Department of Energy awards $37.7M contract for mail machine upgrades and maintenance to Quadient, Inc
Contract Overview
Contract Amount: $37,684 ($37.7K)
Contractor: Quadient, Inc.
Awarding Agency: Department of Energy
Start Date: 2024-05-28
End Date: 2027-06-27
Contract Duration: 1,125 days
Daily Burn Rate: $33/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MACHINE UPGRADES AND MAINTENANCE IN FOR THE OFFICE OF ADMINISTRATIVE MANAGEMENT AND SUPPORT, MAIL AND DISTRIBUTION SERVICES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $37,684.17 to QUADIENT, INC. for work described as: MAIL MACHINE UPGRADES AND MAINTENANCE IN FOR THE OFFICE OF ADMINISTRATIVE MANAGEMENT AND SUPPORT, MAIL AND DISTRIBUTION SERVICES. Key points: 1. Contract focuses on essential mail processing equipment for administrative support. 2. Sole awardee suggests potential for limited competition or specialized vendor. 3. Performance period spans over three years, indicating ongoing operational needs. 4. Fixed-price contract type aims to control costs for the government. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing services. 6. Spending is concentrated in Washington D.C., serving a specific administrative function.
Value Assessment
Rating: fair
The contract value of $37.7 million over approximately three years for mail machine upgrades and maintenance appears to be a significant investment. Benchmarking this against similar contracts for mailroom equipment and services is challenging without more specific details on the scope of upgrades and maintenance required. However, the fixed-price nature of the contract suggests an attempt to establish cost certainty. Further analysis would require comparing the per-unit costs of machines and maintenance services to industry standards and other government contracts for comparable equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, with only one awardee listed (Quadient, Inc.), it suggests that either Quadient was the only responsive bidder, or the specific requirements of the delivery order favored their capabilities significantly. The presence of full and open competition is generally positive for price discovery, but the outcome here warrants a closer look at the bidding process and the number of actual proposals received.
Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it theoretically drives down prices through market forces. Even with a single awardee, the initial competitive process should have encouraged competitive pricing.
Public Impact
The Office of Administrative Management and Support, Mail and Distribution Services benefits from updated and maintained mail processing equipment. Improved mail handling efficiency can support the broader operational functions of the Department of Energy. The primary geographic impact is within the District of Columbia, where the services will be rendered. Workforce implications are likely minimal, primarily affecting mailroom staff who will operate the new or maintained equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specialized maintenance is required.
- Risk of cost overruns if the scope of 'upgrades' is not clearly defined and managed.
- Dependence on a single supplier for critical mail processing functions.
Positive Signals
- Fixed-price contract provides cost predictability.
- Awarded under full and open competition, suggesting a competitive bidding process.
- Longer performance period allows for sustained operational support.
Sector Analysis
This contract falls within the Business Support Services sector, specifically focusing on mail and document management. The market for office equipment, including mail machines, is mature, with several established vendors. Government spending in this area typically supports administrative functions across various agencies. Benchmarking would involve comparing the total contract value to the size and scope of mail operations within similar large federal agencies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The primary contractor, Quadient, Inc., is a large business. Therefore, the direct impact on the small business ecosystem is likely limited, unless Quadient engages small businesses for specific maintenance or support roles not detailed here.
Oversight & Accountability
Oversight would typically be managed by the contracting officer's representative (COR) within the Department of Energy's Office of Administrative Management and Support. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services and equipment. Transparency is facilitated by the contract award notice, but detailed performance metrics and spending breakdowns would require further inquiry.
Related Government Programs
- General Services Administration (GSA) Schedules for office equipment and services
- Federal Mail Management Policies
- Agency Administrative Support Contracts
Risk Flags
- Potential for limited competition despite 'full and open' designation.
- Scope definition for 'upgrades' needs clear management to control costs.
- Long-term reliance on a single vendor for critical equipment.
Tags
it-services, administrative-support, mail-management, department-of-energy, district-of-columbia, full-and-open-competition, delivery-order, firm-fixed-price, office-equipment, maintenance-services, quadient-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $37,684.17 to QUADIENT, INC.. MAIL MACHINE UPGRADES AND MAINTENANCE IN FOR THE OFFICE OF ADMINISTRATIVE MANAGEMENT AND SUPPORT, MAIL AND DISTRIBUTION SERVICES.
Who is the contractor on this award?
The obligated recipient is QUADIENT, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $37,684.17.
What is the period of performance?
Start: 2024-05-28. End: 2027-06-27.
What specific types of mail machines are being upgraded or maintained under this contract, and what is the expected lifespan extension or efficiency gain?
The provided data does not specify the exact models or types of mail machines included in the "MAIL MACHINE UPGRADES AND MAINTENANCE" contract. These could range from high-speed inserters and sorters to postage meters and folder-gluers. The 'upgrades' could involve hardware enhancements, software updates, or replacement of aging components. Without detailed specifications within the contract's Statement of Work (SOW), it's impossible to quantify the expected lifespan extension or efficiency gains. Typically, such upgrades aim to improve processing speed, reduce error rates, enhance security features, or integrate with digital workflows. The Department of Energy's Office of Administrative Management and Support would possess this granular detail, which is crucial for assessing the true value and impact of the investment.
How does the $37.7 million contract value compare to historical spending on mail machine services by the Department of Energy or similar agencies?
Comparing the $37.7 million contract value requires historical data specific to the Department of Energy's (DOE) mail machine procurement and maintenance spending, as well as comparable data from agencies of similar size and operational scope. The provided data indicates this is a single delivery order with a duration of 1125 days (approximately 3 years). To benchmark, one would need to analyze previous contracts for mail equipment and services awarded by the DOE or other large federal entities like the General Services Administration (GSA) or Department of Defense (DoD) components. Factors such as inflation, technological advancements, and changes in mail volume significantly influence year-over-year spending. A preliminary assessment suggests this is a substantial sum, implying a significant fleet of machines or a comprehensive upgrade/maintenance program is underway.
What is Quadient, Inc.'s track record with the federal government, particularly in fulfilling similar large-scale mail machine contracts?
Quadient, Inc. (formerly Neopost) is a known provider of mailroom solutions, including mailing systems, digital solutions, and logistics software. Their track record with the federal government can be assessed through contract databases like FPDS or SAM.gov. They have likely held numerous contracts for equipment and maintenance services across various agencies. For this specific $37.7 million contract, the Department of Energy's selection implies Quadient met the technical, performance, and potentially cost requirements. A deeper dive into their past performance ratings, any past disputes or contract terminations, and the scale of previous federal awards would provide a clearer picture of their reliability and capability in handling such a significant contract.
Given the 'full and open competition' designation but a single awardee, what factors might have limited the number of bidders or led to this specific outcome?
While designated as 'full and open competition,' a single awardee can result from several factors. Firstly, the specific technical requirements outlined in the Request for Proposal (RFP) might have been highly specialized, with only Quadient, Inc. possessing the necessary technology, certifications, or proprietary systems. Secondly, the evaluation criteria might have heavily weighted factors beyond price, such as past performance, technical approach, or specific upgrade capabilities, where Quadient excelled. Thirdly, the market might genuinely have limited players capable of fulfilling the entire scope at the required scale and price point. Lastly, it's possible that other potential bidders chose not to submit proposals due to perceived complexity, cost, or strategic reasons. The government's justification for the award would typically elaborate on these points.
What are the potential risks associated with a multi-year, fixed-price contract for mail machine services, and what mitigation strategies are likely in place?
A primary risk in a multi-year, fixed-price contract for evolving technology like mail machines is that the fixed price might become uncompetitive or insufficient if technology advances rapidly or unforeseen maintenance issues arise. The government risks paying above market rates later in the contract term or receiving outdated technology. Conversely, the contractor risks underestimating costs if maintenance needs are greater than anticipated. Mitigation strategies likely include clearly defined service level agreements (SLAs), performance metrics, phased upgrade schedules, and potentially contract clauses allowing for adjustments based on significant technological shifts or unforeseen circumstances. Robust oversight by the COR is crucial to ensure performance standards are met and that the government receives value throughout the contract duration.
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: 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
Parent Company: Quadient S.A.
Address: 478 WHEELERS FARMS RD, MILFORD, CT, 06461
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $49,622
Exercised Options: $37,875
Current Obligation: $37,684
Actual Outlays: $27,819
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QSMA20D08QV
IDV Type: FSS
Timeline
Start Date: 2024-05-28
Current End Date: 2027-06-27
Potential End Date: 2029-06-27 00:00:00
Last Modified: 2026-04-07
More Contracts from Quadient, Inc.
- Uscis Office of Intake and Document Production (oidp) Document Management Division (DMD) Notice Mailing Systems Equipment — $4.1M (Department of Homeland Security)
- Naturalization Package Inserters AT the Eastern and Western Forms Centers — $133.2K (Department of Homeland Security)
- Sheridan Mail Equipment — $35.3K (Department of Veterans Affairs)
- Quadient Mail Equipment Maintenance and Support Services — $33.8K (Department of Veterans Affairs)
- Annual Lease for Ds64i-Int2se, 2 Station Expert, 2 Auto FDR and Maintenance Location(s): SAN Francisco and SAN Jose, CA — $23.8K (Department of Justice)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)