IRS Awards $12.9M Mailroom Support Contract to Servicesource Inc. for 2025
Contract Overview
Contract Amount: $12,905,110 ($12.9M)
Contractor: Servicesource Inc
Awarding Agency: Department of the Treasury
Start Date: 2025-03-28
End Date: 2025-12-31
Contract Duration: 278 days
Daily Burn Rate: $46.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: INTERNAL REVENUE SERVICE NATIONAL MAILROOM SUPPORT SERVICES, AND SATELLITE OFFICE MAILROOM SUPPORT
Place of Performance
Location: OAKTON, FAIRFAX County, VIRGINIA, 22124
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $12.9 million to SERVICESOURCE INC for work described as: INTERNAL REVENUE SERVICE NATIONAL MAILROOM SUPPORT SERVICES, AND SATELLITE OFFICE MAILROOM SUPPORT Key points: 1. Contract awarded to Servicesource Inc. for $12.9 million. 2. Services include national and satellite mailroom support for the IRS. 3. The contract is a definitive contract with a firm fixed price. 4. The contract duration is 278 days, ending December 31, 2025. 5. This falls under the 'All Other Business Support Services' NAICS code.
Value Assessment
Rating: fair
The contract value of $12.9 million for approximately 9 months of service appears to be within a reasonable range for comprehensive mailroom support. Benchmarking against similar large-scale mailroom operations would provide a clearer picture of cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competition approach. This suggests potential reasons such as specialized services or existing vendor relationships, which may impact price discovery and potentially lead to higher costs.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers are receiving the best possible value for the $12.9 million expenditure.
Public Impact
Ensures continuity of essential mailroom operations for the IRS. Potential for increased costs due to limited competition. Impacts taxpayers through government spending on administrative support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Short contract duration may lead to frequent re-competition costs.
- Lack of detailed performance metrics in provided data.
Positive Signals
- Essential service for IRS operations.
- Firm fixed price provides cost certainty.
- Clear end date for contract.
Sector Analysis
This contract falls within the business support services sector, specifically mailroom operations. Benchmarks for this sector can vary widely based on scale and scope, but $12.9 million for a national mailroom operation is substantial.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large contract.
Oversight & Accountability
Oversight will be crucial to ensure Servicesource Inc. meets the performance requirements of the IRS National Mailroom Support Services contract, especially given the limited competition. The IRS should monitor contract performance closely for efficiency and value.
Related Government Programs
- All Other Business Support Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition may result in inflated costs.
- Lack of transparency regarding the justification for limited competition.
- Potential for service disruption if vendor performance is inadequate.
- No indication of small business participation.
Tags
all-other-business-support-services, department-of-the-treasury, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.9 million to SERVICESOURCE INC. INTERNAL REVENUE SERVICE NATIONAL MAILROOM SUPPORT SERVICES, AND SATELLITE OFFICE MAILROOM SUPPORT
Who is the contractor on this award?
The obligated recipient is SERVICESOURCE INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2025-03-28. End: 2025-12-31.
What specific factors led to the 'NOT AVAILABLE FOR COMPETITION' status for this significant mailroom support contract?
The specific factors leading to the 'NOT AVAILABLE FOR COMPETITION' status are not detailed in the provided data. Typically, such designations are based on justifications like urgent and compelling needs, sole-source capabilities of a specific vendor, or statutory requirements. A deeper dive into the contract's justification documentation would be necessary to understand the precise reasons.
How does the $12.9 million price compare to industry benchmarks for similar-sized mailroom support contracts, considering the limited competition?
Without specific industry benchmarks for mailroom support services of this scale and scope, a direct comparison is difficult. However, limited competition often leads to prices above market rates. A thorough cost analysis and comparison with publicly available data for similar government or private sector contracts would be needed to assess if this price represents good value.
What are the potential risks to IRS operations if Servicesource Inc. fails to deliver adequate mailroom support under this contract?
Failure to deliver adequate mailroom support could significantly disrupt IRS operations, impacting mail processing, document management, and communication flow. This could lead to delays in critical administrative functions, potential loss of important documents, and decreased efficiency across the agency. The IRS would need contingency plans to mitigate such risks.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10467 WHITE GRANITE DR, 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: $12,905,110
Exercised Options: $12,905,110
Current Obligation: $12,905,110
Actual Outlays: $12,876,232
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-03-28
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 13:28:27
Last Modified: 2025-12-16
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