NASA awards $12.8M contract for mail distribution services, highlighting local delivery needs
Contract Overview
Contract Amount: $12,779,344 ($12.8M)
Contractor: Government Contracting Resources, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-10-01
End Date: 2015-10-30
Contract Duration: 2,585 days
Daily Burn Rate: $4.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: KSC MAIL DISTRIBUTION SERVICES CONTRACT
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $12.8 million to GOVERNMENT CONTRACTING RESOURCES, INC. for work described as: KSC MAIL DISTRIBUTION SERVICES CONTRACT Key points: 1. Contract value of $12.8 million over its period of performance. 2. Awarded to Government Contracting Resources, Inc. for mail distribution. 3. Utilizes a Firm Fixed Price contract type, indicating predictable costs. 4. Competition was full and open after exclusion of sources. 5. Contract duration spans approximately 7 years. 6. Service area is Florida, with a focus on local delivery.
Value Assessment
Rating: fair
The contract value of $12.8 million for mail distribution services over nearly seven years suggests a moderate annual spend. Benchmarking this against similar local delivery contracts is challenging without more specific service details. The firm fixed-price nature provides cost certainty for the agency, but the overall value-for-money depends heavily on the efficiency and scope of services provided by Government Contracting Resources, Inc. The absence of a specific Product Service Code (PSC) makes direct comparison difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded, potentially limiting the pool of bidders. The number of bidders (9) suggests a reasonable level of interest, but the exclusion clause warrants further investigation into why specific sources were not considered. This approach can sometimes lead to less competitive pricing than a truly unrestricted full and open competition.
Taxpayer Impact: The limited competition, due to source exclusion, may have resulted in a higher price for taxpayers than if all potential qualified vendors had been allowed to bid. However, the presence of 9 bidders indicates some level of market responsiveness.
Public Impact
Benefits NASA personnel and operations at its facilities in Florida by ensuring timely mail and package delivery. Supports essential communication and logistical functions within the agency. Impacts the local workforce in Florida through employment opportunities with the contractor. Ensures the continuity of mail distribution services critical for agency operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for reduced competition due to 'exclusion of sources' clause.
- Lack of specific PSC makes detailed performance benchmarking difficult.
- Contract duration of nearly 7 years may not reflect evolving delivery needs.
Positive Signals
- Firm Fixed Price contract type offers cost predictability.
- 9 bidders participated, indicating some market interest.
- Contract awarded to a single entity for consolidated service delivery.
Sector Analysis
This contract falls within the broad category of logistics and support services, specifically focusing on mail and local delivery. The market for such services is typically characterized by a mix of large logistics providers and smaller, specialized local delivery companies. NASA's requirement for mail distribution services is a common need across many federal agencies, often fulfilled through various contract vehicles. The annual spending on such services can vary significantly based on agency size, geographic footprint, and the volume of mail handled.
Small Business Impact
The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses, and larger, established contractors were likely the primary participants. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is unclear, but likely minimal unless the prime contractor voluntarily engages small businesses.
Oversight & Accountability
Oversight for this contract would typically fall under NASA's contracting officer and program management. The firm fixed-price nature provides a degree of cost control. Transparency is facilitated by the public availability of contract award data. Accountability rests with Government Contracting Resources, Inc. to fulfill the terms of the contract, with NASA monitoring performance. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Federal Express Services
- United Parcel Service Contracts
- Local Courier Services
- Government Mail Services
- Logistics and Transportation Contracts
Risk Flags
- Limited competition due to source exclusion.
- Potential for cost inefficiencies if service scope is not tightly managed.
- Dependence on a single contractor for critical mail services.
Tags
logistics, mail-delivery, nasa, florida, firm-fixed-price, definitive-contract, local-delivery, government-contracting-resources-inc, full-and-open-competition-after-exclusion-of-sources, support-services
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $12.8 million to GOVERNMENT CONTRACTING RESOURCES, INC.. KSC MAIL DISTRIBUTION SERVICES CONTRACT
Who is the contractor on this award?
The obligated recipient is GOVERNMENT CONTRACTING RESOURCES, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2008-10-01. End: 2015-10-30.
What specific services are included under 'KSC MAIL DISTRIBUTION SERVICES CONTRACT'?
The 'KSC MAIL DISTRIBUTION SERVICES CONTRACT' likely encompasses a range of services related to the collection, sorting, internal distribution, and potentially external delivery of mail and packages for NASA's Kennedy Space Center (KSC) and associated facilities in Florida. This could include daily mail runs between buildings, handling of incoming and outgoing USPS mail, processing of express courier shipments (like FedEx or UPS), and potentially specialized delivery of sensitive documents or equipment within the KSC complex. The contract's classification under NAICS code 492210 ('Local Messengers and Local Delivery') strongly suggests a focus on intra-city or local area transportation of goods, rather than long-haul freight.
How does the contract value of $12.8 million compare to similar mail distribution contracts?
Comparing the $12.8 million contract value requires context regarding the duration and scope of services. This contract spans approximately 7 years (from October 2008 to October 2015), equating to an average annual spend of roughly $1.83 million. This figure is moderate for a federal agency like NASA, which has significant logistical needs. However, without knowing the exact volume of mail handled, the number of delivery points, and the specific service level agreements (e.g., guaranteed delivery times, specialized handling), a precise benchmark against other federal or commercial mail distribution contracts is difficult. Contracts for large metropolitan areas or agencies with higher mail volumes could easily exceed this amount.
What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?
The primary risk of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for reduced competition and, consequently, higher prices for the government. While it aims for broad participation, the exclusion clause means that certain vendors, who might otherwise have bid and potentially offered competitive pricing or innovative solutions, are barred from the process. This could stem from reasons like past performance issues, specific security requirements, or other pre-defined criteria. The risk lies in whether the remaining pool of bidders truly represents the best possible market options and if the exclusion was justified and transparently applied. It necessitates careful monitoring to ensure the agency did not inadvertently limit its options.
What is the significance of the 'FIRM FIXED PRICE' contract type for this mail distribution service?
A Firm Fixed Price (FFP) contract type is significant because it establishes a final price that is not subject to adjustment based on the contractor's cost experience in performing the work. For NASA, this means cost certainty and predictability for the $12.8 million awarded. The contractor, Government Contracting Resources, Inc., assumes the primary risk for cost overruns. This contract type is generally preferred when the scope of work is well-defined and the risks are manageable. For mail distribution, where operational costs can be relatively stable, an FFP contract helps NASA budget effectively and protects against unexpected price increases during the contract's nearly seven-year term.
How does the NAICS code 492210 inform our understanding of this contract?
The North American Industry Classification System (NAICS) code 492210, 'Local Messengers and Local Delivery,' provides crucial context for this contract. It signifies that the primary service being procured is the transportation of documents, mail, and small packages within a local geographic area. This excludes services typically associated with larger freight, long-distance trucking, or postal services provided by the United States Postal Service (USPS) itself. Understanding this code helps clarify that the contract likely focuses on the internal mailroom operations and immediate delivery needs of the Kennedy Space Center, rather than broader logistical support or national shipping.
Industry Classification
NAICS: Transportation and Warehousing › Local Messengers and Local Delivery › Local Messengers and Local Delivery
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 315 PAGE RD FL 2 BLDG 2, PINEHURST, NC, 28374
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $12,779,344
Exercised Options: $12,779,344
Current Obligation: $12,779,344
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Timeline
Start Date: 2008-10-01
Current End Date: 2015-10-30
Potential End Date: 2015-10-30 00:00:00
Last Modified: 2016-06-29
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