Air Force awards $21.5M postal services contract to Versability Resources, Inc. for 11 bases

Contract Overview

Contract Amount: $21,455,237 ($21.5M)

Contractor: Versability Resources, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-01-01

End Date: 2022-06-30

Contract Duration: 2,737 days

Daily Burn Rate: $7.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF OFFICIAL MAIL CENTER/POSTAL SERVICE CENTER CONTRACT AWARD FOR 11 AIR COMBAT COMMAND BASES.

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23661

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to VERSABILITY RESOURCES, INC. for work described as: IGF::OT::IGF OFFICIAL MAIL CENTER/POSTAL SERVICE CENTER CONTRACT AWARD FOR 11 AIR COMBAT COMMAND BASES. Key points: 1. Contract value of $21.5 million over approximately 7.5 years suggests a moderate annual spend. 2. The award was not competitively procured, raising questions about potential price efficiencies. 3. A single bidder indicates a lack of market exploration and potential for higher costs. 4. The contract is for postal services, a critical but often overlooked operational support function. 5. Firm Fixed Price contract type shifts cost risk to the contractor. 6. The duration of the contract (2737 days) allows for long-term planning but may reduce flexibility.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable postal service contracts for military bases. The firm fixed-price structure is standard for such services. However, the lack of competition means there's no clear indication of whether the price achieved represents good value for money compared to what a competitive process might yield. The annual spend of approximately $2.86 million per year is significant for postal operations at 11 bases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from multiple vendors. This approach is typically used when only one vendor can provide the required service, or in specific circumstances where competition is deemed impractical or not in the government's best interest. The lack of bidders means the government did not benefit from price discovery through a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, as the government did not have multiple offers to compare and negotiate against.

Public Impact

Service members and civilian personnel at 11 Air Combat Command bases benefit from reliable mail delivery and postal services. Ensures the continuity of essential mail operations, supporting morale and administrative functions. The contract supports the operational readiness of the Air Force by maintaining critical infrastructure. Potential for indirect workforce implications within the postal service sector, though specific job numbers are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source award limits opportunities for small businesses to participate.
Long contract duration could result in missed opportunities for cost savings through innovation or market shifts.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Contract supports essential operational functions for multiple military bases.
The contractor, Versability Resources, Inc., is awarded the contract, indicating they met the government's requirements.

Sector Analysis

The postal service sector, while not a high-tech industry, is essential for the functioning of government agencies and military operations. This contract falls under general government services. Comparable spending benchmarks for postal services at military installations are not readily available, but the scale of operations across 11 bases suggests a significant requirement. The market for such services is likely dominated by established logistics and mail handling companies.

Small Business Impact

The contract data indicates that small business participation was not a stated factor (ss: false, sb: false). As a sole-source award, there were no opportunities for small businesses to compete directly for this prime contract. There is no information provided regarding subcontracting plans, so the extent to which small businesses might be involved in fulfilling parts of this contract remains unknown.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and financial management offices. The firm fixed-price nature of the contract means that financial oversight will focus on ensuring deliverables are met within the agreed price. 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.

Related Government Programs

Military Postal Service
Base Operations Support Contracts
Logistics and Transportation Services

Risk Flags

Sole-source award
Lack of competition
No small business set-aside

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to VERSABILITY RESOURCES, INC.. IGF::OT::IGF OFFICIAL MAIL CENTER/POSTAL SERVICE CENTER CONTRACT AWARD FOR 11 AIR COMBAT COMMAND BASES.

Who is the contractor on this award?

The obligated recipient is VERSABILITY RESOURCES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2015-01-01. End: 2022-06-30.

What is the historical spending pattern for postal services at these 11 Air Combat Command bases?

Historical spending data for postal services specifically at these 11 Air Combat Command bases prior to this $21.5 million award is not provided in the available data. To assess historical patterns, one would need to examine previous contracts for postal services at these specific locations or similar Air Force installations. Without this context, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for these services over time. Analyzing past contract values, durations, and any competitive solicitations would be crucial for understanding the historical financial trajectory of these postal operations.

What specific services are included under this postal service contract?

The contract is for 'IGF OFFICIAL MAIL CENTER/POSTAL SERVICE CENTER CONTRACT AWARD FOR 11 AIR COMBAT COMMAND BASES.' While the exact scope of services is not detailed, it is understood to encompass the management and operation of mail centers and postal services at these Air Force bases. This likely includes receiving, sorting, processing, and delivering mail and packages for both official government correspondence and personal mail for service members and civilian personnel. It may also involve managing mailroom operations, providing postage services, and ensuring compliance with postal regulations and security protocols.

What is the track record of Versability Resources, Inc. with government contracts, particularly in postal or logistics services?

Information regarding the specific track record of Versability Resources, Inc. with government contracts, especially in postal or logistics services, is not detailed in the provided data. To assess their performance history, a deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary. This would involve reviewing past awards, contract performance evaluations (e.g., CPARS), and any history of contract modifications, disputes, or terminations. Understanding their experience and past performance is critical for evaluating their capability to successfully execute this $21.5 million postal services contract.

How does the per-base cost of this contract compare to industry benchmarks for similar services?

The total contract value is $21,544,236.83 over approximately 2737 days (about 7.5 years), serving 11 bases. This equates to an average annual cost of roughly $2,872,565 per year, or approximately $261,142 per base per year. Benchmarking this per-base cost against industry standards for managing postal services at military installations is difficult without specific comparative data. However, considering the scale and security requirements of military bases, this figure might be within a reasonable range, though the lack of competition prevents a definitive value assessment.

What are the potential risks associated with a sole-source award for essential postal services?

The primary risk associated with a sole-source award for essential postal services is the potential for inflated costs due to the absence of competitive bidding. Without competing offers, the government may not achieve the most favorable pricing. Additionally, a sole-source contract can limit innovation, as the incumbent contractor may have less incentive to introduce cost-saving efficiencies or new technologies. There's also a risk of vendor lock-in, making it difficult and potentially costly to switch providers in the future if performance issues arise or market conditions change.

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

Solicitation ID: FA489014R0020

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2520 58TH ST, HAMPTON, VA, 23661

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,463,501

Exercised Options: $21,455,237

Current Obligation: $21,455,237

Actual Outlays: $2,235,433

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline