VA's $31.8M contract for mail manifesting services awarded to TRI-STARR MANAGEMENT SERVICES, INC. shows potential for cost savings

Contract Overview

Contract Amount: $31,854,951 ($31.9M)

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: $87.5K/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: MURFREESBORO, RUTHERFORD County, TENNESSEE, 37130

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.9 million to TRI-STARR MANAGEMENT SERVICES, INC. for work described as: IGF::OT::IGF MAIL MANIFESTING Key points: 1. The contract's value of $31.8 million over one year suggests a significant operational need for mail manifesting services. 2. Awarded under full and open competition, this contract likely benefited from competitive pricing pressures. 3. The firm fixed-price contract type shifts performance risk to the contractor, TRI-STARR MANAGEMENT SERVICES, INC. 4. The single award delivery order indicates a specific need met by one provider, potentially limiting broader market engagement. 5. The contract's duration of 364 days suggests a defined project scope or a trial period for services. 6. The NAICS code 518111 points to the internet service providers sector, which may be a proxy for the technology involved in manifesting. 7. The contract's value relative to its duration warrants further analysis for cost-effectiveness benchmarks.

Value Assessment

Rating: good

The contract value of $31.8 million for a 364-day period averages approximately $87,515 per day. Without specific performance metrics or comparable contract data for mail manifesting services, a precise value-for-money assessment is challenging. However, the firm fixed-price structure is generally favorable for the government as it caps costs. The benchmark of $87,514 per day (br) suggests this contract's daily rate is within a reasonable range, assuming the 'br' value represents a comparable benchmark.

Cost Per Unit: $87,514 per day (estimated average)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it resulted in a single award delivery order suggests that TRI-STARR MANAGEMENT SERVICES, INC. was selected as the most advantageous offer based on the evaluation criteria.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it is expected to drive down costs through market forces and ensure the government receives the best value for its expenditure.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving essential mail manifesting services. This contract supports the operational efficiency of the VA's mail processing and distribution. The services likely impact administrative functions across various VA facilities, ensuring timely and accurate mail handling. While specific geographic impact isn't detailed, the VA's national presence suggests a broad operational reach.

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 contractor for a critical operational function could pose a risk if performance falters.
The firm fixed-price nature, while beneficial for cost control, could incentivize the contractor to minimize service levels if not adequately monitored.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, TRI-STARR MANAGEMENT SERVICES, INC., has secured a significant contract, indicating a level of established capability.
The contract addresses a specific operational need within the VA, implying a focus on service delivery.

Sector Analysis

The contract falls under the Information Technology and Support Services sector, specifically related to data processing, hosting, and related services (NAICS 518111). This sector is characterized by rapid technological advancements and a wide range of service providers, from large corporations to specialized small businesses. The market size for such services is substantial, driven by the increasing digitization of government operations and the need for efficient data management and communication. This contract represents a specific application of IT services for logistical support within a large federal agency.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration ('sb': false, 'ss': false). This suggests the contract was competed broadly, and the prime contractor, TRI-STARR MANAGEMENT SERVICES, INC., is not a small business. There is no explicit information on subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears limited unless TRI-STARR voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program officials within the Department of Veterans Affairs. The firm fixed-price nature of the contract means that financial oversight focuses on ensuring the contractor meets the defined deliverables and milestones. Performance monitoring is crucial to ensure the quality and timeliness of the mail manifesting services. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

VA Mail Operations
Federal Mail Services
Logistics and Supply Chain Management
Information Technology Services
Data Processing and Hosting

Risk Flags

Single award delivery order
Potential for vendor lock-in
Reliance on one contractor for critical service

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.9 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 $31.9 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 for mail manifesting or similar services?

TRI-STARR MANAGEMENT SERVICES, INC. has a history of federal contracting, though specific details on their performance for mail manifesting services require deeper investigation beyond the provided summary data. The award of this $31.8 million contract by the Department of Veterans Affairs suggests a level of trust and capability recognized by the agency. To fully assess their track record, one would need to examine past performance evaluations, any contract disputes or terminations, and the scope and value of previous awards. Analyzing their portfolio for similar service delivery, especially within large federal agencies, would provide further context on their experience and reliability in managing complex operational contracts.

How does the daily cost of this contract compare to industry benchmarks for similar mail manifesting services?

The contract's estimated daily cost is approximately $87,515 ($31.8M / 365 days). The provided benchmark value ('br': 87514) suggests this contract's daily rate is very close to a known benchmark, implying it is likely competitive. However, a definitive comparison requires access to detailed market research data and pricing information for comparable mail manifesting solutions. Factors such as the specific technology used, the volume of mail processed, the level of automation, and the geographic scope of services can significantly influence pricing. Without more granular data on these factors and broader market pricing, the 'good' rating for value is based on the proximity to the provided benchmark.

What are the key performance indicators (KPIs) used to measure the success of this mail manifesting contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for mail manifesting services, typical KPIs would likely include metrics such as mail processing accuracy, turnaround time, system uptime and availability, data integrity, compliance with postal regulations, and cost efficiency. The Department of Veterans Affairs would establish these KPIs in the contract's Performance Work Statement (PWS). Monitoring these metrics would be crucial for ensuring TRI-STARR MANAGEMENT SERVICES, INC. meets its contractual obligations and delivers value. The firm fixed-price nature implies that meeting these defined performance standards is paramount for the contractor's compensation.

What is the potential risk associated with relying on a single contractor for such a critical operational service?

Relying on a single contractor for critical operational services like mail manifesting introduces several potential risks. These include vendor lock-in, where transitioning to a new provider could be costly and disruptive. Performance degradation is another risk; if the contractor's service quality declines, it could significantly impact the VA's operations. Furthermore, a sole reliance can reduce the government's leverage in future negotiations. To mitigate these risks, the VA would typically implement robust contract management, including regular performance reviews, clear communication channels, and contingency planning for service disruptions. The firm fixed-price contract structure, while offering cost certainty, necessitates diligent oversight to ensure performance standards are consistently met.

How has the VA's spending on mail manifesting services evolved over the past five years?

The provided data pertains to a single contract awarded in 2013 for the period 2013-2014. It does not offer historical spending trends for the VA's mail manifesting services over the past five years. To analyze this evolution, one would need to access historical contract databases (like FPDS or USASpending) and aggregate spending data for relevant NAICS codes (e.g., 518111) or contract descriptions related to mail manifesting and processing services awarded by the VA. This would reveal patterns in contract values, competition levels, and awardees over time, providing insights into the agency's investment and strategic approach to these services.

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: $31,854,951

Exercised Options: $31,854,951

Current Obligation: $31,854,951

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS25F0037S

IDV Type: FSS

Timeline