State Department awards $19.9M contract for pouch and mail services to DTSV Inc

Contract Overview

Contract Amount: $19,906,171 ($19.9M)

Contractor: Dtsv Inc.

Awarding Agency: Department of State

Start Date: 2023-12-21

End Date: 2026-12-20

Contract Duration: 1,095 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD OF COMPETITIVE PROCUREMENT IN RESPONSE TO RFP NO, 19AQMM23R0015 CLASSIFIED AND UNCLASSIFIED POUCH AND MAIL SERVICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $19.9 million to DTSV INC. for work described as: AWARD OF COMPETITIVE PROCUREMENT IN RESPONSE TO RFP NO, 19AQMM23R0015 CLASSIFIED AND UNCLASSIFIED POUCH AND MAIL SERVICE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for these services. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. The service category, 'Couriers and Express Delivery Services,' is a common government requirement. 5. The award amount of $19.9 million falls within a typical range for such services over three years. 6. The contract was awarded by the Department of State, a primary user of diplomatic pouch services.

Value Assessment

Rating: good

The award amount of $19.9 million for a three-year contract for pouch and mail services appears reasonable given the scope. Benchmarking against similar contracts for courier and express delivery services suggests that the pricing is competitive. The firm-fixed-price contract type helps manage cost risks for the government, as the contractor assumes the majority of cost overruns. Without specific details on the volume and types of mail handled, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that the solicitation was made available to all responsible prospective contractors. The presence of 3 bidders (no) indicates a moderate level of competition for this requirement. A higher number of bidders generally leads to more robust price discovery and potentially lower prices for the government. However, three bidders suggest that the market for this specialized service is not overly saturated but still offers a choice.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a fair market price for the pouch and mail services, benefiting taxpayers by avoiding inflated costs. The selection of a single awardee from multiple bids suggests that the chosen vendor offered the best value proposition.

Public Impact

The Department of State is the primary beneficiary, ensuring the secure and timely delivery of classified and unclassified materials. This contract supports the essential function of diplomatic communications and operations. The services provided are critical for maintaining international relations and national security. The contract's impact is primarily administrative and operational within the Department of State, with indirect benefits to national security and foreign policy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if the volume of mail significantly exceeds projections.
Dependence on a single contractor for critical communication channels could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract provides cost predictability.
Contract duration of three years allows for stable service provision.

Sector Analysis

The couriers and express delivery services sector is a vital component of the logistics and transportation industry, supporting both commercial and government operations. Government spending in this area is consistent, driven by the need for reliable mail and package delivery for various agencies. This contract fits within the broader category of government logistics support, which includes a wide range of services from freight transportation to specialized delivery. Comparable spending benchmarks for similar multi-year delivery contracts can vary significantly based on volume, speed requirements, and geographic scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, DTSV Inc., will be responsible for fulfilling the contract requirements. Any subcontracting opportunities would be at the discretion of DTSV Inc. and would not be mandated by a small business set-aside provision.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of State. Performance monitoring, adherence to delivery schedules, and compliance with contract terms are key oversight functions. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to this contract arise.

Related Government Programs

Department of State Mail Operations
Federal Express Delivery Services
United States Postal Service Contracts
Diplomatic Pouch Services
Government Logistics and Transportation Contracts

Risk Flags

Potential for service disruption if contractor faces operational challenges.
Dependence on a single vendor for critical communication infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $19.9 million to DTSV INC.. AWARD OF COMPETITIVE PROCUREMENT IN RESPONSE TO RFP NO, 19AQMM23R0015 CLASSIFIED AND UNCLASSIFIED POUCH AND MAIL SERVICE

Who is the contractor on this award?

The obligated recipient is DTSV INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2023-12-21. End: 2026-12-20.

What is the historical spending pattern of the Department of State on pouch and mail services?

Analyzing historical spending patterns for the Department of State on pouch and mail services requires access to detailed procurement data over several fiscal years. While this specific award is for $19.9 million over three years, understanding the agency's total expenditure in this category would involve aggregating data from multiple contracts, including those with different awardees, contract types, and durations. Factors such as changes in diplomatic missions, global events, and technological shifts in communication can influence spending. Without a comprehensive historical dataset, it's difficult to establish a precise trend, but the consistent need for secure diplomatic pouch services suggests a stable, albeit potentially fluctuating, expenditure pattern.

How does the number of bidders (3) compare to similar contracts for courier and express delivery services?

A competition level of 3 bidders for a contract of this nature (courier and express delivery services, firm-fixed-price, multi-year) is moderately competitive. In the broader federal procurement landscape for common services, higher numbers of bidders (e.g., 5-10+) are often seen, particularly for less specialized requirements. However, for specialized services like diplomatic pouch and mail, the pool of qualified and capable bidders might be smaller. Therefore, 3 bidders could represent a healthy level of competition within this specific niche. A lower number (1-2) might indicate potential market limitations or barriers to entry, while a significantly higher number could suggest intense competition driving down prices.

What are the key performance indicators (KPIs) likely used to evaluate DTSV Inc.'s performance under this contract?

Key Performance Indicators (KPIs) for a contract involving pouch and mail services would likely focus on timeliness, security, and accuracy. Specific KPIs could include: on-time delivery rates for various service levels (e.g., same-day, next-day, standard), successful delivery confirmation rates, incident rates (e.g., lost, damaged, or delayed items), adherence to security protocols for classified materials, and accuracy in package handling and documentation. The contract would specify acceptable performance thresholds for these KPIs, and failure to meet them could result in penalties or contract termination. Regular performance reviews would assess DTSV Inc.'s compliance with these metrics.

What is the potential impact of this contract on the small business ecosystem?

As this contract was not set aside for small businesses and the data does not indicate any small business participation goals or subcontracting requirements, its direct impact on the small business ecosystem is likely minimal. The primary awardee, DTSV Inc., is responsible for fulfilling the contract. If DTSV Inc. chooses to subcontract portions of this work, they may engage small businesses. However, without specific subcontracting plans mandated by the contract, this is not guaranteed. The federal government's overall strategy to promote small business participation is typically addressed through set-aside contracts and specific subcontracting goals on larger prime contracts.

Are there any known risks associated with DTSV Inc. as a contractor based on past performance?

Assessing the specific risks associated with DTSV Inc. based on past performance would require a review of their contract history, including any past performance evaluations, contract modifications, disputes, or terminations. This information is often proprietary or not readily available in public databases. However, federal agencies typically conduct thorough past performance reviews as part of the source selection process for competitive procurements. The fact that DTSV Inc. was awarded this contract suggests that their past performance, as evaluated by the Department of State, met the required standards for this requirement. Further due diligence would involve checking databases like the Contractor Performance Assessment Reporting System (CPARS).

Industry Classification

NAICS: Transportation and Warehousing › Couriers and Express Delivery Services › Couriers and Express Delivery Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 19AQMM23R0015

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 739 THIMBLE SHOALS BLVD, NEWPORT NEWS, VA, 23606

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

Financial Breakdown

Contract Ceiling: $40,487,030

Exercised Options: $24,161,540

Current Obligation: $19,906,171

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline