DoD's Global Distance Support Call Center contract awarded to American Systems Corp. for over $21M

Contract Overview

Contract Amount: $21,181,829 ($21.2M)

Contractor: American Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2011-09-26

End Date: 2016-09-25

Contract Duration: 1,826 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE GLOBAL DISTANCE SUPPORT COMMUNITY (GDSC) CALL CENTER IS A KEY COMPONENT OF THE DS PROCESS. IT IS THE "SINGLE FACE TO THE FLEET" AND AN ESSENTIAL PART OF DISTANCE SUPPORT. DS PROVIDES A COLLABORATIVE ENVIRONMENT FOR THE SHORE SUPPORT / INFRASTRUCTURE TO TRIAGE, ASSIGN, TRACK, FORWARD (IF NECESSARY), SUPPORT / SERVICE REQUESTS ACROSS THE ENTIRE SHORE INFRASTRUCTURE COMPRISED OF MILITARY, RESERVE, GOVERNMENT CIVILIAN AND CONTRACTOR COMMUNITIES.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23501

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to AMERICAN SYSTEMS CORPORATION for work described as: THE GLOBAL DISTANCE SUPPORT COMMUNITY (GDSC) CALL CENTER IS A KEY COMPONENT OF THE DS PROCESS. IT IS THE "SINGLE FACE TO THE FLEET" AND AN ESSENTIAL PART OF DISTANCE SUPPORT. DS PROVIDES A COLLABORATIVE ENVIRONMENT FOR THE SHORE SUPPORT / INFRASTRUCTURE TO TRIAGE, ASSIGN, TRACK… Key points: 1. The contract supports a critical "single face to the fleet" for distance support services. 2. It enables a collaborative environment for triaging and servicing requests across shore infrastructure. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is approximately five years, indicating a long-term need. 5. The primary service falls under Engineering Services, aligning with technical support functions.

Value Assessment

Rating: fair

The total award amount of $21,181,828.55 for a five-year period for a critical support function appears reasonable. However, without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging. Benchmarking against similar call center or distance support contracts within the DoD or other federal agencies would provide a clearer picture of cost-effectiveness. The contract type (Cost Plus Fixed Fee) can sometimes lead to higher costs if not managed tightly, but it also allows for flexibility in evolving support needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the designation implies that multiple companies had the opportunity to compete for this significant contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive marketplace that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

Naval fleet personnel and shore-based support staff benefit from a centralized and efficient support system. Essential distance support services are delivered, ensuring operational readiness and problem resolution. The contract impacts the workforce within the Department of the Navy and its supporting infrastructure. Geographic impact is broad, covering all users of the distance support process across the fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain controlled and the fixed fee is justified.
The 'single face to the fleet' nature of the service means any disruption could have significant operational impacts.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
The contract addresses a critical operational need for distance support, indicating strategic importance.
The five-year duration suggests a stable and reliable service provision for an extended period.

Sector Analysis

The IT and Engineering Services sector is characterized by a high demand for specialized technical support and system integration. This contract for the Global Distance Support Community (GDSC) Call Center fits within this sector by providing essential technical and logistical support to the Department of the Navy's fleet. The market for such services is competitive, with numerous firms offering capabilities in IT support, help desk operations, and complex system management. Comparable spending benchmarks would involve looking at other large-scale IT support contracts awarded by defense agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. As it was awarded under full and open competition, it's possible that small businesses could have participated as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Navy Fleet Support Services
Department of Defense IT Services
Distance Support Programs
Call Center Operations Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage potential cost escalations.
Dependence on a 'single face to the fleet' creates a critical point of failure if service is disrupted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to AMERICAN SYSTEMS CORPORATION. THE GLOBAL DISTANCE SUPPORT COMMUNITY (GDSC) CALL CENTER IS A KEY COMPONENT OF THE DS PROCESS. IT IS THE "SINGLE FACE TO THE FLEET" AND AN ESSENTIAL PART OF DISTANCE SUPPORT. DS PROVIDES A COLLABORATIVE ENVIRONMENT FOR THE SHORE SUPPORT / INFRASTRUCTURE TO TRIAGE, ASSIGN, TRACK, FORWARD (IF NECESSARY), SUPPORT / SERVICE REQUESTS ACROSS THE ENTIRE SHORE INFRASTRUCTURE COMPRISED OF MILITARY, RESERVE, GOVERNMENT CIVILIAN AND CONTRACTOR COMMUNITIES.

Who is the contractor on this award?

The obligated recipient is AMERICAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.2 million.

What is the period of performance?

Start: 2011-09-26. End: 2016-09-25.

What is the track record of American Systems Corporation in delivering similar distance support or call center services to the federal government?

American Systems Corporation has a history of providing various support services to the federal government, including IT, engineering, and program management. While specific details on their performance for this particular GDSC contract require deeper investigation into past performance reviews and award histories, their presence as a prime contractor on a significant DoD contract suggests they possess the necessary capabilities. Examining their portfolio of past contracts, particularly those involving large-scale support operations or call centers, would offer further insight into their experience and reliability in delivering comparable services. Publicly available contract databases and agency performance reports can be valuable resources for this assessment.

How does the cost of this contract compare to similar distance support or call center contracts within the Department of Defense?

A direct cost comparison for this $21.18 million, five-year contract is challenging without access to detailed cost breakdowns and specific performance metrics. However, the contract type, Cost Plus Fixed Fee (CPFF), can sometimes be associated with higher overall costs compared to fixed-price contracts if not managed stringently, due to the reimbursement of allowable costs. To benchmark effectively, one would need to identify comparable contracts for similar services (e.g., large-scale IT help desks, fleet support operations) awarded by the DoD or other military branches around the same period. Factors like the scope of services, complexity, geographic reach, and required service levels would need to be standardized for a meaningful comparison. The 'fair' rating suggests it's not exceptionally high or low, but further benchmarking is needed for a definitive conclusion.

What are the key performance indicators (KPIs) used to measure the success of the Global Distance Support Community (GDSC) Call Center?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for the GDSC Call Center. However, for a critical function described as the 'single face to the fleet' and essential for distance support, typical KPIs would likely include metrics such as response time, resolution time, customer satisfaction ratings, first-call resolution rates, system uptime, and adherence to service level agreements (SLAs). The effectiveness of the call center would be measured by its ability to efficiently triage, assign, track, and service requests across the shore infrastructure. Performance reviews and contract deliverables would detail these KPIs and the contractor's performance against them.

What is the potential risk associated with the 'Cost Plus Fixed Fee' contract type for this service?

The 'Cost Plus Fixed Fee' (CPFF) contract type carries inherent risks for the government, primarily related to cost control. While the fixed fee provides some predictability, the government reimburses the contractor for all allowable costs incurred. This can lead to cost overruns if the contractor's expenses are higher than anticipated, potentially increasing the total contract value beyond initial estimates. Effective oversight, rigorous auditing of costs, and clear definition of allowable expenses are crucial to mitigate this risk. The contractor also has an incentive to manage costs to ensure their fee is earned, but the primary risk lies in the government bearing the brunt of unforeseen cost increases.

How does the GDSC Call Center contribute to the overall operational readiness and efficiency of the Department of the Navy's fleet?

The GDSC Call Center is described as a 'key component' and the 'single face to the fleet' for distance support, indicating a vital role in maintaining operational readiness. By providing a centralized point for triaging, assigning, tracking, and servicing support requests across the entire shore infrastructure, it ensures that issues impacting fleet operations are addressed promptly and efficiently. This streamlined process reduces downtime, facilitates quicker problem resolution, and ensures that military, reserve, civilian, and contractor personnel receive the necessary support to maintain and operate naval assets effectively. Its contribution lies in enhancing the responsiveness and effectiveness of the support ecosystem underpinning the fleet's mission.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002410R3497

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 13990 PARKEAST CIRCLE, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,242,399

Exercised Options: $26,242,399

Current Obligation: $21,181,829

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $5,104,037

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4010

IDV Type: IDC

Timeline