Interior Department's $83.8M contract for Military One Source Services awarded to Ceridian LLC

Contract Overview

Contract Amount: $83,757,097 ($83.8M)

Contractor: Ceridian LLC

Awarding Agency: Department of the Interior

Start Date: 2008-09-25

End Date: 2009-09-24

Contract Duration: 364 days

Daily Burn Rate: $230.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MILITARY ONE SOURCE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $83.8 million to CERIDIAN LLC for work described as: MILITARY ONE SOURCE SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Duration of 364 days suggests a short-term or bridging requirement. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. No small business set-aside was applied to this procurement. 5. Services provided fall under 'Other Individual and Family Services'. 6. Contract awarded in late 2008, indicating historical service provision.

Value Assessment

Rating: questionable

The contract value of $83.8 million for a single year of 'Other Individual and Family Services' is substantial. Without comparable sole-source contracts for similar services, it is difficult to benchmark the value for money. The firm fixed-price structure offers cost certainty, but the lack of competition raises concerns about whether the government achieved the best possible price. Further analysis would require understanding the specific scope of 'Military One Source Services' and comparing it to market rates for similar support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that price discovery through bidding was not utilized, potentially leading to higher costs for the government compared to a competitive procurement.

Taxpayer Impact: Sole-source awards limit taxpayer value by bypassing competitive bidding, which is designed to drive down prices and ensure the best deal. This can result in higher overall spending for essential services.

Public Impact

Military personnel and their families benefit from 'Military One Source Services'. The services provided likely include support for deployment, relocation, financial management, and family well-being. The geographic impact is likely nationwide, serving military communities across the United States. The contract supports a critical function for military readiness and personnel support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
Sole-source award limits transparency in pricing and service delivery.
Short contract duration may indicate a need for more strategic long-term planning.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Services are critical for military family support and readiness.
Award to an established entity (Ceridian LLC) suggests potential for reliable service delivery.

Sector Analysis

The 'Other Individual and Family Services' category, under which this contract falls, encompasses a broad range of support services. While specific market data for 'Military One Source Services' is not readily available, the broader human services sector involves numerous providers. The government often procures such services to support specific populations, like military families, where specialized or comprehensive support is required. Benchmarking would involve comparing the scope and cost to similar government or large-scale private sector support programs.

Small Business Impact

This contract does not appear to have a small business set-aside. As a sole-source award, it was not open to competition, which would typically include opportunities for small businesses to participate either as prime contractors or subcontractors. The absence of a set-aside and the sole-source nature suggest that small businesses were not specifically targeted for this particular procurement.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the agency's contract management division. Transparency is limited due to the sole-source nature. Accountability would be measured by the contractor's performance against the contract's terms and conditions, with potential for review by the Inspector General if performance issues or fraud were suspected.

Related Government Programs

Military Family Readiness Programs
Department of Defense Support Services
Individual and Family Support Services

Risk Flags

Sole-source award limits competition
Potential for higher costs due to lack of competition
Limited transparency in pricing and service delivery
Short contract duration may indicate a need for strategic planning

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $83.8 million to CERIDIAN LLC. MILITARY ONE SOURCE SERVICES

Who is the contractor on this award?

The obligated recipient is CERIDIAN LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $83.8 million.

What is the period of performance?

Start: 2008-09-25. End: 2009-09-24.

What is the specific scope of services provided under 'Military One Source Services'?

The provided data indicates the contract is for 'MILITARY ONE SOURCE SERVICES' and falls under the North American Industry Classification System (NAICS) code 624190, 'Other Individual and Family Services'. While the exact details of the service scope are not in the provided data, 'Military One Source' is a well-known program that offers comprehensive support services to U.S. military members and their families. These services typically include counseling (non-medical), financial guidance, relocation assistance, spouse employment support, and referrals for various needs. The contract likely covers the operational and delivery aspects of these support services, ensuring availability and accessibility to the target population.

How does the $83.8 million contract value compare to similar services for military families?

Benchmarking the $83.8 million contract value is challenging without more specific details on the scope of services and the period of performance. However, 'Military One Source' is a large-scale, congressionally mandated program designed to provide a wide array of support. Given the comprehensive nature of the services offered (counseling, financial, relocation, etc.) and the large population of military families served, this annual value is likely in line with the significant investment required for such a program. If this represents a sole-source award for a full suite of services, the price might be higher than a competitively bid contract for a narrower service set. Further comparison would require analyzing the specific deliverables and service levels outlined in the contract.

What are the risks associated with a sole-source award for these services?

The primary risk associated with a sole-source award is the lack of price competition, which can lead to the government paying a premium for services. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price. Additionally, sole-source awards can reduce transparency in the procurement process and may limit the government's ability to explore innovative solutions from a wider range of potential providers. There's also a risk that the chosen contractor may not be the most efficient or effective provider if alternatives were not thoroughly explored. This contract's duration of 364 days also suggests it might be a short-term solution, potentially leading to recurring sole-source awards if not properly planned for competitive re-procurement.

What is the track record of Ceridian LLC in providing government services?

Ceridian LLC is a global human capital management technology company. While the provided data does not detail their specific track record with this particular contract or other government entities, their core business involves providing HR, payroll, and benefits services. Companies of this nature often hold various government contracts, particularly for human resources and employee support functions. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to assess their past performance, contract history, and any reported issues or successes with government clients. Their established presence in the HR technology sector suggests they possess the infrastructure to manage large service contracts.

How does the spending on 'Military One Source Services' compare to other individual and family services contracts?

The $83.8 million annual spending on this specific 'Military One Source Services' contract, awarded to Ceridian LLC, is a significant figure within the 'Other Individual and Family Services' (NAICS 624190) category. However, without access to a comprehensive database of all contracts within this NAICS code, a direct comparison is difficult. Government spending on family services can vary widely based on agency needs, target populations, and program scope. For instance, contracts supporting child welfare, elder care, or broader social services might have different spending levels. The 'Military One Source' program is a specialized, high-impact service for a distinct population, justifying its substantial budget. A comparative analysis would require aggregating spending across similar contracts to identify trends and benchmarks within the broader category.

What are the implications of the 'Firm Fixed Price' contract type for this service?

The 'Firm Fixed Price' (FFP) contract type means that the price is set and not subject to adjustment based on the contractor's cost experience. This offers the government significant cost certainty, as the total amount paid will not exceed the agreed-upon price, regardless of whether the contractor's costs are higher or lower than anticipated. For services like 'Military One Source', where the scope is relatively well-defined, FFP is often preferred. It shifts the risk of cost overruns to the contractor. However, it also means the government may not benefit if the contractor achieves cost savings. The price negotiated at the outset is critical, especially in a sole-source scenario where competitive pressure to optimize pricing is absent.

Industry Classification

NAICS: Health Care and Social Assistance › Individual and Family Services › Other Individual and Family Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 14060408RP20856

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Foundation Holdings, Inc. (UEI: 808416841)

Address: 3311 E OLD SHAKOPEE RD, MINNEAPOLIS, MN, 90

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

Financial Breakdown

Contract Ceiling: $85,412,421

Exercised Options: $85,412,421

Current Obligation: $83,757,097

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Timeline