GAO's e-postage contract awarded to AUCTANE, INC. for $315,000 over 3.5 years

Contract Overview

Contract Amount: $31,501 ($31.5K)

Contractor: Auctane, Inc.

Awarding Agency: Government Accountability Office

Start Date: 2020-07-01

End Date: 2023-12-31

Contract Duration: 1,278 days

Daily Burn Rate: $25/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE GOVERNMENT ACCOUNTABILITY OFFICE REQUIRES, 1(ONE) NON-PERSONAL TASK ORDER FOR: E-POSTAGE MAILING SERVICES TO PROVIDE CENTRALIZED ACCESS TO ALL OF GAO MAILING/POSTAGE NEEDS, WHILE MAINTAINING A CENTRALIZED TRACKING CAPABILITY OF POSTAGE COSTS.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78731

State: Texas Government Spending

Plain-Language Summary

Government Accountability Office obligated $31,500.58 to AUCTANE, INC. for work described as: THE GOVERNMENT ACCOUNTABILITY OFFICE REQUIRES, 1(ONE) NON-PERSONAL TASK ORDER FOR: E-POSTAGE MAILING SERVICES TO PROVIDE CENTRALIZED ACCESS TO ALL OF GAO MAILING/POSTAGE NEEDS, WHILE MAINTAINING A CENTRALIZED TRACKING CAPABILITY OF POSTAGE COSTS. Key points: 1. The contract aims to centralize GAO's mailing and postage needs, providing a unified tracking system for costs. 2. This approach is expected to improve efficiency and provide better visibility into postage expenditures. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The fixed-price nature of the contract helps in predictable budgeting for postage services. 5. The duration of over three years indicates a need for sustained, reliable mailing services. 6. The contract value of $315,000 over its term suggests a moderate level of spending for these services.

Value Assessment

Rating: good

The contract value of $315,000 over approximately 3.5 years for e-postage mailing services appears reasonable for a federal agency like the Government Accountability Office (GAO). While specific benchmarks for e-postage contracts are not readily available, the cost per year is approximately $90,000. This figure should be compared against similar contracts awarded to other agencies or private sector entities for comparable services to fully assess value for money. The fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit a bid. This method generally fosters a competitive environment, which can lead to better pricing and service offerings. The number of bidders is not specified, but the use of this procurement method suggests that GAO sought to maximize competition to ensure the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring that federal agencies do not overpay for goods and services.

Public Impact

The primary beneficiary is the Government Accountability Office (GAO), which gains centralized access to e-postage services. The contract delivers essential mailing and postage capabilities, supporting GAO's operational needs. The service is likely utilized across GAO's operations, impacting internal communications and external correspondence. The contract supports the workforce by providing tools for efficient mail processing and cost management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of the service beyond cost tracking.
The absence of details on the number of bidders limits the ability to fully gauge the intensity of the competition.

Positive Signals

The contract utilizes full and open competition, a positive indicator for achieving competitive pricing.
The fixed-price contract type offers budget predictability for the agency.
The contract duration suggests a stable and reliable service provision for GAO's ongoing needs.

Sector Analysis

The e-postage and mailing services sector for government agencies is a niche but essential part of administrative operations. This contract fits within the broader category of office support services. While specific market size data for federal e-postage is scarce, the overall mailing and shipping industry is substantial. GAO's spending on this contract is a small fraction of the total federal spending on such services, focusing on a centralized, trackable solution rather than bulk mail processing.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The focus was on obtaining the best value through open competition.

Oversight & Accountability

Oversight for this contract would typically fall under the Government Accountability Office's own internal procurement and financial management divisions. As the agency awarding the contract, GAO is responsible for monitoring performance and ensuring compliance with the contract terms. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and detailed oversight reports are not publicly detailed in this summary.

Related Government Programs

Federal Express Services
United States Postal Service Contracts
Government Mailroom Operations
Office Supply Procurement

Risk Flags

Potential for vendor lock-in
Dependence on vendor's technology infrastructure
Accuracy and completeness of cost tracking data

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $31,500.58 to AUCTANE, INC.. THE GOVERNMENT ACCOUNTABILITY OFFICE REQUIRES, 1(ONE) NON-PERSONAL TASK ORDER FOR: E-POSTAGE MAILING SERVICES TO PROVIDE CENTRALIZED ACCESS TO ALL OF GAO MAILING/POSTAGE NEEDS, WHILE MAINTAINING A CENTRALIZED TRACKING CAPABILITY OF POSTAGE COSTS.

Who is the contractor on this award?

The obligated recipient is AUCTANE, INC..

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $31,500.58.

What is the period of performance?

Start: 2020-07-01. End: 2023-12-31.

What is the track record of AUCTANE, INC. in providing e-postage services to other federal agencies?

Information regarding AUCTANE, INC.'s specific track record with other federal agencies for e-postage services is not detailed in the provided data. A comprehensive assessment would require reviewing contract databases (like FPDS or SAM.gov) for past performance, any reported issues, and client feedback from other government entities. Without this external data, it's difficult to evaluate their broader performance history beyond this single GAO contract. However, winning a contract through full and open competition suggests they met the initial requirements and were deemed a capable provider by GAO at the time of award.

How does the annual cost of this contract compare to similar e-postage services for other federal agencies?

The annual cost for this contract is approximately $90,000 ($315,000 over ~3.5 years). Benchmarking this against similar contracts requires access to a broader dataset of federal e-postage procurements. Factors influencing cost include the volume of mail, specific features required (e.g., tracking, reporting), and the level of service. Without comparative data on contract size, scope, and duration from other agencies, it is challenging to definitively state whether this represents a superior or inferior value. However, the use of full and open competition suggests an effort to achieve a competitive market price.

What are the primary risks associated with this e-postage contract for GAO?

Potential risks include service disruptions if AUCTANE, INC. experiences technical issues with its e-postage platform, impacting GAO's ability to send mail. Another risk is the potential for cost overruns if the "firm fixed price" does not adequately account for unforeseen increases in postage rates or usage beyond initial projections, although the fixed-price nature aims to mitigate this. Dependence on a single vendor for a critical function like mailing also presents a vendor lock-in risk. Furthermore, inadequate tracking or reporting could hinder GAO's ability to accurately monitor and manage its postage expenses, undermining the contract's stated objective.

How effective is the centralized tracking capability in managing GAO's postage costs?

The effectiveness of the centralized tracking capability is not explicitly detailed in the provided data. The contract's objective is to "maintain a centralized tracking capability of postage costs," implying that the system is intended to provide better visibility and control. To assess effectiveness, one would need to examine reports generated by the system, compare actual spending against budgets, and evaluate whether the tracking has led to demonstrable cost savings or efficiencies compared to previous methods. The success hinges on the system's accuracy, user-friendliness, and the agency's utilization of the data.

What is the historical spending pattern for GAO's e-postage and mailing services prior to this contract?

The provided data does not include historical spending patterns for GAO's e-postage and mailing services before this contract. To understand historical trends, one would need to analyze previous contracts, invoices, or financial reports from GAO related to postage and mailing. This would reveal whether spending has increased, decreased, or remained stable over time, and whether this contract represents a change in strategy or cost. Without this context, it's difficult to assess if the current contract value is an anomaly or part of a consistent spending trajectory.

Does the contract include provisions for service level agreements (SLAs) or performance metrics?

The provided summary data does not explicitly mention Service Level Agreements (SLAs) or specific performance metrics for this contract. While the contract aims for "centralized access" and "tracking capability," the details of performance standards (e.g., uptime, response times, accuracy of tracking) are not included. Typically, federal contracts of this nature would include SLAs to define expected service quality and provide a basis for performance evaluation. Further review of the full contract document would be necessary to confirm the presence and specifics of any SLAs or performance metrics.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Office Machinery Manufacturing

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

Solicitation ID: 05GA0A20Q0013

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Stamps.com Inc.

Address: 1990, EAST GRAND AVENUE, EL SEGUNDO, CA, 90245

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

Financial Breakdown

Contract Ceiling: $31,501

Exercised Options: $31,501

Current Obligation: $31,501

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F0052V

IDV Type: FSS

Timeline