Interior's $111.7M Contract for Military Onesource Call Center Services Awarded to Ceridian LLC
Contract Overview
Contract Amount: $111,722,671 ($111.7M)
Contractor: Ceridian LLC
Awarding Agency: Department of the Interior
Start Date: 2009-12-01
End Date: 2011-10-29
Contract Duration: 697 days
Daily Burn Rate: $160.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPERATE 1-800 CALL CENTER AND WEBSITE FOR MILITARY ONESOURCE AND PROVIDE RELATED NON-MEDICAL COUNSELING.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of the Interior obligated $111.7 million to CERIDIAN LLC for work described as: OPERATE 1-800 CALL CENTER AND WEBSITE FOR MILITARY ONESOURCE AND PROVIDE RELATED NON-MEDICAL COUNSELING. Key points: 1. Ceridian LLC secured a significant contract for essential military support services. 2. The contract value is substantial, indicating a critical need for these services. 3. Competition was full and open, suggesting a fair market price discovery process. 4. The sector involves individual and family services, crucial for military personnel well-being.
Value Assessment
Rating: good
The contract value of $111.7 million over approximately two years suggests a competitive pricing structure for comprehensive call center and counseling services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, allowing multiple vendors to bid. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure services at the best possible price.
Public Impact
Provides vital support and non-medical counseling to military members and their families. Ensures continuous operation of the Military Onesource call center and website. Supports the well-being and readiness of the armed forces through accessible resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 697 days is relatively long, potentially leading to price increases over time.
- No small business participation noted, missing an opportunity to support smaller enterprises.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Services provided are critical for military family support.
Sector Analysis
This contract falls within the Other Individual and Family Services sector, which is essential for supporting the social and psychological well-being of military personnel and their families. Spending in this area is critical for maintaining morale and readiness.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting. This represents a missed opportunity to engage smaller firms in providing these important services.
Oversight & Accountability
The contract was awarded by the Department of the Interior, with the specific service area being Other Individual and Family Services. Oversight would focus on service delivery and adherence to contract terms.
Related Government Programs
- Other Individual and Family Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- No small business participation.
- Long contract duration may lead to price inflexibility.
- Potential for vendor complacency over time.
- Lack of specific performance metrics provided.
Tags
other-individual-and-family-services, department-of-the-interior, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $111.7 million to CERIDIAN LLC. OPERATE 1-800 CALL CENTER AND WEBSITE FOR MILITARY ONESOURCE AND PROVIDE RELATED NON-MEDICAL COUNSELING.
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 $111.7 million.
What is the period of performance?
Start: 2009-12-01. End: 2011-10-29.
What is the benchmark cost for similar call center and non-medical counseling services for large organizations?
Benchmarking similar services is complex due to variations in scope, call volume, staffing, and required expertise. However, industry averages for large-scale call center operations can range from $20-$50 per hour per agent, excluding specialized counseling. For non-medical counseling, rates can vary significantly based on provider qualifications and service intensity. A comprehensive analysis would require detailed service level agreements and performance metrics from comparable contracts.
What are the risks associated with a long-term contract for call center services?
Long-term contracts, like this 697-day agreement, carry risks such as potential price escalation over time due to inflation or changing market conditions. There's also a risk of vendor complacency, leading to decreased service quality if performance metrics are not rigorously monitored. Furthermore, technological advancements might render the contracted services or systems outdated before the contract expires, necessitating costly modifications or early termination.
How effective is the 'full and open competition' method in ensuring value for taxpayer money in this service sector?
Full and open competition is generally highly effective in ensuring value for taxpayer money, especially for services like call centers and counseling where multiple providers exist. It fosters a competitive environment, driving down prices and encouraging innovation. This method allows the government to solicit bids from a wide range of qualified vendors, increasing the likelihood of selecting the most cost-effective and high-quality solution available in the market.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 1406-04-08-RP-20652
Offers Received: 3
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: $111,722,671
Exercised Options: $111,722,671
Current Obligation: $111,722,671
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-12-01
Current End Date: 2011-10-29
Potential End Date: 2011-10-29 00:00:00
Last Modified: 2014-04-04
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