicates a single delivery order valued at $10,048,240.41, awarded on June 10, 2019, with an end date of June 3, 2026. This represents a portion of the overall spending under the ETS2 Master Contract. To understand the full historical spending pattern, one would need to examine all delivery orders issued against this contract by DHS, as well as spending by other agencies utilizing the ETS2 contract. Analyzing the cumulative spending over the life of the master contract and comparing it to initial projections would provide a comprehensive view of the historical expenditure trends for travel and support services.

How does the per-unit cost of airfare procured through this contract compare to government-wide averages or negotiated airline rates?

Determining the precise per-unit cost of airfare through this contract requires access to detailed line-item data for each travel booking, which is not publicly available in the provided summary. Government travel is typically governed by Federal Travel Regulation (FTR) guidelines, which set per diem rates and advise on economical travel. Contracts like this often leverage negotiated rates with airlines or through travel management companies to achieve savings below standard fares. A comprehensive comparison would involve analyzing the average cost per ticket, per mile, or per booking against benchmarks such as GSA's contract airfare rates, rates negotiated by other agencies, or even commercial travel agency benchmarks, taking into account factors like booking class, route, and advance purchase.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) for this contract. However, typical SLAs for travel management services often include metrics related to booking efficiency (e.g., average booking time), customer satisfaction, cost savings achieved (e.g., percentage of travel booked within policy), accuracy of reservations, and response times for support inquiries. The firm-fixed-price nature of the contract implies that the contractor is obligated to meet certain service standards to receive payment. The Department of Homeland Security's contracting officer would be responsible for monitoring adherence to these performance standards and addressing any deficiencies.

What is the track record of Concur Technologies, Inc. in managing large federal travel contracts?

Concur Technologies, Inc. (now part of SAP Concur) is a well-established provider of travel, expense, and resource management solutions, with a significant presence in both the commercial and government sectors. They manage numerous large-scale travel programs for major corporations and government agencies. Their track record in the federal space includes managing complex travel systems and providing integrated solutions for booking, expense reporting, and policy compliance. While specific performance details for every federal contract are not always public, Concur's longevity and market share suggest a generally reliable capability in handling substantial federal travel requirements. Evaluating their performance on this specific DHS contract would involve reviewing DHS's internal performance assessments and any publicly available contract data related to satisfaction or issues.

What are the potential risks associated with the long performance period (ending in 2026) for this travel services contract?

The extended performance period, ending in June 2026, presents several potential risks. Firstly, the travel landscape is dynamic, with evolving technologies, airline policies, and traveler preferences. A long-term contract might not fully adapt to these changes without costly modifications. Secondly, there's a risk of vendor complacency or a decline in service quality over an extended period if oversight is not rigorous. Thirdly, market prices for air travel and related services can fluctuate significantly, and a fixed-price contract might become less advantageous for the government if market rates decrease substantially. Finally, changes in agency needs or federal travel regulations could necessitate contract adjustments, potentially leading to complexities and additional costs.

How does this contract align with broader federal e-government initiatives for travel and procurement?

This contract aligns with broader federal e-government initiatives by leveraging technology to streamline the procurement and management of travel services. The mention of 'E-GOVERNMENT TRAVEL AND SUPPORT SERVICES' in the description suggests a focus on digital platforms for booking, reporting, and potentially expense management. Federal initiatives often aim to consolidate services, improve efficiency, reduce costs, and enhance transparency through technology. By utilizing a master contract like ETS2 and issuing delivery orders for specific agency needs, the government seeks to achieve economies of scale and standardize processes. This approach supports the goal of modernizing government operations and making them more citizen-centric and efficient.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

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: $11,996,813

Exercised Options: $10,048,240

Current Obligation: $10,048,240

Actual Outlays: $4,077,197

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