HHS awards $4.78M for mail tracking and cloud storage, with Pitney Bowes Inc. as the sole awardee

Contract Overview

Contract Amount: $477,756 ($477.8K)

Contractor: Pitney Bowes Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2018-05-01

End Date: 2023-05-31

Contract Duration: 1,856 days

Daily Burn Rate: $257/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF MAIL/PACKAGE FEDRAMP CERTIFIED CLOUD DATA STORAGE, COMPONENTS AND MAIL METERING/INBOUND/OUTBOUND MAIL TRACKING SYSTEM HEALTH AND HUMAN SERVICES PROGRAM SUPPORT CENTER (HHS PSC).

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $477,756.08 to PITNEY BOWES INC. for work described as: IGF::CL::IGF MAIL/PACKAGE FEDRAMP CERTIFIED CLOUD DATA STORAGE, COMPONENTS AND MAIL METERING/INBOUND/OUTBOUND MAIL TRACKING SYSTEM HEALTH AND HUMAN SERVICES PROGRAM SUPPORT CENTER (HHS PSC). Key points: 1. The contract focuses on essential mail tracking and cloud storage services, indicating a need for reliable operational support. 2. While the contract value is modest, its duration suggests ongoing reliance on these services. 3. The award was made under full and open competition, implying a potentially competitive bidding process. 4. The specific services, mail metering and tracking, are critical for efficient government operations. 5. The use of a firm-fixed-price contract type helps manage cost certainty for the government. 6. The contract's performance period spans over five years, indicating a long-term requirement.

Value Assessment

Rating: fair

The contract value of approximately $4.78 million over five years is relatively small in the context of federal IT and logistics spending. Benchmarking this specific combination of mail tracking and cloud storage is challenging due to its niche nature. However, the firm-fixed-price structure provides cost predictability. Without more detailed service level agreements or performance metrics, a definitive value-for-money assessment is difficult, but the price appears reasonable for the stated services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of only one awardee (Pitney Bowes Inc.) could indicate that only one bidder met all the technical and cost requirements, or that the market for this specific integrated solution is limited. Further details on the number of proposals received would provide a clearer picture of the competition's intensity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to better service offerings. However, if only one viable bidder emerged, the competitive pressure might have been less than ideal.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) Program Support Center (PSC), which receives essential mail tracking and cloud storage services. Services delivered include mail metering, inbound/outbound mail tracking, and FedRAMP certified cloud data storage. The geographic impact is primarily within HHS operations, supporting administrative functions. Workforce implications are likely minimal, focusing on the use of existing systems and potentially some contractor support for system maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not actively explored.
Reliance on a single vendor for critical mail tracking and data storage could pose a risk if the vendor experiences service disruptions.
The specific nature of the services might limit opportunities for small business participation beyond subcontracting.

Positive Signals

The use of FedRAMP certified cloud storage indicates adherence to federal security standards for data.
Firm-fixed-price contract type provides budget certainty for the agency.
Award under full and open competition suggests an effort to leverage market capabilities.

Sector Analysis

This contract falls within the broader IT services and industrial machinery manufacturing sectors, specifically related to logistics and data management. The market for integrated mail tracking and certified cloud storage solutions is specialized. Comparable spending benchmarks would typically be found within government contracts for logistics support, document management, and cloud infrastructure services, though the combination here is unique. The total award value is modest, suggesting a focused operational need rather than a large-scale enterprise solution.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of the services and the sole awardee, it is unlikely that significant subcontracting opportunities for small businesses exist unless they are specialized providers within Pitney Bowes' supply chain. The overall impact on the small business ecosystem for this specific contract appears limited.

Oversight & Accountability

Oversight for this contract would typically reside with the HHS Program Support Center contracting officers and program managers. As a delivery order under a larger contract vehicle (implied by 'AW': 'DELIVERY ORDER'), oversight might also be influenced by the parent contract's structure. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HHS Mail Operations Support
Federal Cloud Storage Solutions
Logistics and Tracking Systems
Government Mailroom Management
IT Infrastructure Services

Risk Flags

Potential for vendor lock-in
Reliance on single provider for critical services
Technology obsolescence risk over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $477,756.08 to PITNEY BOWES INC.. IGF::CL::IGF MAIL/PACKAGE FEDRAMP CERTIFIED CLOUD DATA STORAGE, COMPONENTS AND MAIL METERING/INBOUND/OUTBOUND MAIL TRACKING SYSTEM HEALTH AND HUMAN SERVICES PROGRAM SUPPORT CENTER (HHS PSC).

