Treasury's Mint Awards $4.76M for Freight Services to Priority Fulfillment Services, Inc
Contract Overview
Contract Amount: $4,763,847 ($4.8M)
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: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: ESM FREIGHT
Place of Performance
Location: IRVING, DALLAS County, TEXAS, 75063
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $4.8 million to PRIORITY FULFILLMENT SERVICES, INC. for work described as: ESM FREIGHT Key points: 1. The contract is for freight services, a critical component of logistics and supply chain management. 2. Priority Fulfillment Services, Inc. is the sole awardee for this specific delivery order. 3. The contract duration is over 4 years, indicating a need for sustained service. 4. The sector involves logistics and transportation, essential for government operations.
Value Assessment
Rating: fair
The award amount of $4.76 million over approximately 4 years suggests a moderate annual spend. Benchmarking against similar freight and logistics contracts would be necessary to fully assess pricing, but the firm fixed price structure provides cost certainty.
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. The use of a delivery order under a larger contract structure implies that the initial solicitation likely established competitive terms.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through market forces.
Public Impact
Ensures the efficient movement of goods and materials for the United States Mint. Supports the Mint's operational needs, including the distribution of coins and medals. The contract's duration provides stability for essential freight services. Potential impact on businesses within the logistics and transportation sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Potential for cost overruns if freight volumes exceed projections.
- Dependence on a single vendor for critical logistics.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
- Long-term contract duration provides stability.
Sector Analysis
The logistics and transportation sector is vital for government operations, enabling the movement of goods, equipment, and personnel. Spending in this area is generally benchmarked against industry standards for efficiency and cost-effectiveness, with significant variation based on the type and volume of services required.
Small Business Impact
The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically involve monitoring the vendor's performance against contract requirements, ensuring timely delivery, and managing any potential disputes or changes. The Department of the Treasury's contracting officers are responsible for this oversight.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Contract duration is substantial (over 4 years).
- Awardee is a single entity for this delivery order.
- Specific performance metrics not detailed in the provided data.
- Potential for price increases if market conditions change significantly.
- Dependence on a single vendor for critical logistics.
Tags
computing-infrastructure-providers-data-, department-of-the-treasury, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $4.8 million to PRIORITY FULFILLMENT SERVICES, INC.. ESM FREIGHT
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 $4.8 million.
What is the period of performance?
Start: 2024-04-04. End: 2028-09-30.
What specific freight services are included in this contract, and how do they align with the Mint's operational needs?
The contract is for 'ESM FREIGHT,' which likely encompasses a range of transportation and logistics services. Given the awardee is Priority Fulfillment Services, Inc., it suggests services related to the physical movement, storage, and potentially processing of goods. For the United States Mint, this could include the secure transport of precious metals, coinage, medals, and related supplies between facilities, assay offices, and distribution points, ensuring operational continuity and security.
How does the firm fixed price structure mitigate risks associated with fluctuating fuel costs or transportation demands?
A firm fixed price (FFP) contract establishes a set price for the goods or services, regardless of the contractor's actual costs. This shifts the risk of cost overruns to the contractor. While it provides budget certainty for the government, it could lead to higher initial pricing to account for the contractor's risk. Fluctuations in fuel costs or demand are absorbed by the contractor, potentially impacting their profit margin or leading them to seek contract modifications if unforeseen circumstances arise.
What mechanisms are in place to ensure the effectiveness and efficiency of the freight services provided by Priority Fulfillment Services, Inc. over the contract's duration?
Effectiveness and efficiency are typically ensured through performance standards, key performance indicators (KPIs), and regular performance reviews outlined in the contract. The government contracting officer and contract specialists monitor delivery times, service quality, and adherence to schedules. While specific KPIs aren't detailed here, the government would likely track metrics such as on-time delivery rates, damage rates, and responsiveness to service requests to ensure the vendor meets expectations and provides value.
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: $4,763,847
Exercised Options: $4,763,847
Current Obligation: $4,763,847
Actual Outlays: $3,650,825
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: 2024-04-04
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2026-02-26
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