Interior's Bureau of Land Management awards $6,478 mail meter contract to Pitney Bowes Inc

Contract Overview

Contract Amount: $6,478 ($6.5K)

Contractor: Pitney Bowes Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-09-23

End Date: 2026-09-25

Contract Duration: 367 days

Daily Burn Rate: $18/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLM-CO MAIL METERS FOR GJFO, CRVFO, KFO, LSO

Place of Performance

Location: GRAND JUNCTION, MESA County, COLORADO, 81506

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $6,478.16 to PITNEY BOWES INC. for work described as: BLM-CO MAIL METERS FOR GJFO, CRVFO, KFO, LSO Key points: 1. Contract awarded for mail metering services across multiple BLM offices. 2. Pitney Bowes Inc. is the sole awardee, indicating a specific market position. 3. The contract duration is over one year, suggesting ongoing operational needs. 4. Fixed-price contract type aims to control costs for the government. 5. The North American Industry Classification System (NAICS) code 561499 covers 'All Other Business Support Services'. 6. Awarded as a delivery order, likely against a larger indefinite-delivery contract. 7. The contract value is relatively modest, suggesting a focused operational requirement.

Value Assessment

Rating: fair

The contract value of $6,478.16 for a 367-day period appears reasonable for mail metering services, especially considering it covers multiple locations. Without specific details on the volume of mail or the exact services provided (e.g., postage, equipment maintenance), a direct comparison to similar contracts is challenging. However, the fixed-price nature of the award suggests an effort to establish predictable costs. The benchmark of 18 bids received indicates a competitive process, which typically leads to better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 18 bids received. This indicates a robust bidding process where multiple vendors had the opportunity to compete for the requirement. The high number of bidders suggests that the market for these services is competitive and that the government likely received a fair price due to the vendor interest.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the price and ensured the government received competitive terms for essential mail services.

Public Impact

The Bureau of Land Management offices in Grand Junction, Colorado River Valley, Kremmling, and Little Snake River will benefit from efficient mail processing. Essential mail metering and related business support services will be delivered. The geographic impact is concentrated within Colorado. The contract supports administrative functions rather than direct field operations or workforce expansion.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Pitney Bowes is the incumbent and offers specialized equipment.
Reliance on a single vendor for a critical administrative function could pose a risk if service levels decline.

Positive Signals

Full and open competition with 18 bids suggests a healthy market and competitive pricing.
Fixed-price contract type provides cost certainty for the government.
The contract duration is clearly defined, allowing for planning and future procurement.

Sector Analysis

The market for business support services, including mail metering, is mature and served by several established providers. Companies like Pitney Bowes are significant players in this space, offering a range of equipment and services. Government agencies frequently procure these services to manage mailroom operations efficiently. Spending benchmarks for such services can vary widely based on the scale of operations, but typically fall within a predictable range for administrative support functions.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting requirements. Given the nature of the service and the awardee, it is unlikely that small businesses will be significantly involved as subcontractors unless they provide ancillary services not detailed in this award.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order, it likely falls under a broader contract vehicle with its own oversight mechanisms. The Bureau of Land Management and the Department of the Interior are responsible for ensuring compliance with contract terms. Transparency is maintained through public contract databases, and any significant issues could be reviewed by the Government Accountability Office (GAO) or the agency's Inspector General.

Related Government Programs

Federal Mail Services
Business Support Services
Administrative Services Contracts

Risk Flags

Potential vendor lock-in
Reliance on single vendor for critical function

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $6,478.16 to PITNEY BOWES INC.. BLM-CO MAIL METERS FOR GJFO, CRVFO, KFO, LSO

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 Land Management).

What is the total obligated amount?

The obligated amount is $6,478.16.

What is the period of performance?

Start: 2025-09-23. End: 2026-09-25.

What is the historical spending pattern for mail metering services by the Bureau of Land Management?

Analyzing historical spending for mail metering services by the Bureau of Land Management (BLM) requires accessing procurement data over several fiscal years. Typically, agencies like the BLM would have recurring needs for such services, often awarded through competitive processes or as delivery orders against larger, pre-negotiated contracts. The frequency and value of these awards can indicate changes in operational scale, technology adoption (e.g., shift to digital communications), or shifts in contracting strategies. For instance, a consistent award to a single vendor like Pitney Bowes over time might suggest a long-standing relationship or a dominant market position for that vendor in specific regions. Conversely, a pattern of frequent re-competition could indicate a strategy to ensure competitive pricing and explore alternative solutions. Without specific historical data for this particular service line, it's difficult to establish a precise pattern, but it's reasonable to assume consistent, albeit potentially fluctuating, expenditure aligned with administrative needs.

How does the per-unit cost of this contract compare to similar mail metering services procured by other federal agencies?

Benchmarking the per-unit cost for mail metering services is challenging without detailed service level agreements and volume metrics. This contract, valued at approximately $6,478 for 367 days, covers multiple BLM offices in Colorado. To compare per-unit costs, one would need to know the number of meters leased, the volume of mail processed, maintenance included, and specific software features. For example, if this contract primarily covers meter rental and basic maintenance for a few machines, the cost per machine per month might be compared against industry averages or similar federal contracts. If it includes high-volume postage application or advanced tracking, the comparison would need to account for those factors. Generally, federal agencies aim for competitive pricing through full and open competition, as seen with the 18 bids in this case. However, specific pricing can vary based on geographic location, vendor market share, and the specific package of services bundled. A detailed analysis would require access to comparable contract data with similar scope and service levels.

What is Pitney Bowes Inc.'s track record with federal government contracts, particularly for mail services?

Pitney Bowes Inc. has a significant and long-standing track record of providing mail and document management solutions to the U.S. federal government. Their contract history includes numerous awards across various agencies for services such as postage meters, mailing systems, shipping software, and related supplies and maintenance. Data from federal procurement databases often shows Pitney Bowes as a frequent awardee, reflecting their established presence and product offerings in this market. While specific performance metrics for individual contracts are not always publicly detailed, their continued success in winning government bids, often through competitive processes, suggests a generally satisfactory performance history. Agencies typically evaluate vendor performance, and consistent awards to a particular contractor often imply that they have met or exceeded contractual requirements in the past. However, as with any large contractor, there may be instances of performance issues or disputes on specific contracts, which would be documented in performance evaluations or protest records.

What are the potential risks associated with relying on a single vendor for mail metering services?

Relying on a single vendor, even one with a strong track record like Pitney Bowes, for essential services like mail metering presents several potential risks. Firstly, there's the risk of vendor lock-in, where the agency becomes dependent on the vendor's proprietary technology or specific service offerings, making it difficult and costly to switch providers. Secondly, if the vendor experiences financial difficulties, operational disruptions, or decides to discontinue certain services, the agency's mail operations could be significantly impacted. Thirdly, reduced competition over time could lead to price increases or a decline in service quality, as the vendor may face less pressure to innovate or maintain competitive pricing. Lastly, a single point of failure exists; if the vendor's equipment malfunctions or service is interrupted, it could halt mail processing across multiple locations, affecting administrative functions. Mitigating these risks often involves careful contract management, regular performance reviews, and exploring market alternatives during the procurement cycle.

How does the 'All Other Business Support Services' NAICS code (561499) encompass the services provided under this contract?

The North American Industry Classification System (NAICS) code 561499, 'All Other Business Support Services,' is a broad category designed to capture businesses primarily engaged in providing a variety of support services to other businesses, which are not elsewhere classified. This includes services such as mailing, reproduction, commercial art and photography, and other business support activities. For the BLM's mail metering contract with Pitney Bowes, this NAICS code is appropriate because it covers the provision of equipment (mail meters), potentially related software, and maintenance services that support the administrative and operational functions of the agency's mailrooms. While mail metering is a specific service, it falls under the umbrella of business support, facilitating the efficient dispatch of official communications. The 'all other' nature of the code acknowledges that it serves as a catch-all for specialized business support functions that don't fit into more narrowly defined categories like data processing or facilities support.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140L1725Q0061

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27 WATERVIEW DR, SHELTON, CT, 06484

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

Financial Breakdown

Contract Ceiling: $12,640

Exercised Options: $6,478

Current Obligation: $6,478

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA21D08R3

IDV Type: FSS

Timeline