Treasury's Mint Contract Awarded to PFSWEB Inc. for $36.7M
Contract Overview
Contract Amount: $36,677,528 ($36.7M)
Contractor: Pfsweb Inc
Awarding Agency: Department of the Treasury
Start Date: 2008-01-15
End Date: 2009-12-10
Contract Duration: 695 days
Daily Burn Rate: $52.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: UNITED STATES MINT CALL AND FULFILLMENT CENTER CONTRACTOR
Place of Performance
Location: PLANO, COLLIN County, TEXAS, 75074
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $36.7 million to PFSWEB INC for work described as: UNITED STATES MINT CALL AND FULFILLMENT CENTER CONTRACTOR Key points: 1. Contract value of $36.7M for warehousing and fulfillment services. 2. Awarded to PFSWEB INC, with no indication of competition. 3. Potential risk due to lack of competitive bidding. 4. Sector is General Warehousing and Storage, supporting the United States Mint.
Value Assessment
Rating: questionable
The contract value of $36.7M for warehousing and fulfillment is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have prevented price discovery and potentially led to a higher cost for taxpayers.
Taxpayer Impact: The absence of competition raises concerns about the optimal use of taxpayer funds for these essential services.
Public Impact
Ensures the operational continuity of the United States Mint's fulfillment services. Supports the distribution of mint products to the public. Potential for increased costs to consumers if the contractor passes on inefficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- No small business participation indicated
Positive Signals
- Firm fixed price contract type
- Supports essential government function
Sector Analysis
This contract falls under General Warehousing and Storage, a critical support function for government agencies. Benchmarks for similar warehousing contracts are difficult to ascertain without competitive data.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business engagement.
Oversight & Accountability
The lack of competition suggests potential oversight gaps in the procurement process. Further review would be needed to ensure accountability and adherence to procurement regulations.
Related Government Programs
- General Warehousing and Storage
- Department of the Treasury Contracting
- United States Mint Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpayment
- No small business participation
- Limited transparency in award justification
Tags
general-warehousing-and-storage, department-of-the-treasury, tx, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $36.7 million to PFSWEB INC. UNITED STATES MINT CALL AND FULFILLMENT CENTER CONTRACTOR
Who is the contractor on this award?
The obligated recipient is PFSWEB INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (United States Mint).
What is the total obligated amount?
The obligated amount is $36.7 million.
What is the period of performance?
Start: 2008-01-15. End: 2009-12-10.
What was the justification for not competing this contract?
The provided data does not specify the justification for not competing this contract. Typically, sole-source awards require a documented justification, such as a unique capability or urgent need, which would need to be reviewed by the agency's contracting officers and potentially the Government Accountability Office (GAO).
What is the risk associated with a sole-source award for warehousing services?
The primary risk of a sole-source award for warehousing services is the potential for inflated costs due to the absence of competitive pressure. Without competing bids, the government may overpay for services. Additionally, there's a risk of complacency from the contractor, leading to reduced service quality over time.
How effective is this contract in ensuring the timely delivery of mint products?
The effectiveness of this contract in ensuring timely delivery cannot be fully assessed from the provided data alone. While the contract is in place, its success depends on the contractor's performance, operational efficiency, and the specific service level agreements established. Performance metrics and customer feedback would be necessary for a comprehensive evaluation.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 500 N CENTRAL EXPY # 500, PLANO, TX, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,677,528
Exercised Options: $36,677,528
Current Obligation: $36,677,528
Timeline
Start Date: 2008-01-15
Current End Date: 2009-12-10
Potential End Date: 2009-12-10 00:00:00
Last Modified: 2010-01-14
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