Dot's FAA Awards $15M for Business Support Services to Serco Management Services, Inc

Contract Overview

Contract Amount: $15,067,082 ($15.1M)

Contractor: Serco Management Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2010-02-01

End Date: 2015-06-30

Contract Duration: 1,975 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERCO AREA 6

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $15.1 million to SERCO MANAGEMENT SERVICES, INC. for work described as: SERCO AREA 6 Key points: 1. Contract awarded to SERCO MANAGEMENT SERVICES, INC. for $15.07M. 2. Competition type: Full and Open. 3. Contract duration: 1975 days (approx. 5.4 years). 4. Sector: Business Support Services (NAICS 561499). 5. No small business participation noted.

Value Assessment

Rating: fair

The contract value of $15.07M over nearly 5.5 years suggests a moderate annual spend. Benchmarking against similar 'All Other Business Support Services' contracts would be necessary to assess pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The number of bids received (3) is relatively low for a full and open competition, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds were used in a competitive process, aiming for value. The low bid count warrants further scrutiny to ensure optimal pricing.

Public Impact

Supports Federal Aviation Administration operations through essential business support services. Contract duration of over 5 years provides stability for service delivery. Potential for cost savings through competitive bidding process. Lack of small business participation may limit broader economic impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bids received for a full and open competition.
No indication of small business subcontracting.
Long contract duration without clear performance metrics.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type provides cost certainty.
Service provided by a known entity (SERCO).

Sector Analysis

This contract falls under Business Support Services, a broad category encompassing various administrative and operational functions. Benchmarks for this sector vary widely based on specific services, but a $15M contract over 5 years is a significant award.

Small Business Impact

The data indicates that small businesses were not directly involved in this contract, either as prime contractors or through subcontracting. This represents a missed opportunity to foster small business growth within the federal contracting landscape.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a standard procurement process. Oversight would focus on performance monitoring and ensuring adherence to the firm fixed price terms throughout the contract's duration.

Related Government Programs

All Other Business Support Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Low number of bids received.
No small business participation.
Broadly defined service category.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $15.1 million to SERCO MANAGEMENT SERVICES, INC.. SERCO AREA 6

Who is the contractor on this award?

The obligated recipient is SERCO MANAGEMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $15.1 million.

What is the period of performance?

Start: 2010-02-01. End: 2015-06-30.

What specific business support services were provided under this contract, and how did they align with FAA's operational needs?

The contract, NAICS 561499, covers 'All Other Business Support Services.' This broad category could include services like administrative support, call centers, document management, or other non-specialized business functions. Understanding the precise services procured is crucial to evaluating their necessity and alignment with the FAA's mission and operational requirements.

Given the low bid count (3) for a full and open competition, was there adequate market research to ensure a competitive environment?

A low bid count in a full and open competition raises concerns about market saturation or potential barriers to entry. Agencies should conduct thorough market research to identify potential bidders and ensure solicitations are structured to encourage broad participation. Further investigation into the pre-solicitation market research and outreach efforts would clarify if the competition was truly robust.

What was the rationale for the long contract duration (1975 days) and were there mechanisms for performance review and adjustment?

Long contract durations can offer stability but may also lead to complacency or outdated service delivery if not managed effectively. The rationale for such a duration needs to be justified by the nature of the services and the potential disruption of frequent re-competition. Robust performance metrics, regular reviews, and clear options for modification or termination are essential to ensure continued value and effectiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1818 LIBRARY ST STE 1000, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $15,067,082

Exercised Options: $15,067,082

Current Obligation: $15,067,082

Contract Characteristics

Cost or Pricing Data: NO

Timeline