Interior's $15.7K Pitney Bowes Mail Machine Purchase Lacks Competition, Raises Value Concerns

Contract Overview

Contract Amount: $15,745 ($15.7K)

Contractor: Pitney Bowes Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-04-03

End Date: 2027-04-06

Contract Duration: 733 days

Daily Burn Rate: $21/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NWRO PITNEY BOWES MAIL MACHINE

Place of Performance

Location: PORTLAND, MULTNOMAH County, OREGON, 97232

State: Oregon Government Spending

Plain-Language Summary

Department of the Interior obligated $15,745.38 to PITNEY BOWES INC. for work described as: NWRO PITNEY BOWES MAIL MACHINE Key points: 1. Spending on mail machines is a recurring operational need. 2. Pitney Bowes is a dominant player in the mail equipment market. 3. Lack of competition raises concerns about potential overpayment. 4. The sector is characterized by established vendors and specialized equipment.

Value Assessment

Rating: questionable

The contract price of $15,745.38 for a mail machine over two years appears high without competitive bidding. Benchmarking against similar government or commercial leases/purchases for comparable equipment is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition procurement. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for this mail machine, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying for essential office equipment due to a lack of competitive bidding. The Bureau of Indian Affairs and Bureau of Indian Education may not be receiving the best value for their investment. Reliance on a single vendor for critical equipment can create long-term dependency and limit future cost-saving opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited vendor options

Positive Signals

Essential operational equipment
Firm fixed price contract

Sector Analysis

The 'All Other Business Support Services' sector includes a wide range of services, but mailroom equipment is a niche within it. Benchmarks for similar equipment purchases or leases are crucial for assessing value.

Small Business Impact

There is no indication that small businesses were considered or solicited for this procurement, missing an opportunity to support small business participation.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential lapse in oversight regarding competitive procurement practices. Further review is needed to understand why this was not competed.

Related Government Programs

All Other Business Support Services
Department of the Interior Contracting
Bureau of Indian Affairs and Bureau of Indian Education Programs

Risk Flags

Lack of competition
Potential for price gouging
No small business consideration
Limited market research evident
Oversight concerns on procurement method

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $15,745.38 to PITNEY BOWES INC.. NWRO PITNEY BOWES MAIL MACHINE

Who is the contractor on this award?

The obligated recipient is PITNEY BOWES INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $15,745.38.

What is the period of performance?

Start: 2025-04-03. End: 2027-04-06.

What is the fair market value for this type of mail machine, and how does the awarded price compare?

Determining the fair market value requires benchmarking against similar mail machine models from various vendors, considering features, lease terms, and purchase prices. Without this, it's difficult to definitively assess if $15,745.38 over two years is a fair price. Government contract databases and commercial price lists for comparable equipment are essential for this analysis.

What are the risks associated with procuring essential equipment through a non-competitive process?

The primary risks include paying inflated prices due to the absence of competitive pressure, limiting access to potentially better technology or service offerings from other vendors, and establishing a vendor lock-in that makes future switching difficult and costly. This can also set a precedent for future non-competitive awards.

How effective is this procurement in meeting the Bureau of Indian Affairs and Bureau of Indian Education's operational needs at a reasonable cost?

The effectiveness in meeting needs is assumed, as it's an operational purchase. However, the cost-effectiveness is questionable due to the lack of competition. The agency may be meeting its needs but likely not at the most economical price, potentially diverting funds from other critical areas.

Industry Classification

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

Product/Service Code: OFFICE MACH/TEXT PROCESS/VISIB REC

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140A1225P0010

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3001, SUMMER STREET, STAMFORD, CT, 06926

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

Financial Breakdown

Contract Ceiling: $22,753

Exercised Options: $15,745

Current Obligation: $15,745

Actual Outlays: $10,478

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline