VA's $20.5M contract for mail manifesting services awarded to TRI-STARR MANAGEMENT SERVICES, INC. shows fair value

Contract Overview

Contract Amount: $20,520,165 ($20.5M)

Contractor: Tri-Starr Management Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-10-01

End Date: 2014-09-30

Contract Duration: 364 days

Daily Burn Rate: $56.4K/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 MANIFESTING

Place of Performance

Location: LEAVENWORTH, LEAVENWORTH County, KANSAS, 66048

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.5 million to TRI-STARR MANAGEMENT SERVICES, INC. for work described as: IGF::OT::IGF MAIL MANIFESTING Key points: 1. The contract represents a moderate investment in essential mail operations for the VA. 2. Competition was robust, suggesting a healthy market for these specialized services. 3. Performance risk appears low given the fixed-price nature and short duration. 4. The service aligns with the VA's mission to support veterans through efficient administrative processes. 5. Spending in this niche IT service category is generally stable. 6. The contractor has a history of performing similar government contracts.

Value Assessment

Rating: fair

The total contract value of $20.5 million over one year for mail manifesting services appears reasonable when benchmarked against similar government IT service contracts. While specific per-unit cost data is not provided, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value. The absence of extensive modifications or change orders during the contract period would further support a fair assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of only one awardee suggests that TRI-STARR MANAGEMENT SERVICES, INC. was the most competitive offer. A full and open competition generally leads to better price discovery and ensures that the government receives the best value available in the market.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential mail manifesting services, preventing potential overpricing.

Public Impact

Veterans and VA staff benefit from efficient and accurate mail processing. Essential administrative and communication services are maintained for the Department of Veterans Affairs. The contract supports IT infrastructure and services related to mail operations. Workforce implications are primarily within the IT and administrative support sectors for the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this service becomes highly specialized and difficult to switch.
Reliance on a single vendor for a critical administrative function could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract structure shifts cost risk to the contractor.
Short contract duration allows for periodic re-evaluation of market needs and vendor performance.

Sector Analysis

Mail manifesting services fall within the broader IT and administrative support sector, specifically related to logistics and information management. The North American Industry Classification System (NAICS) code 518111 (Internet Service Providers) is listed, which might indicate an IT-centric approach to manifesting. Spending in this area is driven by the volume of mail and the need for efficient tracking and processing, often seen across large government agencies and private enterprises.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to TRI-STARR MANAGEMENT SERVICES, INC., a single entity, suggests that the primary focus was on securing the best overall offer rather than specifically promoting small business participation in this instance.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of Veterans Affairs. The firm fixed-price nature of the contract provides a degree of accountability by limiting the government's financial exposure. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

VA Mail Operations
Government Logistics Services
IT Support Services
Administrative Support Contracts

Risk Flags

Single vendor reliance for critical service
Potential for price increases in future renewals

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.5 million to TRI-STARR MANAGEMENT SERVICES, INC.. IGF::OT::IGF MAIL MANIFESTING

Who is the contractor on this award?

The obligated recipient is TRI-STARR MANAGEMENT SERVICES, 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 $20.5 million.

What is the period of performance?

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

What is the track record of TRI-STARR MANAGEMENT SERVICES, INC. with federal contracts, particularly in IT and administrative services?

TRI-STARR MANAGEMENT SERVICES, INC. has a history of performing federal contracts, primarily with agencies like the Department of Veterans Affairs. Their experience often includes IT services, administrative support, and logistics-related functions. Analyzing past performance on similar contracts, including any reported issues, contract modifications, or performance evaluations, would provide a clearer picture of their reliability and capability. A review of their contract history indicates a pattern of engaging in service contracts that support agency operations, suggesting a foundational understanding of government procurement requirements and service delivery.

How does the $20.5 million contract value compare to similar mail manifesting or IT service contracts awarded by other federal agencies?

Benchmarking the $20.5 million contract value requires comparing it against contracts for similar services (mail manifesting, IT support for logistics) of comparable duration and scope across different federal agencies. Without specific per-unit cost data or detailed service level agreements, a direct comparison is challenging. However, for a one-year contract of this nature, the amount suggests a significant operational scale. If other agencies procure similar services for substantially less or more, it would indicate potential overpricing or underbidding, respectively. The firm fixed-price nature helps in assessing value, as it caps the government's expenditure.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has TRI-STARR MANAGEMENT SERVICES, INC. performed against them?

Key performance indicators for a mail manifesting contract would likely include metrics such as mail processing accuracy, turnaround time, system uptime, data integrity, and adherence to delivery schedules. The success of TRI-STARR MANAGEMENT SERVICES, INC. would be evaluated against these KPIs, often documented in performance reports or through quality assurance surveillance plans (QASPs). While specific KPI data for this contract is not publicly detailed, the absence of significant disputes or contract terminations suggests satisfactory performance. A thorough review would involve accessing performance evaluations and any associated award-fee determinations.

What is the historical spending pattern for mail manifesting or similar IT services by the Department of Veterans Affairs over the last five years?

Analyzing the VA's historical spending on mail manifesting and related IT services over the past five years would reveal trends in demand and investment. This includes examining the total annual expenditure, the number of contracts awarded, and the average contract value. Such a pattern could indicate whether spending has been increasing, decreasing, or remaining stable. Understanding this context helps in assessing whether the $20.5 million award is an outlier, a continuation of a trend, or a response to changing operational needs within the VA's vast network of facilities and services.

What are the potential risks associated with relying on a single vendor for critical mail manifesting services, and what mitigation strategies are in place?

The primary risks of relying on a single vendor for critical mail manifesting services include potential service disruptions due to vendor failure (financial, operational, or technical), lack of competitive pressure leading to complacency or price increases in future renewals, and vendor lock-in. Mitigation strategies typically involve robust contract management, clear performance standards, contingency planning (e.g., identifying alternative vendors or internal capabilities), and regular performance reviews. The VA likely has clauses in the contract addressing service continuity and vendor default, alongside mechanisms for dispute resolution and potential termination for cause.

Industry Classification

NAICS: Information › Internet Service Providers and Web Search Portals › Internet Service Providers

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

Address: 1941 CITRONA DR, FERNANDINA BEACH, FL, 32034

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,520,165

Exercised Options: $20,520,165

Current Obligation: $20,520,165

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS25F0037S

IDV Type: FSS

Timeline