Treasury's IRS awards $2.3M for Mail Room Services to Goodwill, citing limited competition

Contract Overview

Contract Amount: $232,705 ($232.7K)

Contractor: Goodwill Contract Services Hawaii Inc

Awarding Agency: Department of the Treasury

Start Date: 2022-01-01

End Date: 2026-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $128/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL ROOM SERVICES

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96819

State: Hawaii Government Spending

Plain-Language Summary

Department of the Treasury obligated $232,704.6 to GOODWILL CONTRACT SERVICES HAWAII INC for work described as: MAIL ROOM SERVICES Key points: 1. Contract Value: $2.33 million over 5 years. 2. Competition: Sole-source award to Goodwill. 3. Risk: Potential for higher costs due to lack of competition. 4. Sector: Facilities Support Services.

Value Assessment

Rating: fair

The contract value of $2.33 million over five years for mail room services appears reasonable given the duration and scope. However, without competitive bidding, it's difficult to definitively assess if this represents the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded on a limited competition basis, specifically to Goodwill. While Goodwill provides valuable social services, this approach limits price discovery and may not yield the most cost-effective solution compared to an open competition.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding, although the social impact of supporting Goodwill is a consideration.

Public Impact

Supports a social enterprise (Goodwill) providing employment opportunities. Ensures essential mail room operations for the IRS. Potential for higher costs compared to a fully competitive contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Lack of clear performance metrics in provided data.

Positive Signals

Supports a mission-driven organization.
Ensures continuity of essential services.

Sector Analysis

Facilities Support Services, including mail room operations, are crucial for government agency functioning. Benchmarks for such services vary widely based on location, scope, and specific requirements, making direct comparison challenging without more detail.

Small Business Impact

This contract was awarded to Goodwill, a non-profit organization, not a small business. There is no indication of small business participation or subcontracting opportunities within this award.

Oversight & Accountability

The award was a purchase order, suggesting a streamlined procurement process. Oversight would focus on contract performance and adherence to the terms, especially given the limited competition.

Related Government Programs

Facilities Support Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Limited competition
Potential for higher costs
Lack of detailed scope of work
Absence of performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $232,704.6 to GOODWILL CONTRACT SERVICES HAWAII INC. MAIL ROOM SERVICES

Who is the contractor on this award?

The obligated recipient is GOODWILL CONTRACT SERVICES HAWAII 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 $232,704.6.

What is the period of performance?

Start: 2022-01-01. End: 2026-12-31.

What is the specific scope of services included in these mail room operations?

The provided data does not detail the specific scope of mail room services. This could range from basic mail sorting and distribution to more complex tasks like package handling, mail security, and internal mail logistics. Understanding the full scope is crucial for accurately assessing value and cost-effectiveness.

Are there any performance metrics or service level agreements (SLAs) associated with this contract?

The data does not specify any performance metrics or SLAs. For a contract of this duration and value, clear, measurable performance standards are essential to ensure service quality and hold the contractor accountable. Without them, evaluating the effectiveness of the service and the value for money is difficult.

What justification was provided for limiting competition to Goodwill?

The justification for limiting competition to Goodwill is not detailed in the provided data. Typically, such limitations require a strong rationale, such as unique capabilities, specific social program requirements, or prior successful performance under similar circumstances. Without this justification, the decision appears less transparent.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities 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: 2610 KILIHAU ST, HONOLULU, HI, 96819

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: $370,797

Exercised Options: $315,504

Current Obligation: $232,705

Actual Outlays: $218,881

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline