TSA Awards $32.3M Contract for Multi-Channel Contact Center Support to K4 Solutions

Contract Overview

Contract Amount: $32,273,141 ($32.3M)

Contractor: K4 Solutions, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2010-07-30

End Date: 2017-02-01

Contract Duration: 2,378 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 26

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PR TO FUND A CONTRACT FOR SUPPORT SERVICES FOR THE MULTI-CHANNEL TSA CONTACT CENTER WILL PROVIDE INTERACTIONS WITH NATION-WIDE CUSTOMERS THROUGH VARIETY OF COMMUNICATION VECHICLES INCLUDING LIVE ASSIST TELEPHONE CALLS AND E-MAIL CONTACTS, IVR/ SELF-SERVICE CONTACTS, CORRESPONDENCE, OMBUDSMAN CONTACTS, ADVANCE IVR FUNCTIONALITY, AND KNOWLEDGE-BASED APPLICATIONS.

Place of Performance

Location: LONDON, LAUREL County, KENTUCKY, 40741

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.3 million to K4 SOLUTIONS, INC for work described as: PR TO FUND A CONTRACT FOR SUPPORT SERVICES FOR THE MULTI-CHANNEL TSA CONTACT CENTER WILL PROVIDE INTERACTIONS WITH NATION-WIDE CUSTOMERS THROUGH VARIETY OF COMMUNICATION VECHICLES INCLUDING LIVE ASSIST TELEPHONE CALLS AND E-MAIL CONTACTS, IVR/ SELF-SERVICE CONTACTS, CORRESPONDENC… Key points: 1. The contract aims to enhance customer interactions across various communication channels for nationwide TSA customers. 2. K4 Solutions, Inc. secured the award, indicating potential specialization in contact center services. 3. The contract's duration of nearly 8 years suggests a long-term need for these support services. 4. The total award value of $32.3 million over the period needs to be assessed against service delivery and customer satisfaction metrics.

Value Assessment

Rating: fair

The contract value of $32.3 million over approximately 7 years averages to about $4.6 million annually. Benchmarking this against similar large-scale contact center support contracts would be necessary to determine if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely led to a more favorable price than a sole-source or limited competition scenario.

Public Impact

Improved customer service for travelers interacting with the TSA. Potential for more efficient handling of inquiries and issues through diverse communication channels. Ensures continuity of essential contact center operations for a critical government agency. Impact on traveler experience and perception of TSA efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to price increases or service stagnation if not managed effectively.
Dependence on a single contractor for critical customer interaction services.
Potential for scope creep or unmanaged changes over the contract's extended period.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Addresses a clear need for comprehensive customer support.
Contract structure allows for a wide range of communication channels to be supported.

Sector Analysis

This contract falls within the IT and professional services sector, specifically focusing on contact center operations. Benchmarking against similar government contracts for telemarketing and customer support services would provide context for the award value and duration.

Small Business Impact

The data indicates that neither small business set-asides nor subcontracting were explicitly mentioned for this contract. Further investigation would be needed to determine if small businesses were involved in the bidding or execution of this contract.

Oversight & Accountability

Oversight will be crucial to ensure K4 Solutions meets performance standards and delivers value throughout the contract's nearly 8-year term. Regular performance reviews and monitoring of customer satisfaction metrics are essential for accountability.

Related Government Programs

Telemarketing Bureaus and Other Contact Centers
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Long contract duration (nearly 8 years) increases risk of price escalation or service obsolescence.
Potential for contractor performance degradation over an extended period.
Lack of explicit mention of small business participation.
Dependence on a single vendor for critical customer-facing services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.3 million to K4 SOLUTIONS, INC. PR TO FUND A CONTRACT FOR SUPPORT SERVICES FOR THE MULTI-CHANNEL TSA CONTACT CENTER WILL PROVIDE INTERACTIONS WITH NATION-WIDE CUSTOMERS THROUGH VARIETY OF COMMUNICATION VECHICLES INCLUDING LIVE ASSIST TELEPHONE CALLS AND E-MAIL CONTACTS, IVR/ SELF-SERVICE CONTACTS, CORRESPONDENCE, OMBUDSMAN CONTACTS, ADVANCE IVR FUNCTIONALITY, AND KNOWLEDGE-BASED APPLICATIONS.

Who is the contractor on this award?

The obligated recipient is K4 SOLUTIONS, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $32.3 million.

What is the period of performance?

Start: 2010-07-30. End: 2017-02-01.

What specific performance metrics are in place to ensure the quality and efficiency of the contact center services provided by K4 Solutions?

The contract details do not explicitly list performance metrics. However, typical government contracts for contact center support include key performance indicators (KPIs) such as average handle time, first call resolution rate, customer satisfaction scores, and adherence to service level agreements (SLAs). Effective oversight would involve regular tracking and reporting against these KPIs to ensure the contractor meets expectations and provides value.

How does the $32.3 million contract value compare to industry benchmarks for similar multi-channel contact center support services over a similar duration?

Without specific details on the scope of services, call volumes, and staffing levels, a precise benchmark is difficult. However, for a contract spanning nearly 8 years with a value of $32.3 million, the average annual cost is approximately $4.6 million. This figure needs to be compared against industry data for government or large private sector contact centers of comparable size and complexity to assess its competitiveness.

What mechanisms are in place to manage potential cost overruns or scope creep given the contract's long duration and firm fixed-price nature?

A firm fixed-price contract generally limits the government's exposure to cost overruns, as the price is set. However, scope creep can still occur if requirements are not clearly defined or if change orders are issued without strict control. Robust contract management, including a well-defined change control process and regular performance reviews, is essential to mitigate these risks and ensure the contract remains within budget and scope.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSTS02-10-R-OSC005

Offers Received: 26

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7702 LEESBURG PIKE STE 420, FALLS CHURCH, VA, 22043

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $34,056,581

Exercised Options: $32,273,141

Current Obligation: $32,273,141

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline