DHS awards $325M contract to Serco Services Inc. for NBC Records Support Program

Contract Overview

Contract Amount: $324,826,912 ($324.8M)

Contractor: Serco Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2009-07-23

End Date: 2016-01-29

Contract Duration: 2,381 days

Daily Burn Rate: $136.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: NATIONAL BENEFITS CENTER (NBC) RECORDS SUPPORT PROGRAM

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $324.8 million to SERCO SERVICES INC for work described as: NATIONAL BENEFITS CENTER (NBC) RECORDS SUPPORT PROGRAM Key points: 1. The contract value is substantial at over $324 million. 2. Serco Services Inc. is the sole awardee. 3. The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. 4. The sector is Office Administrative Services, supporting USCIS operations.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure allows for costs plus a fee that is adjusted based on performance. Without clear performance metrics and rigorous oversight, this structure can lead to higher-than-expected costs compared to fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee is Serco Services Inc., and the pricing discovery impact depends on the bids received and the negotiation process.

Taxpayer Impact: Taxpayer funds are being used for this significant contract. The effectiveness of the competition and Serco's performance will determine the overall value for taxpayers.

Public Impact

Impacts USCIS operations by providing essential records support. Affects the efficiency of immigration services processing. Potential impact on the accuracy and accessibility of immigration records.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contract type
Long contract duration (2009-2016)
No small business participation reported

Positive Signals

Awarded under full and open competition
Supports critical USCIS functions

Sector Analysis

This contract falls under Office Administrative Services, a broad category supporting the day-to-day operations of government agencies. Spending in this area is crucial for efficiency but can vary widely based on agency needs and contract structures.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award, as the 'sb' field is false. This suggests that opportunities for small businesses were either not pursued or not met.

Oversight & Accountability

Oversight is critical for Cost Plus Award Fee contracts to ensure performance targets are met and costs are controlled. The effectiveness of DHS's oversight mechanisms for this contract would determine its accountability.

Related Government Programs

Office Administrative Services
Department of Homeland Security Contracting
U.S. Citizenship and Immigration Services Programs

Risk Flags

Potential for cost overruns due to Cost Plus Award Fee structure.
Lack of small business participation.
Long contract duration without clear performance details.
Reliance on a single contractor for critical administrative services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $324.8 million to SERCO SERVICES INC. NATIONAL BENEFITS CENTER (NBC) RECORDS SUPPORT PROGRAM

Who is the contractor on this award?

The obligated recipient is SERCO SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $324.8 million.

What is the period of performance?

Start: 2009-07-23. End: 2016-01-29.

What were the specific performance metrics used to determine the award fee for Serco Services Inc.?

The specific performance metrics are not detailed in the provided data. For a Cost Plus Award Fee contract, these metrics are crucial for ensuring the contractor meets objectives and for justifying the fee awarded. Without them, it's difficult to assess if the award fee truly reflects exceptional performance or simply baseline service delivery.

How did the full and open competition ensure the best possible price for the government?

Full and open competition theoretically allows multiple vendors to bid, driving down prices through market forces. However, the effectiveness in achieving the 'best possible price' depends on the number and quality of bids received, the government's negotiation strategy, and the specific contract type (Cost Plus Award Fee can allow for cost growth).

What is the long-term impact of this contract on USCIS's ability to manage records efficiently?

The long-term impact depends on the quality of services provided by Serco and how well the records management system was modernized or maintained during the contract period. A successful contract would lead to efficient, accessible, and secure records, while a poorly managed one could result in inefficiencies and data integrity issues.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSSCCG-08-R-00004

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Serco Group PLC (UEI: 298452707)

Address: 12012 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $335,466,745

Exercised Options: $335,454,745

Current Obligation: $324,826,912

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline