VA's $37M contract for parcel management services awarded to TRI-STARR MANAGEMENT SERVICES, INC. under full and open competition

Contract Overview

Contract Amount: $36,981,612 ($37.0M)

Contractor: Tri-Starr Management Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-10-01

End Date: 2013-09-30

Contract Duration: 364 days

Daily Burn Rate: $101.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF PARCEL MANAGEMENT

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $37.0 million to TRI-STARR MANAGEMENT SERVICES, INC. for work described as: IGF::OT::IGF PARCEL MANAGEMENT Key points: 1. The contract value of approximately $37 million over one year represents a significant investment in parcel management. 2. Awarded under full and open competition, this suggests a competitive bidding process that could lead to favorable pricing. 3. The fixed-price contract type generally shifts performance risk to the contractor. 4. The contract duration of one year with potential for extensions indicates a need for ongoing parcel management support. 5. The North American Industry Classification System (NAICS) code 518111 points to services related to internet service providers, which may encompass the infrastructure or systems used for parcel management. 6. The contract was awarded by the Department of Veterans Affairs, highlighting its importance for the agency's operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts for parcel management services. The total award amount of $36,981,611.76 for a one-year period suggests a substantial operational cost. However, without details on the scope of services, volume of parcels managed, or specific technologies employed, a definitive assessment of value for money is difficult. The fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator if the price was set competitively.

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 a bid. This typically suggests a robust bidding process with multiple potential offerors. The presence of full and open competition is generally favorable for price discovery and ensuring that the government receives competitive pricing. The fact that only one bid was received, as indicated by 'no': 1, warrants further investigation into the market dynamics and potential reasons for limited participation despite the open competition.

Taxpayer Impact: A full and open competition, even with a single bid, theoretically allows for market forces to influence pricing. However, the low number of bids raises questions about whether taxpayers received the best possible price or if the market for these specific services is limited.

Public Impact

Veterans Affairs personnel and potentially beneficiaries who rely on timely and accurate delivery of mail and packages. Efficient mail and package handling services crucial for the day-to-day operations of the Department of Veterans Affairs. The geographic impact is likely concentrated around VA facilities where parcel management is critical, though the specific locations are not detailed. The contract supports the administrative and logistical functions within the VA, indirectly impacting the workforce by ensuring smooth operational support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (1 bid) despite full and open solicitation may indicate market concentration or barriers to entry.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the awarded services.
The specific nature of 'parcel management' within an 'Internet Service Providers' NAICS code requires clarification to understand the full scope and technological underpinnings.

Positive Signals

Awarded under full and open competition, which is a standard best practice for government contracting.
The firm fixed-price contract type shifts cost risk to the contractor.
The contract is managed by the Department of Veterans Affairs, an agency with a critical mission.

Sector Analysis

The contract falls under the Internet Service Providers (NAICS 518111) sector, which typically includes establishments primarily engaged in providing internet access and/or internet access services. However, its application to 'parcel management' suggests a specialized use, possibly related to tracking, logistics software, or communication systems supporting mail and package delivery operations within the VA. Comparable spending in this niche area is difficult to benchmark without more specific service details, but the overall IT and logistics support sectors represent significant government expenditure.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (ss: false) nor was there a subcontracting goal explicitly mentioned (sb: false). This suggests that the primary award was not targeted towards small businesses, and there is no explicit requirement for the prime contractor to engage small businesses for subcontracting. The impact on the small business ecosystem would depend on whether TRI-STARR MANAGEMENT SERVICES, INC. voluntarily engages small businesses as subcontractors, which is not indicated in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a firm fixed-price contract, performance monitoring would focus on adherence to service level agreements and delivery timelines. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Department of Veterans Affairs Logistics Management
Federal Mail and Distribution Services
Government IT Infrastructure Support
Supply Chain Management Contracts

Risk Flags

Limited competition (1 bid) despite full and open solicitation.
Unusual NAICS code classification for the described service.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $37.0 million to TRI-STARR MANAGEMENT SERVICES, INC.. IGF::OT::IGF PARCEL 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 $37.0 million.

What is the period of performance?

Start: 2012-10-01. End: 2013-09-30.

What specific parcel management services are included under NAICS code 518111 for this contract?

The classification under NAICS 518111 (Internet Service Providers) for a 'parcel management' contract is unusual and requires clarification. Typically, NAICS 518111 covers businesses providing internet access. It's possible this contract leverages internet-based technologies for tracking, communication, or data management related to parcel logistics. Alternatively, it could represent a misclassification or a highly specialized service that integrates IT infrastructure with physical mailroom operations. Without further details from the contract statement of work, it is difficult to ascertain the precise services, but they likely involve digital solutions for managing incoming and outgoing mail and packages, potentially including tracking, reporting, and communication platforms.

Why did only one bid result from a 'full and open competition' solicitation?

A single bid resulting from a 'full and open competition' can stem from several factors. The market for the specific services required might be highly concentrated, with only one or a few companies possessing the necessary expertise, technology, or capacity. There could also be significant barriers to entry, such as stringent pre-qualification requirements, complex proposal demands, or high upfront investment costs, which deterred other potential bidders. Furthermore, the timing of the solicitation, the contract's duration, or the specific geographic scope might have limited the pool of interested and capable contractors. It is also possible that potential bidders assessed the opportunity and determined it was not sufficiently profitable or strategically aligned with their business objectives. A thorough market research analysis by the agency prior to solicitation is crucial to ensure adequate competition.

How does the $37 million award compare to historical VA spending on parcel management?

Comparing the $36,981,611.76 award to historical VA spending on parcel management requires access to historical contract data specifically tagged for these services. The provided data indicates this was a one-year contract awarded in late 2012 for the 2013 fiscal year. Without longitudinal data, it's impossible to determine if this represents an increase, decrease, or stable level of spending. The NAICS code 518111 is also atypical for direct parcel management, making historical comparisons even more challenging. To assess trends, one would need to query contract databases for similar services across multiple fiscal years, potentially using broader keywords related to logistics, mail services, or supply chain management within the VA.

What are the key performance indicators (KPIs) for this parcel management contract?

The provided data does not specify the key performance indicators (KPIs) for this parcel management contract. In a typical contract of this nature, KPIs would likely focus on metrics such as delivery timeliness, accuracy rates (e.g., correct routing, no lost packages), cost efficiency per parcel handled, response times for inquiries or issues, and compliance with security protocols. The effectiveness of the contractor's performance would be measured against these predefined standards. As this is a firm fixed-price contract, the government's primary concern would be ensuring that the agreed-upon services are delivered satisfactorily according to the contract's terms and conditions, which would be detailed in the Statement of Work (SOW).

What is the track record of TRI-STARR MANAGEMENT SERVICES, INC. with federal contracts, particularly with the VA?

TRI-STARR MANAGEMENT SERVICES, INC. has a history of federal contracting, including with the Department of Veterans Affairs. This specific contract, awarded in 2012 for $36,981,611.76, represents a significant engagement. Analyzing their broader track record would involve reviewing other contracts awarded to them across various agencies and for different types of services. Key aspects to examine would include contract performance history (on-time delivery, quality of service, compliance), any past performance issues or disputes, and their success rate in competitive bidding processes. Understanding their experience with similar service scopes and contract values can provide insights into their capabilities and reliability as a government contractor.

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, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,981,612

Exercised Options: $36,981,612

Current Obligation: $36,981,612

Parent Contract

Parent Award PIID: GS25F0037S

IDV Type: FSS

Timeline