SBA's $57M COVID-19 Call Center Contract Awarded to LiveOps Agent Services LLC

Contract Overview

Contract Amount: $57,033,978 ($57.0M)

Contractor: Liveops Agent Services LLC

Awarding Agency: Small Business Administration

Start Date: 2020-03-24

End Date: 2021-12-23

Contract Duration: 639 days

Daily Burn Rate: $89.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 9

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CALL CENTER ODA COVID-19 RESPONSE

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Small Business Administration obligated $57.0 million to LIVEOPS AGENT SERVICES LLC for work described as: CALL CENTER ODA COVID-19 RESPONSE Key points: 1. Contract focused on essential COVID-19 response services, indicating a critical need during the pandemic. 2. Awarded to a small business, potentially aligning with federal small business contracting goals. 3. The contract utilized a Time and Materials pricing structure, which can carry higher cost risks if not managed closely. 4. A significant number of bids (9) suggest robust competition for this service, which is generally positive for price discovery. 5. The contract duration of nearly two years provided sustained support for the SBA's pandemic response efforts. 6. The North American Industry Classification System (NAICS) code 561422 points to a specialized call center service.

Value Assessment

Rating: fair

The contract's value of $57 million over approximately 21 months for call center services during a national emergency is substantial. Benchmarking this against similar large-scale emergency response call center contracts is difficult due to the unique circumstances of the COVID-19 pandemic. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not meticulously monitored. Without detailed performance metrics and cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive nature of the award offers some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchases but may have fewer formal requirements than full and open competition for larger contracts. The fact that 9 bids were received indicates a healthy level of interest and competition for this requirement. This suggests that multiple vendors were capable of providing the necessary services, which generally aids in achieving a fair market price.

Taxpayer Impact: A competitive award process, even under SAP, is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not unduly overpaying for essential services.

Public Impact

Small businesses and individuals seeking information and assistance related to SBA programs during the COVID-19 pandemic benefited from this service. The contract delivered critical call center support, likely handling inquiries about economic injury disaster loans, Paycheck Protection Program, and other relief efforts. Services were primarily delivered remotely, with the contractor based in Arizona, but likely served a national audience seeking SBA assistance. The contract supported a workforce of call center agents, contributing to employment in the contact center industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost escalation if not tightly managed and monitored for efficiency.
The scale of the contract and the urgency of the pandemic response may have presented challenges in ensuring optimal resource allocation and cost control.
Reliance on a single contractor for such a critical function during a crisis warrants close performance monitoring to ensure service continuity and quality.

Positive Signals

The contract was awarded competitively, suggesting a reasonable price was achieved through market forces.
The contractor, LiveOps Agent Services LLC, is a small business, aligning with federal goals to support small business participation in government contracting.
The contract duration provided sustained support, ensuring consistent access to information for beneficiaries during a prolonged crisis.

Sector Analysis

The contact center services sector is a significant part of the business services industry, providing essential communication infrastructure for organizations across all sectors. Government spending in this area often supports critical public services, emergency response, and citizen engagement. The COVID-19 pandemic dramatically increased the demand for such services, particularly for government agencies disseminating information and processing applications for relief programs. This contract falls within the broader IT and Business Services category, with specific application in public administration and emergency management.

Small Business Impact

The award to LiveOps Agent Services LLC, identified as a small business, is a positive signal for small business contracting. This contract represents a significant award for the recipient, potentially boosting their capacity and revenue. It is important to assess whether there were opportunities for subcontracting to other small businesses, which could further amplify the positive impact on the small business ecosystem. The success of this contract could position LiveOps Agent Services LLC for future government opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Small Business Administration (SBA) contracting officers and program managers. Given the Time and Materials nature, rigorous monitoring of labor hours, rates, and direct costs would be essential. Performance reviews, regular reporting requirements, and potentially site visits (if applicable) would form part of the oversight. Transparency is generally maintained through contract databases like FPDS, though detailed performance data may not always be publicly accessible. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

SBA COVID-19 Economic Injury Disaster Loans (EIDL)
SBA Paycheck Protection Program (PPP)
Federal Emergency Management Agency (FEMA) Call Centers
Department of Labor Unemployment Call Centers
IRS Economic Impact Payment Call Centers

Risk Flags

Time and Materials contract type can pose cost control risks.
Scale of contract during emergency response requires diligent oversight.
Performance metrics and effectiveness data not publicly available.

Frequently Asked Questions

What is this federal contract paying for?

Small Business Administration awarded $57.0 million to LIVEOPS AGENT SERVICES LLC. CALL CENTER ODA COVID-19 RESPONSE

Who is the contractor on this award?

The obligated recipient is LIVEOPS AGENT SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Small Business Administration (Small Business Administration).

What is the total obligated amount?

The obligated amount is $57.0 million.

What is the period of performance?

Start: 2020-03-24. End: 2021-12-23.

What was the contractor's track record prior to this award, particularly with the SBA or similar large-scale government contracts?

Information regarding LiveOps Agent Services LLC's specific track record prior to this $57 million SBA contract is not detailed in the provided data. However, as a provider of agent services, their experience would likely lie in managing call center operations, staffing, and technology. For a contract of this magnitude, especially during a national crisis, the SBA would have conducted due diligence on the contractor's capacity, financial stability, and past performance, potentially through past performance questionnaires and reference checks. Further investigation into their contract history with government agencies, if any, would be necessary for a comprehensive assessment of their suitability and reliability.

How does the per-hour cost or loaded labor rate for this contract compare to industry benchmarks for similar call center services, especially those supporting government programs?

The provided data does not include specific hourly rates or loaded labor costs, making a direct comparison to industry benchmarks difficult. The contract was awarded on a Time and Materials (T&M) basis, which means the final cost is dependent on the actual hours worked and the agreed-upon rates for labor and materials. To assess value, one would need to obtain the specific T&M rates from the contract award documents. These rates would then be compared against market research data for similar call center services, considering factors like agent skill level, technology used, geographic location of agents, and the complexity of the inquiries handled. Given the urgency and scale of the COVID-19 response, rates might have been influenced by immediate demand, but a competitive award process should have mitigated excessive pricing.

What were the primary risks identified for this contract, and what mitigation strategies were employed by the SBA?

Key risks for this contract likely included the potential for cost overruns due to the T&M pricing structure, ensuring adequate staffing levels to meet fluctuating demand during the pandemic, maintaining service quality and data security, and ensuring compliance with all federal regulations. Mitigation strategies would typically involve robust oversight by the SBA, including detailed monitoring of labor hours and costs, performance metrics tracking (e.g., call answer times, resolution rates), regular contractor reporting, and clear communication channels. The competitive award process itself serves as a risk mitigation tool by selecting a vendor deemed capable and offering a fair price. Specific contractual clauses addressing performance standards and remedies for non-compliance would also be crucial.

How effective was the call center service in supporting the SBA's COVID-19 response objectives, based on available performance data?

The provided data does not include specific performance metrics or an assessment of the effectiveness of the call center service. To evaluate effectiveness, one would need access to data such as the volume of calls handled, average call duration, first-call resolution rates, customer satisfaction scores, and the accuracy of information provided. The SBA would have internal metrics to gauge the success of this contract in meeting its objectives, such as reducing the burden on SBA staff, providing timely information to applicants, and facilitating access to relief programs. Without such data, assessing the program's effectiveness remains speculative, though the contract's duration and scale suggest a sustained operational effort.

What has been the SBA's historical spending on call center services, and how does this contract compare?

The provided data focuses solely on this specific $57 million COVID-19 response contract. To understand historical spending, one would need to analyze the SBA's procurement history over several fiscal years, looking for contracts categorized under NAICS code 561422 (Telemarketing Bureaus and Other Contact Centers) or similar service codes related to customer support and contact centers. This $57 million award appears substantial, likely driven by the unprecedented scale of the COVID-19 pandemic and the surge in demand for SBA assistance. Comparing it to pre-pandemic spending would highlight the significant increase in federal needs for such services during a national crisis.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 73351020Q0055

Offers Received: 9

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1365 N SCOTTSDALE ROAD STE 390, SCOTTSDALE, AZ, 85257

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

Financial Breakdown

Contract Ceiling: $145,382,978

Exercised Options: $57,033,978

Current Obligation: $57,033,978

Actual Outlays: $57,033,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline