Commerce Dept. Spends $3.68M on Mail Courier Services with ServiceSource Inc. via Non-Competed Contract
Contract Overview
Contract Amount: $3,676,729 ($3.7M)
Contractor: Servicesource Inc
Awarding Agency: Department of Commerce
Start Date: 2020-10-01
End Date: 2025-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $2.0K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL COURIER SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $3.7 million to SERVICESOURCE INC for work described as: MAIL COURIER SERVICES Key points: 1. Significant spending on essential mail courier services. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract (5 years) provides stability but limits future negotiation opportunities. 4. Potential for higher costs due to lack of competitive bidding.
Value Assessment
Rating: questionable
The contract value of $3.68M over five years for mail courier services appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the pricing is fair and reasonable compared to market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed under SAP, indicating a sole-source award. This method bypasses competitive processes, potentially leading to less favorable pricing for the government and limiting price discovery.
Taxpayer Impact: Taxpayers may be overpaying for mail courier services due to the absence of a competitive bidding process.
Public Impact
Essential mail delivery services for the Department of Commerce are secured. Lack of competition could mean higher operational costs for the agency. Long-term commitment may not reflect evolving market prices for courier services. Citizens rely on these services for official communications and document delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration without re-competition
Positive Signals
- Ensures continuity of essential mail services
- Firm fixed price provides budget certainty
Sector Analysis
Mail courier services are a standard operational expense for government agencies. Benchmarks for such services can vary widely based on volume, distance, and service level agreements. This contract's value is substantial for a non-competed service.
Small Business Impact
This contract does not appear to involve small businesses, as it is a sole-source award to a single large provider.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny to ensure the government is receiving fair value. Further review of the justification for the sole-source award is recommended.
Related Government Programs
- Postal Service
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Long-term commitment without re-evaluation
- Limited transparency in pricing
Tags
postal-service, department-of-commerce, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $3.7 million to SERVICESOURCE INC. MAIL COURIER SERVICES
Who is the contractor on this award?
The obligated recipient is SERVICESOURCE INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (Office of the Secretary).
What is the total obligated amount?
The obligated amount is $3.7 million.
What is the period of performance?
Start: 2020-10-01. End: 2025-09-30.
What was the justification for awarding this mail courier contract on a sole-source basis instead of through a competitive process?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation, it's impossible to confirm the exact reason, but it bypasses the standard competitive procedures designed to ensure best value and pricing.
How can the Department of Commerce ensure it is receiving a fair price for these mail courier services without competition?
To mitigate the risk of overpayment on a sole-source contract, the agency should conduct thorough market research and obtain independent cost estimates. Price negotiation should be robust, and the contract should include clear performance metrics and potential for price adjustments if market conditions change significantly. Regular reviews of the necessity and scope of services are also crucial.
What is the potential impact on taxpayer funds given the lack of competition for this $3.68M contract?
The primary impact on taxpayer funds is the potential for paying a premium due to the absence of competitive pressure. Without competing bids, ServiceSource Inc. may not have been incentivized to offer the lowest possible price. This could result in millions of dollars being spent unnecessarily over the contract's five-year term, diverting funds from other critical government programs or services.
Industry Classification
NAICS: Transportation and Warehousing › Postal Service › Postal Service
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10467 WHITE GRANITE DRIVE, OAKTON, VA, 22124
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,015,942
Exercised Options: $3,910,184
Current Obligation: $3,676,729
Actual Outlays: $115,163
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-02-12
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