State Department's $209M Passport Call Center Contract Awarded to Peckham Vocational Industries

Contract Overview

Contract Amount: $208,847,924 ($208.8M)

Contractor: Peckham Vocational Industries, Inc.

Awarding Agency: Department of State

Start Date: 2013-10-01

End Date: 2019-04-30

Contract Duration: 2,037 days

Daily Burn Rate: $102.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CALL CENTER FOR NATIONAL PASSPORT OFFICE IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $208.8 million to PECKHAM VOCATIONAL INDUSTRIES, INC. for work described as: CALL CENTER FOR NATIONAL PASSPORT OFFICE IGF::OT::IGF Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract's duration of over 5 years suggests a significant, long-term need for these services. 3. Performance context is limited as specific metrics for call center efficiency and effectiveness are not detailed. 4. The firm-fixed-price structure aims to control costs, but the absence of competition may inflate the base price. 5. Sector positioning is within administrative support services, a common area for government outsourcing. 6. Risk indicators include the lack of competitive bidding and the long contract term, which could lead to vendor lock-in.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the sole-source award and limited public data on comparable call center services for government agencies. The total award of over $208 million over approximately five years indicates a substantial investment. Without competitive bids, it's difficult to definitively assess if the pricing reflects fair market value or if taxpayers received the best possible deal. Further analysis would require comparing the per-call cost or service level agreements to industry standards for similar government operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not provided in the available data. Sole-source awards can sometimes be necessary for specialized services or when only one vendor can meet specific requirements. However, the absence of competition typically limits price discovery and may result in higher costs for the government compared to a competitively bid contract.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost efficiencies that typically arise from a competitive bidding process. This could translate to a higher overall expenditure for the services provided.

Public Impact

Citizens applying for or inquiring about U.S. passports benefit from accessible customer service. The contract supports the operational efficiency of the National Passport Office by outsourcing call center functions. Services are delivered nationwide, providing a point of contact for passport-related inquiries across the United States. The contract supports employment through Peckham Vocational Industries, which focuses on employing individuals with disabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Long contract duration could reduce flexibility and increase risk of vendor lock-in.
Limited public data makes independent performance and value assessment difficult.

Positive Signals

Contract supports a social enterprise (Peckham Vocational Industries) focused on employing individuals with disabilities.
Firm-fixed-price contract provides cost certainty for the government.
Established contract provides continuity of essential passport information services.

Sector Analysis

This contract falls within the administrative support and business process outsourcing sector, specifically focusing on call center operations. The government frequently outsources such services to leverage specialized expertise and potentially reduce overhead. The market for call center services is large and competitive, but government contracts often have unique requirements. Benchmarking against other government call center contracts for similar services would provide a clearer picture of value, though direct comparisons are often difficult due to varying service level agreements and scopes.

Small Business Impact

The data indicates that Peckham Vocational Industries, Inc. is the prime contractor. While the contract is not explicitly a small business set-aside, Peckham Vocational Industries is a non-profit organization that prioritizes employing individuals with disabilities, aligning with broader socio-economic goals. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. The contract's performance would be monitored against the terms and conditions outlined in the definitive contract. Transparency is limited by the sole-source nature and the lack of publicly available performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State Passport Services
Federal Call Center Contracts
Administrative Support Services Contracts
Sole-Source Contract Awards

Risk Flags

Sole-source award
Lack of performance data
Long contract duration
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $208.8 million to PECKHAM VOCATIONAL INDUSTRIES, INC.. CALL CENTER FOR NATIONAL PASSPORT OFFICE IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is PECKHAM VOCATIONAL INDUSTRIES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $208.8 million.

What is the period of performance?

Start: 2013-10-01. End: 2019-04-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award of this contract to Peckham Vocational Industries, Inc. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the agency's needs, or in cases of urgent and compelling need. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reasons. This lack of transparency makes it difficult to assess whether the sole-source determination was appropriate and if competitive alternatives were adequately explored, potentially impacting the value received by the government.

How does the cost per call or per service interaction for this contract compare to industry benchmarks or similar government contracts?

Direct comparison of the cost per call or service interaction is not feasible with the provided data. The total contract value of approximately $208.8 million over a period of roughly 5 years (October 2013 to April 2019) offers a broad financial scope, but lacks the granular detail on call volume, average handling time, or specific service level agreements (SLAs) required for a meaningful cost-per-unit analysis. Industry benchmarks for call center services vary widely based on complexity, technology used, and service scope. Without specific performance data and a breakdown of costs associated with different service components, benchmarking against other government contracts or private sector rates remains speculative.

What are the key performance indicators (KPIs) used to measure the success and efficiency of Peckham Vocational Industries in managing the passport call center?

The provided data does not specify the key performance indicators (KPIs) used to measure the success and efficiency of Peckham Vocational Industries in managing the National Passport Office's call center. Effective government contracts typically include detailed SLAs and KPIs related to call answer rates, average wait times, call resolution rates, customer satisfaction scores, and agent training effectiveness. The absence of this information in the data summary makes it challenging to independently assess the contractor's performance and the overall effectiveness of the service delivery. Understanding these KPIs would be crucial for evaluating the value for money and operational success of this significant contract.

What is Peckham Vocational Industries' track record with government contracts, particularly in call center operations?

Peckham Vocational Industries, Inc. has a history of working with government agencies, often focusing on providing employment opportunities for individuals with disabilities. While the data confirms this contract with the Department of State for call center services, it does not provide a comprehensive overview of their broader track record across multiple contracts or agencies. Information regarding their performance on previous or concurrent government contracts, especially in similar call center roles, would be necessary to fully assess their experience and reliability in fulfilling such a large-scale requirement. Their mission-driven approach suggests a focus on social impact alongside service delivery.

How has spending on passport call center services evolved over time, and does this contract represent a significant shift?

The provided data focuses on a single definitive contract awarded from 2013 to 2019, totaling approximately $208.8 million. It does not offer historical spending trends for passport call center services prior to or following this period. Therefore, it's difficult to determine if this contract represents a significant shift in spending. To analyze spending evolution, one would need access to historical contract data for passport call center operations, including previous contract values, durations, and award types (competitive vs. sole-source). This would allow for an assessment of whether spending has increased, decreased, or remained consistent, and whether the reliance on sole-source awards has changed.

What are the potential risks associated with a sole-source award of this magnitude and duration for essential government services?

A sole-source award of this magnitude ($208.8 million) and duration (over 5 years) for essential services like passport call center operations carries several potential risks. Firstly, the lack of competition can lead to inflated pricing, as the contractor may not face the same pressure to offer the most cost-effective solution. Secondly, it can reduce flexibility; the government may be locked into a contract with a specific vendor, making it difficult to adapt to changing needs or adopt new technologies if the incumbent vendor is unwilling or unable to do so. Thirdly, there's a risk of complacency from the contractor, potentially impacting service quality over time if performance monitoring is not rigorous. Finally, the absence of competitive benchmarking makes it harder to ensure the government is receiving optimal value for taxpayer money.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3510 CAPITAL CITY BLVD, LANSING, MI, 48906

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $208,847,924

Exercised Options: $208,847,924

Current Obligation: $208,847,924

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline