Treasury's Mint awards $13.1M for fulfillment services to Priority Fulfillment Services, Inc

Contract Overview

Contract Amount: $13,100,264 ($13.1M)

Contractor: Priority Fulfillment Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2024-04-04

End Date: 2028-09-30

Contract Duration: 1,640 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESM FULFILLMENT

Place of Performance

Location: IRVING, DALLAS County, TEXAS, 75063

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $13.1 million to PRIORITY FULFILLMENT SERVICES, INC. for work described as: ESM FULFILLMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for delivery order under an existing contract, indicating potential for follow-on work. 3. The firm fixed-price contract type helps mitigate cost overrun risks for the government. 4. The contract duration of over 4 years provides stability for service delivery. 5. The North American Industry Classification System (NAICS) code 518210 points to a focus on data processing and web hosting services. 6. The contract is not set aside for small businesses, meaning larger firms likely participated.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar fulfillment service contracts. The firm fixed-price structure is a positive indicator for cost control. However, the absence of specific performance metrics or unit costs makes a definitive value assessment difficult. Further analysis would require understanding the scope of 'fulfillment services' and comparing pricing against industry standards for similar service levels.

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 a bid. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for selection of the best value offer.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down prices through market forces and encourage innovation among bidders.

Public Impact

The United States Mint benefits from these services, likely related to the distribution and management of its products. Services provided are within the data processing, web hosting, and related services sector. The contract is managed by the Department of the Treasury, indicating federal government operations are supported. The geographic impact is likely nationwide, given the nature of fulfillment services for a federal entity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess service quality and efficiency.
Limited transparency on the specific 'fulfillment services' provided hinders a full understanding of the contract's scope.
Absence of unit pricing data prevents granular cost analysis and benchmarking.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract type helps control costs.
Long contract duration provides service continuity.
Awarded to a single entity, potentially simplifying management and oversight.

Sector Analysis

This contract falls within the IT and data services sector, specifically NAICS code 518210, which covers data processing, hosting, and related services. This is a critical area for government operations, supporting everything from web presence to data management and distribution. The market for these services is large and competitive, with many providers offering scalable solutions. The value of this contract, at $13.1 million over approximately four years, represents a moderate investment within this sector for a specific government function.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the competition was open to all responsible businesses, including large corporations. While there is no direct subcontracting requirement specified, large prime contractors often engage small businesses for specialized services. The lack of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the United States Mint and the Department of the Treasury. As a delivery order under an existing contract, the initial oversight framework is likely established. Transparency is moderate, with basic contract award details available. Further oversight would depend on internal agency policies, performance reviews, and any potential Inspector General involvement if performance issues or irregularities arise.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Defense IT and data services contracts
Other federal agency data processing and hosting contracts

Risk Flags

Potential for scope creep if 'fulfillment services' are not clearly defined.
Dependence on a single vendor for critical services.
Risk of performance issues impacting the United States Mint's operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $13.1 million to PRIORITY FULFILLMENT SERVICES, INC.. ESM FULFILLMENT

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 $13.1 million.

What is the period of performance?

Start: 2024-04-04. End: 2028-09-30.

What specific 'fulfillment services' are being provided under this contract?

The provided data indicates the contract is for 'PRIORITY FULFILLMENT SERVICES, INC.' and falls under NAICS code 518210 (Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services). While the exact nature of 'fulfillment services' is not detailed, it likely encompasses aspects of data management, order processing, distribution, and potentially customer service related to products or information managed by the United States Mint. This could include inventory management, shipping logistics, and digital fulfillment of online orders or information requests. Without more specific contract language or statements of work, the precise scope remains generalized.

How does the awarded amount of $13.1 million compare to similar contracts for fulfillment services?

Comparing the $13.1 million award for fulfillment services is difficult without knowing the specific services rendered and their scale. However, for context, federal agencies frequently award contracts for logistics, warehousing, and distribution services that can range from a few million to tens or even hundreds of millions of dollars, depending on the scope and duration. Contracts under NAICS 518210, which includes data processing and hosting, can also vary widely. To benchmark this specific contract, one would need to identify comparable contracts for similar volume, complexity, and service level agreements within the federal government or the private sector, considering the specific needs of the United States Mint.

What is the track record of Priority Fulfillment Services, Inc. with federal contracts?

Information on the specific track record of Priority Fulfillment Services, Inc. with federal contracts is not detailed in the provided data. To assess their track record, one would typically look at their past performance on similar government contracts, including contract values, duration, performance ratings, and any history of contract modifications, disputes, or terminations. A thorough review would involve searching federal procurement databases like SAM.gov or FPDS for their contract history. A positive track record with successful past performance on comparable contracts would be a strong indicator of reliability and capability for this new award.

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

Potential risks include service disruptions, data breaches, cost overruns (though mitigated by firm fixed-price), and vendor performance issues. Mitigation strategies are inherent in the contract type (firm fixed-price limits cost risk) and the competitive award process, which ideally selects a capable vendor. The contract duration of over four years allows for stable service but also extends the period of risk. Specific mitigation would involve robust Service Level Agreements (SLAs), regular performance monitoring by the agency, and clear procedures for addressing deficiencies. The lack of detailed performance metrics in the award data makes a full risk assessment challenging.

How does this contract fit into the broader spending patterns for IT and data services within the Department of the Treasury?

This $13.1 million contract for fulfillment services, categorized under NAICS 518210, represents a component of the Department of the Treasury's overall spending on IT and data services. Federal agencies, including Treasury, allocate significant portions of their budgets to these areas to support operations, data management, cybersecurity, and digital services. Without historical spending data for Treasury's IT and data services, it's difficult to place this contract in context. However, it is likely one of many contracts supporting various functions, from core financial systems to public-facing websites and internal data processing needs.

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: $13,100,264

Exercised Options: $13,100,264

Current Obligation: $13,100,264

Actual Outlays: $11,535,938

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