Lexmark International awarded $25.5M for printer refresh, highlighting ongoing need for managed print services

Contract Overview

Contract Amount: $25,467,857 ($25.5M)

Contractor: Lexmark International, Inc.

Awarding Agency: Social Security Administration

Start Date: 2010-09-23

End Date: 2012-02-12

Contract Duration: 507 days

Daily Burn Rate: $50.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AGENCY PRINTER REFRESHMENT (LAN & MFP)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Social Security Administration obligated $25.5 million to LEXMARK INTERNATIONAL, INC. for work described as: AGENCY PRINTER REFRESHMENT (LAN & MFP) Key points: 1. The contract value suggests a significant investment in maintaining essential office equipment. 2. Managed print services are critical for operational efficiency and cost control in large agencies. 3. The duration of the award indicates a long-term need for these services. 4. The fixed-price nature of the contract provides cost certainty for the agency. 5. The award to a single, established vendor may reflect specialized requirements or market consolidation.

Value Assessment

Rating: good

The total award of $25.5 million over approximately 1.7 years (507 days) for printer refresh and managed print services appears reasonable given the scope. While specific per-unit costs for individual printers or services are not detailed, the overall value aligns with typical government procurements for large-scale office equipment and maintenance. Benchmarking against similar multi-year managed print service contracts for federal agencies of the Social Security Administration's size would provide further context, but the award does not immediately suggest overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single award suggests that Lexmark International, Inc. was the most advantageous offer based on the evaluation criteria. The level of competition is positive for price discovery, as it likely drove competitive pricing among potential bidders.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring a wide range of offers and encouraging competitive pricing.

Public Impact

Federal employees at the Social Security Administration benefit from updated and functional printing equipment. The contract ensures the continued availability of essential printing and copying services for agency operations. The services are delivered across the Social Security Administration's facilities, primarily impacting operations in Washington D.C. The contract supports the IT infrastructure and operational continuity of a major federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed effectively.
Reliance on a single vendor for critical hardware and services.
Need for ongoing performance monitoring to ensure service level agreements are met.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Fixed-price contract provides cost predictability.
Long-term contract indicates a recognized need and established relationship.
Vendor is a well-established player in the managed print services market.

Sector Analysis

The managed print services (MPS) market is a significant segment of the broader IT services industry, focusing on optimizing document output and management for organizations. Federal agencies are major consumers of MPS due to the large volume of printing and the need for cost control, security, and efficiency. This contract fits within the government's ongoing efforts to modernize IT infrastructure and consolidate spending on essential services. Comparable spending benchmarks for MPS contracts often vary widely based on agency size, number of locations, and specific service requirements, but large federal awards are common.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Lexmark International, Inc. is a large business, there is no information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is not directly evident from this award alone, but large prime contracts can sometimes create opportunities for small businesses as subcontractors if such plans are in place.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Social Security Administration. Performance would be monitored against the terms of the Blanket Purchase Agreement (BPA) and any subsequent task orders. Transparency is generally maintained through contract award databases like FPDS.gov. While specific IG jurisdiction isn't detailed, the SSA's Office of the Inspector General would have oversight over fraud, waste, and abuse related to agency spending.

Related Government Programs

Managed Print Services
Office Equipment Procurement
IT Infrastructure Modernization
Agency Operational Support Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical services
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $25.5 million to LEXMARK INTERNATIONAL, INC.. AGENCY PRINTER REFRESHMENT (LAN & MFP)

Who is the contractor on this award?

The obligated recipient is LEXMARK INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2010-09-23. End: 2012-02-12.

What is the historical spending pattern for Lexmark International, Inc. with the Social Security Administration?

Lexmark International, Inc. has a history of receiving contracts from the Social Security Administration (SSA). This specific award, valued at approximately $25.5 million, represents a significant portion of their engagement with the SSA for printer refresh and managed print services. Analyzing historical data from sources like FPDS reveals that the SSA has previously awarded contracts for similar services to Lexmark and potentially other vendors. Understanding the trend of spending, including the frequency and value of awards over time, provides context for the current contract's significance and suggests a sustained need for Lexmark's offerings within the agency. It also allows for comparison of pricing and scope across different award periods.

How does the per-unit cost of printers or managed services under this contract compare to market rates or similar government contracts?

Determining the precise per-unit cost for printers or managed services under this $25.5 million award is challenging without access to the detailed pricing structure within the Blanket Purchase Agreement (BPA) and any associated task orders. However, the contract was awarded under full and open competition, which typically drives prices towards market competitiveness. To benchmark effectively, one would need to compare the negotiated rates for specific printer models, maintenance services, and consumables against publicly available pricing for similar government contracts (e.g., GSA schedules) or commercial enterprise agreements. Given the scale of the SSA, it is likely that Lexmark offered volume discounts. A detailed analysis would involve examining the cost per page, device lease/purchase costs, and service level agreement (SLA) costs relative to industry standards and other federal procurements.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

While the specific KPIs and SLAs are not detailed in the provided data, contracts for managed print services typically include stringent performance metrics. These often encompass device uptime guarantees, response times for maintenance and repair, toner fulfillment rates, print volume management, and cost-per-page targets. For the SSA's $25.5 million award to Lexmark, it is highly probable that SLAs were established to ensure operational continuity and cost efficiency. These might include guaranteed uptime percentages for critical printing devices, maximum allowable response times for service calls (e.g., 4-hour response), and adherence to agreed-upon monthly print volumes or cost controls. Failure to meet these KPIs would likely result in financial penalties or other contractual remedies for the SSA.

What is the risk profile of Lexmark International, Inc. as a contractor for the Social Security Administration?

Lexmark International, Inc. is a well-established global company with extensive experience in providing managed print services and hardware to large organizations, including government agencies. As a prime contractor for the SSA on this $25.5 million award, their risk profile is generally considered moderate to low, stemming from their market presence and track record. Potential risks could include performance issues related to service delivery, supply chain disruptions affecting hardware availability, or cybersecurity vulnerabilities within their managed systems. However, the competitive nature of the award and the typical oversight mechanisms within federal contracts serve to mitigate these risks. The SSA would likely have performance monitoring in place to address any emerging concerns proactively.

How does this contract contribute to the Social Security Administration's overall IT modernization and efficiency goals?

This contract for printer refresh and managed print services directly supports the SSA's IT modernization and efficiency goals by ensuring that essential document output infrastructure is up-to-date, reliable, and cost-effective. Outdated or poorly managed printing fleets can lead to increased maintenance costs, higher energy consumption, security vulnerabilities, and reduced employee productivity. By consolidating services under a single, competitive award to Lexmark, the SSA likely aims to standardize equipment, streamline support, and gain better control over printing-related expenditures. This allows agency IT resources to focus on more strategic initiatives rather than routine hardware maintenance and management, thereby enhancing overall operational efficiency.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2301 RESEARCH BLVD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,163,054

Exercised Options: $25,467,857

Current Obligation: $25,467,857

Parent Contract

Parent Award PIID: SS001040013

IDV Type: BPA

Timeline