VA awards $33.4M for mail management services to Tri-Starr Management Services, Inc

Contract Overview

Contract Amount: $33,373,641 ($33.4M)

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: $91.4K/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: HINES, COOK County, ILLINOIS, 60141, UNITED STATES OF AMERICA

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33.4 million to TRI-STARR MANAGEMENT SERVICES, INC. for work described as: MAIL MANAGEMENT Key points: 1. Contract value represents a significant investment in essential mail handling operations. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration and firm fixed price structure indicate predictable cost management. 4. Performance context is crucial to assess the effectiveness of mail management services. 5. Sector positioning within administrative support services highlights its operational importance.

Value Assessment

Rating: fair

The contract value of $33.4 million for mail management services appears substantial. Benchmarking against similar contracts for mailroom operations or administrative support services would be necessary to determine if this represents good value for money. The firm fixed-price nature of the contract provides cost certainty, but the absence of detailed performance metrics makes a definitive value assessment challenging without further context on service levels and outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bidders suggests a reasonable level of competition, which typically helps in achieving competitive pricing. The specific details of the bidding process and the number of proposals received would provide a clearer picture of the competitive intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better pricing for government services.

Public Impact

Benefits veterans and VA staff by ensuring efficient and reliable mail processing. Supports the operational continuity of the Department of Veterans Affairs. Geographic impact is likely nationwide, covering mail distribution for VA facilities. Workforce implications may include the employment of personnel for mail handling and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Risk of service disruption if contractor performance falters.
Dependence on contractor's ability to manage mail volume fluctuations effectively.

Positive Signals

Firm fixed-price contract provides budget certainty.
Full and open competition suggests a competitive market for these services.
Award to a single contractor streamlines management and accountability.

Sector Analysis

Mail management services fall under the broader administrative and support services sector. This sector is characterized by a wide range of providers, from large facility management companies to specialized mailroom operators. The market size for such services is substantial, driven by the operational needs of government agencies and large corporations. This contract represents a significant portion of spending within this niche, highlighting the importance of efficient mail handling for organizational functions.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses were involved in the bidding process or if subcontracting opportunities were made available.

Oversight & Accountability

Oversight of this contract would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. Accountability measures would be defined in the contract's performance work statement and service level agreements. Transparency is generally maintained through contract award databases, though specific performance data may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Mail Management Services
Administrative Support Contracts
Department of Veterans Affairs Operations

Risk Flags

Contract Duration
Performance Monitoring
Cost Benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33.4 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 $33.4 million.

What is the period of performance?

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

What is the track record of Tri-Starr Management Services, Inc. with federal contracts, particularly in mail management?

A thorough review of Tri-Starr Management Services, Inc.'s federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any reported contract disputes or terminations, and their experience with similar mail management or logistics contracts. Understanding their history with the VA or other agencies can provide insights into their reliability, efficiency, and ability to meet contractual obligations. Without specific data on their past performance, it is difficult to definitively assess their capabilities for this significant contract.

How does the awarded amount of $33.4 million compare to the average cost of similar mail management contracts?

To benchmark the $33.4 million award, a comparative analysis with similar mail management contracts awarded by federal agencies or large organizations is required. This would involve looking at contracts with comparable scope, duration, and service requirements. Factors such as the volume of mail handled, the number of locations served, and the specific services included (e.g., sorting, delivery, tracking, secure disposal) would need to be considered. If this contract's per-unit cost (e.g., cost per piece of mail, cost per employee served) is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing/underbidding.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The effectiveness and value of this mail management contract are heavily dependent on the defined Key Performance Indicators (KPIs) and Service Level Agreements (SLAs). These metrics should objectively measure the contractor's performance in areas such as mail processing time, accuracy, security, and responsiveness. Without access to these specific KPIs and SLAs, it is challenging to assess whether Tri-Starr Management Services, Inc. is delivering services that meet the VA's operational needs efficiently and cost-effectively. A review of these contractual requirements would provide critical insight into performance expectations and accountability.

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

Analyzing the historical spending patterns for mail management services at the VA is crucial for understanding the context of this $33.4 million award. This involves examining how much the VA has spent on similar services in previous fiscal years, whether through this contractor or others. Identifying trends in spending, such as increases or decreases, and understanding the reasons behind them (e.g., changes in operational needs, market price fluctuations, contract consolidation) can help determine if the current award is consistent with past investments or represents a significant shift. It also helps in assessing the long-term financial commitment to these services.

Were there any specific challenges or risks identified during the procurement process for this contract?

The procurement process for any federal contract, especially one of this magnitude, can involve various challenges and risks. For this mail management contract, potential risks could include accurately defining the scope of services, ensuring adequate competition, evaluating the technical capabilities of bidders, and establishing realistic cost estimates. Understanding if any specific challenges were encountered during the solicitation and evaluation phases, such as a lack of qualified bidders or protests, could provide insight into the robustness of the process and the potential risks associated with the award. This information is often detailed in procurement documentation.

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: $33,373,641

Exercised Options: $33,373,641

Current Obligation: $33,373,641

Parent Contract

Parent Award PIID: GS25F0037S

IDV Type: FSS

Timeline