DoD's $27M Records Management Services Contract with ServiceSource Inc. Lacked Competition
Contract Overview
Contract Amount: $26,995,527 ($27.0M)
Contractor: Servicesource Inc
Awarding Agency: Department of Defense
Start Date: 2007-06-01
End Date: 2013-06-30
Contract Duration: 2,221 days
Daily Burn Rate: $12.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RECORDS MANAGEMENT SERVICES
Place of Performance
Location: AURORA, ARAPAHOE County, COLORADO, 80011
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $27.0 million to SERVICESOURCE INC for work described as: RECORDS MANAGEMENT SERVICES Key points: 1. Significant spending of $26.99M on records management services. 2. Sole-source award to ServiceSource Inc. raises competition concerns. 3. Long contract duration (2007-2013) suggests potential for price creep. 4. Services fall under 'All Other Business Support Services' (NAICS 561499).
Value Assessment
Rating: questionable
The contract value of $26.99M over six years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value for records management services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long-term nature of the contract could indicate a critical need or a missed opportunity for cost savings. Lack of transparency in the procurement process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Services provided to Department of the Air Force
Sector Analysis
Records management services are crucial for government operations, ensuring data integrity and accessibility. Benchmarks for this sector vary widely based on scope and technology, but competitive procurement is key to cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely excluded them from participation.
Oversight & Accountability
The sole-source nature of this award warrants further investigation into the justification for not seeking competitive bids. Oversight should ensure proper documentation and adherence to procurement regulations.
Related Government Programs
- All Other Business Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
- Limited transparency
Tags
all-other-business-support-services, department-of-defense, co, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.0 million to SERVICESOURCE INC. RECORDS MANAGEMENT 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 $27.0 million.
What is the period of performance?
Start: 2007-06-01. End: 2013-06-30.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification was made. However, the specific reasons and supporting documentation are not detailed. A thorough review would be needed to confirm if the justification met federal procurement standards, such as those for urgent needs or unique capabilities, and if it was properly approved.
How does the cost of these records management services compare to industry benchmarks for similar services, especially given the lack of competition?
Without competitive bids, a direct cost comparison is challenging. However, the $26.99M expenditure over six years for 'All Other Business Support Services' (NAICS 561499) suggests a significant investment. Further analysis would require benchmarking against similar government or private sector contracts that underwent competitive procurement to determine potential overpayment.
What was the actual impact on the Department of the Air Force's operational efficiency and data security from these records management services?
The data does not provide details on the performance or impact of the services rendered. While the contract was awarded, its effectiveness in improving operational efficiency or ensuring data security is not quantifiable from the given information. Post-award performance reviews or mission impact assessments would be necessary to evaluate this aspect.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support 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: 6295 EDSALL RD STE 175, ALEXANDRIA, VA, 08
Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $27,198,883
Exercised Options: $27,198,883
Current Obligation: $26,995,527
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-06-01
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2014-02-10
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