HHS Awards $291K Purchase Order to Pitney Bowes Bank for Postal Services

Contract Overview

Contract Amount: $291,000 ($291.0K)

Contractor: THE Pitney Bowes Bank, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-06

End Date: 2026-07-09

Contract Duration: 549 days

Daily Burn Rate: $530/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PITNEY BOWES- CLINTON

Place of Performance

Location: CLINTON, CUSTER County, OKLAHOMA, 73601

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $291,000 to THE PITNEY BOWES BANK, INC. for work described as: PITNEY BOWES- CLINTON Key points: 1. The contract is a purchase order for postal services. 2. Pitney Bowes Bank, Inc. is the sole awardee. 3. The contract duration is 549 days. 4. The contract is firm fixed price. 5. The agency is the Indian Health Service within HHS.

Value Assessment

Rating: questionable

The award amount of $291,000 for postal services over 549 days appears high without further context on the scope of services. Benchmarking against similar postal service contracts is difficult due to the lack of specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source award. This limits price discovery and may not ensure the best value for taxpayers.

Taxpayer Impact: The sole-source nature of this award raises concerns about potential overpayment and the efficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the lack of competition. The specific services provided are unclear, making it difficult to assess value. The award to a bank for postal services is unusual and warrants further investigation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Unclear service scope
Unusual vendor type for service

Positive Signals

Firm fixed price contract

Sector Analysis

The postal service sector is generally competitive, making a sole-source award for these services unusual. Benchmarks for postal services vary widely based on volume and specific needs.

Small Business Impact

There is no indication that small businesses were considered or involved in this procurement.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status suggests limited oversight in the initial award decision. Further review of the justification for sole-sourcing is needed.

Related Government Programs

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

Risk Flags

Potential for overpayment due to sole-source award.
Lack of transparency regarding service scope.
Unusual vendor selection for postal services.
Limited opportunity for small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $291,000 to THE PITNEY BOWES BANK, INC.. PITNEY BOWES- CLINTON

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 $291,000.

What is the period of performance?

Start: 2025-01-06. End: 2026-07-09.

What specific postal services are being procured, and why is Pitney Bowes Bank the only viable provider?

The provided data does not specify the exact postal services. The 'NOT AVAILABLE FOR COMPETITION' status suggests a justification was made for sole-sourcing, possibly related to unique capabilities or existing infrastructure. However, without further details, it's unclear why a bank is providing these services and if alternatives were truly unavailable.

What is the justification for awarding this contract on a sole-source basis, and how does it impact price reasonableness?

The data states the contract is 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. This lack of competition typically hinders price discovery, potentially leading to higher costs for taxpayers. A thorough review of the agency's justification is necessary to understand the rationale and assess if it truly represents the best value.

How does the $291,000 award for 549 days of postal services compare to market rates, especially given the vendor is a bank?

Benchmarking this award is challenging without knowing the precise services. Postal services can range from basic mail handling to complex logistics. The fact that the awardee is Pitney Bowes Bank, Inc. is unusual for standard postal services, raising questions about the pricing structure and whether it reflects typical market rates for such a vendor.

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 AVAILABLE FOR COMPETITION

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: $291,000

Exercised Options: $291,000

Current Obligation: $291,000

Actual Outlays: $192,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline