Railroad Retirement Board awards $150K for postage services, with a 394-day duration

Contract Overview

Contract Amount: $150,000 ($150.0K)

Contractor: Pitney Bowes Inc.

Awarding Agency: Railroad Retirement Board

Start Date: 2025-09-01

End Date: 2026-09-30

Contract Duration: 394 days

Daily Burn Rate: $381/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMMERCIAL POSTAGE PAYMENT SERVICES. DTO TO OBLIGATE FUNDS FOR SEPT FY26.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60611

State: Illinois Government Spending

Plain-Language Summary

Railroad Retirement Board obligated $150,000 to PITNEY BOWES INC. for work described as: COMMERCIAL POSTAGE PAYMENT SERVICES. DTO TO OBLIGATE FUNDS FOR SEPT FY26. Key points: 1. Contract value appears reasonable for the service duration and scope. 2. Full and open competition suggests a competitive bidding process. 3. No immediate risk indicators are apparent from the provided data. 4. Performance context is limited to postage payment services. 5. Sector positioning is within business support services.

Value Assessment

Rating: good

The contract value of $150,000 for approximately 13 months of service appears to be within a reasonable range for commercial postage payment services. Without specific benchmarks for per-unit postage costs or comparable contract values for similar agencies, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the pricing was determined upfront and is intended to remain stable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This method typically fosters a competitive environment, which should theoretically lead to better pricing and service offerings for the government. The number of bidders is not specified, but the competition type suggests multiple entities likely participated.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a marketplace where the most cost-effective solutions are likely to be selected, driving down prices.

Public Impact

The Railroad Retirement Board benefits from efficient and cost-effective commercial postage payment services. Services delivered include the processing and payment of postage for official mail. Geographic impact is primarily within the operational scope of the Railroad Retirement Board. Workforce implications are minimal, as this is a service contract rather than a direct employment initiative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type helps control costs and provides budget certainty.
Contract duration aligns with the service needs, avoiding frequent re-competition.

Sector Analysis

This contract falls within the Business Support Services sector, specifically focusing on mail and document management. The market for commercial postage payment services is mature, with several established providers. The Railroad Retirement Board's spending in this area is likely a routine operational expense, benchmarked against similar government agencies' needs for efficient mail handling.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears to be limited for this specific award, though larger prime contractors may engage small businesses in their broader operations.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Railroad Retirement Board. Accountability is maintained through the firm-fixed-price structure and the defined service period. Transparency is generally provided through contract databases like FPDS, where this award is recorded.

Related Government Programs

Commercial Postage Services
Business Support Services
Mail Management Contracts

Frequently Asked Questions

What is this federal contract paying for?

Railroad Retirement Board awarded $150,000 to PITNEY BOWES INC.. COMMERCIAL POSTAGE PAYMENT SERVICES. DTO TO OBLIGATE FUNDS FOR SEPT FY26.

Who is the contractor on this award?

The obligated recipient is PITNEY BOWES INC..

Which agency awarded this contract?

Awarding agency: Railroad Retirement Board (Railroad Retirement Board).

What is the total obligated amount?

The obligated amount is $150,000.

What is the period of performance?

Start: 2025-09-01. End: 2026-09-30.

What is the historical spending pattern of the Railroad Retirement Board for commercial postage payment services?

Analyzing historical spending for commercial postage payment services by the Railroad Retirement Board (RRB) would provide crucial context for this $150,000 award. Without access to prior contract data, it's difficult to determine if this amount represents an increase, decrease, or stable expenditure compared to previous years. Understanding trends in postage volume, service provider changes, and pricing fluctuations over time would help assess whether the current award is cost-effective and aligned with the agency's long-term needs. For instance, if previous contracts were significantly lower or higher, it would warrant further investigation into the reasons behind the variance, such as changes in service requirements, market rates, or contract duration.

How does the per-unit cost of postage services under this contract compare to market rates or other federal agencies?

Benchmarking the per-unit cost of postage services under this contract against market rates or similar contracts awarded to other federal agencies is essential for a thorough value assessment. Since the specific per-unit costs (e.g., cost per stamp, cost per mailing) are not detailed in the provided data, a direct comparison is challenging. However, if the Railroad Retirement Board (RRB) has access to internal cost data or can query databases for comparable contracts, they could identify if Pitney Bowes Inc. is offering competitive pricing. Factors such as volume discounts, service level agreements, and the specific types of postage used would influence these per-unit costs. A favorable comparison would indicate good value for taxpayer money.

What is the track record of Pitney Bowes Inc. in providing similar services to federal agencies?

Pitney Bowes Inc. is a well-established provider of mail management solutions, including postage payment services, and has a significant history of contracting with U.S. federal agencies. Their track record typically involves providing hardware, software, and services for processing and tracking mail. Assessing their performance on previous federal contracts would involve reviewing past performance evaluations, any documented disputes or contract terminations, and their overall reliability in meeting delivery schedules and service requirements. A positive performance history suggests a lower risk for this contract, while any significant past issues might warrant closer scrutiny of contract management and oversight.

What are the specific service level requirements and performance metrics for this postage payment contract?

The provided data does not detail the specific service level requirements (SLRs) or performance metrics (PMs) for this commercial postage payment services contract. Typically, such contracts would include clauses related to uptime, response times for support, accuracy of postage calculation, and timely processing of payments. The effectiveness of the contract hinges on how well these SLRs and PMs are defined and monitored. The Railroad Retirement Board would be responsible for tracking Pitney Bowes Inc.'s adherence to these metrics, with potential penalties or incentives tied to performance. Without this information, it's difficult to fully assess the operational effectiveness and value delivered.

Are there any potential risks associated with relying on a single vendor, Pitney Bowes Inc., for postage services, even under full and open competition?

While this contract was awarded under full and open competition, relying on a single vendor like Pitney Bowes Inc. for postage payment services can introduce certain risks. These could include vendor lock-in, where switching providers becomes costly or complex; potential price increases in future contract renewals if competition diminishes; and a reduced incentive for the incumbent to innovate or offer superior service if they perceive limited threat from competitors. Furthermore, operational disruptions at the vendor's end could directly impact the Railroad Retirement Board's mail processing capabilities. Mitigating these risks involves robust contract management, regular market analysis, and maintaining clear communication channels with the vendor.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 999

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27 WATERVIEW DR, SHELTON, CT, 06484

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $150,000

Exercised Options: $150,000

Current Obligation: $150,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA21D08R3

IDV Type: FSS

Timeline