update on existing contract

SUBJECT: Contract 33330219CT0010023 Extension– print and mail monthly catalog

 
Through a request for quote issued in 2018, the Smithsonian Institution on behalf of the Smithsonian Associates “SA” contracted with LSC Communications MCL LLC, now KODI HOLDINGS to print, ship, and mail SA’s monthly program guide. The contract was issued on 2.21.2019 and was for a base and 4 option years. On July 6, 2023, a notice was posted on SAM.gov regarding the Smithsonian’s intent to add three additional option years which happened on January 25, 2024.

The contract is near the end of option year 7. Most printing contracts of this type are structured for a ten-year time frame. KODI HOLDINGS has met and exceeded the terms of the Contract. The Smithsonian Institution hereby provides notice of its intention to extend the contract for one additional option year.

Smithsonian Associates (SA) is an entirely self-supporting unit within the Smithsonian Institution.  They operate without Federal or Trust Fund allocations and their main source of generated revenue is from ticket sales of educational programs offered to members and the general public as publicized in the Associate program guide, the monthly 4-color publication. The guide is mailed each month to 25,000+ households.  Each program guide features a selection of new programs for the month, which means that it must be received on time in order for members to purchase tickets for their upcoming programs. SA relies on their printer to meet those mail dates without fail each month, and the printer has proven to be reliable. Income from the sales is a critical component of SA’s revenue so timely delivery of the Associate program guide is essential.

The Smithsonian will re-compete the contract in Fiscal Year 2027. There isn’t sufficient time to compete and award a new contract before the current contract expires in February 2027. The estimated price of the contract extension for one additional year is $700,000. It is the...