Commerce awards $2.45M for managed printing services to Cartridge Technologies, LLC

Contract Overview

Contract Amount: $2,450,716 ($2.5M)

Contractor: Cartridge Technologies, LLC

Awarding Agency: Department of Commerce

Start Date: 2021-11-01

End Date: 2026-03-31

Contract Duration: 1,611 days

Daily Burn Rate: $1.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE SERVICES - MANAGED PRINTING SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $2.5 million to CARTRIDGE TECHNOLOGIES, LLC for work described as: ENTERPRISE SERVICES - MANAGED PRINTING SERVICES Key points: 1. Value for money appears fair given the firm-fixed-price structure and 4-year duration. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery. 3. Risk indicators are moderate, with a firm-fixed-price contract generally limiting cost overrun risks. 4. Performance context is for enterprise-wide managed printing services, a common requirement. 5. Sector positioning is within IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract value of $2.45 million over approximately 4 years for managed printing services is a moderate expenditure. Benchmarking against similar managed print services contracts is challenging without more detailed scope of work and service level agreements. However, the firm-fixed-price contract type suggests that the government has locked in a price, which can be advantageous if services are delivered as expected. The per-year cost averages around $612,000, which needs to be assessed against the scale and complexity of the printing needs across the Department of Commerce.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Simplified Acquisition Procedures), indicating it was likely a full and open competition among eligible vendors. While the specific number of bidders is not provided, the use of SAP suggests a streamlined process for smaller value procurements. The competition level, even under SAP, should have allowed for multiple offers and price comparisons, contributing to a reasonable price discovery for the government.

Taxpayer Impact: A competed award under SAP generally benefits taxpayers by fostering competition, which tends to drive down prices and encourage efficient service delivery compared to sole-source awards.

Public Impact

The Department of Commerce benefits from streamlined and potentially cost-effective managed printing services. Services delivered include the management and provision of printing solutions across the agency. The geographic impact is concentrated in the District of Columbia, where the agency is headquartered. Workforce implications are likely related to the contractor's personnel managing the printing infrastructure, with minimal direct impact on federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if contract terms are not carefully managed.
Dependence on a single vendor for critical printing infrastructure.
Scope creep risk if additional services are added without proper modification procedures.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through a competitive process, suggesting potential for good value.
Longer-term contract (over 4 years) can provide stability and predictable service.

Sector Analysis

Managed printing services fall under the broader IT services sector, specifically within the 'Other Computer Related Services' category. This market involves companies that provide comprehensive solutions for managing an organization's printing needs, including hardware, software, supplies, and maintenance. The federal government is a significant consumer of these services, seeking to reduce costs, improve efficiency, and enhance document security. Comparable spending benchmarks are difficult to establish without specific details on the volume and types of printing required, but the overall IT services market is substantial.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false) and the awardee, Cartridge Technologies, LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The impact on the broader small business ecosystem would depend on whether Cartridge Technologies utilizes small business subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Commerce. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance metrics and spending breakdowns may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Enterprise IT Services
Managed Services Contracts
Office Equipment Procurement
Department of Commerce IT Spending

Risk Flags

Contract duration exceeds 4 years, requiring careful monitoring of performance and value.
Reliance on SAP suggests a potentially less rigorous competition than larger contract vehicles.
Lack of detailed performance metrics in the provided data hinders comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $2.5 million to CARTRIDGE TECHNOLOGIES, LLC. ENTERPRISE SERVICES - MANAGED PRINTING SERVICES

Who is the contractor on this award?

The obligated recipient is CARTRIDGE TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2021-11-01. End: 2026-03-31.

What is the track record of Cartridge Technologies, LLC with federal contracts?

Information on Cartridge Technologies, LLC's federal contract history is limited in the provided data. The award for managed printing services to the Department of Commerce is a specific instance. To assess their track record thoroughly, one would need to examine their past performance on similar contracts, including contract values, durations, agencies served, and any reported performance issues or successes. A deeper dive into contract databases like SAM.gov or FPDS would be necessary to identify other awards, their compliance with contract terms, and client feedback, if available. Without this broader context, it's difficult to definitively gauge their reliability and expertise beyond this single award.

How does the value of this contract compare to similar managed printing services contracts within the federal government?

Direct comparison of this $2.45 million contract value is challenging without detailed scope and service level agreements. However, managed print services contracts for federal agencies can range significantly, from tens of thousands to millions of dollars annually, depending on the agency's size, number of locations, printing volume, and specific requirements (e.g., secure printing, multifunction devices). For a single agency like the Department of Commerce, a 4-year contract valued at approximately $612,000 per year for enterprise-wide services appears to be within a moderate range. Larger agencies or those with extensive field operations might award significantly larger contracts. Conversely, smaller departmental components or specific offices might receive smaller, more localized contracts.

What are the primary risks associated with this managed printing services contract?

The primary risks associated with this managed printing services contract include potential vendor lock-in, where the agency becomes heavily reliant on Cartridge Technologies, LLC for its printing infrastructure and support, making future transitions difficult or costly. There's also a risk of scope creep, where the services required might expand beyond the initial contract definition without corresponding adjustments to cost or timeline, potentially leading to budget overruns if not managed carefully. Performance risk exists if the contractor fails to meet service level agreements, impacting agency productivity. Finally, technological obsolescence is a risk; the printing technology and solutions provided must remain current and efficient throughout the contract's duration.

How effective is a firm-fixed-price contract for managing printing services?

A firm-fixed-price (FFP) contract is generally considered effective for managing printing services when the scope of work is well-defined and the risks of cost escalation are manageable. For services like managed printing, where the provider assumes responsibility for equipment, supplies, and maintenance, FFP provides cost certainty for the government. This structure incentivizes the contractor to control costs and operate efficiently to maximize profit. However, if the scope is not precisely defined or unforeseen technical issues arise, the contractor might be less inclined to absorb additional costs, potentially leading to disputes or a reduction in service quality if not carefully monitored. For routine, predictable services, FFP is often a preferred choice.

What are the historical spending patterns for managed printing services at the Department of Commerce?

The provided data does not include historical spending patterns for managed printing services at the Department of Commerce. To analyze this, one would need to access historical contract databases (e.g., FPDS) and query for similar contract actions awarded by the Department of Commerce over previous fiscal years. This analysis would reveal trends in contract values, awardees, contract types, and durations, helping to contextualize the current $2.45 million award. Understanding past spending can inform future budgeting, identify potential cost savings, and assess whether spending has increased or decreased over time, potentially indicating changes in agency needs or procurement strategies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15738 CRABBS BRANCH WAY, ROCKVILLE, MD, 20855

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,450,716

Exercised Options: $2,450,716

Current Obligation: $2,450,716

Actual Outlays: $84,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L521A13ES0013

IDV Type: BPA

Timeline