Who is the contractor on this award?

The obligated recipient is PITNEY BOWES INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $477,756.08.

What is the period of performance?

Start: 2018-05-01. End: 2023-05-31.

What is the track record of Pitney Bowes Inc. in providing similar mail tracking and cloud storage services to the federal government?

Pitney Bowes Inc. has a long history of providing mailing equipment, software, and services to government agencies. Their offerings often include mail management, tracking, and shipping solutions. While specific details on their FedRAMP certified cloud storage capabilities for this exact contract are not publicly detailed in the provided data, their core business aligns with mail-related services. Federal procurement databases would show their past performance on similar contracts, including any delivery orders or task orders issued under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles. Assessing their track record would involve reviewing past performance evaluations, any reported issues, and the scope of services previously delivered to ensure alignment with the current contract's requirements and to gauge their reliability and expertise in this domain.

How does the pricing of this contract compare to similar federal contracts for mail tracking and cloud storage services?

Direct comparison of pricing is challenging due to the unique combination of services (mail tracking, metering, and FedRAMP certified cloud storage) and the specific operational context of the HHS PSC. The contract is firm-fixed-price, which provides cost certainty. To benchmark, one would need to identify contracts with similar scopes, considering factors like the volume of mail processed, data storage capacity, service level agreements (SLAs), and contract duration. Without access to detailed pricing breakdowns or a broader market survey of comparable integrated solutions, it's difficult to definitively state if the price is high or low. However, the total award value of approximately $4.78 million over five years suggests a moderate investment, implying that the per-unit costs for the services rendered are likely within a reasonable range for government operations.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor lock-in, service disruptions from Pitney Bowes, and the possibility of the technology becoming outdated over the five-year period. Mitigation strategies are implicitly embedded in the contract structure. The firm-fixed-price nature helps control costs, while the full and open competition aims to ensure a capable vendor was selected. FedRAMP certification for cloud storage addresses security risks. Operational risks related to service continuity would be managed through Service Level Agreements (SLAs) within the contract, which typically outline performance expectations and remedies for non-compliance. The agency's ongoing contract management and oversight functions are crucial for identifying and addressing emerging risks throughout the performance period.

How effective is the current mail tracking and cloud storage system in supporting HHS PSC's operational needs?

The effectiveness of the system is primarily measured by its ability to meet the defined requirements within the contract's Service Level Agreements (SLAs). Since this is an ongoing service, effectiveness is likely assessed through performance metrics related to mail tracking accuracy, data accessibility, system uptime, and security compliance. The renewal or continuation of such services often indicates a level of satisfaction with their performance. However, without specific performance reports or user feedback, a definitive assessment of 'effectiveness' is limited. The fact that HHS PSC continues to utilize these services suggests they are meeting essential operational needs, but improvements or greater efficiencies might always be possible.

What are the historical spending patterns for mail tracking and cloud storage services at HHS PSC or similar agencies?

Historical spending patterns for mail tracking and cloud storage at HHS PSC or similar agencies would typically show a trend towards modernization and consolidation. Agencies have increasingly moved towards cloud-based solutions for data storage due to scalability, cost-efficiency, and security benefits (like FedRAMP compliance). Mail tracking systems have evolved from basic logging to integrated platforms offering real-time visibility. Spending in this area can fluctuate based on technology upgrades, changes in mail volume, and agency-specific initiatives. This $4.78 million contract represents a specific investment for a defined period, and historical data would reveal if this level of spending is consistent, increasing, or decreasing relative to past requirements and market costs for similar services.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › All Other Industrial Machinery Manufacturing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $671,824

Exercised Options: $477,756

Current Obligation: $477,756

Actual Outlays: $171,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS25F0010M

IDV Type: FSS

Timeline