IRS awards $2.8M contract for presort mail services to Quicksilver Mailing Services, LLC
Contract Overview
Contract Amount: $2,834,664 ($2.8M)
Contractor: Quicksilver Mailing Services, LLC
Awarding Agency: Department of the Treasury
Start Date: 2021-03-01
End Date: 2026-08-31
Contract Duration: 2,009 days
Daily Burn Rate: $1.4K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PRESORT MAIL SERVICES - BLOOMINGTON, IL
Place of Performance
Location: SPRINGFIELD, SANGAMON County, ILLINOIS, 62702
State: Illinois Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.8 million to QUICKSILVER MAILING SERVICES, LLC for work described as: PRESORT MAIL SERVICES - BLOOMINGTON, IL Key points: 1. Contract value of $2.83 million over its period of performance. 2. Awarded to Quicksilver Mailing Services, LLC. 3. Service category is 'All Other Business Support Services' (NAICS 561499). 4. Contract duration is approximately 5 years and 5 months.
Value Assessment
Rating: fair
The contract value of $2.83 million for presort mail services over five years appears reasonable given the scope. Benchmarking against similar contracts for large-scale mail processing would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: Taxpayer funds are utilized for this essential administrative service. The pricing efficiency is dependent on the effectiveness of the SAP competition.
Public Impact
Ensures efficient processing of IRS mail, potentially speeding up taxpayer communications. Supports a private sector company's operations through government contracting. The use of presort services aims to reduce postage costs for the IRS.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP.
- Potential for higher costs due to non-full and open competition.
Positive Signals
- Contract awarded for essential mail services.
- Utilizes a firm-fixed-price contract type for cost certainty.
Sector Analysis
The IRS relies on business support services like presort mail to manage its vast communication needs. Spending benchmarks for this sector are typically tied to mail volume and processing efficiency, with government contracts often seeking cost savings through bulk mail discounts.
Small Business Impact
The contract was awarded to Quicksilver Mailing Services, LLC. Further analysis would be needed to determine if this is a small business and if subcontracting opportunities were mandated or utilized.
Oversight & Accountability
The award was made via Purchase Order, a common method for SAP procurements. Oversight would focus on contract performance, delivery of services, and adherence to the firm-fixed-price terms.
Related Government Programs
- All Other Business Support Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition.
- Potential for price inefficiency under SAP.
- Long contract duration may not adapt to market changes.
- Lack of detail on small business participation.
Tags
all-other-business-support-services, department-of-the-treasury, il, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.8 million to QUICKSILVER MAILING SERVICES, LLC. PRESORT MAIL SERVICES - BLOOMINGTON, IL
Who is the contractor on this award?
The obligated recipient is QUICKSILVER MAILING SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $2.8 million.
What is the period of performance?
Start: 2021-03-01. End: 2026-08-31.
What is the typical cost per piece for presort mail services in the private sector, and how does this contract's implied per-piece cost compare?
Industry benchmarks for presort mail services vary significantly based on volume, mail class, and specific services required. Without detailed volume data from the IRS contract, a precise per-piece cost comparison is difficult. However, the IRS likely leverages its volume to negotiate rates competitive with or better than standard commercial rates, aiming for cost savings on postage.
What are the risks associated with using Simplified Acquisition Procedures (SAP) for a contract of this duration and value?
The primary risk of SAP is potentially reduced competition, which could lead to higher prices than if the contract were competed under full and open procedures. For a contract spanning over five years, there's also a risk that market conditions or service needs could change, making the initial pricing less optimal over time.
How effectively does this contract contribute to the IRS's overall mission of tax administration and taxpayer service?
This contract is crucial for the efficient and cost-effective handling of IRS mail, which includes taxpayer notices, refunds, and other essential communications. By outsourcing presort services, the IRS can focus its resources on core tax functions, and timely mail processing supports effective taxpayer service.
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: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 205AE9-21-Q-83908-PMS
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2308 N GRAND AVE E, SPRINGFIELD, IL, 62702
Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,834,664
Exercised Options: $2,834,664
Current Obligation: $2,834,664
Actual Outlays: $2,364,487
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2021-03-01
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 16:32:15
Last Modified: 2026-02-26
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