EPA Spends $4.68M on Mail Services with ServiceSource Inc. for 3 Years
Contract Overview
Contract Amount: $4,677,740 ($4.7M)
Contractor: Servicesource Inc
Awarding Agency: Environmental Protection Agency
Start Date: 2023-06-29
End Date: 2026-07-02
Contract Duration: 1,099 days
Daily Burn Rate: $4.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL AND DISTRIBUTION SERVICES FOR D.C. OFFICE
Place of Performance
Location: OAKTON, FAIRFAX County, VIRGINIA, 22124
State: Virginia Government Spending
Plain-Language Summary
Environmental Protection Agency obligated $4.7 million to SERVICESOURCE INC for work described as: MAIL AND DISTRIBUTION SERVICES FOR D.C. OFFICE Key points: 1. Contract awarded to ServiceSource Inc. for mail and distribution services. 2. Significant spending of $4.68 million over three years. 3. Contract is not available for competition, raising questions about price discovery. 4. Services fall under 'All Other Business Support Services' (NAICS 561499).
Value Assessment
Rating: questionable
The contract value of $4.68 million for three years of mail and distribution services appears high without a competitive bidding process. Benchmarking against similar contracts is difficult due to the 'not available for competition' status.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited procurement approach. This lack of competition may have prevented the government from achieving the best possible price through market forces.
Taxpayer Impact: Taxpayers may be overpaying for mail and distribution services due to the absence of competitive bidding, potentially diverting funds from other essential government functions.
Public Impact
Citizens may question the necessity and cost-effectiveness of such a large expenditure on mail services. The lack of competition could lead to public scrutiny regarding fair government contracting practices. Transparency in government spending is crucial, and this contract's non-competitive nature warrants further examination.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for support services
- Limited transparency in pricing
Positive Signals
- Contract provides essential mail and distribution services
- Defined contract period and value
Sector Analysis
The Environmental Protection Agency (EPA) is procuring mail and distribution services, a common administrative function. Spending benchmarks for such services can vary widely based on volume and complexity, but a $4.68M contract over three years without competition warrants scrutiny.
Small Business Impact
The contract was awarded to ServiceSource Inc., which is not explicitly identified as a small business in the provided data. Further analysis would be needed to determine the impact on small business participation in this contract.
Oversight & Accountability
The 'not available for competition' status suggests potential oversight gaps in ensuring competitive sourcing for government contracts. Accountability for the pricing and necessity of these services is reduced without a competitive process.
Related Government Programs
- All Other Business Support Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Lack of competitive bidding
- High dollar value for administrative services
- Potential for overpayment
- Limited transparency in pricing justification
Tags
all-other-business-support-services, environmental-protection-agency, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $4.7 million to SERVICESOURCE INC. MAIL AND DISTRIBUTION SERVICES FOR D.C. OFFICE
Who is the contractor on this award?
The obligated recipient is SERVICESOURCE INC.
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $4.7 million.
What is the period of performance?
Start: 2023-06-29. End: 2026-07-02.
What specific mail and distribution services are included in this $4.68 million contract, and how were these services valued without competition?
The contract details 'MAIL AND DISTRIBUTION SERVICES FOR D.C. OFFICE.' Without a competitive bidding process, the valuation likely relied on ServiceSource Inc.'s proposed pricing. A thorough review would require understanding the scope of services, ServiceSource's cost structure, and justification for the fixed price, especially given the absence of market-based price discovery.
What are the risks associated with awarding a large, multi-year contract for support services without competition?
The primary risk is paying a non-competitive price, potentially exceeding fair market value. Other risks include reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency that can erode public trust. It also limits opportunities for other capable vendors to compete for government business.
How effective is this contract in meeting the EPA's mail and distribution needs, and is the $4.68 million expenditure justified?
The effectiveness can only be assessed through performance metrics and user feedback, which are not provided. The justification of the $4.68 million expenditure is questionable due to the lack of competition. A competitive process would have provided a clearer benchmark for value and effectiveness against market alternatives.
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) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 68HERC23R0116
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: $6,748,450
Exercised Options: $4,677,740
Current Obligation: $4,677,740
Actual Outlays: $3,920,484
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-29
Current End Date: 2026-07-02
Potential End Date: 2028-07-02 00:00:00
Last Modified: 2026-03-16
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