HHS awards $3.5M contract for mail screening services to Vital Management and Engineering Inc

Contract Overview

Contract Amount: $3,523,940 ($3.5M)

Contractor: Vital Management and Engineering Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-06-30

End Date: 2026-05-29

Contract Duration: 1,794 days

Daily Burn Rate: $2.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL AND PUBLISHING SERVICES MAIL SCREENING SERVICES MARYLAND AND NEW YORK

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.5 million to VITAL MANAGEMENT AND ENGINEERING INC. for work described as: MAIL AND PUBLISHING SERVICES MAIL SCREENING SERVICES MARYLAND AND NEW YORK Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 1794 days suggests a long-term need for these services. 3. Awarded to a single vendor, raising questions about the extent of competition. 4. The service falls under Administrative Management and General Management Consulting Services. 5. The contract is a definitive contract, implying a clear scope of work. 6. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

The contract value of $3.52 million over approximately five years (1794 days) for mail screening services appears to be within a reasonable range for such specialized administrative support. Without specific benchmarks for mail screening services across federal agencies, a direct comparison is difficult. However, the firm-fixed-price structure suggests that the government has negotiated a set cost, which can be advantageous in managing its budget. Further analysis would require comparing this contract's per-unit cost or scope to similar contracts awarded by other agencies for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities, qualifications, or proprietary technology required for the service, or in specific emergency situations. The lack of competition means that price discovery through market forces was limited, and the government did not benefit from potentially lower prices that could have resulted from a competitive bidding process.

Taxpayer Impact: The sole-source award means taxpayers may not have received the most cost-effective solution, as the absence of competition limits opportunities for price negotiation and innovation from multiple providers.

Public Impact

The Department of Health and Human Services (HHS) benefits from secure and efficient mail screening services. Ensures the integrity and security of mail processed by the agency. Services are primarily delivered in Maryland, with potential implications for mail handling operations in that state. Supports administrative functions within HHS, indirectly impacting the agency's operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency and accountability in the procurement process.
Limited visibility into alternative solutions or innovative approaches from other vendors.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long contract duration suggests a stable and ongoing need for the service.
Awarded to a single, presumably qualified, vendor for specialized services.

Sector Analysis

The Administrative Management and General Management Consulting Services sector (NAICS 541611) encompasses a broad range of professional services aimed at improving organizational efficiency and management. This contract for mail screening services fits within this sector by providing specialized support that contributes to the operational effectiveness of the Department of Health and Human Services. While the overall market for management consulting is substantial, specific benchmarks for mail screening services are not readily available. However, the value of this contract is modest within the broader federal contracting landscape for administrative support services.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Consequently, the direct impact on the small business ecosystem is likely minimal, as the primary awardee is not designated as a small business, and there's no explicit mechanism to ensure small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services' procurement and program management offices. As a definitive contract, its execution is governed by the terms and conditions agreed upon, with performance monitored by the contracting officer's representative. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged.

Related Government Programs

Federal Mail Services
Administrative Support Services
Management Consulting Services
Department of Health and Human Services Contracts

Risk Flags

Sole-source award limits competition.
Lack of performance data hinders effectiveness assessment.
No explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.5 million to VITAL MANAGEMENT AND ENGINEERING INC.. MAIL AND PUBLISHING SERVICES MAIL SCREENING SERVICES MARYLAND AND NEW YORK

Who is the contractor on this award?

The obligated recipient is VITAL MANAGEMENT AND ENGINEERING 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 $3.5 million.

What is the period of performance?

Start: 2021-06-30. End: 2026-05-29.

What is the track record of Vital Management and Engineering Inc. in performing similar federal contracts?

Information regarding the specific track record of Vital Management and Engineering Inc. in performing similar federal contracts is not detailed in the provided data. To assess their performance history, one would need to consult federal procurement databases such as SAM.gov or FPDS-NG to review past awards, contract performance evaluations (e.g., CPARS reports), and any history of contract modifications, disputes, or terminations. A thorough review would help determine their experience with mail screening, administrative management, and their ability to meet government requirements on time and within budget for similar agencies or contract types.

How does the value of this contract compare to similar mail screening services procured by other federal agencies?

Direct comparison of this $3.52 million contract for mail screening services to similar procurements by other federal agencies is challenging without access to a comprehensive database of comparable contracts. Mail screening needs can vary significantly based on agency size, mail volume, security requirements, and geographic scope. To benchmark effectively, one would need to identify contracts with similar service descriptions (e.g., mail handling, security screening, administrative support) and durations, ideally from agencies with comparable operational footprints. The sole-source nature of this award also complicates direct value comparisons, as competitive bidding often drives prices down.

What are the specific risks associated with awarding a sole-source contract for mail screening services?

The primary risk associated with awarding a sole-source contract for mail screening services is the potential for inflated costs due to the lack of competitive pressure. Without multiple bids, the government may not achieve the best possible price. Other risks include limited innovation, as the vendor may have less incentive to introduce cost-saving efficiencies or advanced technologies. Furthermore, sole-source awards can sometimes indicate a lack of market research or planning, potentially overlooking qualified small businesses or alternative solutions. Ensuring the vendor's capabilities and pricing are truly justified requires rigorous justification and oversight from the procuring agency.

How effective is the current mail screening process managed by Vital Management and Engineering Inc. for HHS?

The effectiveness of the mail screening process managed by Vital Management and Engineering Inc. for HHS cannot be determined from the provided contract data alone. Effectiveness would typically be measured through performance metrics outlined in the contract, such as turnaround time, accuracy of screening, security incident rates, and client satisfaction. These metrics are usually documented in Contractor Performance Assessment Reporting System (CPARS) reports, which are not included here. Without access to these performance evaluations, it is impossible to assess the quality and efficiency of the services delivered under this contract.

What has been the historical spending pattern for mail screening services at HHS or similar agencies?

The provided data does not include historical spending patterns for mail screening services at HHS or similar agencies. To analyze this, one would need to examine past contract awards for mail screening, mail handling, or related security services within HHS and other relevant federal departments over several fiscal years. This would involve identifying the total amount spent, the number and types of contracts awarded (competitive vs. sole-source), and the primary contractors. Understanding historical spending can reveal trends, identify potential cost savings, and inform future procurement strategies, such as whether competitive bidding has been utilized effectively.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 75P00121R00058

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1701 PRETTY PENNY COURT, BROOKEVILLE, MD, 20833

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,126,656

Exercised Options: $3,523,940

Current Obligation: $3,523,940

Actual Outlays: $2,999,459

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline