Treasury's $3M Mailroom & Logistic Support Contract Awarded to Bankers Business Management Services, Inc

Contract Overview

Contract Amount: $3,063,725 ($3.1M)

Contractor: Bankers Business Management Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2024-03-27

End Date: 2027-03-26

Contract Duration: 1,094 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAILROOM AND LOGISTIC SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.1 million to BANKERS BUSINESS MANAGEMENT SERVICES, INC. for work described as: MAILROOM AND LOGISTIC SUPPORT Key points: 1. Contract value appears reasonable for a multi-year support service. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of nearly three years provides stability for service delivery. 5. Service area is limited to Washington D.C., indicating a localized need. 6. The North American Industry Classification System (NAICS) code 561499 covers a broad range of business support services.

Value Assessment

Rating: good

The contract's total value of approximately $3.06 million over 1094 days (nearly three years) suggests a daily rate of around $2,800. This rate needs to be benchmarked against similar mailroom and logistic support contracts within the federal government and private sector. Without specific details on the scope of services (e.g., volume of mail, types of logistics handled, staffing levels), a precise value-for-money assessment is challenging. However, the firm fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 4 bids suggests a moderate level of competition. While not an exceptionally high number, it provides a basis for price discovery and allows the agency to select the most advantageous offer based on price and other factors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

The Office of the Comptroller of the Currency (OCC) within the Department of the Treasury is the primary beneficiary, receiving essential mailroom and logistic support. Services include the handling and management of mail and logistical operations, ensuring efficient internal operations for the agency. The geographic impact is concentrated in the District of Columbia, where the OCC is located. The contract supports jobs within the service provider, Bankers Business Management Services, Inc., contributing to the local economy in D.C.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service degradation if the contractor's performance falters over the contract term.
Reliance on a single contractor for critical support functions could pose a risk if service is interrupted.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost increases.
Full and open competition suggests a deliberate effort to secure competitive pricing.
Contract duration provides service continuity for the agency.

Sector Analysis

The mailroom and logistic support services fall under the broader Business Support Services sector. This sector encompasses a wide range of activities that enable businesses to operate efficiently. While specific market size data for federal mailroom and logistic support is not readily available, the federal government is a significant consumer of such services across various agencies. This contract represents a typical procurement for essential operational support within a government agency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting requirements. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though the prime contractor's own size and subcontracting practices would determine any indirect effects.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the Office of the Comptroller of the Currency's program officials. Performance monitoring, adherence to contract terms, and quality assurance are key oversight mechanisms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Mailroom Operations
Government Logistics Services
Administrative Support Contracts
Office Services Procurement
Department of the Treasury Contracts

Risk Flags

Potential for performance issues given the multi-year duration.
Need for ongoing monitoring to ensure value for money is maintained.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.1 million to BANKERS BUSINESS MANAGEMENT SERVICES, INC.. MAILROOM AND LOGISTIC SUPPORT

Who is the contractor on this award?

The obligated recipient is BANKERS BUSINESS MANAGEMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2024-03-27. End: 2027-03-26.

What is the track record of Bankers Business Management Services, Inc. with federal contracts?

A review of federal procurement data would be necessary to assess the track record of Bankers Business Management Services, Inc. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract terminations. Without access to this specific performance history, it is difficult to gauge their reliability and past success in fulfilling government requirements. Agencies often rely on past performance information during the source selection process to mitigate risk associated with new awards.

How does the daily rate of approximately $2,800 compare to market rates for similar services?

Benchmarking the daily rate of approximately $2,800 requires detailed comparison with similar mailroom and logistic support contracts. Factors such as the volume of mail processed, types of logistics handled (e.g., package delivery, internal transport), staffing levels, security requirements, and geographic location significantly influence pricing. A comprehensive analysis would involve comparing this rate against contracts awarded by other federal agencies for comparable services, as well as private sector benchmarks. Without this granular data, it's challenging to definitively state if the rate represents excellent value, fair value, or is potentially inflated.

What are the specific risks associated with this contract, and how are they being managed?

Key risks include potential service disruptions, contractor performance issues, and the possibility of scope creep if not managed tightly. The firm fixed-price contract structure helps mitigate financial risks related to cost overruns. Risk management is likely handled through robust performance monitoring by the contracting officer's representative (COR), regular status meetings with the contractor, and clearly defined performance standards and remedies within the contract. The limited geographic scope (District of Columbia) also contains certain logistical risks.

What is the historical spending pattern for mailroom and logistic support at the Office of the Comptroller of the Currency?

Analyzing historical spending for mailroom and logistic support at the OCC would require accessing prior contract data. This would involve identifying previous contracts for similar services, their values, durations, and the contractors involved. Understanding historical spending patterns can reveal trends in cost, service providers, and the overall investment in these functions. It can also help determine if the current $3.06 million award is consistent with past expenditures or represents a significant increase or decrease, potentially indicating changes in service requirements or market conditions.

How does the level of competition (4 bidders) impact the value received by the government?

A competition level of 4 bidders suggests a moderately competitive environment. While more bidders generally lead to greater price pressure and potentially better value, four offers provide a reasonable basis for comparison. It indicates that the opportunity was attractive enough to solicit interest from multiple firms. The agency's evaluation process, which considers factors beyond just price (e.g., technical approach, past performance), will ultimately determine the extent to which this competition translates into optimal value for the government. A very low number of bidders might raise concerns about market competitiveness.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW24Q00034

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8121 GEORGIA AVE STE 950, SILVER SPRING, MD, 20910

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,260,957

Exercised Options: $3,063,725

Current Obligation: $3,063,725

Actual Outlays: $1,842,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSMA23D08NW

IDV Type: FSS

Timeline