DOL awards $18.8M contract for central bill processing to Conduent Federal Solutions

Contract Overview

Contract Amount: $18,831,074 ($18.8M)

Contractor: Conduent Federal Solutions LLC

Awarding Agency: Department of Labor

Start Date: 2012-06-29

End Date: 2013-03-29

Contract Duration: 273 days

Daily Burn Rate: $69.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOL/OWCP CENTRAL BILL PROCESSING FOR ONE 12 MONTH BASE PERIOD AND 3.5 MONTH OPTION PERIOD.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $18.8 million to CONDUENT FEDERAL SOLUTIONS LLC for work described as: DOL/OWCP CENTRAL BILL PROCESSING FOR ONE 12 MONTH BASE PERIOD AND 3.5 MONTH OPTION PERIOD. Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract covers a 12-month base period and a 3.5-month option period. 3. The firm-fixed-price contract type suggests predictable costs for the government. 4. The contractor, Conduent Federal Solutions, has experience in insurance-related activities. 5. The contract's value is moderate within the context of federal IT and administrative services. 6. The geographic location of performance is Washington D.C.

Value Assessment

Rating: fair

The contract value of $18.8 million for 15.5 months of service appears reasonable for central bill processing. However, without specific performance metrics or benchmarks for this particular service, a definitive value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty. Comparisons to similar contracts for bill processing services would be beneficial for a more robust evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances do not permit a competitive process. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might arise from a bidding process.

Taxpayer Impact: The absence of competition for this contract means taxpayers may not have received the lowest possible price for these services, as there was no pressure from competing bids to drive down costs.

Public Impact

The Department of Labor's Office of Workers' Compensation Programs (OWCP) benefits from streamlined bill processing. Federal employees and beneficiaries receiving workers' compensation benefits will experience efficient claims processing. The contract supports administrative functions within the Department of Labor. The primary geographic impact is within Washington D.C., where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings for taxpayers.
Lack of detailed performance metrics makes it difficult to assess efficiency and effectiveness.
Contract duration and option period require careful monitoring to ensure continued value.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contractor has experience in related insurance activities.
Contract supports essential administrative functions for DOL.

Sector Analysis

This contract falls within the administrative and IT services sector, specifically focusing on insurance-related activities. The market for such services is competitive, with many firms offering solutions for claims processing, billing, and data management. Federal spending in this area is significant, supporting various agencies' back-office operations. Benchmarks for similar bill processing contracts would typically consider factors like claim volume, complexity, and technology integration.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting plans specifically targeting small businesses. Therefore, the direct impact on the small business ecosystem for this particular award is likely minimal, as the primary contract is with a larger entity.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Labor's contracting officers and program managers. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be tied to the performance standards outlined in the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DOL/OWCP Claims Processing
Federal Employee Compensation Act (FECA) Administration
Workers' Compensation Billing Services
Government Administrative Support Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $18.8 million to CONDUENT FEDERAL SOLUTIONS LLC. DOL/OWCP CENTRAL BILL PROCESSING FOR ONE 12 MONTH BASE PERIOD AND 3.5 MONTH OPTION PERIOD.

Who is the contractor on this award?

The obligated recipient is CONDUENT FEDERAL SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2012-06-29. End: 2013-03-29.

What is the track record of Conduent Federal Solutions in handling similar federal contracts?

Conduent Federal Solutions, as a contractor, has a history of performing various government contracts, often related to administrative processing, IT services, and payment systems. Their experience in insurance-related activities, as noted in the contract data, suggests a capability to manage complex billing and processing functions. To fully assess their track record for this specific DOL contract, a review of past performance evaluations, any past disputes or contract modifications, and the successful completion of similar-sized or complexity contracts would be necessary. Without access to detailed past performance information, it's difficult to provide a comprehensive assessment beyond their general area of expertise.

How does the pricing of this contract compare to similar bill processing services in the federal government?

Direct comparison of pricing is challenging without specific benchmarks for 'central bill processing' services across federal agencies. However, the contract's firm-fixed-price nature provides cost certainty. The total award of $18.8 million over approximately 15.5 months averages to about $1.2 million per month. This figure needs to be contextualized against the volume and complexity of bills processed. Given the sole-source nature, it's plausible that the price might be higher than if it had been competitively bid. A thorough analysis would require identifying comparable contracts with similar service scopes and performance periods to establish a market rate.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competition. Without competing bids, there is less market pressure to ensure the government is receiving the best possible price. Another risk is vendor lock-in, where the agency becomes dependent on the incumbent contractor, making it difficult to switch providers even if performance or pricing becomes unfavorable. Furthermore, sole-source awards can sometimes indicate a lack of market research or planning, potentially leading to suboptimal contract terms or missed opportunities for innovation from other vendors.

How effective is the current bill processing system for DOL/OWCP, and how does this contract contribute to its effectiveness?

The effectiveness of the current bill processing system is not explicitly detailed in the provided data. This contract is for the 'CENTRAL BILL PROCESSING' for DOL/OWCP, implying it is a critical function for the agency's operations, likely related to managing and paying claims or invoices. The contract's objective is to ensure the continuity and efficiency of these processing services. Without performance metrics or independent evaluations, it's difficult to quantify the system's effectiveness or how this specific contract enhances it beyond providing the necessary service. Continued monitoring of performance against contract requirements would be key to assessing its contribution.

What are the historical spending patterns for central bill processing at the Department of Labor?

Historical spending data for central bill processing at the Department of Labor is not provided in this dataset. To understand spending patterns, one would need to examine contract awards for this service over multiple fiscal years. This would involve looking at the total amount spent, the number of contracts awarded, the duration of those contracts, and whether they were competed or sole-sourced. Analyzing these patterns could reveal trends in cost, contractor stability, and the agency's reliance on external services for bill processing.

What is the potential impact of this contract on the broader insurance-related activities sector?

The impact of this specific $18.8 million contract on the broader insurance-related activities sector is likely to be limited. While it represents a significant award to Conduent Federal Solutions, the sector itself is vast, encompassing numerous private and public entities. This contract primarily serves a specific function within the federal government. However, it does contribute to the revenue and operational capacity of the contractor, potentially enabling them to invest in technology or personnel that could benefit other contracts or clients within the sector. It also highlights the federal government's continued need for specialized administrative and processing services.

Industry Classification

NAICS: Finance and Insurance › Agencies, Brokerages, and Other Insurance Related Activities › All Other Insurance Related Activities

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Xerox Corporation (UEI: 049591852)

Address: 8260 WILLOW OAK CORPORATE DR, FAIRFAX, VA, 22031

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $169,746,322

Exercised Options: $151,361,176

Current Obligation: $18,831,074

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline