Treasury's IRS awards $11M contract for mailroom services to ServiceSource Inc
Contract Overview
Contract Amount: $10,995,074 ($11.0M)
Contractor: Servicesource Inc
Awarding Agency: Department of the Treasury
Start Date: 2007-09-27
End Date: 2008-09-30
Contract Duration: 369 days
Daily Burn Rate: $29.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NAT'L MAILROOM SERVICES-MULTI LOCATIONS
Place of Performance
Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22312
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $11.0 million to SERVICESOURCE INC for work described as: NAT'L MAILROOM SERVICES-MULTI LOCATIONS Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. The contract duration is 369 days, with a total value of $10.99 million. 3. The specific service category is 'All Other Business Support Services'. 4. This contract represents a significant expenditure within its sector.
Value Assessment
Rating: questionable
Pricing is difficult to assess without comparable contract data. The firm fixed price structure suggests a defined scope, but the lack of competition makes it hard to determine if the price is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying more than necessary for these mailroom services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Essential mailroom operations for the IRS are covered by this contract. The single awardee may face less pressure to innovate or improve service quality.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited vendor options
Positive Signals
- Clear contract type (FFP)
- Defined service period
Sector Analysis
The 'All Other Business Support Services' sector is broad, encompassing various administrative functions. Benchmarks for mailroom services specifically are not readily available, but contracts in this general category can vary widely in cost depending on scope and complexity.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This contract did not appear to prioritize or include opportunities for small businesses.
Oversight & Accountability
The contract was awarded under a limited competition framework. Further oversight would be needed to ensure the IRS received fair value and that the limited competition was justified.
Related Government Programs
- All Other Business Support Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited vendor accountability due to single award
- Absence of small business participation
Tags
all-other-business-support-services, department-of-the-treasury, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $11.0 million to SERVICESOURCE INC. NAT'L MAILROOM SERVICES-MULTI LOCATIONS
Who is the contractor on this award?
The obligated recipient is SERVICESOURCE INC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $11.0 million.
What is the period of performance?
Start: 2007-09-27. End: 2008-09-30.
What was the justification for limiting competition on this significant mailroom services contract?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION', implying a sole-source or limited justification was applied. Without further documentation, the specific reasons remain unclear. Typically, such limitations are based on unique capabilities, urgent needs, or existing infrastructure dependencies that make open competition impractical or detrimental to government operations.
How does the $10.99 million cost compare to industry benchmarks for similar mailroom services, given the limited competition?
Direct comparison is challenging due to the limited competition and the broad 'All Other Business Support Services' NAICS code. However, a $10.99 million expenditure over approximately one year for mailroom services across multiple locations suggests a substantial operational cost. Without competitive bids, it's difficult to ascertain if this price represents fair market value or if taxpayers are bearing a premium.
What measures were in place to ensure the effectiveness and quality of services provided by ServiceSource Inc. under this contract?
Effectiveness and quality are typically managed through performance standards, service level agreements (SLAs), and regular performance reviews outlined in the contract. While the contract type is Firm Fixed Price, which incentivizes the contractor to meet defined requirements efficiently, the specific performance metrics and oversight mechanisms are not detailed in the provided data. The IRS would have been responsible for monitoring ServiceSource's performance against these contractual obligations.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6295 EDSALL RD., ALEXANDRIA, VA, 08
Business Categories: AbilityOne Program Participant, Category Business, Educational Institution, Higher Education, Nonprofit Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $43,995,849
Exercised Options: $20,674,674
Current Obligation: $10,995,074
Contract Characteristics
Multi-Year Contract: Yes
Parent Contract
Parent Award PIID: TIRNO04D00005
IDV Type: IDC
Timeline
Start Date: 2007-09-27
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2010-03-10
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