VA's $79.6M Mail Manifesting Services contract awarded to TRI-STARR MANAGEMENT SERVICES, INC. shows fair value

Contract Overview

Contract Amount: $79,594,153 ($79.6M)

Contractor: Tri-Starr Management Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-10-01

End Date: 2015-08-18

Contract Duration: 321 days

Daily Burn Rate: $248.0K/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 SERVICES

Place of Performance

Location: FERNANDINA BEACH, NASSAU County, FLORIDA, 32034

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $79.6 million to TRI-STARR MANAGEMENT SERVICES, INC. for work described as: IGF::OT::IGF MAIL MANIFESTING SERVICES Key points: 1. The contract represents a moderate investment in essential mail processing infrastructure. 2. Competition was robust, suggesting a healthy market for these services. 3. Pricing appears to be within acceptable ranges based on available benchmarks. 4. Performance history for this specific contract needs further examination for a complete value assessment. 5. This contract falls within the broader IT and administrative support services sector for the VA. 6. The fixed-price nature of the contract helps mitigate cost overrun risks.

Value Assessment

Rating: fair

The total award of $79.6 million for mail manifesting services over its period of performance appears to be a significant investment. Benchmarking against similar contracts is challenging without more granular data on service levels and volumes. However, the fixed-price contract type suggests that the initial pricing was deemed acceptable by the agency. The contract's value proposition hinges on the efficiency gains and cost savings it provides in mail processing operations.

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 were likely invited to bid. The presence of a competitive process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the designation suggests a robust bidding environment.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure competitive pricing.

Public Impact

Veterans Affairs (VA) benefits through streamlined and potentially more cost-effective mail processing. Essential mail manifesting services are delivered, supporting the VA's administrative and communication functions. The geographic impact is primarily within Florida, where the contractor is located. Workforce implications include employment opportunities for TRI-STARR MANAGEMENT SERVICES, INC. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to fully assess value for money.
Limited information on the specific technological solutions employed for manifesting.
Potential for vendor lock-in if the system is highly specialized.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract type helps control costs.
Contract duration provides a period of stable service delivery.

Sector Analysis

Mail manifesting services fall under broader categories of administrative and IT support services. This sector is characterized by a mix of large and small providers offering solutions for document management, tracking, and processing. The market size for such specialized services can be substantial, driven by the need for efficiency and compliance in government and commercial operations. Comparable spending benchmarks would typically look at per-piece processing costs or overall contract values for similar administrative support functions.

Small Business Impact

There is no indication that this contract included a small business set-aside. Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, TRI-STARR MANAGEMENT SERVICES, INC. Without specific subcontracting plans, it is difficult to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services as specified. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available.

Related Government Programs

VA Administrative Support Services
Federal Mail and Document Management
IT Services for Government Agencies

Risk Flags

Potential miscategorization of Product Service Code (PSC).
Limited public data on specific performance metrics.
Contract duration is relatively short, potentially impacting long-term efficiency gains.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $79.6 million to TRI-STARR MANAGEMENT SERVICES, INC.. IGF::OT::IGF MAIL MANIFESTING SERVICES

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 $79.6 million.

What is the period of performance?

Start: 2014-10-01. End: 2015-08-18.

What is the specific nature of the mail manifesting services provided under this contract?

The contract, identified by the Product Service Code (PSC) 518111 (Internet Service Providers, though this seems potentially miscategorized given the description), is for 'MAIL MANIFESTING SERVICES'. This typically involves systems and processes used to track, document, and manage outgoing mail. Manifesting ensures that mail is properly accounted for, often for postage calculation, tracking, and compliance purposes. It can include software solutions, hardware for scanning and sorting, and associated labor to operate these systems. The specific services would detail how TRI-STARR MANAGEMENT SERVICES, INC. handles the creation and management of mail manifests for the VA.

How does the contract value of $79.6 million compare to similar mail manifesting contracts within the federal government?

Direct comparison of the $79.6 million contract value is difficult without access to a comprehensive database of similar mail manifesting contracts, including their scope, duration, and service levels. However, for a contract spanning approximately one year (October 2014 to August 2015, with a duration of 321 days), this represents a substantial investment. Larger agencies with significant mail volumes might have contracts in this range or higher. To assess value, one would ideally benchmark the cost per piece manifested or per pound of mail processed against industry standards or other government contracts.

What are the key performance indicators (KPIs) used to evaluate TRI-STARR MANAGEMENT SERVICES, INC.'s performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for mail manifesting services, KPIs might include metrics such as manifest accuracy rate, on-time processing, system uptime, data integrity, and adherence to service level agreements (SLAs). The Department of Veterans Affairs would have established these KPIs in the contract's Performance Work Statement (PWS) to ensure the contractor meets the required standards for efficiency and reliability in mail processing operations.

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

TRI-STARR MANAGEMENT SERVICES, INC. has a history of federal contracting. While specific details on their entire portfolio are not provided here, their involvement in a contract of this magnitude for the VA suggests they have experience in delivering services to government agencies. A deeper analysis would involve reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and examining other contracts they have held to assess their reliability, quality of service, and compliance history in relevant sectors.

Were there any specific risks identified during the procurement or execution of this contract, and how were they mitigated?

The provided data does not explicitly detail risks identified during procurement or execution. However, general risks for such contracts could include technical failures of manifesting systems, data security breaches, contractor performance issues, or cost overruns (though mitigated by fixed-price). Mitigation strategies typically involve thorough vendor vetting, clear contract terms and SLAs, robust oversight by the contracting officer, and contingency planning. The firm fixed-price nature of this contract inherently shifts some financial risk to the contractor.

How does this contract align with the Department of Veterans Affairs' broader goals for administrative efficiency and technology modernization?

This contract for mail manifesting services likely aligns with the VA's goals by aiming to improve the efficiency and accuracy of its mail operations. Modern manifesting systems can reduce manual effort, minimize errors in postage and tracking, and provide better data for analysis. By outsourcing or procuring these services, the VA can leverage specialized expertise and technology without direct capital investment, potentially freeing up internal resources for core healthcare and benefits missions. The effectiveness of this alignment depends on the system's integration and the actual efficiency gains realized.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE 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: $79,594,153

Exercised Options: $79,594,153

Current Obligation: $79,594,153

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS25F0037S

IDV Type: FSS

Timeline