USDA awards $3.6M BPA Call to Pitney Bowes for postage and supplies, supporting nationwide shipping

Contract Overview

Contract Amount: $3,599,051 ($3.6M)

Contractor: Pitney Bowes Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-06

End Date: 2027-04-05

Contract Duration: 364 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS BPA CALL LOADS POSTAGE ONTO PITNEY BOWE MACHINES AND PROVIDES SUPPLIES AT USDA NHQ, FIELD AND FPAC OFFICES ACROSS USDA SUPPORTING SHIPMENT NEEDS OF OUR CUSTOMERS. MORATORIUM APPROVAL - Y-FPAC-013

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.6 million to PITNEY BOWES INC. for work described as: THIS BPA CALL LOADS POSTAGE ONTO PITNEY BOWE MACHINES AND PROVIDES SUPPLIES AT USDA NHQ, FIELD AND FPAC OFFICES ACROSS USDA SUPPORTING SHIPMENT NEEDS OF OUR CUSTOMERS. MORATORIUM APPROVAL - Y-FPAC-013 Key points: 1. The contract focuses on essential operational support for USDA's shipping needs. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration is one year, allowing for regular reassessment of needs. 4. The service category is 'All Other Business Support Services,' a broad classification. 5. The award is a BPA Call, indicating it's a task order under a larger agreement. 6. The primary contractor, Pitney Bowes Inc., is a known entity in this service area.

Value Assessment

Rating: fair

The total award amount is $3,599,050.52 over a 364-day period. Without specific per-unit data for postage or supplies, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure provides cost certainty. Benchmarking against similar postage and mailing supply contracts across federal agencies would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this approach generally fosters competitive pricing and allows the government to select the best value. The open competition suggests that the government sought a broad range of solutions and pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider pool of vendors to compete, potentially leading to better deals.

Public Impact

USDA offices nationwide, including NHQ, field, and FPAC locations, will benefit from reliable postage and supply services. The contract ensures the continuity of essential shipping operations for the department. Customers of USDA services will experience uninterrupted shipment processing. The contract supports the administrative functions necessary for the department's mission delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics in the provided data makes it difficult to assess contractor performance beyond delivery.
The broad 'All Other Business Support Services' category might obscure specific service quality expectations.
Dependence on a single vendor for a critical operational function like postage could pose a risk if not managed closely.

Positive Signals

The contract is awarded to a well-established company, Pitney Bowes Inc., suggesting a degree of reliability.
The firm-fixed-price contract type provides budget certainty for the agency.
The use of a BPA Call indicates a pre-vetted framework, potentially streamlining the acquisition process.

Sector Analysis

This contract falls within the Business Support Services sector, specifically related to mailing and shipping operations. The market for these services is mature, with established providers like Pitney Bowes. Federal spending in this area supports the day-to-day administrative and logistical functions of various agencies. Comparable spending benchmarks would typically involve analyzing other agencies' contracts for similar postage and mailing supply needs.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses, and opportunities for small business subcontractors are not explicitly detailed in this award notice. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

As a BPA Call, this contract likely falls under the oversight of the parent BPA agreement. Oversight mechanisms would typically include regular performance reviews, invoice auditing, and adherence to the terms and conditions of the BPA. Transparency is generally facilitated through contract award databases, though specific performance reporting details are not provided here. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to this contract.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedules for office supplies and equipment
Other agency-specific contracts for mailing and shipping services
Procurements for office equipment and maintenance

Risk Flags

Potential for vendor lock-in
Risk of supply chain disruptions affecting vendor performance
Need for ongoing price benchmarking to ensure value

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.6 million to PITNEY BOWES INC.. THIS BPA CALL LOADS POSTAGE ONTO PITNEY BOWE MACHINES AND PROVIDES SUPPLIES AT USDA NHQ, FIELD AND FPAC OFFICES ACROSS USDA SUPPORTING SHIPMENT NEEDS OF OUR CUSTOMERS. MORATORIUM APPROVAL - Y-FPAC-013

Who is the contractor on this award?

The obligated recipient is PITNEY BOWES INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Under Secretary for Farm and Foreign Agricultural Services).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-05.

What is the historical spending pattern for Pitney Bowes Inc. with the USDA for similar services?

Analyzing historical spending data for Pitney Bowes Inc. with the USDA is crucial for understanding the agency's long-term reliance on this vendor and the evolution of costs. Without access to specific historical contract databases or detailed spending reports, it's difficult to provide precise figures. However, Pitney Bowes is a long-standing provider of mailing equipment and services, suggesting a potential for consistent, albeit varying, contract values over time. A review of past BPA calls or contracts under similar parent agreements could reveal trends in volume, pricing, and service scope. This historical context would help determine if the current $3.6 million award represents an increase, decrease, or stable level of spending for these essential services, and whether previous performance justifies continued reliance or suggests a need for broader market exploration.

How does the per-unit cost of postage and supplies under this BPA Call compare to market rates or other federal contracts?

A key aspect of assessing value for money is benchmarking the per-unit costs of postage and supplies against external market rates and similar federal contracts. The provided data does not include specific unit pricing for items like postage stamps, metered postage, or specific supply items (e.g., envelopes, labels). To conduct a thorough analysis, one would need to obtain the detailed pricing structure from the BPA call document. This would involve comparing the negotiated rates for each item against commercial price lists, GSA schedules, or other agency contracts for comparable goods and services. If the per-unit costs are significantly higher than market rates or other government contracts, it could indicate a potential issue with price negotiation or a lack of sufficient competition, even under a full and open process. Conversely, competitive pricing would validate the value proposition of this award.

What specific types of 'supplies' are included in this contract, and what is their estimated usage?

The contract mentions 'supplies' alongside postage, but the specific nature and quantity of these supplies are not detailed in the provided summary. Understanding the scope of 'supplies' is important for a comprehensive cost and operational analysis. These could range from basic items like envelopes, labels, and toner cartridges for postage meters to more specialized mailing accessories. Without a detailed list or estimated usage quantities, it's challenging to accurately forecast the total expenditure or assess the value derived from the supply component of the contract. Agencies typically define these supplies in the Statement of Work or associated CLINs (Contract Line Item Numbers) within the BPA call. Clarifying this scope would allow for a more precise understanding of the contract's overall utility and cost distribution between postage and physical goods.

What is the track record of Pitney Bowes Inc. in fulfilling similar federal contracts, particularly regarding delivery timeliness and service quality?

Pitney Bowes Inc. has a long-standing presence in the mailing solutions industry, including significant engagement with government contracts. Assessing their track record involves reviewing past performance evaluations, contract completion data, and any documented instances of outstanding service or deficiencies. While the current award doesn't include specific performance metrics, agencies typically maintain Contractor Performance Assessment Reporting System (CPARS) records for significant contracts. A review of CPARS data for Pitney Bowes' previous federal contracts, especially those involving similar services or agencies, would provide insights into their reliability, responsiveness, and adherence to delivery schedules. Positive past performance generally indicates a lower risk for the current contract, while negative feedback might warrant closer monitoring or necessitate specific performance clauses within the BPA call.

How does the $3.6 million award compare to the total federal spending on business support services or mailing/shipping categories?

The $3.6 million award for postage and supplies represents a specific expenditure within the broader federal spending on business support services. To contextualize this amount, it's useful to compare it against overall government spending in related categories. The federal government spends billions annually on various business support services, including logistics, administrative support, and communication technologies. Within this, spending specifically on mailing, postage, and shipping supplies constitutes a smaller but essential portion. While precise aggregate figures for this niche category are not readily available without deep dives into budget data, this $3.6 million award appears to be a moderate-sized contract for a single agency's operational needs. It's unlikely to represent a significant portion of the total federal IT or general services budget but is substantial enough to ensure critical operational continuity for the USDA.

What are the potential risks associated with relying on a single vendor for postage and mailing supplies, even under full and open competition?

Even with full and open competition, relying on a single vendor like Pitney Bowes Inc. for postage and mailing supplies carries inherent risks. One primary risk is vendor lock-in, where switching vendors in the future could be costly and disruptive due to specialized equipment or integrated systems. Another risk is potential price escalation over time, as the vendor may have less incentive to offer deep discounts once established. Operational disruptions, such as supply chain issues affecting Pitney Bowes or equipment malfunctions, could directly impact USDA's ability to ship mail and packages, potentially delaying critical communications or operations. Furthermore, if the initial competition was not robust enough or if market conditions change, the government might not be achieving optimal value. Continuous monitoring of performance and market prices is essential to mitigate these risks.

Industry Classification

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

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3001 SUMMER ST, STAMFORD, CT, 06905

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,599,051

Exercised Options: $3,599,051

Current Obligation: $3,599,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12FPC223A0001

IDV Type: BPA

Timeline