DOJ's $16.3M Mail Facility Contract Awarded to Novitex Government Solutions

Contract Overview

Contract Amount: $16,298,097 ($16.3M)

Contractor: Novitex Government Solutions, LLC

Awarding Agency: Department of Justice

Start Date: 2008-10-01

End Date: 2009-09-30

Contract Duration: 364 days

Daily Burn Rate: $44.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: GENERAL SUPPORT SERVICES FOR DOJ SATELLITE MAIL FACILITIES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $16.3 million to NOVITEX GOVERNMENT SOLUTIONS, LLC for work described as: GENERAL SUPPORT SERVICES FOR DOJ SATELLITE MAIL FACILITIES Key points: 1. Contract value of $16.3M for mail facility support. 2. Awarded under full and open competition. 3. Potential risk in labor hour pricing without fixed unit costs. 4. Sector: General Support Services.

Value Assessment

Rating: fair

The contract uses a labor hour pricing model, which can lead to cost overruns if not managed tightly. Benchmarking against similar contracts is difficult without specific labor rates and hours.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the labor hour pricing structure may limit price discovery and cost control.

Taxpayer Impact: Taxpayer funds are used for mail facility support services. The labor hour model necessitates careful oversight to ensure cost-effectiveness.

Public Impact

Ensures operational continuity for DOJ's mail facilities. Supports essential administrative functions within the Department of Justice. Impact on mail delivery efficiency for internal and external communications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour pricing model lacks cost certainty.
Potential for scope creep without clear deliverables.
Limited transparency on specific service costs.

Positive Signals

Awarded through full and open competition.
Supports critical government operations.

Sector Analysis

This contract falls under general support services, specifically private mail centers. Benchmarks for this niche service are hard to establish without detailed service level agreements and labor breakdowns.

Small Business Impact

The contract data indicates that small business participation was not a factor in this award, as the 'sb' field is false. Further analysis would be needed to determine if subcontracting opportunities were pursued.

Oversight & Accountability

Oversight would focus on monitoring labor hours, ensuring adherence to service level agreements, and validating invoices against work performed to mitigate risks associated with the labor hour contract type.

Related Government Programs

Private Mail Centers
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Labor hour pricing.
Lack of defined unit costs.
Potential for cost overruns.
Limited performance metrics visibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $16.3 million to NOVITEX GOVERNMENT SOLUTIONS, LLC. GENERAL SUPPORT SERVICES FOR DOJ SATELLITE MAIL FACILITIES

Who is the contractor on this award?

The obligated recipient is NOVITEX GOVERNMENT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2008-10-01. End: 2009-09-30.

What is the expected efficiency gain or cost saving from outsourcing these mail services compared to in-house operations?

Without a baseline of in-house operational costs or clearly defined performance metrics tied to efficiency, it's challenging to quantify the exact gains. The contract's labor hour structure suggests the primary driver might be flexibility and specialized service provision rather than direct cost savings, though effective management could yield efficiencies.

What are the primary risks associated with the labor hour pricing model for this contract?

The main risks include potential cost overruns if labor hours are not efficiently utilized or if the scope of work expands without corresponding adjustments to the budget. There's also a risk of reduced incentive for the contractor to innovate or streamline processes, as profit is tied to hours worked rather than outcomes achieved.

How does the performance of Novitex Government Solutions compare to industry standards for private mail centers?

Performance data against industry standards is not provided in this contract award notice. A comprehensive assessment would require reviewing performance metrics, customer satisfaction surveys, and any documented service level agreement breaches or successes over the contract's duration.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Private Mail Centers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pitney Bowes Inc. (UEI: 001161793)

Address: 8000 CORPORATE DR STE 100, LANDOVER, MD, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,298,097

Exercised Options: $16,298,097

Current Obligation: $16,298,097

Parent Contract

Parent Award PIID: DJJ05C1068

IDV Type: IDC

Timeline