DoD's $19M Mail Services Contract Awarded to IAP Worldwide Services Under Full and Open Competition

Contract Overview

Contract Amount: $19,035,673 ($19.0M)

Contractor: IAP Worldwide Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-04-01

End Date: 2017-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD - STANDARD MAIL

Plain-Language Summary

Department of Defense obligated $19.0 million to IAP WORLDWIDE SERVICES, INC. for work described as: BASE PERIOD - STANDARD MAIL Key points: 1. The contract, valued at $19.04 million, covers standard mail services. 2. Awarded to IAP Worldwide Services, Inc., indicating a competitive procurement process. 3. The firm fixed price contract type suggests predictable costs for the government. 4. The duration of the contract is 5 years, aligning with typical service agreements.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar mail service contracts is difficult without more specific service details, but the total value over five years appears reasonable for a large-scale government requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders participated. This method typically drives competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to result in fair pricing, maximizing taxpayer value for essential mail services.

Public Impact

Ensures continuity of essential mail services for Department of Defense operations. Supports logistical needs for personnel and supply chain management. The contract's duration provides stability for service provider and government planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Firm fixed price contract type
Awarded to established vendor

Sector Analysis

This contract falls under general administrative and support services, specifically postal services. Spending in this area is generally stable and driven by operational needs rather than technological advancements.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award, as the prime contractor is a large entity and no small business set-aside was noted.

Oversight & Accountability

Standard contract oversight by the Department of the Air Force would apply, ensuring adherence to terms and conditions. The firm fixed price nature simplifies some aspects of financial oversight.

Related Government Programs

Postal Service
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of specific service details
Limited insight into competitive pricing dynamics
No clear small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to IAP WORLDWIDE SERVICES, INC.. BASE PERIOD - STANDARD MAIL

Who is the contractor on this award?

The obligated recipient is IAP WORLDWIDE SERVICES, 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 $19.0 million.

What is the period of performance?

Start: 2012-04-01. End: 2017-03-31.

What specific mail services are included in this contract, and how do they align with the DoD's operational requirements?

The contract specifies 'STANDARD MAIL' which likely encompasses a broad range of postal services, including sorting, transportation, and delivery of official correspondence and packages. The alignment with DoD requirements would depend on the volume, frequency, and geographic scope of mail handled, ensuring critical communications and supplies reach their destinations efficiently.

What was the competitive landscape like for this 'full and open' solicitation, and were there significant price differences among bidders?

While 'full and open' competition suggests multiple bids were received, specific details on the number of bidders or price variations are not provided. Typically, this process aims to secure the lowest price from technically acceptable offers. Further analysis would require access to bid data to understand the extent of price discovery achieved.

How does the $19M contract value compare to historical spending on similar mail services by the DoD or other federal agencies?

Without specific benchmarks for comparable mail services contracts, it's challenging to definitively assess value. However, $19 million over five years for a large agency like the DoD suggests a substantial volume of mail. Comparing this to contracts for logistics or transportation services of similar scale could provide context.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA561312R0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: IAP Global Services, LLC (UEI: 079492183)

Address: 7315 N ATLANTIC AVE, CAPE CANAVERAL, FL, 32920

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

Financial Breakdown

Contract Ceiling: $22,459,080

Exercised Options: $22,459,080

Current Obligation: $19,035,673

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline