Serco Inc. awarded $12.8M contract for engineering services by the Department of the Interior

Contract Overview

Contract Amount: $12,877,284 ($12.9M)

Contractor: Serco Inc.

Awarding Agency: Department of the Interior

Start Date: 2004-02-09

End Date: 2007-09-30

Contract Duration: 1,329 days

Daily Burn Rate: $9.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: 33203-DECISIVE ANALYTICS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $12.9 million to SERCO INC. for work described as: 33203-DECISIVE ANALYTICS Key points: 1. Contract awarded via competitive delivery order, suggesting a degree of market vetting. 2. The contract duration of 1329 days indicates a significant, long-term need for these services. 3. Engineering services are critical for infrastructure and operational support within federal agencies. 4. The 'TIME AND MATERIALS' contract type can sometimes lead to cost overruns if not closely managed. 5. The specific NAICS code 541330 points to a specialized engineering services market. 6. The contract was awarded to Decisive Analytics, with Serco Inc. as the prime contractor.

Value Assessment

Rating: fair

The total award amount of $12.8 million over approximately 3.6 years suggests a moderate investment in engineering services. Without specific benchmarks for comparable engineering contracts within the Department of the Interior or similar agencies, a precise value-for-money assessment is challenging. The 'TIME AND MATERIALS' pricing structure warrants careful monitoring to ensure costs remain aligned with the scope of work and market rates for engineering expertise. Further analysis would require comparing the per-hour rates and total project costs against industry standards and other federal contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that multiple vendors likely had an opportunity to bid. The presence of 5 bids suggests a reasonably competitive environment for this specific requirement. A competitive award process generally fosters better price discovery and can lead to more favorable terms for the government compared to sole-source or limited competition scenarios. The level of competition can influence the final price and the quality of services offered.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices through market forces. It signals that the government sought the best value from multiple providers, rather than being locked into a single option.

Public Impact

Federal agencies, specifically the Department of the Interior, benefit from specialized engineering expertise to support their missions. Services delivered likely include design, analysis, consulting, and project management related to the agency's infrastructure or operational needs. The geographic impact is likely concentrated within the areas of operation for the Department of the Interior, potentially nationwide. The contract supports skilled engineering professionals, contributing to the federal workforce in technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'TIME AND MATERIALS' contract type carries inherent risks of cost escalation if not managed diligently.
Lack of specific performance metrics or detailed scope of work in the provided data makes it difficult to assess efficiency.
The contract's duration could lead to vendor lock-in if not periodically re-evaluated for competitive alternatives.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
The contract addresses a clear need for engineering services within a major federal agency.
The duration suggests a stable, long-term requirement, allowing for focused expertise development.

Sector Analysis

The engineering services sector is a vital component of the federal procurement landscape, supporting a wide array of agency missions from infrastructure development to scientific research. This contract, falling under NAICS code 541330 (Engineering Services), represents a segment of the broader professional, scientific, and technical services market. Federal spending in this area is often driven by infrastructure projects, defense needs, and regulatory compliance. Benchmarking this $12.8 million award would involve comparing it to the average contract size and duration for similar engineering services procured by agencies like the Department of the Interior, Army Corps of Engineers, or GSA.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Serco Inc., is likely a large business. This means that opportunities for small business participation would primarily come through subcontracting. The extent to which Serco Inc. engages small businesses as subcontractors will determine the impact on the small business ecosystem for this particular contract. Without specific subcontracting plans or historical data, it's difficult to quantify this impact.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the Department of the Interior. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS-NG, where award details are publicly available. Inspector General jurisdiction may apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of the Interior - General Services
Engineering Services Contracts
Professional, Scientific, and Technical Services
Time and Materials Contracts
Competitive Delivery Orders

Risk Flags

Time and Materials Contract Type Risk
Potential for Cost Overruns
Need for Strong Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.9 million to SERCO INC.. 33203-DECISIVE ANALYTICS

Who is the contractor on this award?

The obligated recipient is SERCO INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2004-02-09. End: 2007-09-30.

What is the track record of Serco Inc. in performing similar engineering services contracts for the federal government?

