Agriculture's $6.57M Mail Services Contract with Anthony Wayne Rehabilitation Center Faces Scrutiny

Contract Overview

Contract Amount: $6,567,206 ($6.6M)

Contractor: Anthony Wayne Rehabilitation Center for Handicapped & Blind Inc

Awarding Agency: Department of Agriculture

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NFC BULK MAIL SERVICES

Place of Performance

Location: FORT WAYNE, ALLEN County, INDIANA, 46809

State: Indiana Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.6 million to ANTHONY WAYNE REHABILITATION CENTER FOR HANDICAPPED & BLIND INC for work described as: NFC BULK MAIL SERVICES Key points: 1. The contract for mail services represents a significant expenditure within the 'All Other Business Support Services' category. 2. Lack of competition raises concerns about potential overpricing and limited market exploration. 3. The firm fixed-price structure provides cost certainty but may not incentivize efficiency. 4. The contract's duration and value warrant careful review for ongoing necessity and value. 5. Potential for improved small business participation exists, despite current exclusion.

Value Assessment

Rating: questionable

The contract's value of $6.57 million over four years, with a benchmark of $4,498 per year, appears high for mail services, especially given the lack of competitive bidding. Without comparable contracts, it's difficult to definitively assess pricing, but the absence of competition suggests potential for inflated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and competitive pressure, potentially leading to higher costs for taxpayers. The justification for a sole-source award needs thorough examination.

Taxpayer Impact: The lack of competition in this sole-source contract may result in inefficient use of taxpayer funds due to the absence of market-driven price reductions.

Public Impact

Taxpayers may be overpaying for essential mail services due to the lack of competitive bidding. The sole-source nature of the contract limits opportunities for other businesses, including small businesses, to provide these services. The long-term nature of the contract (four years) means potential overspending could continue without intervention. Transparency regarding the justification for the sole-source award is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Long contract duration
No small business participation

Positive Signals

Firm fixed-price contract provides cost certainty
Established provider with a specific mission

Sector Analysis

The 'All Other Business Support Services' sector is broad, encompassing various non-specialized services. Benchmarking mail services spending is challenging without more specific data, but contracts of this size typically undergo competitive processes to ensure value.

Small Business Impact

The contract explicitly states that small businesses were not involved (sb: false). This represents a missed opportunity to support small businesses and leverage their potential for cost-effective service delivery. Future solicitations should consider set-asides.

Oversight & Accountability

The sole-source nature of this contract necessitates robust oversight to ensure the provider is delivering services effectively and at a reasonable cost. The Office of the Chief Financial Officer should actively monitor performance and expenditures.

Related Government Programs

All Other Business Support Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
No small business participation
Limited transparency on justification
Unclear performance metrics
High contract value for support services

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.6 million to ANTHONY WAYNE REHABILITATION CENTER FOR HANDICAPPED & BLIND INC. NFC BULK MAIL SERVICES

Who is the contractor on this award?

The obligated recipient is ANTHONY WAYNE REHABILITATION CENTER FOR HANDICAPPED & BLIND INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'SOLE-SOURCE'. A thorough review would require accessing the contract file to understand the specific justification, such as unique capabilities, urgent need, or lack of market availability. Without this documentation, it's impossible to assess if alternatives were adequately explored or if the sole-source determination was appropriate.

How does the per-unit cost of these mail services compare to industry benchmarks for similar government or commercial contracts?

The data provides a total contract value and duration but lacks specific per-unit cost breakdowns (e.g., cost per piece of mail, cost per service hour). The benchmark value of $4,498 is unclear in its application. Without detailed service metrics and comparable market data, a precise per-unit cost comparison is not feasible, making it difficult to assess cost-effectiveness.

What performance metrics are in place to ensure the 'ANTHONY WAYNE REHABILITATION CENTER FOR HANDICAPPED & BLIND INC' is delivering effective mail services and meeting the Department of Agriculture's

The provided data does not specify performance metrics or service level agreements (SLAs) associated with this contract. Effective oversight would require clearly defined performance standards, regular reporting, and mechanisms for addressing deficiencies. The absence of this information raises concerns about accountability and the ability to measure the true value received.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12724522R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8515 BLUFFTON RD, FORT WAYNE, IN, 46809

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,141,955

Exercised Options: $6,567,206

Current Obligation: $6,567,206

Actual Outlays: $5,293,941

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline