DoD awards $19.3M contract to Inspiritel Inc. for Telemarketing Contact Centers, raising competition concerns
Contract Overview
Contract Amount: $19,313,962 ($19.3M)
Contractor: Inspiritec Inc
Awarding Agency: Department of Defense
Start Date: 2011-08-15
End Date: 2016-08-24
Contract Duration: 1,836 days
Daily Burn Rate: $10.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTACT CENTER, WELCOME CENTER
Place of Performance
Location: FORT KNOX, HARDIN County, KENTUCKY, 40122, UNITED STATES OF AMERICA
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $19.3 million to INSPIRITEC INC for work described as: CONTACT CENTER, WELCOME CENTER Key points: 1. Contract awarded to Inspiritel Inc. for $19.3 million. 2. Service category is Telemarketing Bureaus and Other Contact Centers. 3. Awarded by the Department of the Army, part of DoD. 4. Contract duration is 1836 days. 5. No small business set-aside noted.
Value Assessment
Rating: questionable
The contract value of $19.3 million for contact center services is substantial. Without specific performance metrics or benchmarks, it's difficult to assess value for money. The lack of competitive bidding further complicates a direct pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The absence of competition for a nearly $20 million contract suggests potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The specific services provided by Inspiritel Inc. are crucial for the Army's operations. Transparency in the justification for limited competition is essential for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited justification for sole-source award
- Potential for inflated pricing
Positive Signals
- Contract awarded to a single vendor
- Clear contract duration
Sector Analysis
The IT and administrative support sector, including contact centers, sees significant government spending. Benchmarks for similar services are often influenced by competition levels and service complexity.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it appear to have involved small business participation. This represents a missed opportunity for small business engagement.
Oversight & Accountability
Oversight is needed to ensure the justification for limited competition is robust and that the services provided meet the Army's needs effectively and at a reasonable price.
Related Government Programs
- Telemarketing Bureaus and Other Contact Centers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Limited transparency in award justification
- No small business participation noted
- Significant contract value without clear performance benchmarks
Tags
telemarketing-bureaus-and-other-contact-, department-of-defense, ky, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.3 million to INSPIRITEC INC. CONTACT CENTER, WELCOME CENTER
Who is the contractor on this award?
The obligated recipient is INSPIRITEC INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.3 million.
What is the period of performance?
Start: 2011-08-15. End: 2016-08-24.
What was the specific justification for limiting this contract to a single source, and were alternative competitive strategies considered?
The justification for limiting competition is crucial for understanding why a contract of this magnitude was not opened to a broader range of vendors. Without this information, it's impossible to assess if the government adequately explored options to foster competition and achieve better pricing. Further investigation into the agency's procurement records is warranted.
How does the pricing of this $19.3 million contract compare to industry benchmarks for similar telemarketing and contact center services, especially considering the lack of competition?
Given the limited competition, it is highly probable that the pricing is not optimized. A thorough analysis would involve comparing the per-unit costs, service level agreements, and overall contract value against publicly available data for similar government and commercial contracts. Without this, the risk of overpayment remains significant.
What are the key performance indicators (KPIs) for this contract, and how is Inspiritel Inc.'s performance being measured to ensure effectiveness and value for the Department of the Army?
Effective oversight requires clearly defined KPIs tied to the Army's mission objectives. Measuring Inspiritel Inc.'s performance against these metrics is essential to ensure the $19.3 million investment delivers tangible results. Regular performance reviews and reporting are critical to accountability and to identify any potential issues early on.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telemarketing Bureaus and Other Contact Centers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W9124D11R0016
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Inspiritec, Inc. (UEI: 112952432)
Address: 340 N 12TH ST STE 108, PHILADELPHIA, PA, 19107
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,313,962
Exercised Options: $19,313,962
Current Obligation: $19,313,962
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-08-15
Current End Date: 2016-08-24
Potential End Date: 2016-08-24 00:00:00
Last Modified: 2015-09-08
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