DoD awards $6.5M contract for military human resources services to ServiceSource Inc

Contract Overview

Contract Amount: $6,493,661 ($6.5M)

Contractor: Servicesource Inc

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MILITARY HUMAN RESOURCES SERVICES

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.5 million to SERVICESOURCE INC for work described as: MILITARY HUMAN RESOURCES SERVICES Key points: 1. Contract awarded for essential administrative services supporting military personnel. 2. ServiceSource Inc. is the sole contractor for this requirement. 3. The contract duration is three years, indicating a medium-term need. 4. Fixed-price contract type suggests cost certainty for the government. 5. The contract falls under the Office Administrative Services NAICS code. 6. This award represents a small portion of the Department of Defense's overall spending.

Value Assessment

Rating: fair

The contract value of $6.5 million over three years for administrative services is difficult to benchmark without more specific service details. Given the sole-source nature, direct price comparisons are limited. However, the firm fixed-price structure provides cost predictability. The value proposition hinges on the effective delivery of these critical HR support functions to military personnel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This limits the opportunity for multiple vendors to bid, potentially impacting price discovery and innovation. The justification for a sole-source award would typically involve unique capabilities or a lack of market availability.

Taxpayer Impact: Sole-source awards can sometimes lead to higher costs for taxpayers compared to competitively bid contracts, as there is less pressure on the contractor to offer the lowest possible price.

Public Impact

Military personnel will benefit from continued administrative support services. Services are crucial for the efficient functioning of human resources departments within the Department of Defense. The contract supports administrative functions, indirectly impacting military readiness and morale. Workforce implications are primarily within the administrative and HR support sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards can reduce transparency in government contracting.
Dependence on a single contractor can create performance risks if not managed closely.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contract duration suggests a stable, ongoing need for these services.
ServiceSource Inc. is a known entity, potentially indicating established performance.

Sector Analysis

The administrative services sector is a broad category encompassing support functions across various industries. For the federal government, these services are essential for operational efficiency. While specific market size data for this niche within defense is not readily available, the overall federal spending on administrative support is substantial. This contract represents a specific allocation within the broader IT and professional services landscape.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless ServiceSource Inc. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring ServiceSource Inc. to deliver services within the agreed-upon price. Transparency is limited due to the sole-source nature, but contract performance data should be available through government reporting mechanisms.

Related Government Programs

Military Personnel Support Services
Department of Defense Administrative Contracts
Federal Human Resources Services
Office Administrative Services Contracts

Risk Flags

Sole-source award limits competition.
Lack of detailed service scope hinders value assessment.
Potential for higher costs due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.5 million to SERVICESOURCE INC. MILITARY HUMAN RESOURCES SERVICES

Who is the contractor on this award?

The obligated recipient is SERVICESOURCE INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What specific human resources administrative tasks are covered under this contract?

The provided data indicates the contract falls under NAICS code 561110 (Office Administrative Services) and is categorized as 'MILITARY HUMAN RESOURCES SERVICES'. While specific task details are not in the data, this typically includes functions such as personnel record management, processing of pay and benefits information, administrative support for recruitment and onboarding, managing leave requests, and providing general administrative assistance to HR departments. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. These services are critical for maintaining the administrative backbone of military personnel management.

What is the historical spending pattern for similar military human resources administrative services within the Department of Defense?

Historical spending data for 'military human resources administrative services' specifically is not detailed in the provided information. However, the Department of Defense consistently spends billions annually on a wide array of support services, including administrative, HR, and personnel management. Contracts for such services can range from small, localized support to large, enterprise-wide solutions. The $6.5 million awarded here is a moderate-sized contract for a specific function. Analyzing broader categories of administrative and professional services contracts awarded by the DoD over the past several years would reveal a significant and ongoing investment in maintaining personnel operations.

What is the track record of ServiceSource Inc. in performing similar government contracts?

ServiceSource Inc. has a history of performing government contracts, particularly in areas related to services and support. While the provided data does not detail their specific performance on military HR administrative services, their presence as a contractor suggests they have met certain requirements to be awarded federal work. A comprehensive assessment of their track record would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the types and scale of previous contracts they have successfully executed for government agencies. Their ability to secure this sole-source award may indicate a positive past performance or a unique qualification.

How does the firm fixed-price contract type impact risk for both the government and the contractor?

A firm fixed-price (FFP) contract is generally considered to have the lowest risk for the government regarding cost. Under an FFP contract, the contractor agrees to a total price for a well-defined scope of work, and is responsible for all costs incurred to complete that work. If costs exceed the agreed price, the contractor absorbs the loss. Conversely, if costs are lower than anticipated, the contractor realizes a higher profit. This structure incentivizes the contractor to control costs and manage performance efficiently. For the contractor, the primary risk is underestimating costs or encountering unforeseen issues that drive expenses up, potentially leading to financial losses. The government's main risk with FFP is that the contractor may cut corners on quality or scope to stay within the fixed price, necessitating robust oversight.

What are the potential implications of this contract being sole-source for future competition?

A sole-source award can have several implications for future competition. Firstly, it suggests that for this specific requirement, there may be limited market alternatives or a unique capability held by the incumbent contractor. This could make it challenging to introduce new competitors in the future unless the government actively seeks to broaden the market or break down the requirement into smaller, more competitive components. Secondly, the incumbent contractor may gain an advantage in future procurements due to their established relationship, institutional knowledge, and performance history. If the government intends to compete this requirement in the future, they would need to clearly define the scope and potentially conduct market research to identify and encourage potential new entrants to ensure a more competitive landscape.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10467 WHITE GRANITE DR, OAKTON, VA, 22124

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

Financial Breakdown

Contract Ceiling: $15,816,534

Exercised Options: $9,383,023

Current Obligation: $6,493,661

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline