VA's $25.1M Mail Manifesting Services Contract Awarded to Global Mail, Inc

Contract Overview

Contract Amount: $25,175,659 ($25.2M)

Contractor: Global Mail, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-10-01

End Date: 2015-12-15

Contract Duration: 440 days

Daily Burn Rate: $57.2K/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: WESTON, BROWARD County, FLORIDA, 33331

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25.2 million to GLOBAL MAIL, INC. for work described as: IGF::OT::IGF MAIL MANIFESTING SERVICES Key points: 1. Contract value represents a significant investment in mail logistics for the VA. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs and provide predictability. 4. The contract duration of 440 days (approximately 1.2 years) indicates a medium-term service requirement. 5. The award amount of $25.1M falls within a moderate spending range for specialized services. 6. The contract's focus on direct mail advertising services highlights a specific operational need.

Value Assessment

Rating: good

The contract value of $25.1 million for mail manifesting services appears reasonable given the scope and duration. Benchmarking against similar contracts for direct mail advertising and logistics services would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage cost overruns, which is a positive indicator for value.

Cost Per Unit: N/A

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 generally fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the open competition suggests a healthy market for these services.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation, ensuring the government receives the best possible value for its expenditure.

Public Impact

Veterans and VA staff benefit from efficient and accurate mail manifesting services, ensuring timely delivery of important information and supplies. The services delivered are crucial for the operational efficiency of the Department of Veterans Affairs' mailroom and communication processes. The contract's geographic impact is primarily within Florida (ST: FL, SN: FLORIDA), suggesting a localized operational focus for this specific award. Workforce implications may include support for administrative and logistical roles within the VA or its contractors related to mail handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Dependence on a single vendor for critical mail manifesting operations could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract type helps manage cost certainty.
The contract addresses a clear operational need for the VA.

Sector Analysis

The mail manifesting services sector is a niche within the broader logistics and business support services industry. This contract fits within the government's need for specialized administrative and operational support. Comparable spending benchmarks for similar mail services across federal agencies would provide further context, but the $25.1M award suggests a significant operational requirement for the VA in this area.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Global Mail, Inc., is likely a larger entity, and opportunities for small businesses would depend on their subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver services at the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and IG oversight details are not provided in this summary.

Related Government Programs

VA Mail Services
Direct Mail Advertising Contracts
Logistics and Transportation Services
Federal Mailroom Operations

Risk Flags

Potential for performance issues if contractor's cost assumptions are inaccurate.
Dependence on a single vendor for critical mail operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25.2 million to GLOBAL MAIL, INC.. IGF::OT::IGF MAIL MANIFESTING SERVICES

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 $25.2 million.

What is the period of performance?

Start: 2014-10-01. End: 2015-12-15.

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

Information regarding Global Mail, Inc.'s specific track record on similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, any reported disputes or contract terminations, and the successful completion of prior government contracts. Analyzing their history with the VA or other agencies for mail manifesting, direct mail, or related logistics services would be crucial to understanding their reliability and capability. Without this historical data, it is difficult to definitively assess their performance risk.

How does the $25.1M award compare to other VA mail manifesting contracts?

To compare the $25.1 million award for mail manifesting services, one would need to analyze historical spending data for similar contracts within the Department of Veterans Affairs. This includes looking at the number of contracts awarded for these services, their respective values, durations, and the contractors involved. If this award represents a significant increase or decrease compared to previous procurements, it could indicate changes in service needs, market pricing, or competition levels. Benchmarking against the average cost per day or per piece manifested, if such data were available, would also provide valuable context for assessing value for money.

What are the primary risks associated with this firm fixed-price contract?

While firm fixed-price contracts are designed to provide cost certainty, risks can still emerge. For Global Mail, Inc., the primary risk is the potential for unforeseen cost increases in labor, materials, or operational expenses that are not adequately accounted for in their bid, potentially impacting their profit margin or leading to performance issues if they attempt to cut corners. For the VA, the risk lies in the possibility that the contractor may not be able to deliver the full scope or quality of services if their cost assumptions were incorrect, or if market conditions change drastically. Ensuring robust performance standards and monitoring are crucial to mitigate these risks.

How effective are mail manifesting services in supporting VA's mission?

Mail manifesting services are critical for the efficient and accurate processing of large volumes of mail, which is essential for the Department of Veterans Affairs' mission. This includes ensuring that important communications, medical information, and supplies reach veterans and staff in a timely and organized manner. Effective manifesting reduces errors, improves tracking, and optimizes postage costs, thereby contributing to operational efficiency and better service delivery. The success of these services directly impacts the VA's ability to communicate effectively with its beneficiaries and manage its extensive logistical operations.

What is the historical spending trend for mail manifesting services at the VA?

Analyzing the historical spending trend for mail manifesting services at the VA would involve examining contract awards over several fiscal years. This would reveal whether spending in this category has been consistent, increasing, or decreasing. A consistent or increasing trend might suggest a stable or growing need for these services, while a decrease could indicate consolidation, outsourcing changes, or shifts in communication methods. Understanding these trends helps in forecasting future needs and budgeting appropriately, and also provides context for the current $25.1M award.

What is the potential impact of this contract on competition in the mail services market?

The award of a $25.1 million contract for mail manifesting services to Global Mail, Inc. through full and open competition suggests that the market for such services is sufficiently robust to support multiple bidders. This large contract could potentially influence market dynamics by validating the capabilities of the awarded vendor and potentially setting a benchmark for future procurements. It also indicates that the VA relies on specialized external providers for these functions, which can shape the strategies of other companies vying for similar government contracts in the future.

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) › 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

Parent Company: Deutsche Post AG (UEI: 341020188)

Address: 2700 S COMMERCE PKWY STE 300, WESTON, FL, 33331

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

Financial Breakdown

Contract Ceiling: $40,672,174

Exercised Options: $25,175,659

Current Obligation: $25,175,659

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0208L

IDV Type: FSS

Timeline