Department of Energy awards $3.3M contract for mail and distribution services to DIDLAKE INC
Contract Overview
Contract Amount: $3,317,143 ($3.3M)
Contractor: Didlake Inc
Awarding Agency: Department of Energy
Start Date: 2024-05-01
End Date: 2026-04-30
Contract Duration: 729 days
Daily Burn Rate: $4.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: US DEPARTMENT OF ENERGY HQ FOR MAIL, COPYING, DISTRIBUTION, AND EM SUPPORT SERVICES FOR THEIR MAIL ROOM.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $3.3 million to DIDLAKE INC for work described as: US DEPARTMENT OF ENERGY HQ FOR MAIL, COPYING, DISTRIBUTION, AND EM SUPPORT SERVICES FOR THEIR MAIL ROOM. Key points: 1. Contract focuses on essential mailroom operations, including copying and distribution. 2. The award was made on a non-competitive basis, raising questions about potential cost savings. 3. Performance period spans two years, indicating a need for ongoing support. 4. The contract type is 'Labor Hours', which can be less predictable in final cost. 5. The primary service area is Washington D.C., suggesting a localized operational need.
Value Assessment
Rating: fair
The contract value of $3.3 million over two years for mailroom services appears to be within a reasonable range for a federal agency's administrative support needs. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for office administrative services would provide a clearer picture of whether the pricing reflects competitive market rates or if there is potential for overpayment, especially given the non-competitive nature of the award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a 'not available for competition' basis, indicating that a full and open competition was not conducted. This typically occurs when only one responsible source is available or when an exception to full competition applies. The lack of multiple bidders means there was no direct price comparison or incentive for vendors to offer their most competitive pricing, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding, which is a key mechanism for ensuring cost-effectiveness in government procurement.
Public Impact
The Department of Energy's headquarters will benefit from efficient mail, copying, and distribution services. Essential administrative functions supporting the agency's operations will be maintained. The services are geographically focused within the District of Columbia. The contract supports the administrative workforce by ensuring reliable operational support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- The 'Labor Hours' contract type can lead to cost overruns if not closely managed.
- Limited transparency into the justification for sole-source award.
Positive Signals
- Ensures continuity of essential mailroom and distribution services for the Department of Energy.
- The contractor, DIDLAKE INC, is being utilized for a specific administrative support function.
Sector Analysis
This contract falls within the Office Administrative Services sector (NAICS code 561110), which encompasses a wide range of support services for businesses and government agencies. The federal market for such services is substantial, with agencies consistently requiring support for mailroom operations, document management, and general administrative tasks. This specific contract represents a small portion of overall federal spending on administrative support, but it is critical for the day-to-day functioning of the Department of Energy's headquarters.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to DIDLAKE INC, without further information on the company's size, does not indicate a direct benefit or impact on the small business ecosystem through this particular procurement. Future analysis could explore if DIDLAKE INC is a small business itself or if subcontracting opportunities exist.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Energy's contracting officers and program managers responsible for administrative services. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award; however, contract award details are typically available through federal procurement databases.
Related Government Programs
- Federal Mail Services
- Office Administrative Support Services
- Document Management Services
- Federal Agency Support Contracts
Risk Flags
- Sole-source award may limit cost savings.
- Labor hours contract type introduces cost uncertainty.
- Lack of detailed performance metrics in provided data.
Tags
department-of-energy, administrative-services, mail-services, copying-services, distribution-services, sole-source, labor-hours, definitive-contract, district-of-columbia, office-administrative-services, federal-agency, hq
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.3 million to DIDLAKE INC. US DEPARTMENT OF ENERGY HQ FOR MAIL, COPYING, DISTRIBUTION, AND EM SUPPORT SERVICES FOR THEIR MAIL ROOM.
Who is the contractor on this award?
The obligated recipient is DIDLAKE INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $3.3 million.
What is the period of performance?
Start: 2024-05-01. End: 2026-04-30.
What is the specific justification for awarding this contract on a sole-source basis to DIDLAKE INC?
The provided data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a designation for sole-source awards. Federal Acquisition Regulation (FAR) Part 6 outlines exceptions to full and open competition. Common justifications include that only one responsible source exists, or that the agency needs are so unique that only one vendor can meet them. Without further documentation from the Department of Energy, the precise reason for this sole-source designation remains unclear. It is possible that DIDLAKE INC possesses unique capabilities, existing infrastructure, or a prior relationship that the agency deemed essential and irreplaceable, thereby precluding a competitive process. Further investigation into the contract file or agency justifications would be necessary to confirm the specific rationale.
How does the cost of this contract compare to similar mailroom and distribution service contracts at other federal agencies?
A direct cost comparison is difficult without detailed service level agreements and scope of work for comparable contracts. However, the average annual cost for this contract is approximately $1.66 million ($3.3M / 2 years). Federal mailroom and distribution services can vary significantly based on agency size, volume of mail, geographic location, and specific services required (e.g., secure handling, international mail, specialized distribution). Contracts for similar administrative support services can range from hundreds of thousands to several million dollars annually. Given the sole-source nature, it is crucial to benchmark this against publicly available data for competitively awarded contracts of similar scope to ensure fair pricing. The 'Labor Hours' pricing model also introduces variability, making a fixed-price comparison less direct.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?
The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, for mailroom and distribution services, KPIs might include mail processing time, delivery accuracy, response times for copying requests, equipment uptime, and adherence to security protocols. SLAs would define the acceptable performance thresholds for these KPIs. The 'Labor Hours' contract type suggests that payment is based on the time spent by contractor personnel, rather than fixed deliverables, which can sometimes make performance monitoring more complex. The Department of Energy's contracting officer and program managers are responsible for establishing and monitoring these metrics to ensure the contractor meets the agency's needs effectively and efficiently.
What is the track record of DIDLAKE INC in performing similar federal contracts?
Information regarding DIDLAKE INC's specific track record in performing similar federal contracts is not detailed in the provided data. To assess their performance history, one would typically review past performance evaluations, contract award databases (like SAM.gov or FPDS), and any available CPARS (Contractor Performance Assessment Reporting System) reports. A positive track record with previous government agencies for administrative support, mail services, or similar functions would indicate a lower performance risk. Conversely, a history of issues or underperformance could raise concerns about the current contract's successful execution. Further research into public federal procurement databases would be necessary to evaluate DIDLAKE INC's past performance.
What is the potential risk associated with the 'Labor Hours' contract type for this service?
The 'Labor Hours' contract type, while flexible, carries inherent risks for the government, primarily related to cost control and potential overruns. Unlike fixed-price contracts, where the contractor assumes more risk for cost overruns, 'Labor Hours' contracts reimburse the contractor for the direct labor hours expended at specified fixed hourly rates. This means the final cost is directly tied to the amount of time spent. If the scope of work is not clearly defined, or if the contractor's efficiency is low, the total cost can escalate beyond initial estimates. Effective oversight, detailed work tracking, and clear task definitions are crucial to mitigate these risks and ensure the government pays only for necessary and productive labor hours.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89303024RMA000055
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 8641 BREEDEN AVE, MANASSAS, VA, 20110
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,747,883
Exercised Options: $3,748,118
Current Obligation: $3,317,143
Actual Outlays: $2,774,312
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-01
Current End Date: 2026-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2026-04-03
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