GSA's $25M National Contact Center Support contract awarded to SYKES ACQUISITION, LLC, faced limited competition

Contract Overview

Contract Amount: $25,216,603 ($25.2M)

Contractor: Sykes Acquisition, LLC

Awarding Agency: General Services Administration

Start Date: 2009-09-21

End Date: 2015-01-31

Contract Duration: 1,958 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NATIONAL CONTACT CENTER (NCC) PROGRAM SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $25.2 million to SYKES ACQUISITION, LLC for work described as: NATIONAL CONTACT CENTER (NCC) PROGRAM SUPPORT SERVICES Key points: 1. The contract's value of over $25 million over its period of performance suggests a significant investment in contact center operations. 2. With 9 bidders, the competition level indicates moderate interest but may not have driven the most aggressive pricing. 3. The firm-fixed-price contract type generally shifts risk to the contractor, potentially leading to more predictable costs. 4. The contract's duration of nearly 2000 days highlights a long-term need for these services. 5. The award to SYKES ACQUISITION, LLC, represents a substantial portion of the spending within this specific service category for the agency. 6. The contract's geographic focus on Washington D.C. suggests a concentration of federal contact center needs in the capital region.

Value Assessment

Rating: fair

Benchmarking the value of this $25.2 million contract is challenging without specific performance metrics or comparable contract data. However, the number of bidders (9) suggests a degree of market interest, but it's unclear if this level of competition yielded optimal pricing. The firm-fixed-price structure implies that the contractor bears cost overruns, which can be a positive for the government if managed effectively. Further analysis would require comparing the per-unit costs of services rendered against industry standards or other government contracts for similar contact center support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 9 bids received. While this indicates a competitive process, the exact pricing outcomes and the extent to which each bidder vied for the contract are not detailed. A higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government. The fact that 9 entities participated suggests a healthy market for these services, but the ultimate value achieved would depend on the specific evaluation criteria and the strength of the proposals submitted.

Taxpayer Impact: The full and open competition process is designed to ensure that taxpayers receive the best value by encouraging a wide range of potential contractors to bid, thereby driving down prices through market forces.

Public Impact

Citizens and federal employees interacting with government services likely benefited from improved contact center operations. The contract supported essential communication channels, ensuring access to information and assistance. The primary geographic impact was in the District of Columbia, where the services were likely concentrated. The contract supported jobs within the contact center industry, potentially including customer service representatives, supervisors, and technical support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The duration of the contract (nearly 2000 days) could lead to vendor lock-in if not managed carefully.
Lack of specific performance metrics makes it difficult to assess the true value for money delivered.
The concentration of services in the District of Columbia might not reflect the needs of a geographically dispersed federal workforce or public.

Positive Signals

Awarded through full and open competition, ensuring a broad market solicitation.
Firm-fixed-price contract type generally provides cost certainty for the government.
The contract supported essential government functions related to public and internal communication.

Sector Analysis

The National Contact Center (NCC) Program Support Services contract falls within the broader Information Services sector, specifically focusing on customer interaction and support. This sector is characterized by a high demand for efficient communication solutions, often involving technology platforms and skilled personnel. The market size for government contact center support is substantial, driven by the need to manage citizen inquiries, internal help desks, and various program-specific communications. This contract represents a significant investment by the General Services Administration (GSA) in ensuring effective public-facing and internal support mechanisms.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract was not explicitly provided in the data. Typically, large contracts like this may include provisions for small business participation. Without specific details, it's difficult to assess the direct impact on the small business ecosystem. However, the absence of explicit small business set-aside flags suggests that the primary award was not specifically targeted towards small businesses, though they may have participated as subcontractors.

Oversight & Accountability

Oversight for this contract would have been managed by the General Services Administration (GSA), specifically the Office of the Administrator. As a firm-fixed-price contract, oversight would likely focus on ensuring that the contractor met the defined service levels and deliverables. Transparency would be facilitated through contract reporting mechanisms and potentially through GSA's internal review processes. The extent of Inspector General involvement would depend on any reported issues or performance concerns that arose during the contract's lifecycle.

Related Government Programs

Federal Contact Center Services
Information Technology Support Services
Customer Relationship Management Services
Government Shared Services

Risk Flags

Limited Competition Potential
Long Contract Duration
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.2 million to SYKES ACQUISITION, LLC. NATIONAL CONTACT CENTER (NCC) PROGRAM SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SYKES ACQUISITION, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of the Administrator).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2009-09-21. End: 2015-01-31.

What was the specific nature of the 'National Contact Center (NCC) Program Support Services' provided under this contract?

The 'National Contact Center (NCC) Program Support Services' contract likely encompassed a range of activities aimed at managing and enhancing federal government contact center operations. This could include services such as inbound and outbound call handling, customer inquiry resolution, technical support, data entry, appointment scheduling, and potentially the management of associated IT infrastructure and software. The goal would be to provide a centralized or coordinated point of contact for citizens or federal employees seeking information or assistance related to various government programs and services. The specific scope would be detailed in the contract's Statement of Work (SOW).

How did the pricing of this contract compare to similar federal contact center support contracts awarded around the same period?

Direct comparison of pricing for this $25.2 million contract against similar federal contact center support contracts awarded around its period of performance (2009-2015) is difficult without access to detailed pricing structures and service level agreements (SLAs) of those comparable contracts. However, the fact that it was awarded under full and open competition with 9 bidders suggests a competitive market. The firm-fixed-price (FFP) nature of the contract implies that the contractor assumed the risk of cost overruns, which can sometimes lead to higher initial bid prices compared to cost-reimbursement contracts. To perform a true benchmark, one would need to analyze per-call costs, cost per agent hour, or cost per ticket resolution against industry benchmarks and other government contracts.

What were the primary risks associated with this contract for the government, and how were they mitigated?

The primary risks for the government in this contract likely included potential underperformance by the contractor, leading to degraded service quality for citizens or employees; cost overruns if the firm-fixed-price (FFP) model was poorly managed or if scope creep occurred; and potential vendor lock-in due to the long contract duration (1958 days). Mitigation strategies would typically involve clearly defined performance standards and Service Level Agreements (SLAs) in the contract, robust government oversight and quality assurance processes, regular performance reviews, and potentially incorporating incentives or penalties tied to performance metrics. For FFP contracts, careful scope definition and change control management are crucial to prevent unexpected cost increases.

What was the track record of SYKES ACQUISITION, LLC, with federal contracts prior to or during this award?

Assessing SYKES ACQUISITION, LLC's track record requires a review of their past performance on federal contracts. Without specific data on their prior awards, performance ratings, and any past issues (e.g., contract disputes, performance deficiencies), it's challenging to provide a detailed analysis. Generally, agencies evaluate a contractor's past performance as a key factor in the source selection process. A positive track record typically involves successful delivery of similar services, adherence to contract terms, and positive past performance reviews. Conversely, a history of performance issues could raise concerns about the reliability and effectiveness of the contractor.

How did the spending on this specific contract compare to overall GSA spending on contact center or information services during the contract period?

Comparing the $25.2 million spent on this specific SYKES ACQUISITION, LLC contract to the General Services Administration's (GSA) overall spending on contact center or information services during its period of performance (2009-2015) requires access to GSA's historical budget and expenditure data. GSA manages a vast portfolio of services and procurements. This contract represents a significant, but likely not dominant, portion of GSA's spending within its specific niche. To provide a precise comparison, one would need to aggregate GSA's total obligations for similar North American Industry Classification System (NAICS) codes (like 519190 - All Other Information Services) or contract types during those fiscal years.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sykes Enterprises, Incorporated (UEI: 041759564)

Address: 400 N ASHLEY DR, TAMPA, FL, 90

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

Financial Breakdown

Contract Ceiling: $47,639,956

Exercised Options: $47,545,972

Current Obligation: $25,216,603

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00V08PDD0064

IDV Type: IDC

Timeline