VA awards $28.4M contract for mail management services to Tri-Starr Management Services, Inc

Contract Overview

Contract Amount: $28,427,996 ($28.4M)

Contractor: Tri-Starr Management Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2011-10-01

End Date: 2012-09-30

Contract Duration: 365 days

Daily Burn Rate: $77.9K/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: LEAVENWORTH, LEAVENWORTH County, KANSAS, 66048, UNITED STATES OF AMERICA

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.4 million to TRI-STARR MANAGEMENT SERVICES, INC. for work described as: MAIL MANAGEMENT Key points: 1. Contract value appears reasonable given the duration and scope of mail management services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract was awarded as Firm Fixed Price, which shifts cost risk to the contractor. 4. Performance period is one year, indicating a need for ongoing services. 5. The contractor, Tri-Starr Management Services, Inc., is the sole awardee. 6. The NAICS code 518111 points to a service within the internet service providers sector, which may require clarification for mail management.

Value Assessment

Rating: good

The contract value of $28.4 million for a one-year mail management service appears to be within a reasonable range for a federal agency of the VA's size. Without specific benchmarks for mail management services, a direct comparison is difficult. However, the firm fixed-price nature of the contract suggests that the pricing was determined through negotiation and competition, aiming for value. The absence of detailed cost breakdowns makes a granular assessment challenging, but the overall award amount seems proportionate to the expected service delivery.

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 bids. The number of bids received is not specified, but the use of full and open competition generally promotes price discovery and encourages competitive pricing. This method is designed to ensure the government receives the best value by allowing a wide range of potential contractors to participate.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified vendors, leading to more efficient use of federal funds.

Public Impact

Veterans and VA staff will benefit from efficient and reliable mail management services. The contract ensures the continuity of essential mail processing and distribution for the Department of Veterans Affairs. Geographic impact is likely nationwide, supporting VA facilities across the country. Workforce implications may include the employment of individuals involved in mail handling and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The NAICS code 518111 (Internet Service Providers) seems incongruous with 'MAIL MANAGEMENT' and warrants further investigation to ensure the correct industry classification.
Lack of specific performance metrics or service level agreements in the provided data makes it difficult to assess the contractor's performance potential.
The contract duration of one year, while standard, may not allow for long-term strategic improvements in mail management processes.

Positive Signals

The use of 'FULL AND OPEN COMPETITION' suggests a robust and fair bidding process, likely resulting in competitive pricing.
The 'FIRM FIXED PRICE' contract type transfers cost overrun risks to the contractor, providing budget certainty for the VA.
The award to a single contractor implies a thorough evaluation process that identified a highly qualified and competitive offer.

Sector Analysis

The mail management services sector is a critical component of administrative operations for large organizations, including government agencies. While not a high-technology sector, efficiency and reliability are paramount. The NAICS code 518111, typically associated with Internet Service Providers, is unusual for mail management, suggesting a potential misclassification or a specialized service offering within that broader category. Comparable spending benchmarks for mail management services are difficult to ascertain without more specific service details, but federal agencies often contract out such functions to specialized providers.

Small Business Impact

The provided data indicates that small business participation (sb) was false and that the contract was not a small business set-aside (ss). This suggests that the contract was awarded based on the best overall value without specific set-aside considerations. There is no information on subcontracting plans, so the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract type, which requires the contractor to deliver services within the agreed-upon price. Transparency is generally maintained through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Mail Management Services
Department of Defense Mail Operations
US Postal Service Contracts

Risk Flags

Potential NAICS code misclassification.
Contradictory agency designation ('DO' vs. 'Department of Veterans Affairs').
Lack of specific performance metrics in provided data.
Limited contract duration may necessitate frequent re-procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.4 million to TRI-STARR MANAGEMENT SERVICES, INC.. MAIL MANAGEMENT

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 $28.4 million.

What is the period of performance?

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

What is the specific nature of the 'MAIL MANAGEMENT' services being procured under NAICS code 518111?

The provided data lists the service as 'MAIL MANAGEMENT' but assigns it the NAICS code 518111, which corresponds to 'Internet Service Providers'. This discrepancy suggests a potential error in the data classification or that the contractor is providing a highly specialized form of mail management that leverages internet-based technologies, such as digital mail scanning, tracking, or secure electronic delivery. Typically, mail management services would fall under different NAICS codes related to administrative services, logistics, or courier services. Further clarification from the contracting agency (Department of Veterans Affairs) or a review of the detailed contract statement of work would be necessary to understand the precise services rendered and justify the assigned NAICS code.

How does the $28.4 million contract value compare to similar mail management contracts awarded by the federal government?

Benchmarking the $28.4 million contract value for mail management services is challenging without more specific details on the scope, volume, and duration of services. Federal mail management contracts can vary significantly. For instance, large agencies might have multi-year contracts worth tens of millions for comprehensive mailroom operations, including sorting, distribution, and specialized handling. Smaller, more focused contracts might be in the low millions. Given that this is a one-year contract for the Department of Veterans Affairs, a large agency, $28.4 million suggests a substantial scope of services, potentially encompassing nationwide mail processing or significant mailroom operations at multiple facilities. A direct comparison would require identifying contracts with similar service levels and agency sizes.

What are the potential risks associated with a one-year firm fixed-price contract for mail management?

A one-year firm fixed-price (FFP) contract for mail management presents several potential risks. For the government, the primary risk is that the fixed price might be too high if competition was weak or if the contractor's cost estimates were overly conservative. Conversely, if the contractor significantly underestimates costs, they might cut corners on service quality to maintain profitability, leading to performance issues. The short duration of one year means the VA must undertake a new procurement process relatively quickly, incurring administrative costs and potential disruption if a new contractor is not seamlessly transitioned. Furthermore, FFP contracts offer less flexibility to adapt to changing service requirements during the contract period without formal modifications, which can be time-consuming.

What is the track record of Tri-Starr Management Services, Inc. in providing government services, particularly mail management?

Information regarding the specific track record of Tri-Starr Management Services, Inc. in providing mail management services to the government is not detailed in the provided data. To assess their track record, one would need to examine past performance evaluations, contract history, and any reported issues or successes on previous federal contracts. This would involve searching government contract databases and performance assessment systems. A positive track record would indicate reliability, quality service delivery, and adherence to contract terms, while a negative history might raise concerns about their capability to fulfill this $28.4 million contract effectively.

How does the competition level (full and open) impact the value received by the VA for this mail management contract?

The fact that this contract was awarded under 'FULL AND OPEN COMPETITION' is a significant positive indicator for the value received by the VA. This procurement method allows any responsible business to compete, maximizing the pool of potential offerors and fostering a competitive environment. A robust competition typically drives down prices as contractors vie for the award by submitting their most competitive bids. It also increases the likelihood that the VA will receive proposals that offer the best combination of price, technical approach, and past performance. Therefore, full and open competition generally leads to better value for the government compared to sole-source or limited competition scenarios.

What are the implications of the contract being awarded as 'DO' (Department of Defense)?

The 'AW' field indicates 'DO', which typically stands for 'Department of Defense'. However, the 'AG' field clearly states 'Department of Veterans Affairs'. This presents a contradiction in the data. If the contract was indeed awarded by the Department of Veterans Affairs, the 'DO' designation in the 'AW' field might be an error or refer to a specific internal VA designation or a subcontracting relationship with a DoD entity that is not immediately apparent. Assuming the primary agency is the VA, the implications would relate to VA's specific procurement regulations and needs. If it were a DoD contract, the implications would align with DoD's procurement practices and requirements.

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: 3

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: $28,427,996

Exercised Options: $28,427,996

Current Obligation: $28,427,996

Parent Contract

Parent Award PIID: GS25F0037S

IDV Type: FSS

Timeline