Treasury's $14.5M operational support contract with Westaff Inc. awarded competitively

Contract Overview

Contract Amount: $14,510,349 ($14.5M)

Contractor: Westaff, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2006-07-29

End Date: 2008-01-28

Contract Duration: 548 days

Daily Burn Rate: $26.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 25

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OPERATIONAL SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $14.5 million to WESTAFF, INC. for work described as: OPERATIONAL SUPPORT SERVICES Key points: 1. Contract value represents a moderate investment in essential business support services. 2. Competitive award suggests potential for price discovery and value for taxpayer funds. 3. Contract duration of 548 days (approx. 1.5 years) indicates a short-to-medium term need. 4. Focus on 'All Other Business Support Services' (NAICS 561499) covers a broad range of administrative functions. 5. The contract was awarded as a delivery order under a larger contract vehicle. 6. Performance is concentrated in Washington D.C., indicating a localized operational requirement.

Value Assessment

Rating: good

The contract value of $14.5 million over approximately 1.5 years for operational support services appears reasonable given the broad scope of 'All Other Business Support Services'. Without specific details on the services rendered, direct comparison to similar contracts is challenging. However, the competitive nature of the award suggests that pricing was subject to market forces, which generally supports a good value assessment. The Time and Materials pricing structure, while flexible, requires diligent oversight to ensure costs remain controlled and aligned with the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The 'full-and-open' competition level is a positive sign for price discovery, as it allows the government to solicit proposals from a wide range of qualified contractors. The fact that it was a delivery order suggests it was placed against an existing contract vehicle, which itself was likely competed. The number of bidders (25) is substantial and further supports the notion of robust competition.

Taxpayer Impact: A fully and openly competed contract generally leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the most cost-effective solutions.

Public Impact

Federal agencies, specifically the Bureau of the Fiscal Service within the Department of the Treasury, benefit from the operational support services provided. Services likely include administrative, clerical, and other business support functions essential for agency operations. The geographic impact is concentrated in Washington D.C., where the services are performed. Workforce implications may involve temporary or contract staff supporting government functions, potentially supplementing federal employee capacity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials pricing if not closely monitored.
Scope creep could increase costs beyond initial estimates without proper change control.
Dependence on contractor performance for critical operational support functions.

Positive Signals

Competitive award process likely secured favorable pricing.
Broad competition (25 bidders) indicates a healthy market for these services.
Clear contract end date provides a defined period for service delivery.

Sector Analysis

Operational support services fall under the broader Business Support Services sector, specifically NAICS code 561499. This sector encompasses a wide array of non-core business functions that government agencies, like the Treasury, often outsource to maintain efficiency and focus on their primary missions. The market for these services is generally large and competitive, with numerous providers ranging from small specialized firms to large diversified companies. Benchmarking spending in this category requires detailed service definitions, but government spending on administrative and operational support is a consistent and significant portion of overall federal expenditures.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the contract was competed broadly with 25 bidders, the specific impact on the small business ecosystem is not detailed. It's possible that small businesses participated in the competition or could have subcontracted with the prime contractor, Westaff, Inc. Further analysis would be needed to determine if subcontracting opportunities were mandated or realized.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Bureau of the Fiscal Service. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Administrative Support Services
Professional and Management Support Services
Federal IT Support Services
Logistics and Supply Chain Management
Human Resources Support Services

Risk Flags

Time and Materials pricing structure requires diligent oversight.
Broad 'All Other Business Support Services' category may lack specificity.
Contract performance data not readily available for effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $14.5 million to WESTAFF, INC.. OPERATIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is WESTAFF, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2006-07-29. End: 2008-01-28.

What specific types of operational support services were delivered under this contract?

The contract falls under NAICS code 561499, 'All Other Business Support Services.' This broad category can encompass a wide range of activities, including but not limited to administrative support, clerical services, call center operations, document management, facilities support, and other general business operational assistance. Without more granular details from the contract award or performance reports, the precise nature of the services rendered remains unspecified. However, given the agency (Bureau of the Fiscal Service), it's plausible these services supported financial operations, administrative functions, or back-office processing critical to the Treasury's mission.

How does the $14.5 million contract value compare to similar operational support contracts awarded by the Treasury or other agencies?

Comparing the $14.5 million value requires context regarding the contract's duration (548 days, approx. 1.5 years) and the specific services provided. On an annualized basis, this contract represents approximately $9.67 million per year. This figure is moderate for large federal agencies requiring extensive operational support. For instance, larger agencies might award multi-year contracts in the tens or hundreds of millions for similar broad support categories. The competitive nature (25 bidders) suggests market rates were considered. However, a precise benchmark would necessitate comparing contracts with identical or highly similar NAICS codes, service scopes, and geographic locations, which is often difficult with publicly available data alone.

What are the primary risks associated with this Time and Materials (T&M) contract, and how were they mitigated?

Time and Materials contracts carry inherent risks of cost escalation due to potential inefficiencies or scope creep, as the government pays for both labor hours and materials used. For this $14.5 million contract, the primary risk is that the contractor might not perform work as efficiently as possible, driving up costs. Mitigation strategies typically involve robust government oversight by the Contracting Officer's Representative (COR), detailed monitoring of labor hours and material costs, clear task definitions, and strict change control processes. The competitive award itself also acts as a mitigating factor, as contractors are incentivized to propose competitive rates. However, ongoing vigilance during performance is crucial.

What was the historical spending pattern for operational support services by the Bureau of the Fiscal Service prior to this contract?

Analyzing historical spending patterns for the Bureau of the Fiscal Service (BFS) in operational support services prior to this specific $14.5 million contract (awarded July 2006) would require accessing historical contract data over several preceding years. Publicly available data often focuses on current or recently awarded contracts. To determine historical trends, one would need to query databases like the Federal Procurement Data System (FPDS) for BFS contracts under relevant NAICS codes (e.g., 561499) for the years leading up to 2006. This would reveal if BFS has consistently relied on external contracts for these services, the typical contract values, and the types of contractors utilized, providing context for the scale and necessity of this particular award.

How effective was Westaff, Inc. in fulfilling the requirements of this contract, based on available performance data?

Assessing the effectiveness of Westaff, Inc. in fulfilling this specific contract requires access to performance evaluations, CPARS (Contractor Performance Assessment Reporting System) reports, or any documented quality assurance reviews. Publicly available data for this contract (awarded in 2006) does not typically include detailed performance metrics or ratings. Without such specific feedback, it's impossible to definitively state how effective Westaff was. However, the fact that it was a delivery order suggests it was placed against a pre-existing contract vehicle, and the government's decision to award this order implies a level of confidence in the contractor's ability to perform based on prior performance or the terms of the base contract.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: Q009016-LOS

Offers Received: 25

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Koosharem, LLC (UEI: 877399998)

Address: 301 LENNON LANE, WALNUT CREEK, CA, 10

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,510,349

Exercised Options: $14,510,349

Current Obligation: $14,510,349

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: TPD04C0021

IDV Type: IDC

Timeline