Department of Labor awards $2.27M for online postage services, ensuring national operational support

Contract Overview

Contract Amount: $2,270,534 ($2.3M)

Contractor: Pitney Bowes Inc.

Awarding Agency: Department of Labor

Start Date: 2024-07-25

End Date: 2026-07-24

Contract Duration: 729 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS A SINGLE ACTION CALL ORDER THAT COVERS THE ONLINE POSTAGE REQUIRES FOR ALL AGENCY AND STAFF ELEMENTS IN DOL'S NATIONAL FOOTPRINT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $2.3 million to PITNEY BOWES INC. for work described as: THIS IS A SINGLE ACTION CALL ORDER THAT COVERS THE ONLINE POSTAGE REQUIRES FOR ALL AGENCY AND STAFF ELEMENTS IN DOL'S NATIONAL FOOTPRINT. Key points: 1. Contract provides essential online postage for DOL's national operations, supporting administrative functions. 2. The award was made under a broad agency agreement (BPA) call, indicating a pre-competed framework. 3. Pricing appears reasonable given the scope of national online postage requirements. 4. The contract duration of approximately two years suggests a stable, ongoing need for these services. 5. This service supports the agency's ability to conduct business efficiently across its entire footprint. 6. The firm-fixed-price structure helps manage cost certainty for the government.

Value Assessment

Rating: good

The contract value of $2.27 million over two years for national online postage services appears reasonable. While direct comparisons are difficult without specific service level agreements, the cost covers a broad operational need for the Department of Labor. The firm-fixed-price contract type provides cost certainty. Benchmarking against similar large-scale postage solutions for federal agencies would offer further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The use of a BPA call indicates that the underlying contract vehicle was previously competed. The specific call order process likely involved a competitive evaluation among eligible BPA holders, ensuring a fair process and potentially competitive pricing.

Taxpayer Impact: Full and open competition benefits taxpayers by ensuring that the government receives the best possible pricing and service through a wide range of potential providers, preventing price gouging and encouraging innovation.

Public Impact

Federal employees across all DOL agency and staff elements will benefit from efficient and reliable online postage services. The service ensures the smooth operation of administrative functions requiring mail and postage, supporting daily business activities. The geographic impact is national, covering the entire footprint of the Department of Labor. Workforce implications are positive, as employees can utilize modern digital postage solutions, saving time and resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Supports national operations, indicating a broad and essential service delivery.
Contract duration of approximately two years suggests a stable and predictable need.

Sector Analysis

The Business Support Services sector encompasses a wide range of services that enable organizations to operate efficiently. Online postage solutions fall under this umbrella, providing critical infrastructure for communication and logistics. The market for these services is competitive, with established players offering various solutions. This contract represents a significant but standard procurement for a federal agency's ongoing operational needs within this sector.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though the prime contractor may utilize small businesses in their supply chain.

Oversight & Accountability

The contract is managed under the Office of the Assistant Secretary for Administration and Management (OASAM) within the Department of Labor, suggesting internal oversight. As a federal contract, it is subject to standard government accountability measures, including potential review by the Government Accountability Office (GAO) and the DOL's Office of Inspector General (OIG) for performance and financial integrity.

Related Government Programs

Federal Mail Management Services
Agency Administrative Support Contracts
Business Process Outsourcing (BPO) for Government Agencies
Logistics and Shipping Services for Federal Government

Risk Flags

Potential for service disruption impacting agency operations.
Reliance on a single vendor for a critical national service.
Ensuring data security and privacy of mail-related information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $2.3 million to PITNEY BOWES INC.. THIS IS A SINGLE ACTION CALL ORDER THAT COVERS THE ONLINE POSTAGE REQUIRES FOR ALL AGENCY AND STAFF ELEMENTS IN DOL'S NATIONAL FOOTPRINT.

Who is the contractor on this award?

The obligated recipient is PITNEY BOWES INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2024-07-25. End: 2026-07-24.

What is the track record of Pitney Bowes Inc. in providing similar services to federal agencies?

Pitney Bowes Inc. is a well-established provider of mail and document management solutions, including postage meters, mailing equipment, and shipping software. They have a significant history of serving both commercial and government clients. For federal agencies, Pitney Bowes often provides services through various contract vehicles, including GSA schedules and direct procurements. Their experience typically includes ensuring compliance with postal regulations, providing reliable equipment, and offering software solutions for tracking and managing mailings. The Department of Labor's award to Pitney Bowes suggests confidence in their ability to meet the agency's specific requirements for online postage, likely based on past performance and competitive offerings.

How does the pricing of this contract compare to similar federal procurements for online postage services?

Directly comparing the pricing of this $2.27 million contract for online postage services without detailed service level agreements and usage metrics is challenging. However, the contract is a firm-fixed-price award under a BPA call, which implies a degree of pre-negotiated or competitively determined pricing. Federal agencies often procure postage solutions through various means, including GSA schedules, which provide benchmarked pricing. The value of $2.27 million over two years for national coverage suggests a substantial volume of mailings. To assess value, one would ideally benchmark the per-piece cost or subscription fees against similar large-scale federal contracts or GSA offerings, considering factors like included features, support levels, and volume discounts.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks for this online postage contract include potential service disruptions (e.g., system outages, internet connectivity issues), vendor lock-in if alternatives are not readily available, and ensuring data security for any sensitive information processed. Mitigation strategies likely involve the firm-fixed-price structure which shifts some cost risk to the contractor, performance standards within the contract, and the fact that it was awarded under full and open competition, suggesting multiple viable vendors exist. The Department of Labor would also have contingency plans and oversight mechanisms in place to monitor performance and address any issues promptly. Ensuring robust cybersecurity measures and clear service level agreements are crucial for mitigating technical and operational risks.

How effective is the use of a BPA call for procuring these types of services?

Using a Broad Agency Announcement (BAA) or Blanket Purchase Agreement (BPA) call for services like online postage can be highly effective for federal agencies. BPAs are typically established through full and open competition, meaning the underlying contract vehicle has already undergone a rigorous vetting process. When an agency needs a specific service covered by the BPA, they can issue a 'call' or 'order' against it. This process is generally faster and more efficient than conducting a new full and open competition for each individual need. It allows agencies to leverage pre-negotiated terms and pricing, while still enabling competition among BPA holders for specific task orders, ensuring fair pricing and appropriate selection based on the agency's requirements.

What are the historical spending patterns for online postage or similar mail services within the Department of Labor?

Analyzing historical spending patterns for online postage or similar mail services within the Department of Labor (DOL) would provide crucial context for this $2.27 million award. Without specific historical data, it's difficult to determine if this amount represents an increase, decrease, or stable level of spending. Agencies typically have ongoing needs for mail and postage services to support their vast administrative and operational functions. Understanding past expenditures, contract durations, and vendor performance can inform budgeting, identify opportunities for cost savings, and assess the long-term strategy for managing these essential services. A review of previous DOL contracts for mailroom operations, postage, and shipping would be necessary for a comprehensive analysis.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605C3-24-Q-00046

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27 WATERVIEW DR, SHELTON, CT, 06484

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: $6,712,507

Exercised Options: $5,116,240

Current Obligation: $2,270,534

Actual Outlays: $1,638,756

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1605C324A0001

IDV Type: BPA

Timeline