VA awards $2.35M for mail management services, with Global Mail Inc. securing the contract

Contract Overview

Contract Amount: $23,500,068 ($23.5M)

Contractor: Global Mail, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2011-10-01

End Date: 2012-09-30

Contract Duration: 365 days

Daily Burn Rate: $64.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL MANAGEMENT

Place of Performance

Location: LANCASTER, DALLAS County, TEXAS, 75134, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.5 million to GLOBAL MAIL, INC. for work described as: MAIL MANAGEMENT Key points: 1. The contract value of $2.35 million for mail management services appears reasonable given the duration and scope. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract was awarded to Global Mail, Inc., a single entity, indicating a focused selection based on proposals. 4. Performance is benchmarked against similar mail management contracts to assess overall value for money. 5. The contract falls within the Direct Mail Advertising NAICS code, positioning it within a specific service sector. 6. Risk indicators are monitored through performance metrics and delivery timelines to ensure successful execution.

Value Assessment

Rating: good

The contract value of $2.35 million for a 365-day period appears to be within a reasonable range for mail management services. Benchmarking against similar contracts for direct mail advertising and logistics support would provide a more precise value assessment. The firm fixed-price structure suggests that the contractor assumes the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of three bidders suggests a healthy level of competition for this requirement. A competitive process typically leads to better price discovery and ensures the government receives the most advantageous offer.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for mail management services, preventing potential overspending.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving essential mail management services. Services delivered include direct mail advertising and related logistical support for VA communications. The contract's geographic impact is primarily within Texas (ST: TX, SN: TEXAS), where the services are likely performed. Workforce implications are tied to the operational needs of Global Mail, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if mail volumes significantly exceed projections.
Dependence on a single contractor for critical mail distribution services.
Ensuring compliance with all postal regulations and data security protocols.

Positive Signals

Firm fixed-price contract structure limits cost escalation for the government.
Full and open competition suggests a robust selection process.
Award to an established entity with presumed experience in mail management.

Sector Analysis

This contract falls under the Direct Mail Advertising sector, a segment of the broader marketing and communications industry. The NAICS code 541860 specifically covers direct mail advertising. Spending in this area is driven by government agencies' need to communicate with constituents, beneficiaries, and stakeholders through physical mail. Comparable spending benchmarks would involve analyzing other federal contracts for similar direct mail services, considering factors like volume, geographic reach, and complexity.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contract was awarded to Global Mail, Inc., and there is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Veterans Affairs. Accountability measures would be tied to the performance standards outlined in the contract. Transparency is facilitated through contract award data, though detailed operational oversight mechanisms are not specified here.

Related Government Programs

Federal Mail Services
Direct Mail Advertising Contracts
Government Communications Support
Logistics and Distribution Services

Risk Flags

Contract duration of 365 days may require renewal or re-competition soon.
Limited information on contractor's past performance with VA.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.5 million to GLOBAL MAIL, INC.. 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 $23.5 million.

What is the period of performance?

Start: 2011-10-01. End: 2012-09-30.

What is the track record of Global Mail, Inc. with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding Global Mail, Inc.'s specific track record with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive analysis would require accessing historical contract databases to review past performance, any reported issues, and the types of services previously rendered. Understanding their performance on prior VA contracts, if any, would offer insight into their reliability and capability to fulfill this current mail management requirement. Without this historical data, assessing their contractor performance rating is not possible.

How does the awarded amount compare to the estimated value or budget for this mail management service?

The provided data indicates the awarded amount for the mail management contract is $2,350,0068. However, there is no information available regarding the government's initial estimate or allocated budget for this service. To assess if the awarded amount represents good value, a comparison with the government's estimate would be crucial. If the awarded amount is significantly lower than the estimate, it could indicate successful competition or potentially an underestimated requirement. Conversely, if it's close to or exceeds the estimate, further scrutiny of the pricing and scope would be warranted.

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

The provided data does not specify the key performance indicators (KPIs) for this mail management contract. Typically, such contracts would include metrics related to delivery timeliness, accuracy of mail sorting and distribution, cost control, and adherence to service level agreements. The Department of Veterans Affairs would likely have established specific KPIs to ensure Global Mail, Inc. meets the required standards for mail management services. Reviewing the contract's statement of work or performance work statement would be necessary to identify these specific KPIs.

What is the historical spending pattern for mail management services by the Department of Veterans Affairs?

The provided data only includes details for this specific $2.35 million contract awarded in 2011. To understand the historical spending pattern for mail management services by the Department of Veterans Affairs (VA), a broader analysis of past contracts would be required. This would involve examining contract databases for previous years to identify the total amount spent on similar services, the number and value of contracts awarded, and the primary contractors utilized. Such an analysis would reveal trends in VA's expenditure on mail management and identify any significant fluctuations or shifts in spending.

Are there any specific risks associated with Global Mail, Inc. as a sole awardee in this competitive process?

While the contract was awarded under full and open competition with three bidders, Global Mail, Inc. is the sole awardee. Potential risks associated with a sole awardee include reduced leverage for the government if performance issues arise, as there may not be readily available alternatives. However, the firm fixed-price nature of the contract shifts cost-related risks to the contractor. The primary risk mitigation would involve robust contract management and performance monitoring by the VA to ensure Global Mail, Inc. meets all contractual obligations.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deutsche Post AG (UEI: 341020188)

Address: 2700 S COMMERCE PKWY 4TH FL, FORT LAUDERDALE, FL, 33331

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,500,068

Exercised Options: $23,500,068

Current Obligation: $23,500,068

Parent Contract

Parent Award PIID: GS10F0208L

IDV Type: FSS

Timeline