VA awards $22M mail management contract to Global Mail, Inc. under full and open competition

Contract Overview

Contract Amount: $21,988,767 ($22.0M)

Contractor: Global Mail, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-10-01

End Date: 2014-09-30

Contract Duration: 364 days

Daily Burn Rate: $60.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF MAIL MANAGEMENT

Place of Performance

Location: LANCASTER, DALLAS County, TEXAS, 75134

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.0 million to GLOBAL MAIL, INC. for work described as: IGF::OT::IGF MAIL MANAGEMENT Key points: 1. Contract awarded for mail management services, indicating a need for efficient mail handling within the VA. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. A single award was made, implying Global Mail, Inc. was the most competitive bidder. 4. The contract duration is one year, suggesting a need for ongoing, but potentially short-term, mail management support. 5. The fixed-price contract type helps control costs for the government. 6. The service falls under advertising and related services, potentially encompassing direct mail campaigns or similar functions.

Value Assessment

Rating: fair

The contract value of $21.99 million for one year of mail management services appears to be within a reasonable range for large-scale government mail operations. Benchmarking against similar contracts is difficult without more specific service details, but the award to a single vendor suggests competitive pricing was achieved. The fixed-price nature of the contract provides cost certainty for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that a single award was made suggests that Global Mail, Inc. was the most advantageous offer received by the agency. The level of competition, while open, resulted in one primary contractor, which could indicate a specialized market or a highly competitive initial bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple bids, which can drive down prices and ensure the government receives the best value. In this case, the outcome of one award suggests that the competitive process was effective in identifying a single best value provider.

Public Impact

Veterans Affairs (VA) benefits from streamlined and potentially more cost-effective mail management services. The contract supports the delivery of essential administrative and communication functions for the VA. The geographic impact is likely national, given the scale of VA operations, though specific delivery points are not detailed. Workforce implications may include employment opportunities within Global Mail, Inc. for mail processing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single vendor for critical mail operations could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost predictability for the agency.
The contractor, Global Mail, Inc., was selected through a competitive process, suggesting they met performance and cost requirements.

Sector Analysis

The mail management and direct mail advertising sector is a significant part of the broader business services industry. This contract falls under NAICS code 541860 (Direct Mail Advertising), which includes establishments primarily engaged in publishing, and/or selling advertising space or time. However, the description 'Mail Management' suggests a broader scope potentially including logistics and processing. Spending in this area is driven by government agencies' needs for efficient communication and outreach, with market size influenced by regulatory requirements and public service delivery.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The award to Global Mail, Inc. does not specify its size status. Therefore, the direct impact on small businesses through set-asides is not evident. Subcontracting opportunities for small businesses would depend on Global Mail, Inc.'s internal policies and the specific requirements of the mail management services, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated by the Federal Procurement Data System (FPDS), which records contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Federal Mail Services
Government Printing and Mail Operations
Direct Mail Advertising Contracts
Logistics and Distribution Services

Risk Flags

Single Award
Potential for Vendor Lock-in
Scope Ambiguity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.0 million to GLOBAL MAIL, INC.. IGF::OT::IGF MAIL MANAGEMENT

Who is the contractor on this award?

The obligated recipient is GLOBAL MAIL, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2013-10-01. End: 2014-09-30.

What specific mail management services are included under this contract?

The provided data indicates the contract falls under NAICS code 541860 (Direct Mail Advertising) and is described as 'Mail Management'. This suggests services could range from mail sorting, processing, and distribution to potentially include the design, printing, and mailing of direct advertising materials for the Department of Veterans Affairs. Without further details on the Statement of Work (SOW), the precise scope of services, such as handling of official correspondence versus marketing materials, volume of mail processed, and specific logistical requirements, remains unclear. This ambiguity makes a precise value assessment challenging.

How does the $21.99 million award compare to historical VA spending on mail management?

To compare this $21.99 million award to historical VA spending on mail management, one would need to analyze past contract awards for similar services. This would involve searching procurement databases for contracts with the VA related to mail services, logistics, or direct mail advertising over several fiscal years. Factors such as inflation, changes in service requirements, and the number of vendors previously used would need to be considered. A significant increase or decrease in spending could indicate shifts in VA's operational needs, efficiency improvements, or changes in market pricing for these services.

What is the track record of Global Mail, Inc. in performing similar government contracts?

Assessing the track record of Global Mail, Inc. would require examining their past performance on federal contracts, particularly those involving mail management or direct mail advertising. This involves reviewing contract histories for on-time delivery, quality of service, and any reported disputes or performance issues. Data from sources like the Contractor Performance Assessment Reporting System (CPARS) could provide insights into their past performance ratings. A history of successful contract completion suggests reliability, while past issues might indicate potential risks for this current award.

What are the potential risks associated with awarding this contract to a single vendor?

Awarding a significant contract like this to a single vendor, even after full and open competition, carries inherent risks. These include potential vendor lock-in, where the agency becomes heavily reliant on the incumbent and faces challenges or higher costs if switching providers. There's also the risk of performance degradation over time if competition is not sustained or if the vendor faces internal challenges. Furthermore, a single point of failure could disrupt critical mail operations if the vendor experiences significant operational issues. However, the fixed-price nature of this contract may mitigate some financial risks.

How does the fixed-price contract type influence value for money in this mail management contract?

The Firm Fixed Price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and risks of cost overruns are manageable. For mail management services, an FFP contract provides cost certainty to the Department of Veterans Affairs, as the contractor assumes the risk of cost overruns. This encourages the contractor to manage their costs efficiently to maximize profit. For taxpayers, this means the total cost is known upfront, preventing unexpected increases. However, if the scope of services changes significantly, contract modifications might be necessary, potentially impacting the initial cost certainty.

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) › MANAGEMENT SUPPORT SERVICES

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

Parent Company: Deutsche Post AG (UEI: 341020188)

Address: 2700 S COMMERCE PKWY STE 300, WESTON, FL, 25

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

Financial Breakdown

Contract Ceiling: $21,988,767

Exercised Options: $21,988,767

Current Obligation: $21,988,767

Parent Contract

Parent Award PIID: GS10F0208L

IDV Type: FSS

Timeline