Treasury's IRS Mail Processing Contract: $17.4M for Mail Pickup and Processing

Contract Overview

Contract Amount: $17,393,493 ($17.4M)

Contractor: Global Mail, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2008-12-01

End Date: 2011-11-30

Contract Duration: 1,094 days

Daily Burn Rate: $15.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PICKUP&PROCESSING OF IRS NATIONAL DISTRIBUTION CENTER MAIL

Place of Performance

Location: WESTON, BROWARD County, FLORIDA, 33331

State: Florida Government Spending

Plain-Language Summary

Department of the Treasury obligated $17.4 million to GLOBAL MAIL, INC. for work described as: PICKUP&PROCESSING OF IRS NATIONAL DISTRIBUTION CENTER MAIL Key points: 1. Contract awarded to Global Mail, Inc. for mail services. 2. The contract value is $17.4 million over 1094 days. 3. This is a competitive delivery order, indicating some price discovery. 4. The sector is primarily administrative support and logistics.

Value Assessment

Rating: fair

The contract's fixed-price structure provides cost certainty. However, without specific benchmarks for mail processing services, assessing value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This was a competitive delivery order, suggesting multiple bids were considered. The limited nature implies it might be part of a larger IDIQ, but the specific competition details are not fully clear.

Taxpayer Impact: Taxpayers indirectly fund this contract through general appropriations for the IRS's operational expenses.

Public Impact

Ensures efficient processing of IRS mail, crucial for tax administration. Supports the IRS's ability to communicate with taxpayers and process returns. Potential for delays or errors if mail processing is not optimal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if vendor fails.
Lack of detailed performance metrics.
Limited visibility into cost-effectiveness.

Positive Signals

Competitive award process.
Fixed-price contract provides budget predictability.

Sector Analysis

This contract falls under administrative and logistics support services, essential for government agency operations. Benchmarks for similar mail processing contracts are not readily available, making direct comparison difficult.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, Global Mail, Inc., is not identified as a small business in this context.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) within the IRS. Accountability relies on contract performance clauses and reporting.

Related Government Programs

Direct Mail Advertising
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Contract duration is significant (over 3 years).
Limited information on specific performance metrics.
Potential for vendor lock-in.
Lack of clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.4 million to GLOBAL MAIL, INC.. PICKUP&PROCESSING OF IRS NATIONAL DISTRIBUTION CENTER MAIL

Who is the contractor on this award?

The obligated recipient is GLOBAL MAIL, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2008-12-01. End: 2011-11-30.

What is the specific service level agreement (SLA) for mail processing and how is performance measured?

The provided data does not detail the specific Service Level Agreement (SLA) for mail processing. Performance measurement would typically involve metrics like turnaround time, accuracy rates, and adherence to delivery schedules. Without these specifics, it's difficult to fully assess the operational effectiveness and value delivered by Global Mail, Inc. under this contract.

How does the pricing of this contract compare to industry benchmarks for similar mail processing services?

Direct comparison to industry benchmarks is challenging without more granular data on the specific services provided (e.g., sorting, scanning, postage application). The $17.4 million value over approximately three years suggests a significant operational cost. Further analysis would require detailed cost breakdowns and comparisons with private sector mail handling contracts of similar scale and scope.

What are the potential risks associated with relying on a single vendor for critical IRS mail processing?

Key risks include service disruptions due to vendor operational issues, financial instability, or contract disputes. A single vendor also limits leverage for negotiating better terms or switching providers if performance degrades. This dependency could impact IRS operations, taxpayer communication, and the timely processing of important documents, necessitating robust contingency planning and vendor management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Advertising, Public Relations, and Related Services › Direct Mail Advertising

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deutsche Post AG (UEI: 341020188)

Address: 2700 S COMMERCE PKWY 4TH FL, FORT LAUDERDALE, FL, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,393,493

Exercised Options: $17,393,493

Current Obligation: $17,393,493

Parent Contract

Parent Award PIID: GS10F0208L

IDV Type: FSS

Timeline