Newspaper distribution contract awarded to Southwest Distribution Inc. for $1.6M over 5 years

Contract Overview

Contract Amount: $160,045 ($160.0K)

Contractor: Southwest Distribution Inc

Awarding Agency: Export-Import Bank of the United States

Start Date: 2022-05-01

End Date: 2027-05-15

Contract Duration: 1,840 days

Daily Burn Rate: $87/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEWSPAPER DISTRIBUTION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Export-Import Bank of the United States obligated $160,045.37 to SOUTHWEST DISTRIBUTION INC for work described as: NEWSPAPER DISTRIBUTION Key points: 1. Contract value appears reasonable for the duration and scope of newspaper distribution services. 2. Limited competition due to sole-source award may have impacted price discovery. 3. No immediate risk indicators identified, but long-term value depends on performance. 4. Contract duration of 5 years provides stability for service delivery. 5. Positioned within the wholesale trade sector, specifically newspaper distribution. 6. Performance will be key to ensuring value for money over the contract term.

Value Assessment

Rating: good

The contract value of $1.6 million over approximately five years for newspaper distribution services appears to be within a reasonable range. Benchmarking against similar contracts is challenging without more specific details on the volume and geographic scope of distribution. However, the firm fixed-price structure suggests that the contractor assumes the risk for cost overruns, which can be favorable for the government. The absence of competition in this award, however, makes a direct price comparison difficult.

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. The data indicates it was 'NOT COMPETED UNDER SAP' (Small Acquisition Procedures), suggesting it may have been justified under specific circumstances for sole-source procurement. The lack of competition means that multiple vendors were not given the opportunity to bid, which can limit price discovery and potentially lead to higher costs than if a competitive process had been employed.

Taxpayer Impact: Taxpayers may not have received the benefit of the lowest possible price due to the absence of a competitive bidding process. This award structure bypasses the typical market forces that drive down costs in a competitive environment.

Public Impact

The Export-Import Bank of the United States benefits from reliable newspaper distribution services. Services delivered include the wholesale distribution of newspapers. Geographic impact is focused on the District of Columbia. Workforce implications are likely within the distribution and logistics sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to suboptimal pricing.
Sole-source awards can sometimes indicate a lack of market research or planning.
Contract duration might be longer than necessary if needs change.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Clear end date provides predictability for budgeting.
Awarding agency is the Export-Import Bank, suggesting a specific need.

Sector Analysis

This contract falls within the wholesale trade sector, specifically dealing with the distribution of newspapers and periodicals. The North American Industry Classification System (NAICS) code 424920, 'Book, Periodical, and Newspaper Merchant Wholesalers,' categorizes this type of business. The market for newspaper distribution has been impacted by the shift to digital media, but physical distribution remains essential for many publications. Comparable spending benchmarks are difficult to ascertain without more granular data on distribution volume and specific service requirements.

Small Business Impact

This contract does not appear to have a small business set-aside. The award was made to 'SOUTHWEST DISTRIBUTION INC.' Further investigation would be needed to determine if this entity is a small business. There is no explicit indication of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem is likely minimal unless Southwest Distribution Inc. itself is a small business that will be performing the work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Export-Import Bank of the United States' internal procurement and contract management processes. As a purchase order, it may be subject to less formal oversight than larger, more complex contracts. Transparency is limited by the sole-source nature of the award. There is no specific mention of an Inspector General jurisdiction for this particular award, though the Ex-Im Bank does have an Office of Inspector General that oversees its operations.

Related Government Programs

Wholesale Trade Services
Logistics and Distribution Contracts
Publication Distribution
Federal Agency Support Services

Risk Flags

Sole-source award limits price competition.
Lack of transparency in procurement justification.
Potential for uncompetitive pricing.

Frequently Asked Questions

What is this federal contract paying for?

Export-Import Bank of the United States awarded $160,045.37 to SOUTHWEST DISTRIBUTION INC. NEWSPAPER DISTRIBUTION

Who is the contractor on this award?

The obligated recipient is SOUTHWEST DISTRIBUTION INC.

Which agency awarded this contract?

Awarding agency: Export-Import Bank of the United States (Export-Import Bank of the United States).

What is the total obligated amount?

The obligated amount is $160,045.37.

What is the period of performance?

Start: 2022-05-01. End: 2027-05-15.

What is the track record of Southwest Distribution Inc. with federal contracts?

Information regarding Southwest Distribution Inc.'s specific track record with federal contracts is not detailed in the provided data. The award is a purchase order from the Export-Import Bank of the United States. To assess their track record, one would need to search federal procurement databases like SAM.gov or FPDS for past awards, performance reviews, and any reported issues or successes. A history of successful, timely, and cost-effective delivery on similar contracts would indicate reliability, while a pattern of performance problems or disputes would raise concerns about future performance.

How does the $1.6 million contract value compare to market rates for newspaper distribution?

Directly comparing the $1.6 million contract value to market rates for newspaper distribution is challenging without specific details on the scope, volume, and geographic reach required by the Export-Import Bank. Newspaper distribution costs can vary significantly based on factors like the number of publications, daily circulation, delivery zones, and the need for specialized handling. Given this is a sole-source award, it bypasses the competitive process that typically helps establish market-based pricing. A thorough market analysis or a competitive bidding process would be necessary to definitively benchmark this price against prevailing market rates.

What are the primary risks associated with this sole-source newspaper distribution contract?

The primary risk associated with this sole-source contract is the potential for suboptimal pricing due to the lack of competition. Without competing bids, the government may be paying more than necessary. Another risk is that the chosen contractor, Southwest Distribution Inc., may not have been vetted against other potential providers, meaning there might be more capable or cost-effective options available. Furthermore, the long-term nature of the contract (5 years) introduces a risk that the agency's needs could change, or that market conditions for distribution might evolve, making the current arrangement less suitable over time. Performance risk also exists, though the firm fixed-price nature mitigates financial risk for the government if costs escalate for the contractor.

How effective is the Export-Import Bank of the United States in managing its distribution contracts?

The provided data focuses on a single contract award and does not offer sufficient information to assess the overall effectiveness of the Export-Import Bank of the United States in managing its distribution contracts. Effectiveness would typically be measured by factors such as on-time delivery, cost control, contractor performance ratings, and the ability to adapt to changing needs. The sole-source nature of this particular award might suggest a specific, perhaps unique, requirement or a relationship that the agency deemed necessary to maintain. A broader review of the agency's procurement history and contract performance metrics would be needed for a comprehensive assessment.

What has been the historical spending pattern for newspaper distribution by the Export-Import Bank?

The provided data only details one specific contract for newspaper distribution. It does not offer any historical spending patterns for this service by the Export-Import Bank of the United States. To understand historical spending, one would need to access historical contract databases and analyze expenditures over previous fiscal years. This would reveal whether this $1.6 million contract represents an increase, decrease, or consistent level of spending for such services. It would also help determine if similar contracts have been awarded previously and under what conditions (e.g., competitive vs. sole-source).

Are there any specific performance metrics or KPIs tied to this contract?

The provided data for this newspaper distribution contract does not explicitly list specific performance metrics or Key Performance Indicators (KPIs). However, as a purchase order with a firm fixed-price structure, it is implied that the contractor, Southwest Distribution Inc., is expected to deliver the contracted services (newspaper distribution) reliably and within the agreed-upon timeframe and scope. The effectiveness of the contract will ultimately be judged by the successful completion of these distribution tasks. Formal KPIs are often detailed in the contract's statement of work or terms and conditions, which are not included here.

Industry Classification

NAICS: Wholesale Trade › Miscellaneous Nondurable Goods Merchant Wholesalers › Book, Periodical, and Newspaper Merchant Wholesalers

Product/Service Code: BOOKS, MAPS, OTHER PUBLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2655 FIRTH STERLING AVE SE, WASHINGTON, DC, 20020

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $160,045

Exercised Options: $160,045

Current Obligation: $160,045

Actual Outlays: $150,657

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline