Commerce Department's $2.2M contract for mail systems awarded to E3 Enterprises Group, LLC

Contract Overview

Contract Amount: $222,149 ($222.1K)

Contractor: E3 Enterprises Group, LLC

Awarding Agency: Department of Commerce

Start Date: 2021-02-18

End Date: 2025-08-31

Contract Duration: 1,655 days

Daily Burn Rate: $134/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LEASE AND MAINTENANCE OF INBOUND PACKAGE TRACKING AND OUTBOUND MAILING SYSTEMS

Place of Performance

Location: DELRAY BEACH, PALM BEACH County, FLORIDA, 33483

State: Florida Government Spending

Plain-Language Summary

Department of Commerce obligated $222,149.1 to E3 ENTERPRISES GROUP, LLC for work described as: LEASE AND MAINTENANCE OF INBOUND PACKAGE TRACKING AND OUTBOUND MAILING SYSTEMS Key points: 1. The contract value of $2.22 million over its period of performance appears reasonable for specialized tracking and mailing systems. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The contract duration of over 5 years (1655 days) indicates a long-term need for these services. 5. The National Institute of Standards and Technology (NIST) is the primary user, implying a need for reliable and secure mail operations. 6. The contractor, E3 Enterprises Group, LLC, is a relatively new entity in federal contracting, warranting attention to performance history.

Value Assessment

Rating: good

The contract value of approximately $2.22 million for lease and maintenance of inbound package tracking and outbound mailing systems over a period of roughly 5.5 years appears to be within a reasonable range for specialized equipment and services. Benchmarking against similar contracts for mailroom automation and tracking solutions would provide a more precise value-for-money assessment. However, given the fixed-price nature, the government is protected from cost overruns, and the contractor bears the risk of delivering the service within the agreed price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the use of this procurement method generally fosters price discovery and encourages competitive pricing. The agency's decision to use full and open competition suggests that there were multiple capable vendors in the market for these types of systems.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better service quality due to the competitive nature of the award process.

Public Impact

The primary beneficiaries are the various departments and researchers within the National Institute of Standards and Technology (NIST), who will experience improved efficiency in managing inbound packages and outbound mail. The services delivered include the lease and ongoing maintenance of sophisticated package tracking and mailing systems, ensuring reliable operations. The geographic impact is concentrated in Florida, where the contract is being performed. Workforce implications are likely minimal, primarily affecting mailroom staff who will utilize the new systems, and potentially IT support for system integration and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's track record in delivering similar large-scale mail system solutions needs further evaluation.
Potential for vendor lock-in if the systems are proprietary and difficult to integrate with other platforms.
Ensuring ongoing technical support and maintenance quality throughout the contract's extended duration.

Positive Signals

The use of full and open competition suggests a robust market and potential for competitive pricing.
The firm-fixed-price contract type provides cost certainty for the government.
The contract addresses a clear operational need for NIST, indicating strategic alignment.

Sector Analysis

The market for mailroom automation and tracking systems is a niche within the broader office equipment and IT services sector. This contract falls under the 'Printing Machinery and Equipment Manufacturing' product service code, suggesting a focus on the hardware and associated software for mail processing. The federal government is a significant purchaser of such systems to manage the high volume of mail and packages processed daily across various agencies. Comparable spending benchmarks would involve analyzing other federal contracts for similar mail tracking, sorting, and postage systems.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information indicating significant subcontracting opportunities for small businesses. The award to E3 Enterprises Group, LLC, a company whose size and small business status are not explicitly detailed in the provided data, means the direct impact on the small business ecosystem is unclear. Further investigation into the contractor's size and subcontracting plans would be necessary to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will primarily reside with the National Institute of Standards and Technology (NIST) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS, which provide public access to contract details. There is no specific mention of an Inspector General's direct jurisdiction over this particular contract, but general oversight functions of the Department of Commerce's IG may apply.

Related Government Programs

Federal Mail Management Services
Logistics and Supply Chain Management Systems
Office Equipment Leasing
Information Technology Services for Agencies

Risk Flags

Contractor performance history requires further investigation.
Potential for technological obsolescence over the contract duration.
Ensuring adequate technical support and maintenance quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $222,149.1 to E3 ENTERPRISES GROUP, LLC. LEASE AND MAINTENANCE OF INBOUND PACKAGE TRACKING AND OUTBOUND MAILING SYSTEMS

Who is the contractor on this award?

The obligated recipient is E3 ENTERPRISES GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $222,149.1.

What is the period of performance?

Start: 2021-02-18. End: 2025-08-31.

What is the specific nature of the 'inbound package tracking and outbound mailing systems' being leased and maintained?

The provided data indicates the contract covers 'LEASE AND MAINTENANCE OF INBOUND PACKAGE TRACKING AND OUTBOUND MAILING SYSTEMS' under the Product Service Code (PSC) '333244' (Printing Machinery and Equipment Manufacturing). This suggests the systems likely include hardware such as automated mail sorters, postage meters, package tracking scanners, and potentially software for managing mail flow, recipient notification, and inventory. The 'tracking' aspect implies capabilities for monitoring packages from arrival to internal distribution or dispatch. The 'maintenance' component ensures the operational readiness and repair of this specialized equipment throughout the contract's duration.

How does the $2.22 million contract value compare to similar federal procurements for mailroom automation?

The contract value of $2.22 million over approximately 5.5 years (1655 days) equates to an average annual expenditure of roughly $404,000. Benchmarking this against similar federal contracts for mailroom automation and tracking systems requires access to a broader dataset of comparable procurements. However, for a federal agency like NIST, which handles significant research materials and official correspondence, investing in robust tracking and mailing systems is crucial for operational efficiency and security. The value seems plausible for a comprehensive solution involving leasing, maintenance, and potentially software licenses for a facility of NIST's scale.

What are the potential risks associated with a 5.5-year lease and maintenance contract for mailing systems?

Key risks include technological obsolescence, where the leased systems may become outdated before the contract ends, diminishing their utility. Performance risk is another concern; if E3 Enterprises Group, LLC fails to provide adequate maintenance or support, NIST's mail operations could be disrupted. There's also a risk of price escalation if contract modifications are needed or if the initial pricing did not fully account for long-term support costs. Furthermore, data security risks associated with package tracking information need careful management. The firm-fixed-price structure mitigates cost overrun risks for the government but places the burden of managing these other risks squarely on the contractor.

What is the track record of E3 Enterprises Group, LLC in federal contracting, particularly for similar systems?

The provided data lists E3 Enterprises Group, LLC as the contractor. A preliminary check suggests this entity may be relatively new or have a limited history of large federal contracts, especially for complex mailroom systems. Further due diligence is recommended to ascertain their experience, past performance on similar contracts, financial stability, and capacity to deliver on a 5.5-year commitment. Understanding their track record is crucial for assessing the reliability and success probability of this specific contract award.

How does the 'Printing Machinery and Equipment Manufacturing' PSC classification align with mail tracking and mailing systems?

The PSC '333244' (Printing Machinery and Equipment Manufacturing) is an interesting classification for mail tracking and mailing systems. While printing machinery is its primary definition, it can encompass equipment used in the broader process of document handling, reproduction, and distribution, which includes mailroom operations. Mail tracking systems often integrate with printing or labeling functions, and mailing systems themselves (like high-speed inserters or postage machines) can be considered specialized equipment within this manufacturing domain. It suggests the procured systems likely have a significant hardware component related to processing and preparing mail.

What are the implications of the contract being performed in Florida (ST: FL, SN: FLORIDA)?

The contract performance location in Florida indicates that the physical installation, maintenance, and support services for the mail tracking and mailing systems will be provided within that state. This has implications for logistics, travel costs for technicians, and potentially the availability of local support resources. For NIST, it means the primary operational benefits and any disruptions will be localized to their Florida-based facilities. It also suggests that E3 Enterprises Group, LLC has a presence or operational capability within Florida to service the contract effectively.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › Printing Machinery and Equipment Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333ND21QNB190066

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1487 ESTUARY TRAIL, DELRAY BEACH, FL, 33483

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $436,386

Exercised Options: $322,080

Current Obligation: $222,149

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F023GA

IDV Type: FSS

Timeline