VA awards $3.6M sole-source contract for mailroom and copy center services to ServiceSource Inc

Contract Overview

Contract Amount: $3,583,786 ($3.6M)

Contractor: Servicesource Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2026-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAILROOM AND COPY CENTER SERVICES

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.6 million to SERVICESOURCE INC for work described as: MAILROOM AND COPY CENTER SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of five years suggests a long-term need for these support services. 3. Firm Fixed Price contract type provides cost certainty but may limit flexibility for the agency. 4. ServiceSource Inc. is the sole awardee, indicating a lack of broader market engagement for this requirement. 5. The contract is categorized under 'All Other Support Services', a broad classification. 6. Awarded by the Department of Veterans Affairs, highlighting agency-specific operational needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar mailroom and copy center services. The firm fixed price structure provides predictability, but the absence of competition means there's no direct market comparison to assess if the pricing is optimal. The total award value of $3.6 million over five years averages to approximately $716,757 annually. Without competitive bids, it's difficult to ascertain if this represents a value-for-money outcome for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed openly. The Department of Veterans Affairs identified ServiceSource Inc. as the only capable provider for this specific requirement. The lack of competition limits the agency's ability to explore alternative solutions or leverage market dynamics to potentially achieve lower prices. This approach is typically reserved for situations where only one vendor can meet the unique needs of the agency.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these services due to the absence of a competitive bidding process. A sole-source award bypasses the opportunity for multiple vendors to offer proposals, which usually drives down costs.

Public Impact

Veterans Affairs facilities benefit from essential mailroom and copy center operations. Ensures continuity of administrative and communication support services within the VA. The services provided are critical for the day-to-day functioning of the agency. Supports the operational infrastructure required by the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may indicate a lack of market research or vendor engagement.
Long contract duration (5 years) without re-competition could lead to complacency or price creep.

Positive Signals

Firm Fixed Price contract provides budget certainty for the VA.
ServiceSource Inc. is an established provider, suggesting potential for reliable service delivery.
Contract ensures essential support services are maintained for the agency.

Sector Analysis

The mailroom and copy center services sector encompasses a range of support functions crucial for organizational operations. While not a high-technology sector, it is a vital component of administrative efficiency for large organizations like the Department of Veterans Affairs. The market for these services can range from small, local providers to larger, specialized support companies. The contract value of $3.6 million over five years places it in the mid-range for such support service contracts within a federal agency context, though specific benchmarks are difficult without more granular data on service scope.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to ServiceSource Inc., a single entity, suggests that small business participation was not a primary consideration in this sole-source procurement. This could mean missed opportunities for small businesses to provide these support services or to gain subcontracting experience.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be defined by the contract terms and conditions, including performance standards and payment schedules. Transparency is limited by the sole-source nature of the award, as the justification and selection process are not publicly scrutinized through a competitive process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Mailroom Operations
Government Printing and Copying Services
Administrative Support Services Contracts
Department of Veterans Affairs Support Services

Risk Flags

Sole-source award
Lack of competition
Long-term contract duration without re-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.6 million to SERVICESOURCE INC. MAILROOM AND COPY CENTER SERVICES

Who is the contractor on this award?

The obligated recipient is SERVICESOURCE 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 $3.6 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-09-30.

What is the specific justification for awarding this contract on a sole-source basis to ServiceSource Inc.?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) and is a 'SOLE SOURCE' award. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, or specific circumstances where competition is not feasible or not in the government's best interest. A formal justification document (e.g., a Justification and Approval or J&A) would detail the specific reasons, such as unique requirements, lack of market availability, or urgent needs that preclude competition. Without this document, the precise rationale remains unclear, but it implies the VA determined ServiceSource Inc. was the only viable option.

How does the annual cost of this contract compare to similar mailroom and copy center services at other federal agencies?

Direct comparison of the annual cost ($716,757) is difficult without knowing the exact scope and volume of services provided by ServiceSource Inc. Federal mailroom and copy center needs vary significantly based on agency size, location, and operational tempo. However, for a large agency like the VA, this annual figure for comprehensive support services might be considered reasonable, especially if it includes specialized equipment, staffing, and management. Without access to detailed service level agreements and competitive benchmark data for similar sole-source or competed contracts, it's challenging to definitively assess if this represents optimal value or if it's higher than market rates. The sole-source nature inherently prevents a direct competitive benchmark.

What are the potential risks associated with a five-year sole-source contract for these services?

The primary risk of a five-year sole-source contract is the lack of competitive pressure, which can lead to inflated prices over time and reduced incentives for the contractor to innovate or improve efficiency. The VA is locked into ServiceSource Inc. for the duration, limiting its ability to benefit from potentially better offers or new service providers that emerge in the market. There's also a risk of vendor lock-in, where the agency becomes dependent on the incumbent's processes and systems, making future transitions more complex and costly. Furthermore, without regular competition, there's a diminished opportunity to ensure the services remain aligned with evolving agency needs and technological advancements.

What performance metrics or oversight mechanisms are in place to ensure ServiceSource Inc. delivers adequate mailroom and copy center services?

While the provided data does not detail specific performance metrics, federal contracts typically include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines required services, standards, and deliverables. Oversight would likely involve a Contracting Officer's Representative (COR) or a Technical Point of Contact (TPOC) responsible for monitoring performance, ensuring compliance with the PWS, and approving invoices. The Firm Fixed Price (FFP) contract type implies that the contractor is responsible for delivering the specified services regardless of the actual costs incurred. Performance issues would be addressed through contract clauses, potentially leading to remedies such as corrective action requests or, in severe cases, contract termination.

Has the Department of Veterans Affairs historically awarded similar sole-source contracts for mailroom and copy center services?

The provided data does not offer historical spending patterns for the VA regarding mailroom and copy center services, nor does it specify if similar sole-source awards have been common. To determine historical trends, one would need to analyze past VA contract awards for these types of services, looking at both competed and sole-source procurements. It's possible that the VA has specific needs or circumstances that lead to sole-source awards for certain support functions, or this could be an isolated instance. A comprehensive review of federal procurement databases (like FPDS or USASpending) would be necessary to establish a historical context.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25922R0025

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: $3,583,786

Exercised Options: $3,583,786

Current Obligation: $3,583,786

Actual Outlays: $16,116

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline