Treasury's $8.1M Web Hosting Contract Awarded to Priority Fulfillment Services, Inc

Contract Overview

Contract Amount: $8,131,721 ($8.1M)

Contractor: Priority Fulfillment Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2019-11-18

End Date: 2021-09-30

Contract Duration: 682 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PFSWEB FY20 FUNDING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $8.1 million to PRIORITY FULFILLMENT SERVICES, INC. for work described as: PFSWEB FY20 FUNDING Key points: 1. The contract value is $8.1 million over 682 days. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The service category is Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. 4. The contract type is Firm Fixed Price, providing cost certainty. 5. No small business participation was noted.

Value Assessment

Rating: good

The contract was awarded under full and open competition, suggesting competitive pricing. The fixed-price nature further supports cost control. Benchmarking against similar hosting contracts would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically leads to competitive pricing as multiple vendors can bid. This method ensures the government seeks the best value and price discovery.

Taxpayer Impact: Competitive bidding likely resulted in a fair price, minimizing unnecessary taxpayer expenditure for essential web hosting services.

Public Impact

Ensures continued operation of critical US Mint web services. Supports the Department of the Treasury's digital infrastructure. Provides essential data processing and web hosting capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation.

Positive Signals

Full and open competition.
Firm Fixed Price contract type.

Sector Analysis

This contract falls within the IT sector, specifically focusing on computing infrastructure and web hosting. Spending in this area is substantial across government agencies, with benchmarks varying based on service level agreements and scale.

Small Business Impact

The contract was not awarded to a small business, and no small business subcontracting goals were identified. This represents a missed opportunity for small business engagement in federal IT services.

Oversight & Accountability

The award was a delivery order under a larger contract, suggesting it may have undergone prior review. However, specific oversight details for this particular order are not provided.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of the Treasury Contracting
United States Mint Programs

Risk Flags

Lack of small business participation.
No specific performance metrics provided.
No explicit data security details available.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $8.1 million to PRIORITY FULFILLMENT SERVICES, INC.. PFSWEB FY20 FUNDING

Who is the contractor on this award?

The obligated recipient is PRIORITY FULFILLMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $8.1 million.

What is the period of performance?

Start: 2019-11-18. End: 2021-09-30.

What is the specific performance level and uptime guarantee for the web hosting services?

The provided data does not specify the performance level or uptime guarantees. This information is crucial for assessing the value and reliability of the service, as higher uptime and performance typically command higher prices. Further investigation into the contract's statement of work would be necessary.

How does the per-unit cost of hosting compare to industry benchmarks for similar services?

Without specific details on the services provided (e.g., bandwidth, storage, processing power), a direct per-unit cost comparison is not feasible. The contract's total value and duration suggest a significant scale, but precise benchmarking requires a detailed breakdown of the services rendered and their associated costs.

What measures are in place to ensure data security and privacy for the hosted services?

The data does not detail the specific security protocols or data privacy measures implemented for this contract. Given the sensitive nature of government data, robust security standards and compliance certifications (like FedRAMP) are expected. A review of the contract's security clauses is essential to confirm adequacy.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 505 MILLENIUM DR, ALLEN, TX, 75013

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

Financial Breakdown

Contract Ceiling: $8,131,721

Exercised Options: $8,131,721

Current Obligation: $8,131,721

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TMHQ13C0073

IDV Type: IDC

Timeline