USPS Trust Account Spends $17.5M on Priority Fulfillment Services for Computing Infrastructure
Contract Overview
Contract Amount: $17,562,443 ($17.6M)
Contractor: Priority Fulfillment Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2024-01-30
End Date: 2028-09-30
Contract Duration: 1,705 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: USPS TRUST ACCOUNT
Place of Performance
Location: IRVING, DALLAS County, TEXAS, 75063
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $17.6 million to PRIORITY FULFILLMENT SERVICES, INC. for work described as: USPS TRUST ACCOUNT Key points: 1. Significant contract value of $17.5 million for essential IT services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, tied to reliance on a single vendor for critical infrastructure. 4. Sector is IT, specifically computing infrastructure and data processing. 5. Contract duration extends to September 2028, indicating a long-term need.
Value Assessment
Rating: good
The contract value of $17.5 million for a 4-year period appears reasonable given the scope of computing infrastructure and data processing services. Benchmarking against similar government contracts for these services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives fair market value. The use of a delivery order under a larger contract framework suggests a structured procurement process.
Taxpayer Impact: Taxpayer funds are being used for essential IT services, with competition likely ensuring efficient allocation of these resources.
Public Impact
Ensures continued operation of critical USPS IT systems. Supports data processing and web hosting essential for postal services. Potential for service disruptions if vendor fails to perform. Long-term commitment may limit flexibility for future technology adoption.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor lock-in potential
- Reliance on single provider for critical infrastructure
- Long-term contract duration
Positive Signals
- Full and open competition
- Firm fixed price contract
- Essential IT services
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is crucial for government operations, and benchmarks vary widely based on service complexity and scale.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight is likely managed by the Department of the Treasury and the United States Mint, ensuring compliance with contract terms and performance standards. The firm fixed price structure provides some cost certainty.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Potential for vendor lock-in due to specialized IT services.
- Reliance on a single provider for critical infrastructure could pose a risk.
- Long contract duration may limit agility in adopting new technologies.
- Cybersecurity risks associated with data processing and hosting.
Tags
computing-infrastructure-providers-data-, department-of-the-treasury, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $17.6 million to PRIORITY FULFILLMENT SERVICES, INC.. USPS TRUST ACCOUNT
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 $17.6 million.
What is the period of performance?
Start: 2024-01-30. End: 2028-09-30.
What specific performance metrics are in place to ensure the quality and reliability of the computing infrastructure and data processing services provided by Priority Fulfillment Services, Inc.?
Performance metrics are crucial for ensuring the quality and reliability of IT services. While not detailed in the provided data, typical metrics for such contracts include uptime guarantees (e.g., 99.9% availability), response times for support requests, data security compliance, and successful completion of data processing tasks within agreed-upon timelines. The contract likely specifies Service Level Agreements (SLAs) that outline these metrics and associated remedies for non-performance.
Given the long-term nature of the contract (ending in 2028), what provisions exist for adapting to evolving technological needs and potential cost savings through future procurements?
Long-term contracts often include clauses for contract modifications or re-negotiations to accommodate evolving technologies, though this can be complex. The firm fixed price nature may limit immediate cost savings from technological advancements unless specific clauses allow for adjustments. Future procurements will offer opportunities to re-evaluate needs and leverage new market offerings, potentially leading to cost efficiencies or improved service capabilities.
How does the $17.5 million expenditure compare to industry benchmarks for similar computing infrastructure and data processing services for an organization of the USPS's scale?
Comparing this $17.5 million expenditure requires detailed knowledge of the specific services rendered and the USPS's infrastructure needs. However, for a large organization requiring robust computing, data processing, and web hosting, this figure appears within a plausible range, especially considering the 4-year duration. Industry benchmarks are highly variable, but this amount suggests a significant investment in critical IT operations.
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 › IT AND TELECOM - APLLICATIONS
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: 4455 REGENT BLVD, IRVING, TX, 75063
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,562,443
Exercised Options: $17,562,443
Current Obligation: $17,562,443
Actual Outlays: $17,562,443
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2031JG23D00015
IDV Type: IDC
Timeline
Start Date: 2024-01-30
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2026-02-18
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