Peace Corps awards $7.37M contract for mailroom and warehousing support to Didlake Inc

Contract Overview

Contract Amount: $7,374,696 ($7.4M)

Contractor: Didlake Inc

Awarding Agency: Peace Corps

Start Date: 2021-04-30

End Date: 2026-10-31

Contract Duration: 2,010 days

Daily Burn Rate: $3.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAILROOM, WAREHOUSING SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20526

State: District of Columbia Government Spending

Plain-Language Summary

Peace Corps obligated $7.4 million to DIDLAKE INC for work described as: MAILROOM, WAREHOUSING SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in essential facilities support services. 2. The sole-source nature of this award warrants scrutiny regarding potential cost efficiencies. 3. Long contract duration may indicate a need for stable, long-term service provision. 4. The specific NAICS code (561210) points to a focus on facilities maintenance and operations. 5. Lack of competition raises questions about price discovery and potential overpayment. 6. The contractor's performance history will be crucial in assessing value for money.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar mailroom and warehousing support services. The firm fixed-price structure provides some cost certainty, but the absence of competition limits the ability to assess if the pricing is truly competitive. Further analysis would require understanding the specific scope of services and comparing the per-unit costs to industry standards for facilities support.

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. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially leading to a higher price than if it had been competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the absence of competitive bidding, which typically drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are the Peace Corps staff and operations, who will receive reliable mailroom and warehousing support. Services include the management and operation of mailroom functions and warehousing facilities. The contract's geographic impact is centered in the District of Columbia, where the Peace Corps is headquartered. This contract supports essential administrative functions, indirectly impacting the agency's ability to carry out its global mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Long contract duration (over 5 years) may not adapt well to changing needs or market conditions.
Lack of competition could lead to complacency in service delivery quality.

Positive Signals

Firm fixed-price contract provides budget predictability.
Contract duration suggests a stable, ongoing need for these services.
The contractor, Didlake Inc., may have specialized capabilities for these support functions.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, encompasses a broad range of services related to the operation and maintenance of buildings and grounds. This sector includes services like janitorial, security, and mailroom operations. The market for these services is generally competitive, with many providers ranging from small local businesses to large national corporations. This specific contract appears to be a significant award within this niche, focusing on essential operational support for a federal agency.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature further limits opportunities for small businesses to participate in this specific award. Future contracts of this type could potentially benefit from set-aside provisions to encourage small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Peace Corps' contracting officer and program managers. As a sole-source award, there may be heightened scrutiny from agency oversight bodies or the Government Accountability Office (GAO) if concerns arise regarding the justification for the award or performance. Transparency is limited due to the lack of public competition, making it harder for external stakeholders to assess value.

Related Government Programs

Peace Corps Administrative Support Contracts
Federal Mailroom Operations
Government Warehousing Services
Facilities Management Contracts

Risk Flags

Sole-source justification
Potential for cost overruns due to lack of competition
Contract duration and flexibility
Performance monitoring for sole-source provider

Frequently Asked Questions

What is this federal contract paying for?

Peace Corps awarded $7.4 million to DIDLAKE INC. MAILROOM, WAREHOUSING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DIDLAKE INC.

Which agency awarded this contract?

Awarding agency: Peace Corps (Peace Corps).

What is the total obligated amount?

The obligated amount is $7.4 million.

What is the period of performance?

Start: 2021-04-30. End: 2026-10-31.

What is Didlake Inc.'s track record with federal contracts, particularly for facilities support services?

Didlake Inc. has a history of federal contracting, often focusing on services that align with its mission to employ individuals with disabilities. While specific details on their performance for mailroom and warehousing support services within the provided data are limited, their broader federal contract history suggests experience in providing essential services. A deeper dive into their past performance reviews, contract modifications, and any past disputes or awards would be necessary to fully assess their track record for this specific type of service. Understanding their capacity and expertise in managing mailroom logistics and secure warehousing is crucial for evaluating the success of this sole-source award.

How does the $7.37 million contract value compare to similar mailroom and warehousing support contracts awarded by federal agencies?

Direct comparison of the $7.37 million contract value for mailroom and warehousing support is difficult without knowing the exact scope of services, duration, and geographic location of comparable contracts. However, for a definitive contract spanning over five years, this amount suggests a substantial operational requirement. Federal agencies often outsource these functions, and costs can vary widely based on the volume of mail, size of warehousing space, security requirements, and labor costs in the specific region. Given this is a sole-source award, it's harder to ascertain if this represents a competitive market rate. Benchmarking against other sole-source or competitively awarded contracts for similar services, adjusted for scale and location, would be necessary for a thorough value assessment.

What are the primary risks associated with a sole-source award for essential support services like mailroom and warehousing?

The primary risks associated with a sole-source award for essential support services include a lack of price competition, which can lead to inflated costs for taxpayers. There's also a reduced incentive for the contractor to innovate or improve service quality beyond the contract minimums, as there is no threat of losing the contract to a competitor. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process. If the chosen contractor underperforms, the agency has limited options for recourse without potentially disrupting critical operations, as re-competing the contract would be a lengthy process.

What is the expected effectiveness of Didlake Inc. in fulfilling the Peace Corps' mailroom and warehousing needs?

The expected effectiveness of Didlake Inc. hinges on their demonstrated capabilities and the specific terms of the contract. As a sole-source award, the Peace Corps has presumably determined that Didlake Inc. is the most suitable provider, possibly due to specialized skills, existing infrastructure, or a mission alignment. Effectiveness will be measured by their ability to efficiently process mail, manage inventory, maintain secure storage, and meet any performance metrics outlined in the contract. Regular performance reviews and clear communication channels between the Peace Corps and Didlake Inc. will be critical to ensuring the services meet the agency's operational requirements throughout the contract period.

How has Peace Corps spending on facilities support services evolved over the past five years?

Analyzing the Peace Corps' spending on facilities support services over the past five years would require access to historical contract data beyond this single award. This contract, valued at approximately $7.37 million over its duration, represents a significant portion of such spending. To understand the evolution, one would need to examine previous contracts for mailroom, warehousing, and general facilities maintenance, noting any trends in contract values, types of services procured, and whether these were competed or sole-sourced. This would reveal if spending has increased, decreased, or remained stable, and if there's a shift towards or away from competitive procurements in this category.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1145PC21Q0031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8641 BREEDEN AVE STE 101, MANASSAS, VA, 20110

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: $7,762,502

Exercised Options: $7,374,696

Current Obligation: $7,374,696

Actual Outlays: $7,859,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline