Pitney Bowes Mail Meter Postage FY 27

The Illinois Department of Healthcare and Family Services (HFS) has awarded a sole source contract to Pitney Bowes Inc. for postage services valued at $8.4 million. Under this contract, Pitney Bowes will provide postage costs for a 12-month period beginning July 1, 2026, and ending June 30, 2027, to load funds onto Pitney Bowes mail machines operated by HFS. The contract covers postage for mail pieces sent via the United States Postal Service, with postage downloaded to HFS-owned or leased Pitney Bowes postage meters. HFS anticipates average monthly postage volumes of approximately $670,000, consisting of $600,000 for mass mailings and $70,000 for local and regional office use. Postage pricing is determined by the United States Postal Service, and HFS incurs no additional charges beyond actual postage costs, as Pitney Bowes bills only for postage used in the previous billing cycle with no supplementary rates, fees, or interest charges.

The sole source justification was approved by Illinois State Purchasing Officer Jennifer Klein on April 27, 2026, and authorized by Chief Procurement Officer Ellen H. Daley on May 13, 2026. HFS determined that postage services are economically available from only a single source based on equipment compatibility requirements, as Pitney Bowes will exclusively download postage onto Pitney Bowes meters, and the company uniquely offers automatic postage loading and arrears billing capabilities necessary to support HFS's time-sensitive mailing operations. Purchase history demonstrates that HFS has contracted exclusively with Pitney Bowes for postage services since at least 2019. Funding will be provided through both state appropriated funds and federal funds.