DoD Awards $15.4M Contract for Administrative Management Services to Edenred Benefits LLC
Contract Overview
Contract Amount: $15,453,417 ($15.5M)
Contractor: Edenred Benefits LLC
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2026-09-30
Contract Duration: 733 days
Daily Burn Rate: $21.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TIP BENEFIT DISBURSEMENTS (NTE)
Place of Performance
Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451
Plain-Language Summary
Department of Defense obligated $15.5 million to EDENRED BENEFITS LLC for work described as: TIP BENEFIT DISBURSEMENTS (NTE) Key points: 1. Contract value of $15.4 million for administrative management services. 2. Awarded to Edenred Benefits LLC, a single vendor. 3. Potential risk due to lack of competition. 4. Services fall under Administrative Management and General Management Consulting. 5. Contract duration is 733 days.
Value Assessment
Rating: fair
The contract value of $15.4 million for administrative management services appears to be a significant investment. Without comparable contract data or a detailed breakdown of services, it's difficult to definitively assess its pricing against similar engagements. Benchmarking would require more granular information on the scope and deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This approach limits price discovery and potentially reduces the opportunity for obtaining the best value through competitive bidding. The rationale for not competing the award is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these administrative management services, as market forces were not leveraged to drive down costs.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on these services for administrative functions. Edenred Benefits LLC is the sole provider for this specific contract. The contract's duration suggests a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Definitive contract award
- Firm fixed price contract
Sector Analysis
This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). Spending in this sector can vary widely depending on the specific needs of government agencies. Benchmarks for this type of service are often influenced by the complexity and duration of the engagement.
Small Business Impact
The data indicates that this contract was not awarded to a small business, as the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The lack of competition raises questions about the oversight applied to this sole-source award. A thorough review of the justification for not competing the contract is necessary to ensure accountability and responsible use of taxpayer funds.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks transparency
- Potential for inflated pricing
- No clear small business participation
- Limited oversight evidence
Tags
administrative-management-and-general-ma, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.5 million to EDENRED BENEFITS LLC. TIP BENEFIT DISBURSEMENTS (NTE)
Who is the contractor on this award?
The obligated recipient is EDENRED BENEFITS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $15.5 million.
What is the period of performance?
Start: 2024-09-27. End: 2026-09-30.
What is the specific justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without this information, it's impossible to assess the validity of the sole-source determination. The price reasonableness would normally be established through cost analysis or comparison to previous contracts, but the absence of competition makes this assessment more challenging and less transparent.
What are the key performance indicators (KPIs) for Edenred Benefits LLC under this contract, and how will their performance be measured to ensure effective service delivery?
Effective service delivery relies on clearly defined KPIs and a robust performance monitoring system. For administrative management services, KPIs might include response times, accuracy rates, client satisfaction scores, and adherence to project timelines. The Department of Defense should have a structured process for tracking these metrics and addressing any performance deficiencies to ensure the contract meets its objectives.
What is the potential long-term cost implication for the government if this type of administrative service continues to be procured through sole-source contracts?
Continuously awarding administrative services through sole-source contracts can lead to escalating costs over time. Without competitive pressure, vendors may increase their prices, and the government might miss out on cost-saving innovations. This could result in a significant long-term financial burden on taxpayers compared to a market-driven, competitive procurement strategy.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0018924RZ153
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 265 WINTER ST STE 3, WALTHAM, MA, 02451
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $87,556,353
Exercised Options: $26,606,375
Current Obligation: $15,453,417
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-27
Current End Date: 2026-09-30
Potential End Date: 2030-03-31 00:00:00
Last Modified: 2026-01-14
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