VA awards $537K for mail leasing machine support, highlighting ongoing need for office equipment maintenance

Contract Overview

Contract Amount: $537,421 ($537.4K)

Contractor: Pitney Bowes Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-06-15

End Date: 2027-06-14

Contract Duration: 1,825 days

Daily Burn Rate: $294/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL LEASING MACHINE SUPPORT SERVICES

Place of Performance

Location: SHELTON, NAUGATUCK VLY County, CONNECTICUT, 06484

State: Connecticut Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $537,421.2 to PITNEY BOWES INC. for work described as: MAIL LEASING MACHINE SUPPORT SERVICES Key points: 1. The contract addresses essential support for mail leasing machines, crucial for efficient mail processing within the VA. 2. A firm-fixed-price structure provides cost certainty for the government over the contract's duration. 3. The award was made under full and open competition, suggesting a robust market for these services. 4. The duration of the contract, spanning five years, indicates a long-term requirement for reliable equipment maintenance. 5. The specific NAICS code (532420) points to a specialized leasing market for office machinery.

Value Assessment

Rating: good

The contract value of $537,421.20 over five years suggests a moderate annual expenditure for mail leasing machine support. Benchmarking this against similar contracts for office equipment maintenance is challenging without more specific service details. However, the firm-fixed-price nature of the contract implies that the pricing was determined to be fair and reasonable at the time of award, with the contractor assuming the risk for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Veterans Affairs sought bids from all responsible sources. The fact that it was competed broadly suggests that multiple vendors were capable of providing the required mail leasing machine support services. This level of competition is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring the government receives the best possible value for its investment in essential office equipment maintenance.

Public Impact

Veterans Affairs facilities benefit from the reliable operation of mail processing equipment, ensuring efficient communication and administrative functions. The services delivered ensure the continued functionality of mail leasing machines, supporting daily operational needs. The geographic impact is primarily within Connecticut, where the services are likely to be performed. The contract supports the maintenance workforce indirectly by ensuring the tools they rely on are operational.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if maintenance needs exceed initial projections under the firm-fixed-price contract.
Dependence on a single contractor for a critical operational function could pose a risk if performance issues arise.

Positive Signals

The use of full and open competition suggests a healthy market and potential for competitive pricing.
The firm-fixed-price contract provides budget certainty for the VA.
The five-year duration indicates a stable, long-term need being met.

Sector Analysis

The office machinery and equipment rental and leasing sector (NAICS 532420) encompasses a wide range of equipment, including specialized machinery for mail processing. Federal spending in this area supports the operational efficiency of various government agencies. While specific benchmarks for mail leasing machine support are not readily available, the overall market for equipment leasing and maintenance is competitive, with established players offering a variety of service models.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of the services, it is possible that larger, specialized firms are the primary providers. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Department of Veterans Affairs' contracting officers are responsible for monitoring performance and ensuring compliance with contract terms. The firm-fixed-price nature of the award places the onus on the contractor to manage costs effectively. Transparency is maintained through contract award databases like FPDS.

Related Government Programs

General Services Administration (GSA) Schedules for office equipment
Department of Defense mail services contracts
Other agency mailroom equipment maintenance

Risk Flags

Potential for vendor lock-in due to long-term contract duration.
Dependence on a single supplier for critical office machinery maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $537,421.2 to PITNEY BOWES INC.. MAIL LEASING MACHINE SUPPORT SERVICES

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 $537,421.2.

What is the period of performance?

Start: 2022-06-15. End: 2027-06-14.

What is the historical spending pattern for mail leasing machine support services by the Department of Veterans Affairs?

Analyzing historical spending for mail leasing machine support services by the Department of Veterans Affairs (VA) requires examining contract data over several fiscal years. While this specific delivery order is for $537,421.20 over five years, understanding the VA's broader investment in this area involves looking at prior contracts, including those awarded to Pitney Bowes Inc. and potentially other vendors. Trends might reveal an increasing or decreasing reliance on leased machinery, changes in service requirements, or shifts in pricing. For instance, if previous contracts were significantly smaller or larger, it could indicate evolving needs or market conditions. A consistent pattern of awards for similar services would suggest a stable, ongoing requirement for mail processing equipment maintenance within the VA's operational framework.

How does the pricing of this contract compare to similar mail leasing machine support contracts awarded by other federal agencies?

Comparing the pricing of this $537,421.20 VA contract for mail leasing machine support to similar contracts across federal agencies is crucial for assessing value for money. This requires identifying contracts with comparable scope, duration, and service levels from agencies like the General Services Administration (GSA) or the Department of Defense. Factors such as geographic location, specific machine models supported, and the level of service (e.g., response times, preventive maintenance schedules) can influence pricing. If this contract's per-unit cost or overall value appears significantly higher or lower than benchmarks, it warrants further investigation into the underlying reasons, such as market variations, unique service requirements, or competitive dynamics.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this delivery order?

Key Performance Indicators (KPIs) for this mail leasing machine support contract would typically focus on ensuring the reliable and efficient operation of the leased machinery. Common KPIs might include metrics related to equipment uptime and availability, response times for service calls (both routine and emergency), the timeliness and quality of preventive maintenance, and adherence to service level agreements (SLAs). For a firm-fixed-price contract, the VA would monitor whether the contractor is meeting these performance standards without exceeding the agreed-upon budget. Failure to meet KPIs could lead to contract remedies, while consistently exceeding them might indicate exceptional performance. Specific KPIs would be detailed in the contract's performance work statement (PWS).

What is the track record of Pitney Bowes Inc. in providing similar mail leasing machine support services to the federal government?

Pitney Bowes Inc. has a significant track record in providing mailing solutions, including equipment leasing and support services, to the federal government. Their history likely includes numerous contracts with various agencies, covering a range of mailing equipment from high-volume production systems to desktop inserters. Analyzing their past performance would involve reviewing contract awards, performance evaluations (if publicly available), and any documented issues or successes. A history of successful contract completions and positive performance reviews would suggest reliability and capability in meeting federal requirements. Conversely, any past performance concerns or disputes could be a flag for potential risks, although each contract is evaluated independently.

What are the potential risks associated with relying on a single vendor for mail leasing machine support over a five-year period?

Relying on a single vendor, such as Pitney Bowes Inc. in this case, for mail leasing machine support over a five-year period presents several potential risks. Foremost is the risk of vendor lock-in, where switching providers becomes difficult or costly if performance degrades or prices increase substantially. There's also the risk of complacency; if competition is limited in subsequent procurements, the incumbent may have less incentive to innovate or offer the most competitive pricing. Furthermore, unforeseen operational issues or financial instability within the vendor's company could disrupt essential services. The VA mitigates these risks through robust contract management, clear performance expectations, and contingency planning, but the inherent dependency remains a factor.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Office Machinery and Equipment Rental and Leasing

Product/Service Code: OFFICE MACH/TEXT PROCESS/VISIB REC

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3001 SUMMER ST, STAMFORD, CT, 06926

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: $537,421

Exercised Options: $537,421

Current Obligation: $537,421

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10X19D0020

IDV Type: IDC

Timeline