Serco Inc. has a significant history of performing various service contracts for the U.S. federal government, including IT services, healthcare support, and operational support. While the provided data focuses on this specific engineering services contract, a broader analysis of Serco's past performance would involve examining their contract history for similar engineering-related work, including project complexity, client agencies, contract values, and any reported performance issues or successes. Reviewing past performance evaluations and contract close-out reports would provide a more comprehensive understanding of their capabilities and reliability in delivering engineering solutions. This specific contract, awarded in 2004 and ending in 2007, represents an earlier engagement, and their capabilities may have evolved since then.

How does the $12.8 million award compare to the average federal spending on engineering services for the Department of the Interior?

To compare the $12.8 million award to the average federal spending on engineering services for the Department of the Interior, one would need access to historical spending data for the agency across multiple fiscal years. This would involve identifying all contracts categorized under relevant NAICS codes (like 541330) awarded by the Department of the Interior. Calculating the average award value and the total annual spending on engineering services would provide a benchmark. Given that this contract spanned over three years, its total value might represent a significant portion of the agency's annual engineering services budget in those years, or it could be one of several large contracts. Without aggregated historical data, it's difficult to definitively state if $12.8 million is high, low, or average for the DOI.

What are the primary risks associated with the 'TIME AND MATERIALS' contract type for this engineering services engagement?

The primary risk associated with a 'TIME AND MATERIALS' (T&M) contract type, like the one awarded to Serco Inc., is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. If the scope of work is not clearly defined, or if project requirements change significantly, the contractor may incur more labor hours or require more materials than initially anticipated, leading to a higher final cost. Effective risk mitigation requires robust government oversight, including detailed tracking of labor hours, verification of material costs, and strong change management processes to control scope creep. Without such controls, the government may end up paying more than the originally intended value.

How effective are competitive delivery orders in ensuring optimal value for taxpayer money in specialized service procurements?

Competitive delivery orders can be highly effective in ensuring optimal value for taxpayer money, particularly in specialized service procurements. By soliciting bids from multiple qualified vendors, the government leverages market competition to drive down prices and encourage innovation. The process allows agencies to select the offer that represents the best overall value, considering factors beyond just price, such as technical approach, past performance, and delivery timelines. The presence of 5 bids in this case suggests a healthy level of competition, which typically leads to more favorable pricing and service terms. However, the effectiveness also depends on the clarity of the solicitation, the fairness of the evaluation process, and the government's ability to accurately define its needs and evaluate competing proposals.

What are the potential implications of this contract on the small business contracting ecosystem?

Since this contract was awarded as a competitive delivery order and not specifically set aside for small businesses, its direct impact on the small business contracting ecosystem is likely limited to subcontracting opportunities. Large prime contractors like Serco Inc. are often encouraged or required to subcontract a portion of the work to small businesses. The extent to which this occurs depends on the specific subcontracting goals set by the Department of the Interior and Serco's commitment to meeting them. If Serco actively seeks out and utilizes small business subcontractors for specialized tasks within the engineering services scope, it can provide valuable contract experience and revenue streams for those small firms. Conversely, if subcontracting opportunities are minimal or not prioritized, the direct benefit to the small business sector from this specific contract would be negligible.

Are there any specific performance indicators or metrics that should be monitored for this type of engineering services contract?

For an engineering services contract like this, key performance indicators (KPIs) should focus on both technical quality and project management. Technical KPIs could include adherence to design specifications, accuracy of analyses, compliance with relevant codes and standards, and the successful resolution of technical challenges. Project management KPIs would involve on-time delivery of milestones, staying within budget (especially critical for T&M contracts), effective communication and reporting, and responsiveness to client feedback. For a T&M contract, tracking the efficiency of labor hours used against expected productivity benchmarks is crucial. The Department of the Interior's contracting officer and program managers would be responsible for defining and monitoring these metrics throughout the contract lifecycle to ensure satisfactory performance and value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 1235 S CLARK ST, ARLINGTON, VA, 22202

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $27,192,195

Exercised Options: $16,066,089

Current Obligation: $12,877,284

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0382K

IDV Type: FSS

Timeline