HHS Indian Health Service awards $30K for postage services in Sisseton, SD

Contract Overview

Contract Amount: $30,000 ($30.0K)

Contractor: THE Pitney Bowes Bank, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-10

End Date: 2027-04-09

Contract Duration: 364 days

Daily Burn Rate: $82/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POSTAGE REFILL FY26, SISSETON SD

Place of Performance

Location: SISSETON, ROBERTS County, SOUTH DAKOTA, 57262

State: South Dakota Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $30,000 to THE PITNEY BOWES BANK, INC. for work described as: POSTAGE REFILL FY26, SISSETON SD Key points: 1. The contract is for postage refill services. 2. The sole awardee is The Pitney Bowes Bank, Inc. 3. The contract value is $30,000. 4. The contract duration is 364 days. 5. The contract is a firm fixed price purchase order.

Value Assessment

Rating: questionable

The contract value of $30,000 for postage services over one year appears high for a single location. Benchmarking against similar postal service contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for postage services.

Public Impact

Taxpayers may be overpaying for essential postage services due to a lack of competition. The Indian Health Service relies on this service for its operations in Sisseton, SD. The awardee, The Pitney Bowes Bank, Inc., is the sole provider for this specific contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potentially high cost for postage services

Positive Signals

Essential service for IHS operations
Clear contract duration and price

Sector Analysis

The postal service sector involves the provision of mail and postage services. Government spending in this area typically focuses on efficiency and cost-effectiveness, often through competitive bidding for large volumes.

Small Business Impact

There is no indication that small businesses were considered or involved in this procurement, as it was awarded sole-source.

Oversight & Accountability

Oversight is needed to ensure the necessity and cost-effectiveness of sole-source contracts for routine services like postage. The Indian Health Service should justify the lack of competition.

Related Government Programs

Postal Service
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpayment
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $30,000 to THE PITNEY BOWES BANK, INC.. POSTAGE REFILL FY26, SISSETON SD

Who is the contractor on this award?

The obligated recipient is THE PITNEY BOWES BANK, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $30,000.

What is the period of performance?

Start: 2026-04-10. End: 2027-04-09.

What is the justification for awarding this postage contract sole-source to The Pitney Bowes Bank, Inc.?

The justification for a sole-source award typically involves a unique capability, proprietary product, or urgent need that only one vendor can fulfill. Without further documentation, it is unclear why competition was bypassed for this postage refill contract, especially given the relatively standard nature of such services.

What is the benchmark cost for similar postage services in comparable rural locations?

Benchmarking postage services is challenging without specific details on volume, service type (e.g., metered mail, bulk mail), and geographic delivery needs. However, a $30,000 annual cost for postage refill at a single location warrants scrutiny. Standard government purchasing vehicles or GSA schedules might offer more competitive pricing.

How does this contract ensure effective delivery and management of postage services for the Indian Health Service?

The effectiveness of this contract hinges on the Pitney Bowes Bank's ability to provide reliable postage refill services as per the purchase order terms. The firm fixed price structure provides cost certainty. However, the lack of competition means oversight must focus on performance metrics and service delivery rather than price negotiation.

Industry Classification

NAICS: Transportation and Warehousing › Postal Service › Postal Service

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pitney Bowes Inc.

Address: SUITE 320, SALT LAKE CITY, UT, 84111

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

Financial Breakdown

Contract Ceiling: $30,000

Exercised Options: $30,000

Current Obligation: $30,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline