DoD's Virtual Recruiting Center Contract: $24.8M Spent with National Sourcing, Inc
Contract Overview
Contract Amount: $24,768,951 ($24.8M)
Contractor: National Sourcing, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-03-23
End Date: 2017-07-06
Contract Duration: 1,931 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 16
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPERATION OF VIRTUAL RECRUITING CENTER
Place of Performance
Location: FORT KNOX, HARDIN County, KENTUCKY, 40121
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to NATIONAL SOURCING, INC. for work described as: OPERATION OF VIRTUAL RECRUITING CENTER Key points: 1. The contract for operating a virtual recruiting center saw significant federal spending. 2. National Sourcing, Inc. was the sole awardee under a competitive process. 3. The contract duration was substantial, spanning over five years. 4. The sector is primarily administrative and support services, not core defense operations.
Value Assessment
Rating: fair
The total award amount of $24.8 million over five years suggests a moderate annual spend. Benchmarking against similar contracts for contact center services is difficult without more granular data on service levels and scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific limitations. This method can sometimes lead to less aggressive pricing compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds were used for a service that supports recruitment efforts, aiming for efficiency. The final price reflects the negotiated outcome of a limited competitive process.
Public Impact
Supports military recruitment efforts through virtual channels. Utilizes telemarketing and contact center technology for outreach. Contract duration suggests a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have impacted price optimization.
- Lack of detailed performance metrics makes value assessment challenging.
Positive Signals
- Contract supported a critical function (recruitment).
- Awarded through a competitive process, albeit limited.
Sector Analysis
This contract falls within administrative and support services, specifically contact centers. Spending in this area is common across government agencies for various support functions, with benchmarks varying widely based on service complexity and volume.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Further analysis would be needed to determine if small business participation was sought or subcontracted.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract officers and program managers within the Army to ensure service delivery and adherence to terms.
Related Government Programs
- Telemarketing Bureaus and Other Contact Centers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for higher costs due to limited competition.
- Lack of transparency on specific service metrics.
- Long contract duration may not reflect evolving needs.
- No indication of small business subcontracting.
Tags
telemarketing-bureaus-and-other-contact-, department-of-defense, ky, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to NATIONAL SOURCING, INC.. OPERATION OF VIRTUAL RECRUITING CENTER
Who is the contractor on this award?
The obligated recipient is NATIONAL SOURCING, 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 $24.8 million.
What is the period of performance?
Start: 2012-03-23. End: 2017-07-06.
What was the primary driver for selecting a limited competition approach for this virtual recruiting center contract?
The specific nature of the service, 'Telemarketing Bureaus and Other Contact Centers,' combined with the exclusion of sources, suggests potential requirements for specialized capabilities, existing infrastructure, or prior performance that narrowed the field of eligible bidders. This approach aims to ensure specific needs are met but can limit price discovery.
How did the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' impact the final price compared to unrestricted competition?
While competitive, excluding certain sources likely reduced the number of bidders. This can lead to a higher price than if all potential vendors could compete, as the remaining bidders may face less pressure to offer the lowest possible price. The final price reflects the negotiated terms among the qualified, limited pool of offerors.
What is the estimated taxpayer impact of this contract in terms of value for money?
Assessing the value for money is challenging without performance metrics. The $24.8 million expenditure supported recruitment, a vital government function. However, the limited competition and lack of detailed performance data make it difficult to definitively state if this was the most cost-effective solution available to taxpayers.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9124D11R0040
Offers Received: 16
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8402 LAUREL FAIR CIR STE 207, TAMPA, FL, 33610
Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $24,829,902
Exercised Options: $24,829,902
Current Obligation: $24,768,951
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $8,217,039
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-03-23
Current End Date: 2017-07-06
Potential End Date: 2017-07-06 00:00:00
Last Modified: 2021-02-11
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