IRS awards $2.8M contract for presort mail services to Quicksilver Mailing Services, LLC

Contract Overview

Contract Amount: $2,834,664 ($2.8M)

Contractor: Quicksilver Mailing Services, LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-03-01

End Date: 2026-08-31

Contract Duration: 2,009 days

Daily Burn Rate: $1.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRESORT MAIL SERVICES - BLOOMINGTON, IL

Place of Performance

Location: SPRINGFIELD, SANGAMON County, ILLINOIS, 62702

State: Illinois Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.8 million to QUICKSILVER MAILING SERVICES, LLC for work described as: PRESORT MAIL SERVICES - BLOOMINGTON, IL Key points: 1. Contract value of $2.83 million over its period of performance. 2. Awarded to Quicksilver Mailing Services, LLC. 3. Service category is 'All Other Business Support Services' (NAICS 561499). 4. Contract duration is approximately 5 years and 5 months.

Value Assessment

Rating: fair

The contract value of $2.83 million for presort mail services over five years appears reasonable given the scope. Benchmarking against similar contracts for large-scale mail processing would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are utilized for this essential administrative service. The pricing efficiency is dependent on the effectiveness of the SAP competition.

Public Impact

Ensures efficient processing of IRS mail, potentially speeding up taxpayer communications. Supports a private sector company's operations through government contracting. The use of presort services aims to reduce postage costs for the IRS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IRS relies on business support services like presort mail to manage its vast communication needs. Spending benchmarks for this sector are typically tied to mail volume and processing efficiency, with government contracts often seeking cost savings through bulk mail discounts.

Small Business Impact

The contract was awarded to Quicksilver Mailing Services, LLC. Further analysis would be needed to determine if this is a small business and if subcontracting opportunities were mandated or utilized.

Oversight & Accountability

The award was made via Purchase Order, a common method for SAP procurements. Oversight would focus on contract performance, delivery of services, and adherence to the firm-fixed-price terms.

Related Government Programs

Risk Flags

Tags

all-other-business-support-services, department-of-the-treasury, il, purchase-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.8 million to QUICKSILVER MAILING SERVICES, LLC. PRESORT MAIL SERVICES - BLOOMINGTON, IL

Who is the contractor on this award?

The obligated recipient is QUICKSILVER MAILING 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 $2.8 million.

What is the period of performance?

Start: 2021-03-01. End: 2026-08-31.

What is the typical cost per piece for presort mail services in the private sector, and how does this contract's implied per-piece cost compare?

Industry benchmarks for presort mail services vary significantly based on volume, mail class, and specific services required. Without detailed volume data from the IRS contract, a precise per-piece cost comparison is difficult. However, the IRS likely leverages its volume to negotiate rates competitive with or better than standard commercial rates, aiming for cost savings on postage.

What are the risks associated with using Simplified Acquisition Procedures (SAP) for a contract of this duration and value?

The primary risk of SAP is potentially reduced competition, which could lead to higher prices than if the contract were competed under full and open procedures. For a contract spanning over five years, there's also a risk that market conditions or service needs could change, making the initial pricing less optimal over time.

How effectively does this contract contribute to the IRS's overall mission of tax administration and taxpayer service?

This contract is crucial for the efficient and cost-effective handling of IRS mail, which includes taxpayer notices, refunds, and other essential communications. By outsourcing presort services, the IRS can focus its resources on core tax functions, and timely mail processing supports effective taxpayer service.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesBusiness Support ServicesAll Other Business Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 205AE9-21-Q-83908-PMS

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2308 N GRAND AVE E, SPRINGFIELD, IL, 62702

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,834,664

Exercised Options: $2,834,664

Current Obligation: $2,834,664

Actual Outlays: $2,364,487

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2021-03-01

Current End Date: 2026-08-31

Potential End Date: 2026-08-31 16:32:15

Last Modified: 2026-02-26

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