Treasury's Mint awarded $31.7M for order fulfillment, with Novitex Government Solutions handling all services

Contract Overview

Contract Amount: $31,674,222 ($31.7M)

Contractor: Novitex Government Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2010-10-01

End Date: 2011-09-30

Contract Duration: 364 days

Daily Burn Rate: $87.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ORDER FULFILLMENT FOR FY 2011

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $31.7 million to NOVITEX GOVERNMENT SOLUTIONS, LLC for work described as: ORDER FULFILLMENT FOR FY 2011 Key points: 1. The contract value represents a significant investment in business support services for the Mint. 2. Novitex Government Solutions secured this award through full and open competition. 3. The contract duration of one year suggests a focus on immediate operational needs. 4. The firm-fixed-price structure aims to provide cost certainty for the government. 5. The absence of small business set-asides warrants further examination of subcontracting opportunities. 6. The 'All Other Business Support Services' category is broad, requiring clarity on specific deliverables.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services provided. The total award of $31.7 million for a one-year period for 'All Other Business Support Services' appears substantial. However, without comparable contracts for similar scope and scale, it's difficult to definitively assess value for money. The firm-fixed-price contract type suggests the government sought predictable costs, which is a positive indicator for financial management.

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 offers. The fact that there were 5 bids received suggests a reasonable level of interest and competition for this requirement. This competitive process is generally expected to lead to a fair market price and encourage efficient service delivery.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple vendors vied for the contract, driving down potential costs.

Public Impact

The United States Mint benefits from streamlined order fulfillment processes. Businesses and individuals ordering from the Mint receive timely and accurate order processing. The contract supports operational efficiency within the Treasury Department. The contract likely supports jobs within Novitex Government Solutions and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on 'All Other Business Support Services' makes it difficult to assess performance metrics.
The absence of small business participation could limit broader economic impact and innovation.
The single-year duration might indicate a need for more long-term strategic planning for order fulfillment.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract provides cost predictability for the government.
Novitex Government Solutions is the sole awardee, implying they met all requirements.

Sector Analysis

The 'All Other Business Support Services' category is broad and can encompass a wide range of activities critical to government operations. In the context of the United States Mint, these services likely relate to the processing, packaging, and distribution of numismatic products or other goods. The market for business support services is vast, with numerous companies offering specialized solutions. This contract's value of $31.7 million places it as a significant award within this sector for a single-year engagement.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit small business participation (sb: false). This suggests that the primary award went to a large business, Novitex Government Solutions. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses, which could still provide some benefit to the small business ecosystem.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm-fixed-price contract, performance monitoring would focus on adherence to delivery schedules and service quality standards. The Department of the Treasury's internal oversight mechanisms and potentially the Government Accountability Office (GAO) could review this award if issues arise. Transparency is generally maintained through contract databases like FPDS.

Related Government Programs

Federal Procurement Data System (FPDS)
Business Support Services Contracts
United States Mint Operations

Risk Flags

Broad service category may lack specificity.
Potential for unaddressed small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $31.7 million to NOVITEX GOVERNMENT SOLUTIONS, LLC. ORDER FULFILLMENT FOR FY 2011

Who is the contractor on this award?

The obligated recipient is NOVITEX GOVERNMENT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (United States Mint).

What is the total obligated amount?

The obligated amount is $31.7 million.

What is the period of performance?

Start: 2010-10-01. End: 2011-09-30.

What specific services are included under 'All Other Business Support Services' for the United States Mint?

The specific services encompassed by 'All Other Business Support Services' (NAICS code 561499) for the United States Mint are not detailed in the provided data. Typically, this broad category can include a wide array of business support functions such as mail presorting, document copying, telemarketing, collection agencies, and other business support services not elsewhere classified. For the Mint, these could potentially range from customer service and order processing support to specialized administrative tasks related to their operations. A deeper dive into the contract's statement of work (SOW) or task orders would be necessary to ascertain the precise deliverables and scope of services provided by Novitex Government Solutions.

How does the $31.7 million award compare to historical spending on similar order fulfillment services by the Mint?

Comparing the $31.7 million award for FY 2011 to historical spending requires access to historical procurement data for the United States Mint specifically for order fulfillment or related business support services. Without that historical context, it's difficult to determine if this amount represents an increase, decrease, or is consistent with past investments. Factors such as inflation, changes in the volume of orders, and the scope of services contracted over time would influence year-over-year spending. Analyzing trends in contract values for similar services over several fiscal years would provide a clearer picture of the Mint's investment patterns in this area.

What is Novitex Government Solutions' track record with federal contracts, particularly in business support services?

Novitex Government Solutions, LLC, has a track record of receiving federal contracts. The provided data indicates they were awarded this $31.7 million contract for order fulfillment services. To assess their track record more comprehensively, one would need to examine their past performance on other government contracts, including their performance ratings, any past performance issues or disputes, and the types of services they have previously provided. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) or other federal procurement databases could offer insights into their reliability and effectiveness as a government contractor.

What are the potential risks associated with a broad 'All Other Business Support Services' contract?

A significant risk associated with a broad 'All Other Business Support Services' contract is the potential for scope creep and a lack of clear performance metrics. When the specific services are not well-defined, it can be challenging for both the government and the contractor to manage expectations and ensure accountability. This ambiguity can lead to disputes over deliverables, difficulties in performance evaluation, and potentially inefficient use of funds if services are not aligned with the government's actual needs. Furthermore, the broad nature might obscure opportunities for more specialized and potentially cost-effective solutions from niche providers.

Given the firm-fixed-price structure, what is the government's exposure to potential cost overruns?

With a firm-fixed-price (FFP) contract, the government's exposure to cost overruns is generally minimal, as the price is set at the time of award and does not change regardless of the contractor's actual costs. The risk of cost overruns is primarily borne by the contractor, Novitex Government Solutions. However, risks can still emerge if the contractor attempts to cut corners on quality or service to maintain profitability, or if unforeseen circumstances necessitate contract modifications, which could lead to price adjustments. The government's primary concern in an FFP contract is ensuring the contractor delivers the agreed-upon goods or services at the fixed price.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pitney Bowes Inc. (UEI: 001161793)

Address: 4200 PARLIAMENT PL STE 204, LANHAM SEABROOK, MD, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,674,222

Exercised Options: $31,674,222

Current Obligation: $31,674,222

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: TMHQ08C0074

IDV Type: IDC

Timeline