VA awards $1.7M for mail meter services, with Pitney Bowes Inc. securing the contract

Contract Overview

Contract Amount: $17,015 ($17.0K)

Contractor: Pitney Bowes Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-01

End Date: 2026-10-07

Contract Duration: 493 days

Daily Burn Rate: $35/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL METER LEASE AND MAINTENANCE.

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,015.04 to PITNEY BOWES INC. for work described as: MAIL METER LEASE AND MAINTENANCE. Key points: 1. The contract value of $1.7 million over its period of performance suggests a moderate investment in essential mailroom operations. 2. The use of a firm-fixed-price contract type indicates that the government has a clear understanding of the scope and cost, transferring some risk to the contractor. 3. The contract was awarded under full and open competition, implying a competitive bidding process that should theoretically lead to favorable pricing. 4. The duration of the contract, approximately 493 days, is typical for service contracts of this nature. 5. The award to Pitney Bowes Inc. suggests a reliance on established vendors for specialized equipment and maintenance services. 6. The North American Industry Classification System (NAICS) code 561499 points to a broad category of business support services, indicating this is a standard operational requirement.

Value Assessment

Rating: fair

The contract value of $1.7 million for mail meter lease and maintenance appears to be within a reasonable range for a federal agency of the VA's size. Without specific details on the number of meters, their capabilities, and the scope of maintenance included, a precise value-for-money assessment is challenging. However, given the duration and the nature of the service, the cost per day is approximately $3,451. This figure should be benchmarked against similar contracts for mail meter services across other federal agencies or large private sector organizations to determine if it represents competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit bids. This method is generally preferred as it maximizes the potential for competitive pricing and innovation. The fact that it was competed suggests that the Department of Veterans Affairs sought to leverage market forces to obtain the best value. The number of bidders is not specified, but the use of this procurement method implies a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and terms, potentially leading to cost savings for the government compared to less competitive methods.

Public Impact

The primary beneficiaries of this contract are the Department of Veterans Affairs facilities that rely on efficient mail processing for communication with veterans and internal operations. The services delivered include the lease and maintenance of mail metering equipment, ensuring that outgoing mail is properly metered and processed. The geographic impact is likely nationwide, supporting various VA facilities across the United States that require mail services. This contract supports the administrative and operational workforce within the VA, enabling them to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if maintenance and supplies are exclusively tied to Pitney Bowes equipment.
Reliance on a single vendor for critical mailroom infrastructure could pose operational risks if service levels decline.
The broad NAICS code may obscure the specific technological capabilities and associated costs of the leased equipment.

Positive Signals

Award under full and open competition suggests a competitive process that should have yielded fair market pricing.
Firm-fixed-price contract type provides cost certainty for the government, minimizing budget overruns.
The contract duration is aligned with typical service periods, allowing for stable operations.

Sector Analysis

The Business Support Services sector, under which this contract falls (NAICS 561499), encompasses a wide range of services essential for the functioning of organizations. Mail meter lease and maintenance is a niche but critical component of this sector, ensuring efficient communication and mail processing. The federal government is a significant consumer of such services, with agencies like the VA requiring robust mailroom operations. Comparable spending benchmarks would typically involve analyzing the cost per meter or per piece of mail processed across similar large organizations.

Small Business Impact

This contract does not appear to have a small business set-aside (ss is false) and the data does not indicate any specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless Pitney Bowes Inc. voluntarily engages small businesses in its supply chain or maintenance network.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within the Department of Veterans Affairs. The firm-fixed-price nature of the contract provides a degree of accountability by fixing costs. Transparency is facilitated by the public nature of federal contract awards, allowing for general oversight. Specific performance metrics and service level agreements, if included in the contract, would be key to monitoring contractor performance. There is no explicit mention of Inspector General jurisdiction in the provided data, but the VA OIG typically has broad oversight over VA spending.

Related Government Programs

General Services Administration (GSA) Schedule contracts for office equipment and services
Other agency-specific mailroom equipment and services contracts
Federal Mail Management policies and regulations

Risk Flags

Potential for service disruptions if maintenance response times are not adequately defined or enforced.
Risk of escalating costs if contract terms do not include clear provisions for price adjustments.
Dependence on a single vendor for critical infrastructure could limit flexibility in adopting new technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,015.04 to PITNEY BOWES INC.. MAIL METER LEASE AND MAINTENANCE.

Who is the contractor on this award?

The obligated recipient is PITNEY BOWES INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $17,015.04.

What is the period of performance?

Start: 2025-06-01. End: 2026-10-07.

What is the historical spending pattern for mail meter lease and maintenance services by the Department of Veterans Affairs?

Analyzing historical spending for mail meter lease and maintenance by the VA would provide crucial context for the current $1.7 million award. This involves examining contract databases to identify previous awards for similar services, noting the vendors, contract values, durations, and procurement methods. A trend analysis could reveal if spending has increased, decreased, or remained stable over time. Understanding past pricing and competition levels can help determine if the current award represents a fair market price or if there are opportunities for cost savings through renegotiation or exploring alternative solutions. For instance, if previous contracts were significantly lower in value or awarded to different vendors under more competitive conditions, it might warrant a closer look at the current contract's terms and pricing.

How does the per-day cost of this contract compare to industry benchmarks for similar mail meter services?

To assess the value for money, the per-day cost of this contract, approximately $3,451 ($1.7M / 493 days), needs to be benchmarked against industry standards. This involves researching average daily or monthly lease and maintenance costs for comparable mail metering equipment in the commercial sector or within other large federal agencies. Factors such as the volume of mail processed, the sophistication of the equipment (e.g., speed, integrated software), and the scope of maintenance (e.g., response times, included parts) significantly influence pricing. If this daily rate is substantially higher than benchmarks, it could indicate potential overpricing or a scope of service that is more comprehensive than typical. Conversely, a lower rate might suggest favorable negotiation or a highly efficient service model.

What specific types and quantities of mail meters are included in this $1.7 million contract?

The provided data lacks specificity regarding the exact types and quantities of mail meters leased and maintained under this $1.7 million contract. This information is critical for a thorough value assessment. Different models of mail meters have varying capabilities, speeds, and associated leasing and maintenance costs. Knowing the number of units and their specifications allows for a more accurate comparison with market rates and the evaluation of whether the total contract value is justified. Without this detail, it's difficult to determine if the VA is acquiring state-of-the-art equipment, sufficient quantities for its needs, or if the pricing reflects an appropriate cost per unit based on its features and volume capacity.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this mail meter maintenance contract?

The effectiveness and value of this mail meter lease and maintenance contract are significantly influenced by the Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) in place. While not detailed in the provided summary, these would typically include metrics such as equipment uptime, response time for maintenance requests, and resolution times for issues. Robust KPIs and SLAs ensure that the contractor, Pitney Bowes Inc., meets defined performance standards, thereby guaranteeing the operational continuity of the VA's mail processing functions. The absence of specific details on these performance measures makes it challenging to fully assess the contractor's accountability and the overall reliability of the service being procured.

Has Pitney Bowes Inc. historically performed well on similar federal contracts for mail meter services?

Evaluating Pitney Bowes Inc.'s track record on similar federal contracts is essential for assessing the risk and reliability associated with this $1.7 million award. Reviewing past performance evaluations, contract termination data, and any documented disputes or quality issues related to their previous government contracts would provide valuable insights. A history of successful performance, timely maintenance, and adherence to contract terms suggests a lower risk profile. Conversely, a pattern of underperformance, missed deadlines, or unresolved issues could indicate potential challenges in meeting the VA's requirements, potentially impacting mail operations and necessitating closer monitoring by the agency.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27 WATERVIEW DR, SHELTON, CT, 06484

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,538

Exercised Options: $17,015

Current Obligation: $17,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA21D08R3

IDV Type: FSS

Timeline