Treasury's $9.6M International Mail Services Contract Awarded to Bering Straits Professional Services

Contract Overview

Contract Amount: $9,604,992 ($9.6M)

Contractor: Bering Straits Professional Services, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $8.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTERNATIONAL MAIL SERVICES FOR COURIER PICK-UP MAIL AND INTERNATIONALLY MAIL SERVICES FOR SIX INTERNAL REVENUE SERVICE (IRS) FIELD SITES (MICHIGAN, UTAH, PENNSYLVANIA, MARYLAND, ILLINOIS, AND TEXAS)

Place of Performance

Location: ITASCA, DUPAGE County, ILLINOIS, 60143

State: Illinois Government Spending

Plain-Language Summary

Department of the Treasury obligated $9.6 million to BERING STRAITS PROFESSIONAL SERVICES, LLC for work described as: INTERNATIONAL MAIL SERVICES FOR COURIER PICK-UP MAIL AND INTERNATIONALLY MAIL SERVICES FOR SIX INTERNAL REVENUE SERVICE (IRS) FIELD SITES (MICHIGAN, UTAH, PENNSYLVANIA, MARYLAND, ILLINOIS, AND TEXAS) Key points: 1. Contract provides essential international mail services for IRS field sites across multiple states. 2. The contract's fixed-price nature offers cost predictability for the government. 3. Limited competition raises questions about potential price optimization and value for money. 4. The duration of the contract (3 years) suggests a need for stable, ongoing services. 5. Bering Straits Professional Services is the sole awardee, indicating a specific capability or relationship. 6. The contract falls under 'All Other Business Support Services,' a broad category.

Value Assessment

Rating: fair

The contract value of approximately $9.6 million over three years for international mail services appears reasonable given the scope of supporting six IRS field sites. However, without more detailed cost breakdowns or comparisons to similar multi-site international mail contracts, a definitive value-for-money assessment is challenging. The fixed-price structure provides some cost certainty, but the lack of competitive bidding limits the ability to benchmark pricing against market alternatives. Further analysis of the contractor's proposed pricing against industry standards would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service, or in specific circumstances where full and open competition is not feasible or advantageous. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no direct price competition to ensure the most economical option is selected.

Public Impact

Benefits IRS field operations by ensuring reliable international mail delivery for critical functions. Services are delivered to IRS sites in Michigan, Utah, Pennsylvania, Maryland, Illinois, and Texas. Supports the efficient processing of international correspondence and packages for tax administration. Indirectly impacts taxpayers by facilitating IRS communication and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing.
Sole-source award limits transparency in the selection process.
Potential for vendor lock-in due to the absence of market competition.

Positive Signals

Contract ensures continuity of essential international mail services for IRS operations.
Fixed-price contract provides budget certainty for the government.
Awardee has been selected, implying a known entity for service delivery.

Sector Analysis

This contract falls within the Business Support Services sector, specifically 'All Other Business Support Services.' This broad category encompasses a wide range of services that help organizations operate efficiently. The market for international mail and courier services is competitive, with numerous global and regional players. However, government contracts often have specific requirements that may lead to specialized or sole-source awards. Benchmarking this contract's value against other government contracts for similar mail services would provide further context on its cost-effectiveness.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting requirements for small businesses. The awardee, Bering Straits Professional Services, LLC, is identified as a business entity, but its size classification relative to small business definitions is not provided in the data. Therefore, the direct impact on the small business ecosystem appears minimal based on the available information.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program managers within the Internal Revenue Service. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding specific performance metrics and any associated Inspector General reviews would depend on public reporting and agency policies. The fixed-price nature of the contract simplifies some aspects of financial oversight compared to cost-reimbursement contracts.

Related Government Programs

General Services Administration (GSA) Federal Mail Management
US Postal Service (USPS) Government Services
Department of State Mail Operations
Department of Defense Mail and Distribution Services

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for higher costs to taxpayers due to lack of competition.
Limited transparency on contractor selection justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $9.6 million to BERING STRAITS PROFESSIONAL SERVICES, LLC. INTERNATIONAL MAIL SERVICES FOR COURIER PICK-UP MAIL AND INTERNATIONALLY MAIL SERVICES FOR SIX INTERNAL REVENUE SERVICE (IRS) FIELD SITES (MICHIGAN, UTAH, PENNSYLVANIA, MARYLAND, ILLINOIS, AND TEXAS)

Who is the contractor on this award?

The obligated recipient is BERING STRAITS PROFESSIONAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $9.6 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What is the track record of Bering Straits Professional Services, LLC in providing similar international mail services to federal agencies?

Information regarding Bering Straits Professional Services, LLC's specific track record in providing international mail services to federal agencies is not detailed in the provided data. As a sole-source award, the justification for selecting this particular contractor would typically include an assessment of their past performance and capability. To fully evaluate this contract, a review of the contractor's performance history on similar contracts, including client satisfaction, adherence to delivery schedules, and cost management, would be necessary. This information is often available through federal procurement databases or agency performance records, but is not directly included here.

How does the pricing of this contract compare to market rates for similar international mail services?

Direct comparison of this contract's pricing to market rates is challenging without specific cost breakdowns and detailed service level agreements. The contract is awarded on a Firm Fixed Price (FFP) basis, which sets a ceiling on costs. However, since it was a sole-source award, there was no competitive bidding process to establish a market-driven price. To benchmark effectively, one would need to compare the per-unit costs (e.g., per package, per pound) for similar international shipping lanes and service types offered by major commercial carriers. The absence of this competitive data makes a definitive value-for-money assessment difficult.

What are the primary risks associated with a sole-source award for essential mail services?

The primary risks associated with a sole-source award for essential mail services include potential overpayment due to the lack of price competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of market validation for the chosen service provider. Taxpayers may bear a higher cost than if the contract had been competed. Furthermore, reliance on a single provider can create risks if that provider experiences performance issues, financial instability, or decides to exit the market, potentially disrupting critical IRS operations. Ensuring robust contract management and performance monitoring becomes even more crucial in sole-source situations.

What is the expected impact of these international mail services on IRS operational efficiency?

These international mail services are expected to directly support the operational efficiency of six IRS field sites by ensuring the timely and reliable delivery of mail and packages from international sources. This includes facilitating communication, processing of documents, and potentially handling of goods or materials that require international transit. By outsourcing these logistics to a dedicated provider, the IRS can focus its internal resources on its core tax administration functions rather than managing complex international shipping operations. The contract's duration suggests a need for consistent service to maintain this operational support over the long term.

How does this contract's spending compare to historical federal spending on international mail and courier services?

The provided data does not include historical spending figures for this specific contract or for the IRS's overall spending on international mail services. To assess historical spending patterns, one would need to access procurement records for previous contracts awarded for similar services to the IRS or other Treasury bureaus. Comparing the current $9.6 million contract value over three years to previous expenditures would reveal whether spending has increased, decreased, or remained stable. Analyzing trends in federal spending across agencies for mail and courier services would also provide broader context on market dynamics and government needs.

Are there any specific performance metrics or Service Level Agreements (SLAs) tied to this contract?

The provided data does not specify the performance metrics or Service Level Agreements (SLAs) associated with this contract. However, for a contract of this nature, it is highly probable that SLAs exist to define expectations for delivery times, package handling, tracking accuracy, and customer service. These metrics are crucial for ensuring the quality and reliability of the international mail services. The IRS would likely monitor the contractor's adherence to these SLAs to ensure the services meet operational requirements and to hold the contractor accountable for performance. Details on these SLAs would typically be found within the contract's statement of work.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,768,850

Exercised Options: $15,870,468

Current Obligation: $9,604,992

Actual Outlays: $8,161,881

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,557,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline