DoD's $23.9M contract for third-party billing services awarded to BRSI, LP, faced limited competition

Contract Overview

Contract Amount: $23,877,241 ($23.9M)

Contractor: Brsi, LP

Awarding Agency: Department of Defense

Start Date: 2010-04-01

End Date: 2014-09-30

Contract Duration: 1,643 days

Daily Burn Rate: $14.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIRD PARTY BILLING AND COLLECTIONS

Place of Performance

Location: BOLLING AFB, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to BRSI, LP for work described as: THIRD PARTY BILLING AND COLLECTIONS Key points: 1. The contract's value of $23.9 million over its period of performance suggests a significant investment in billing and collections. 2. Limited competition for this contract may have implications for pricing and the range of innovative solutions considered. 3. The firm fixed-price contract type indicates that the contractor bears the primary risk for cost overruns. 4. The contract duration of over 4 years (1643 days) suggests a long-term need for these specialized services. 5. The award to BRSI, LP, a single entity, highlights the specific capabilities sought by the Department of the Air Force. 6. The absence of small business set-aside flags indicates this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $23.9 million contract is challenging without specific performance metrics or comparable contract data. However, the duration of over four years suggests a substantial and ongoing need for these services. The firm fixed-price nature of the award shifts cost risk to the contractor, which can be a positive indicator of value if the contractor successfully manages costs. Without details on the scope of services or the volume of billing handled, a precise value-for-money assessment is difficult, but the amount indicates a significant operational expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows 3 offers were received, suggesting a moderate level of competition for this specific requirement. While multiple bids were submitted, the exact number (3) might not represent the full potential interest in such a service, and further analysis would be needed to understand if this level of competition adequately drove down prices and encouraged a wide array of solutions.

Taxpayer Impact: A moderate level of competition, with three offers, generally provides a reasonable basis for price discovery, potentially leading to fair market pricing for taxpayers. However, a higher number of bidders could have potentially yielded even more competitive pricing.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and the Department of the Air Force, receiving essential third-party billing and collections services. The services delivered are critical for financial management, ensuring accurate billing and efficient collection of funds. The geographic impact is primarily within the District of Columbia, where the contractor is registered, but the services likely support Air Force operations nationwide. The contract supports specialized professional services, potentially impacting the workforce in accounting and financial management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (3 offers) may not have fully optimized pricing for taxpayers.
Lack of specific performance metrics makes it difficult to fully assess value for money.
The contract's significant dollar value warrants close monitoring of service delivery and financial outcomes.

Positive Signals

Firm fixed-price contract type places cost control responsibility on the contractor.
Awarded under full and open competition, allowing for a broad range of potential bidders.
Long contract duration suggests a stable and predictable service provision for the agency.

Sector Analysis

The professional services sector, specifically accounting, bookkeeping, and related services (NAICS 541211), is a critical component of government operations. This contract falls within the broader professional, scientific, and technical services industry, which is a significant area of federal spending. The market for third-party billing and collections services is competitive, with numerous firms offering specialized solutions. Federal agencies often outsource these functions to leverage expertise and improve efficiency, making contracts like this a common feature of government procurement.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary focus was on securing the most capable provider through full and open competition, rather than specifically targeting small business participation. Consequently, the direct impact on the small business ecosystem for this particular award appears limited, though larger prime contractors may engage small businesses in their broader operations.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Air Force's contracting and financial management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Contract Audit Agency (DCAA) services
Financial Management Systems
Accounts Receivable Management
Government Billing Services
Professional Services Contracts

Risk Flags

Limited Competition
Potential for Price Escalation
Data Security Risk
Contractor Performance Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to BRSI, LP. THIRD PARTY BILLING AND COLLECTIONS

Who is the contractor on this award?

The obligated recipient is BRSI, LP.

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 $23.9 million.

What is the period of performance?

Start: 2010-04-01. End: 2014-09-30.

What was the specific scope of third-party billing and collections services provided under this contract?

The provided data indicates the contract was for 'THIRD PARTY BILLING AND COLLECTIONS' under NAICS code 541211 (Offices of Certified Public Accountants). While the exact details of the services are not specified in the abbreviated data, this typically involves managing accounts receivable, generating invoices, processing payments, and performing collection activities on behalf of the government agency. This could encompass a wide range of government receivables, from user fees to fines or other assessed charges, aiming to improve collection rates and reduce administrative burden for the Department of the Air Force.

How does the awarded amount of $23.9 million compare to similar third-party billing contracts within the DoD or other federal agencies?

Direct comparison of the $23.9 million award value is difficult without access to a comprehensive database of similar contracts with detailed scope and duration. However, federal agencies frequently contract for billing and collection services, with contract values varying significantly based on the volume of receivables, complexity of billing systems, and the specific services required (e.g., simple invoicing vs. complex debt collection). The duration of this contract (over 4 years) suggests a substantial, ongoing need, making the total value significant but not necessarily out of line for a large federal entity like the Air Force. Further analysis would require benchmarking against contracts with similar service levels and agency sizes.

What were the key performance indicators (KPIs) used to evaluate BRSI, LP's performance under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. Typically, for third-party billing and collections contracts, KPIs might include metrics such as collection rates (percentage of billed amounts successfully collected), average days to collect, accuracy of billing, customer service response times, and compliance with relevant regulations. The Department of the Air Force would have established these KPIs in the contract's Performance Work Statement (PWS) to measure the contractor's effectiveness and ensure value for money. Without access to the full contract details, these specific KPIs remain unknown.

What is the track record of BRSI, LP in performing similar government contracts?

Information on BRSI, LP's specific track record with government contracts is not detailed in the provided data. As the awardee of this $23.9 million Department of Defense contract, it implies they possess the necessary qualifications and experience to perform such services. A comprehensive assessment of their track record would involve reviewing past performance evaluations, other contracts they have held (especially with federal agencies), and any history of disputes or contract terminations. This information is typically available through government contract databases and performance reporting systems.

What are the potential risks associated with outsourcing third-party billing and collections to a single contractor like BRSI, LP?

Outsourcing critical functions like billing and collections to a single contractor carries several potential risks. These include over-reliance on the contractor, leading to potential disruptions if the contractor faces financial difficulties or operational issues. There's also a risk of data security breaches if sensitive financial information is not adequately protected. Furthermore, a lack of ongoing competition could lead to complacency or price increases in future contract renewals. Ensuring robust oversight, clear performance standards, and contingency plans are crucial to mitigate these risks.

How has federal spending on third-party billing and collections services evolved over the past decade?

Federal spending on third-party billing and collections services has generally seen a steady demand, driven by the government's continuous need to manage its diverse revenue streams and receivables efficiently. Agencies often seek to leverage specialized expertise and technology offered by third-party providers to optimize collection rates and reduce administrative overhead. While specific aggregate spending figures for this niche service category are not readily available without detailed analysis of federal procurement data, the trend indicates a consistent reliance on such services across various departments, including defense, health, and civilian agencies, to improve financial performance and compliance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1111 NORTH LOOP WEST SUITE 1000, HOUSTON, TX, 77008

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,877,241

Exercised Options: $23,877,241

Current Obligation: $23,877,241

Parent Contract

Parent Award PIID: GS23F0186L

IDV Type: FSS

Timeline