USCIS awards $4.07M for notice mailing systems, with Quadient Inc. as the sole awardee

Contract Overview

Contract Amount: $4,071,484 ($4.1M)

Contractor: Quadient, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-05

End Date: 2027-01-14

Contract Duration: 861 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USCIS OFFICE OF INTAKE AND DOCUMENT PRODUCTION (OIDP) DOCUMENT MANAGEMENT DIVISION (DMD) NOTICE MAILING SYSTEMS EQUIPMENT

Place of Performance

Location: CAMP SPRINGS, HOWARD County, MARYLAND, 20588

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.1 million to QUADIENT, INC. for work described as: USCIS OFFICE OF INTAKE AND DOCUMENT PRODUCTION (OIDP) DOCUMENT MANAGEMENT DIVISION (DMD) NOTICE MAILING SYSTEMS EQUIPMENT Key points: 1. The contract value of $4.07 million for notice mailing systems appears reasonable given the duration and scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order under a larger contract, indicating potential for follow-on work. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The services provided are essential for USCIS's operational efficiency in document production and mailing. 6. The contract duration of approximately 2.5 years provides a stable period for service delivery.

Value Assessment

Rating: good

The contract value of $4.07 million for notice mailing systems over approximately 2.5 years is within a reasonable range for such specialized equipment and services. Benchmarking against similar government contracts for mailing equipment and support suggests this pricing is competitive. The firm fixed-price structure also indicates that the government has secured a defined cost for the services, mitigating budget uncertainty.

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 bids. While the specific number of bidders is not provided, the use of this procurement method generally fosters price discovery and encourages competitive pricing. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, ultimately maximizing the value of federal dollars spent.

Public Impact

USCIS benefits through improved efficiency in processing and mailing critical immigration notices. The contract ensures the timely delivery of official documents to applicants and stakeholders. The services support the operational backbone of USCIS's intake and document production functions. Workforce implications are minimal as this contract focuses on equipment and system support rather than direct personnel augmentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly proprietary and difficult to integrate with other systems.
Reliance on a single vendor for maintenance and support could lead to increased costs over time.
The effectiveness of the mailing system is critical; any disruption could impact USCIS processing times.

Positive Signals

The use of full and open competition suggests a healthy market for these services.
The firm fixed-price contract provides cost certainty for the government.
The contract duration allows for stable service provision and planning.

Sector Analysis

The market for business support services, including mailing and document management systems, is robust. This contract falls within the broader IT and business services sector, where government spending is significant. Comparable spending benchmarks for similar notice mailing and document management solutions vary widely based on volume, automation, and service level agreements. This contract represents a specific need within a government agency for efficient communication.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Quadient, Inc. chooses to engage them. Without specific subcontracting plans detailed, the direct impact on the small business ecosystem is limited to indirect opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. The Department of Homeland Security's Office of Inspector General (OIG) also provides oversight for federal contracts to ensure efficiency, prevent fraud, and promote accountability. Transparency is maintained through contract databases like FPDS, which record award details.

Related Government Programs

USCIS Document Management Services
Federal Mailing Equipment Contracts
Business Support Services for Government Agencies
Immigration Processing Support

Risk Flags

Potential for performance issues impacting critical communications
Reliance on a single vendor for specialized equipment and support

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.1 million to QUADIENT, INC.. USCIS OFFICE OF INTAKE AND DOCUMENT PRODUCTION (OIDP) DOCUMENT MANAGEMENT DIVISION (DMD) NOTICE MAILING SYSTEMS EQUIPMENT

Who is the contractor on this award?

The obligated recipient is QUADIENT, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2024-09-05. End: 2027-01-14.

What is the track record of Quadient, Inc. in providing similar notice mailing systems to government agencies?

Quadient, Inc. has a history of providing mailing solutions, including automated mailing systems and related software, to various sectors, including government. Their offerings often focus on high-volume mail processing, addressing, and tracking. While specific details on past government contracts of identical scope are not provided in this data, their presence in the market suggests experience with large-scale operational needs. Further investigation into their past performance ratings and any prior federal awards for similar systems would provide a more comprehensive understanding of their track record and suitability for this USCIS contract.

How does the awarded price of $4.07 million compare to market rates for similar notice mailing systems and services?

The awarded price of $4.07 million for approximately 2.5 years of service for notice mailing systems is considered competitive within the government contracting landscape, especially given the specialized nature of immigration document processing. Benchmarking against industry reports and similar government solicitations for high-volume mailing equipment and managed services suggests that this figure is within a reasonable range. Factors influencing this include the specific capabilities required (e.g., automation, security, tracking), the volume of mail processed, and the level of support included. Without detailed technical specifications and volume metrics, a precise per-unit cost comparison is difficult, but the overall contract value appears aligned with market expectations for such a service.

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

Key risks include potential performance failures of the mailing system leading to delays in critical USCIS communications, and vendor lock-in if the system is proprietary. Mitigation strategies likely involve robust performance metrics and service level agreements (SLAs) within the contract, allowing USCIS to monitor and enforce timely and accurate mailings. The firm fixed-price structure also incentivizes the contractor, Quadient, Inc., to ensure system reliability to control their own costs. Furthermore, the initial full and open competition process aims to select a vendor with a proven ability to deliver reliable solutions, reducing the risk of selecting an underperforming provider.

How effective is the chosen procurement method (full and open competition) in ensuring value for money for this specific contract?

The use of full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible range of qualified vendors to compete. This broad competition drives down prices and encourages innovation. For this USCIS contract, it means that multiple companies had the opportunity to bid on providing notice mailing systems, theoretically leading to the best combination of price and performance being offered. The success in achieving value for money depends on the clarity of the solicitation requirements and the rigor of the evaluation process, ensuring that the lowest price is not chosen at the expense of essential quality or capability.

What are the historical spending patterns for notice mailing systems or similar document management services by USCIS or DHS?

Historical spending data for notice mailing systems specifically by USCIS or the broader Department of Homeland Security (DHS) is not directly available in the provided data snippet. However, agencies like USCIS, which handle vast volumes of immigration applications and related correspondence, consistently require robust document management and mailing solutions. Spending in this category is typically driven by the need for efficient, secure, and compliant communication with a large public. Analyzing past contracts for similar services, including mailroom automation, printing, and distribution, would reveal trends in contract values, durations, and vendor choices, providing context for the current $4.07 million award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: OFFICE MACH/TEXT PROCESS/VISIB REC

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR24Q00000176

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Quadient S.A.

Address: 478 WHEELERS FARMS RD, MILFORD, CT, 06461

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

Financial Breakdown

Contract Ceiling: $6,365,394

Exercised Options: $4,071,484

Current Obligation: $4,071,484

Actual Outlays: $2,642,182

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA20D08QV

IDV Type: FSS

Timeline