National Archives procures mail metering machines and service for $38,961.42 over 4 years

Contract Overview

Contract Amount: $38,961 ($39.0K)

Contractor: Pitney Bowes Inc.

Awarding Agency: National Archives and Records Administration

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $27/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL METERING MACHINES (2) AND SERVICE BASE AND 4 OY

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63138

State: Missouri Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $38,961.42 to PITNEY BOWES INC. for work described as: MAIL METERING MACHINES (2) AND SERVICE BASE AND 4 OY Key points: 1. The contract value appears modest, suggesting a focus on essential operational needs rather than large-scale technology upgrades. 2. Competition dynamics are crucial for ensuring fair pricing on such essential services. 3. Performance risk seems low given the nature of the service and the established provider. 4. The contract duration of 4 years provides stability for service delivery. 5. This spending falls within the broader category of business support services for federal agencies.

Value Assessment

Rating: good

The total contract value of $38,961.42 over approximately 4 years is relatively small. Benchmarking against similar contracts for mail metering machines and service is difficult without more specific data on machine types and service levels. However, the firm fixed-price structure suggests that the government has a clear understanding of the costs involved, which is generally a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single delivery order suggests that this specific procurement was likely straightforward, but the initial competition should have driven competitive pricing. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

Federal agencies, specifically the National Archives and Records Administration, benefit from reliable mail processing capabilities. Essential mail metering services are delivered, ensuring efficient outgoing mail operations. The geographic impact is primarily within the operational locations of the National Archives. There are likely minimal direct workforce implications, as this is a service contract for existing equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a fair process.
Firm fixed-price contract type helps control costs.
The contractor, Pitney Bowes Inc., is a well-established provider in this market.

Sector Analysis

This contract falls under the Business Support Services sector, specifically related to office equipment and maintenance. The market for mail metering machines and related services is mature, with several established players. Spending in this category is typically consistent across federal agencies for operational efficiency, with contract values varying based on the scale of operations and specific equipment needs.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The nature of the service and the established market leader suggest that larger, specialized companies are typically awarded these types of contracts.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm fixed-price contract awarded through full and open competition, it implies adherence to established procurement regulations. Transparency is maintained through public contract databases. Specific oversight details beyond this are not readily available from the provided data.

Related Government Programs

General Services Administration (GSA) Schedules for office equipment
Agency-specific mailroom operations contracts
Business support services procurement

Risk Flags

Potential for vendor lock-in over the contract duration.
Limited insight into the number of bidders, impacting competition assessment.
Lack of specific machine models and service level details for precise benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $38,961.42 to PITNEY BOWES INC.. MAIL METERING MACHINES (2) AND SERVICE BASE AND 4 OY

Who is the contractor on this award?

The obligated recipient is PITNEY BOWES INC..

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $38,961.42.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the typical lifespan and maintenance cost for mail metering machines provided under federal contracts?

The typical lifespan for industrial mail metering machines can range from 5 to 10 years, depending on usage, model, and maintenance. Maintenance costs vary significantly based on the complexity of the machine, the service plan chosen, and the frequency of repairs. For a contract like this, which includes service, the annual service cost is a critical component. Without specific details on the models and service levels, it's hard to provide an exact benchmark, but agencies often negotiate service level agreements that include preventative maintenance and emergency repairs to ensure uptime. The firm fixed-price nature of this contract suggests that these costs have been estimated and agreed upon upfront for the contract duration.

How does the pricing of this contract compare to commercial rates for similar mail metering services?

Directly comparing the pricing of this federal contract to commercial rates is challenging without knowing the specific models of mail metering machines and the exact service level agreements. Commercial businesses may lease machines with varying service packages, and pricing is often tailored to volume and specific features. Federal contracts, especially those awarded under full and open competition, aim for competitive pricing. However, government contracts can sometimes include additional administrative overhead or specific compliance requirements that might influence the final price. The modest total value of $38,961.42 over four years suggests a potentially cost-effective solution for the National Archives, but a definitive comparison would require detailed commercial quotes for equivalent equipment and services.

What are the potential risks associated with relying on a single vendor for mail metering services over a four-year period?

Relying on a single vendor for mail metering services over four years presents several potential risks. Firstly, there's a risk of vendor lock-in, where switching providers might be costly or disruptive if the vendor's technology or service degrades. Secondly, without ongoing competition, the vendor might have less incentive to innovate or offer the most competitive pricing for upgrades or additional services. Thirdly, service disruptions due to the vendor's financial instability, operational issues, or natural disasters could impact the agency's mail processing capabilities. Finally, if the vendor's pricing structure is not carefully monitored, costs could escalate beyond market rates over the contract term, despite the firm fixed-price nature.

What is the track record of Pitney Bowes Inc. in providing mail metering services to the federal government?

Pitney Bowes Inc. is a long-standing and major provider of mail and document management solutions, including mail metering machines, to both commercial and government entities. They have a significant presence in the federal market, often securing contracts through various procurement vehicles, including GSA Schedules and direct solicitations. Their track record generally indicates a capacity to meet federal requirements for reliability and service. However, as with any large contractor, specific performance on individual contracts can vary. Agencies typically review past performance information during the solicitation process to assess a bidder's suitability for new contracts.

How does the spending on mail metering machines and services by the National Archives compare to other federal agencies of similar size?

Comparing the National Archives' spending on mail metering machines and services to other federal agencies of similar size requires access to broader federal spending data. However, the reported value of $38,961.42 over four years is relatively modest. Agencies with larger mail volumes, more dispersed operations, or more complex mailing needs would likely incur higher costs. For instance, agencies with extensive field offices or those handling a high volume of constituent mail might have significantly larger contracts for similar services. This contract's value suggests that the National Archives' mail processing needs, as addressed by this procurement, are within a manageable operational budget for such services.

Industry Classification

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

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $44,111

Exercised Options: $38,961

Current Obligation: $38,961

Actual Outlays: $28,662

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA21D08R3

IDV Type: FSS

Timeline