DoD's $17M Call Center Contract with American Systems Corp. Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $17,056,066 ($17.1M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2009-06-08

End Date: 2014-09-29

Contract Duration: 1,939 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE CALL CENTER SUPPORT AT THE INTEGRATED CALL CENTER FOR DSS. SERVICES COVERS FULL RANGE OF CALL CENTER SUPPORT TO INCLUDE RESPONDING TO BOTH FUNCTIONAL AND TECHNICAL INQUIRIES IN SUPPORT OF A WIDE VARIETY OF PRODUCTS.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to AMERICAN SYSTEMS CORPORATION for work described as: PROVIDE CALL CENTER SUPPORT AT THE INTEGRATED CALL CENTER FOR DSS. SERVICES COVERS FULL RANGE OF CALL CENTER SUPPORT TO INCLUDE RESPONDING TO BOTH FUNCTIONAL AND TECHNICAL INQUIRIES IN SUPPORT OF A WIDE VARIETY OF PRODUCTS. Key points: 1. The contract awarded to American Systems Corporation for call center support represents a significant investment in IT services for the Defense Counterintelligence and Security Agency. 2. Competition for this contract was full and open, suggesting a potentially competitive bidding process. 3. The fixed-price contract type aims to control costs, but the overall value and efficiency require further analysis. 4. The sector is IT services, specifically call center support, which is crucial for agency operations but can be subject to cost overruns if not managed effectively.

Value Assessment

Rating: fair

The contract value of $17 million over approximately five years appears reasonable for comprehensive call center support. However, without specific performance metrics or benchmarks for similar DoD contracts, a definitive assessment of value for money is challenging.

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 impact on price discovery is positive, as multiple bidders likely vied for the contract, driving down costs.

Taxpayer Impact: The use of full and open competition is a positive for taxpayers, as it aims to secure the best possible price through market forces.

Public Impact

Ensures continuous operational support for critical Defense Department functions. Provides a single point of contact for a wide range of technical and functional inquiries. Supports agency efficiency by handling routine support tasks, freeing up internal resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics for value assessment.
Potential for scope creep in 'full range of support'.
Limited insight into actual service delivery quality.

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type.
Long-term contract provides stability for support services.

Sector Analysis

This contract falls within the IT services sector, specifically call center operations. Spending benchmarks for similar government call center contracts vary widely based on scope and complexity, but $17 million over five years suggests a substantial, ongoing requirement.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. This suggests larger, established corporations were likely the primary bidders and recipients of this award.

Oversight & Accountability

The contract was awarded as a delivery order under a larger contract vehicle, which may have its own oversight mechanisms. However, the specific oversight for this particular order and its adherence to performance standards would need further investigation.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Counterintelligence and Security Agency Programs

Risk Flags

Lack of detailed performance metrics.
Potential for undefined scope in 'full range of support'.
No indication of small business participation.
Limited transparency on specific service delivery quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to AMERICAN SYSTEMS CORPORATION. PROVIDE CALL CENTER SUPPORT AT THE INTEGRATED CALL CENTER FOR DSS. SERVICES COVERS FULL RANGE OF CALL CENTER SUPPORT TO INCLUDE RESPONDING TO BOTH FUNCTIONAL AND TECHNICAL INQUIRIES IN SUPPORT OF A WIDE VARIETY OF PRODUCTS.

Who is the contractor on this award?

The obligated recipient is AMERICAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2009-06-08. End: 2014-09-29.

What specific performance metrics were used to evaluate the success of this call center support contract?

The provided data does not specify the performance metrics used to evaluate the success of this contract. Typically, such metrics would include response times, resolution rates, customer satisfaction scores, and adherence to service level agreements. Without these, it's difficult to definitively assess the contract's effectiveness beyond its basic operational function.

How does the per-unit cost of this call center support compare to industry benchmarks for similar government services?

A direct per-unit cost benchmark is not available from the provided data. The total contract value of $17 million over approximately 1939 days (roughly 5.3 years) averages around $9,000 per day. Comparing this to industry benchmarks would require detailed analysis of call volume, complexity, and staffing levels, which are not specified.

What is the potential risk of cost overruns or service degradation given the 'full range of support' and fixed-price nature?

The risk of cost overruns is mitigated by the firm fixed-price structure. However, 'full range of support' could lead to scope creep if not clearly defined and managed. Service degradation risk exists if the contractor cannot adequately staff or manage the diverse support requirements within the fixed price, potentially impacting agency operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14151 PARK MEADOW DR STE 500, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,103,269

Exercised Options: $17,103,269

Current Obligation: $17,056,066

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4581G

IDV Type: FSS

Timeline