01 IFB_Presort Mail Processing Services SOW.pdf

Rev. 7/8/2026

COMMONWEALTH OF PENNSYLVANIA

DEPARTMENT OF GENERAL SERVICES

IV. STATEMENT OF WORK

PRESORT MAIL PROCESSING SERVICES

INVITATION FOR BID (IFB) NO. 6100066317

I. GENERAL REQUIREMENTS

A. Contract Overview. The Department of General Services (DGS), Bureau of Procurement (BOP), is issuing an Invitation for Bid (IFB) for Presort Mail Processing Services for Commonwealth Agencies located within the Capitol Complex and surrounding area. The services to be performed under this Contract include the processing of Commonwealth agencies’ First-Class Letter, First-Class Postcard, First- Class Flat and Standard Mail for delivery to the United States Postal Service (USPS).

The Commonwealth will operate under a centralized mail collection model, whereby outgoing agency mail is consolidated at a designated Department of General Services (DGS) location for Contractor pickup, processing and delivery to USPS. At the time of Contract award, the primary pickup location is the DGS Bureau of Publications, 1650 Bobali Drive, Harrisburg, PA 17104. The Commonwealth reserves the right to add, remove, relocate, consolidate, or otherwise modify pickup location(s) during the Contract term based on operational needs. Any such changes will be communicated to the Contractor with reasonable advance notice.

DGS Bureau of Publications will issue one purchase order for services under this contract.

Physical mail collection is centralized; however, individual Commonwealth agencies will retain responsibility for entry of mail-job data and related processing information through a Contractor provided web-based portal.

The awarded Contractor must support an online web-based portal process that allows agencies to submit and manage their mail-job data to facilitate accurate processing and tracking. The Contractor must also support the Contracting Officer and DGS Bureau of Publications having access to all Commonwealth mail-job data online for tracking purposes.

The awarded Contractor will be responsible for the pickup, transport, presort processing, and delivery of Commonwealth mail to USPS, in accordance with all requirements set forth in this Statement of Work.

B. Method of Award. The Contract will be awarded to the responsive and responsible bidder that submits the lowest cumulative cost to the Commonwealth, as determined by the prices provided on Exhibit A, Cost Sheet.

II. BIDDING REQUIREMENTS

A. Mandatory Site Visit. A mandatory site visit is required for all Bidders intending to submit a bid in response to this Invitation for Bid (IFB). The purpose of the site visit is to allow Bidders to inspect the designated pickup locations and gain a complete understanding of the operational requirements, service expectations, and conditions associated with the Contract.

The mandatory site visit will be held on 08/19/2026 at 11:00 AM EST at the following location:

DGS Bureau of Publications 1650 Bobali Drive, Harrisburg, PA 17104

Attendance by at least one authorized representative of the Bidder is required. Bidders that fail to attend the mandatory site visit will be deemed non-responsive and will not be considered for Contract award.

No alternative site visit dates will be offered. Any information that modifies or clarifies the requirements of this IFB will be issued by written addendum. Verbal statements made during the site visit shall not be binding upon the Commonwealth.

B. Pricing. Bidders must enter their bid prices on Exhibit A, Cost Sheet. There are six (6) line items, describing each mail type, and a bid price is required for each line item.

Bidders shall provide a per piece processing fee for each mail type (i.e., First Class Letter with Transportation, First Class Flat with Transportation, etc.) on Exhibit A. These bid prices represent the fees the awarded Contractor will charge the Commonwealth to process each piece of mail. Bidders shall not include postage costs in their bid price.

1. Price Adjustments. The Contractor may request a price adjustment only during the thirty (30) days immediately preceding a Contract renewal period.

Any request for a price adjustment must be submitted in writing to the Commonwealth and must include sufficient supporting documentation and justification for the requested adjustment. Supporting documentation shall include, but is not limited to:

• Changes to USPS programs, requirements, regulations, or operational standards impacting Contractor processing costs.

• Documented increases in operational or transportation costs directly associated with performance of the Contract.

• Changes to USPS mail preparation, presort, barcode, or acceptance requirements.

• Changes in technology, software, or compliance requirements necessary to maintain USPS certification or Contract compliance.

2. Commonwealth Mail Volume. Exhibit A, Cost Sheet provides total estimated mail volumes, by piece, for each type of mail processed. These estimated mail volumes are inclusive of all Commonwealth Agencies for calendar year 2025. Any figures presented in this Statement of Work are based on historical usage, unless otherwise noted, and may fluctuate based on future needs. Volumes are not guaranteed.

Failure to submit a completed Exhibit A with the bid submission will result in the bid being rejected as non-responsive.

C. Definitions. For the purposes of this solicitation and resulting Contract the following definitions apply to services to be performed. Specific performance requirements are established in Exhibit B, Service Level Agreements.

1. Centralized Pickup Model. A model where outgoing Commonwealth mail is consolidated at designated Department of General Services (DGS) location(s) for Contractor pickup, processing and delivery to USPS. Individual agencies do not serve as routine pickup locations under this Contract.

2. With Transportation. The Contractor picks up consolidated Commonwealth mail from designated Department of General Services (DGS) location(s), transports it to its facility for processing, and delivers processed mail to the United States Postal Service

(USPS).

3. Same Day Service. Mail that is picked up by the Contractor from the designated

Department of General Services (DGS) location(s), processed, and delivered to USPS on the same business day.

4. Next Day Service. Mail that is picked up by the Contractor from the designated Department of General Services (DGS) location(s), processed, and delivered to USPS within one (1) business day (24 hours), or the next business day when pickup occurs on a Friday or the day prior to a holiday.

5. Agency Mail Job Input. Information submitted by individual Commonwealth agencies through the Contractor’s electronic portal identifying mail type, estimated volume, service level, or other necessary details required to support processing, tracking, and billing.

6. Service Level Agreement (SLA). The measurable performance standards and operational requirements established in Exhibit B applicable to services performed under the Contract.

7. Chain of Custody. The documented and auditable process used to track

Commonwealth mail from the point of pickup at the designated Department of General Services (DGS) location(s) through processing and final delivery to USPS, including the ability to identify the originating agency.

8. Per-Piece Processing Fee. The fixed rate bid by the Contractor for each mail piece processed, inclusive of all required services under this Contract, excluding USPS postage.

9. USPS Postage. Mailing costs established and regulated by the United States Postal

Service (USPS), which are separate from Contractor pricing and applied in accordance with current published USPS rates.

D. Lobbying Certification Form. All bidders must complete and return the Lobbying

Certification Form. The completed and signed Lobbying Certification Form shall be submitted with the bid response.

E. Iran Free Procurement Certification & Disclosure Form. All bidders must complete and return the Iran Free Procurement Certification and Disclosure form. The completed and signed Iran Free Procurement Certification and Disclosure form shall be submitted with the bid response.

F. Worker Protection and Investment Certification Form. Pursuant to Executive Order 2021-06, Worker Protection and Investment (October 21, 2021), the Commonwealth is responsible for ensuring that every Pennsylvania worker has a safe and healthy work environment, and the protections afforded them through labor laws. To that end, contractors and grantees of the Commonwealth must certify that they are in compliance with all applicable Pennsylvania state labor and workforce safety laws. Such certification shall be made through Exhibit C, Worker Protection and Investment Certification Form (BOP-2201). The completed and signed Worker Protection Certification Form shall be submitted with the bid response.

G. Emergency/Disaster Recovery Plan. Emergency/Disaster Recovery. The awarded Contractor must have a plan in place to support continuity of operations during an emergency, including a pandemic. Because the Commonwealth requires uninterrupted access to critical mail processing services, the Contractor must maintain contingency procedures sufficient to continue operations during extended disruptions. A copy of this plan must be submitted with your bid. This plan should detail the following:

• How would you ensure continued operations?

• What type of employee training is done for these emergencies?

• Who would the key employees be that should be contacted?

• How is staffing handled when a key number of employees are incapacitated due to illness?

• How will employees in your organization carry out the essential functions if contagion control measures prevent them from coming to the primary workplace?

• How will your organization communicate with staff and suppliers when primary communications systems are overloaded or otherwise fail?

• How and when will your emergency plan be tested, and will the plan be tested by a third party?

III. SERVICE REQUIREMENTS: The awarded Contractor will be required to perform centralized automated mail processing and related services in accordance with the requirements set forth in this Statement of Work.

All services must be performed in accordance with the Commonwealth standards for timeliness, accuracy, security, and cost efficiency.

The contractor is expected to process Commonwealth mail in a manner that maximizes available United States Postal Service (USPS) automation and presort discounts.

Failure to meet the standards of performance outlined in this Contract, including timeliness, quality, accuracy, or compliance with requirements, may result in the Contractor being deemed non-responsible and may lead to Contract termination.

A. Mail Types and Processing Requirements.

1. Letters and Postcards. These types of mail must be processed at the highest available

USPS automation and presort discount level for which the mailpieces are eligible, including 5-digit postage rates where qualification requirements are met under current USPS standards. The Contractor must ensure that processing meets or exceeds performance expectations as defined in Exhibit B, Service Level Agreements.

2. Flats. Flats must be processed at the highest available USPS automation and presort discount level for which the mailpieces are eligible, including 3-digit postage rates where qualification requirements are met under current USPS standards. The Contractor must ensure that processing meets or exceeds performance expectations as defined in Exhibit B, Service Level Agreements.

3. Standard Mail. Standard Mail is included in the Contract but the volumes of this type of mail are unknown and processing of this type of mail is infrequent. Bidders are not required to provide pricing for processing Standard Mail as part of their bid. The Contractor’s per piece processing fee will be negotiated between the Contractor and the requesting agency at time of need and will be based on the size and complexity of the mail job to be processed.

4. Postage, Barcode and Addressing Requirements

a. Commonwealth agencies may submit mail that is pre-metered, partially metered, or not metered.

b. Each Commonwealth agency will maintain its own postage account or permit for the payment of United States Postal Service (USPS) postage.

c. The Contractor shall utilize USPS-certified processing, validation and quality control procedures to ensure that mail is processed in accordance with applicable USPS requirements and that sufficient postage is applied when required.

d. When postage has not been applied correctly, or is insufficient, the Contractor must apply the appropriate postage using the originating agency’s postage account or permit, utilizing USPS-approved methods, including but not limited to permit imprint or metering.

e. The Contractor shall not commingle or substitute postage between agency accounts.

f. All postage costs shall remain the responsibility of the originating agency and shall be applied in accordance with current published USPS rates. Postage is not included in the Contractor’s per-piece processing fees.

g. The Contractor must accurately account for and report postage applied by agency as part of its invoicing and reporting requirements.

h. The Contractor must maintain separation of postage activity by agency and ensure that all postage applied is traceable to the originating agency’s account.

i. During the presort process, if the Contractor identifies a more accurate or correct address through the USPS-approved validation processes, the Contractor must update the address and associated barcode as necessary to meet USPS requirements.

j. During processing, if the Contractor identifies a missing, unreadable, or non-compliant barcode, the Contractor must apply or correct the barcode in accordance with USPS intelligent Mail Barcode (IMb) standards.

k. The Contractor must ensure that any barcode applied or corrected during processing supports identification of the originating agency and enables accurate tracking, reporting and reconciliation of mail activity by agency.

l. Prior to commingling and USPS submission, the Contractor shall utilize USPS-certified validation processes and commercially reasonable quality control procedures to identify material qualification issues that may prevent mailpieces or mail-jobs from qualifying for anticipated USPS discounts. When practicable, the Contractor shall notify DGS Bureau of Publications of material qualification issues identified during processing that may result in higher postage rates or loss of required USPS discounts.

m. Any mailpiece that does not qualify for the highest available USPS automation or presort discount level under current USPS requirements shall continue to be processed by the Contractor at the applicable Per Piece Processing Fees identified in Exhibit A. No additional processing surcharges or fees may be assessed by the

Contractor solely because a mailpiece does not qualify for a particular USPS discount level.

The Contractor shall utilize USPS-certified address validation, barcode correction, and presort processing practices to maximize USPS postage discount eligibility.

The Contractor shall be responsible for postage discount losses resulting from Contractor processing errors, failure to perform required validation or presort activities, or noncompliance with USPS preparation requirements.

The Commonwealth shall remain responsible for postage differentials resulting from agency provided data inaccuracies, mailpiece formatting deficiencies, physical mailpiece characteristics, content related issues, or other conditions outside of the Contractor’s reasonable control that prevent qualification for USPS discounts.

The Contractor shall maintain documentation and exception reporting sufficient to support postage reconciliation and agency level reporting requirements.

B. Mail Pickup. The contractor shall provide centralized mail pickup and transportation services for Commonwealth mail in accordance with the requirements set forth herein.

1. Contractor Portal and Agency Data Entry. The Contractor shall provide and maintain a secure web-based portal accessible to authorized Commonwealth agencies and DGS Bureau of Publications personnel for purposes of entering, managing, and tracking mail processing requests and related activity.

The portal shall, at a minimum, support:

• agency mail job entry and submission

• originating agency identification

• mail class and processing selections

• piece count and volume entry

• tracking and status visibility

• reporting and reconciliation functionality

• exception and issue notification capabilities

Commonwealth agencies shall be responsible for entering applicable mail job information into the Contractor’s portal prior to mail processing.

2. Centralized Pickup Location. All physical mail pickup services under the Contract shall occur through DGS Bureau of Publications or another centralized Commonwealth location designated by DGS Bureau of Publications. The Contractor shall not be required to perform routine pickup services directly from individual Commonwealth agencies unless otherwise authorized by DGS Bureau of Publications.

3. Pickup Scheduling and Coordination. The Contractor shall coordinate pickup schedules and operational requirements directly with DGS Bureau of Publications.

Pickup frequencies, schedules, and operational procedures may be adjusted during the Contract term based on Commonwealth operational needs and mail volumes.

4. Loading Responsibilities. The Contractor shall provide drivers and when necessary, driver assistants capable of properly loading at designated pickup locations.

Commonwealth personnel shall prepare mail for pickup in accordance with operational requirements established under the Contract.

Unless otherwise specified herein, the Contractor shall not be required to provide loading equipment such as dollies, pallet jacks, or similar equipment at pickup locations.

5. Mail Transport Equipment and Packaging. Commonwealth personnel shall place mail into approved mail flats, trays, containers, or other authorized transport units for pickup. The Contractor shall be responsible for providing and maintaining mail transport equipment necessary to support Contract operations, including but not limited to IM trays and sleeves, EMM trays and sleeves, APC carts, tubs pallets, and similar transport equipment approved for use under the Contract.

6. Mail Pickup Locations and Schedules. The pickup location identified below reflects the

Commonwealth’s current operational requirements. DGS Bureau of Publications reserves the right to modify pickup schedules, designate additional pickup locations, or relocate pickup operations during the Contract term upon reasonable notice to the Contractor.

Location Name Location Address Pickup Schedule DGS Bureau of Publications

1650 Bobali Drive, Harrisburg, PA 17104

Twice Daily

9:00 AM & 4:00 PM

7. Emergency Pickup Location. In the event of an emergency or operational disruption impacting the centralized pickup location, DGS Bureau of Publications may designate a temporary alternate pickup location. The Contractor shall coordinate with DGS Bureau of Publications to continue pickup and processing services at the designated emergency location.

C. Chain of Custody. The Contractor shall maintain and document chain of custody procedures for all Commonwealth mail received, transported, processed, and submitted for USPS delivery under the Contract.

The Commonwealth’s centralized chain of custody processes shall operate as follows:

1. Centralized Mail Intake. Commonwealth agencies shall provide mail to DGS Bureau of Publications in accordance with operational procedures. DGS Bureau of Publications shall coordinate transfer of Commonwealth mail to the Contractor for pickup and processing.

2. Agency Job Entry and Mail Identification. Prior to pick up, originating agencies shall enter applicable mail job information into the Contractor’s web-based portal, including originating agency identification, mail class, processing instructions, and piece counts or estimated mail volumes.

3. Pickup Tickets and Intake Documentation. The Contractor shall utilize pickup tickets, manifests, electronic intake records, or similar documentation to identify and track Commonwealth mail picked up for processing. Such documentation shall be generated through the Contractor’s approved portal or other mutually approved process and shall include at a minimum:

• originating agency identification

• pickup date and time

• mail class or processing type, when applicable

• estimated or reported mail volumes

• any applicable processing instructions entered by the originating agency

Pickup tickets shall serve as the official chain of custody acknowledgement upon transfer of Commonwealth mail to the Contractor for processing.

The Contractor may recommend formatting or operational modifications to intake documentation processes, subject to written approval by DGS Bureau of Publications.

D. Transport and Transfer of Commonwealth Mail.

1. The Contractor shall transport Commonwealth mail from DGS Bureau of Publications to the Contractor’s facility for processing.

2. Commonwealth mail shall be securely transported in vehicles owned, leased or controlled by the Contractor. All vehicles utilized under the Contract shall be properly insured, registered, maintained, and operated in compliance with all applicable federal, state, and local laws and regulations, including Pennsylvania Department of Transportation requirements.

3. The Contractor shall maintain responsibility and chain of custody for Commonwealth mail during all phases of transportation, handling, storage, processing, and transfer performed by the Contractor and/or its approved subcontractors.

4. The Contractor shall maintain a processing facility with adequate staffing, loading capabilities, and weather-protected receiving areas sufficient to securely receive, unload, store and process Commonwealth mail.

5. Upon completion of mail processing, the Contractor shall transport and deliver processed mail to the applicable USPS-designated acceptance, processing, or entry facility location in accordance with USPS requirements and operational needs.

The Contractor shall be responsible for obtaining and maintaining all USPS approvals, authorizations, and documentation associated with any authorized drop shipment activities and shall provide such documentation to DGS Bureau of Publications upon request.

E. Mail Processing. The Contractor shall presort, prepare, and process all Commonwealth mail in accordance with applicable USPS requirements and industry standard mail processing practices to maximize USPS automation and postage discount eligibility.

1. The Contractor shall possess demonstrated experience and operational capability in mailpiece design, address hygiene, mail readability, barcode application and correction, ZIP+4 processing, USPS certified address validation and presort processing.

2. Mail determined by the Contractor to be undeliverable, nonmailable, or otherwise unable to be submitted to the USPS for delivery shall be identified, documented, and returned to DGS Bureau of Publications or otherwise handled in accordance with procedures established by DGS Bureau of Publications.

F. Deliveries. The Contractor shall perform pickup, transportation, processing, and

USPS delivery activities in accordance with the service schedules, turnaround requirements, and operational standards established under the Contract and applicable Service Level Agreements (SLA) as identified in Exhibit B.

G. Systems and Software.

1. Systems Compliant with USPS standards. The Contractor shall utilize software, systems, and processing tools compliant with applicable USPS standards and certifications for address validation, barcode generation and correction, presort processing, postage optimization, and mail tracking activities performed under the Contract.

2. Secure Web-based Portal. The Contractor shall maintain a secure web-based portal accessible to authorized Commonwealth users for mail job entry, tracking, reporting, reconciliation, and operational communication purposes.

3. USPS Intelligent Mail Barcode (IMb) Data and Reporting. The Contractor shall maintain and utilize Intelligent Mail Barcode (IMb) data in accordance with applicable USPS requirements and standards. IMb data and associated mail tracking information shall support originating agency identification, mail tracking, postage reconciliation, operational reporting, and audit requirements under the Contract.

4. Software Security Controls. All Contract systems utilized under the Contract shall maintain appropriate security controls and safeguards sufficient to protect Commonwealth mail information and operational data.

H. Security. The Contractor shall maintain and enforce comprehensive security procedures and safeguards sufficient to protect Commonwealth mail, mail-related data, and operational information during all phases of pickup, transportation, storage, processing, handling, reporting, and USPS transfer activities performed under the Contract.

Security procedures shall apply to the Contractor’s facilities, vehicles, systems, personnel, subcontractors, and any other environments utilized in performance of Contract services.

1. Physical Security. The Contractor shall maintain physical security controls and operational safeguards sufficient to protect Commonwealth mail from unauthorized access, loss, theft, damage, tampering, disclosure, or destruction while in the custody or control of the Contractor or subcontractors.

Such controls shall include, as applicable:

• restricted facility access controls

• visitor management procedures

• monitored loading and receiving areas

• secured mail storage areas

• employee identification procedures

• documented chain of custody processes

2. Transportation Security. The Contractor shall maintain security control procedures for all vehicles utilized to transport Commonwealth mail. Commonwealth mail shall remain secured during transportation and shall only be accessible to authorized personnel performing services under the Contract.

3. Operational Security. The Contractor shall maintain operational procedures, staffing controls, and personnel safeguards sufficient to ensure secure handling of Commonwealth mail and information. The Contractor shall be responsible for ensuring that personnel and approved subcontractors performing services under the Contract comply with all applicable security requirements and operational procedures.

4. Incident Notification. The Contractor shall notify the Contracting Officer and DGS Bureau of Publications within twenty-four (24) hours of discovery of any actual or suspected loss, theft, unauthorized access, security incident, system outage, or event that may impact performance of Contract requirements.

5. Subcontractors. The Contractor shall remain fully responsible for ensuring that all approved subcontractors comply with the security requirements established under this contract.

I. Emergency Services. Emergency services may be requested by DGS Bureau of

Publications when operational circumstances require services outside of the standard pickup schedule or service requirements established under this Contract. When service is needed outside of the standard schedule of service, DGS Bureau of Publications will notify the Contractor by phone and email to provide details and authorization to perform the required services. The nature, scope, timing and pricing of such services shall be mutually agreed upon by the Commonwealth and the Contractor at the time of the request. Emergency services must be authorized by DGS Bureau of Publications prior to performance. If operational circumstances prevent issuance of a purchase order in advance, the Commonwealth may issue the applicable purchase order as soon as practicable following authorization.

IV. CONTRACT REQUIREMENTS

A. Service Levels. The Contractor must meet the Service Level Agreements as described in Exhibit B, Service Level Agreements. These SLAs are in place to ensure that the best service is provided to the Commonwealth. Reports detailing compliance with SLAs must be provided to the Commonwealth quarterly by the Contractor. The report shall include the specific data requested to demonstrate compliance with the SLAs, and any service level agreement violations. The quarterly report shall include all data and documentation necessary to establish compliance or evidence of noncompliance.

B. Blanket Purchase Orders. The Bureau of Publications will issue a Blanket Purchase Order (PO) to the Contractor for the Commonwealth’s presort mailing services. The Purchase Order will identify estimated mail volumes (annual estimated per piece quantities) for each required mail type. All services must be performed at contract rates.

DGS Bureau of Publications is responsible for estimating quantities and ensuring billable quantities are available.

C. Payment and Invoicing. Payment and invoicing information can be accessed through the https://www.budget.pa.gov/Pages/default.aspx website. The Contractor shall submit consolidated invoicing to DGS Bureau of Publications while maintaining agency-level reporting and reconciliation detail.

D. Quarterly Reports. The Contractor must provide quarterly reports by the 15th day of the month following the end of the quarter to the Contracting Officer and DGS Bureau of Publications. Reports must include agency name, date of service, mail type (first class next day, same day, standard etc.), quantity of mail pieces, and presort cost. The reports must be provided in Microsoft ® Office Excel® or comparable format.

E. Award Administration. The Contractor’s performance shall be monitored and evaluated in accordance with the requirements outlined in the Contract. At a minimum, the awarded Contractor’s performance shall be evaluated on an annual basis. Contractor may be required to attend Contract Performance Review meetings. These meetings will be for the purpose of providing Contractor performance reviews, discussion of issues either party may have regarding the Contract or to evaluate the overall progress of the https://www.budget.pa.gov/Pages/default.aspx

Contract. The meetings will be held quarterly, semi-annually, or annually at the discretion of the Contracting Officer.

F. Inquiries. All inquiries regarding this solicitation or the resulting Contract should be referred to the DGS Contracting Officer. Inquiries regarding purchase orders placed against the Contract shall be directed to DGS Bureau of Publications.