DOJ Leases Canon Copiers for $587K, Ending April 2026
Contract Overview
Contract Amount: $58,779 ($58.8K)
Contractor: Canon Financial Services, Inc.
Awarding Agency: Department of Justice
Start Date: 2022-10-01
End Date: 2026-04-08
Contract Duration: 1,285 days
Daily Burn Rate: $46/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CANON COPIER LEASE
Place of Performance
Location: MOUNT LAUREL, BURLINGTON County, NEW JERSEY, 08054
Plain-Language Summary
Department of Justice obligated $58,778.81 to CANON FINANCIAL SERVICES, INC. for work described as: CANON COPIER LEASE Key points: 1. Lease agreement for Canon copiers valued at $587,788.81. 2. Contract awarded to Canon Financial Services, Inc. 3. Procurement method was 'Competed under SAP' with a BPA Call. 4. Lease duration spans from October 2022 to April 2026. 5. No small business participation noted.
Value Assessment
Rating: fair
The total value of $587,788.81 over approximately 5.5 years suggests a moderate annual cost. Benchmarking against similar office equipment leases would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures) via a BPA Call. While competed, the limited scope of SAP and reliance on a BPA may restrict the breadth of competition and potentially impact price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for office equipment leasing. The effectiveness of the competition method in securing the best price for taxpayers is a key consideration.
Public Impact
Ensures operational continuity for the Federal Prison System by providing essential office machinery. Potential for cost savings through competitive bidding, though SAP limitations might affect this. Lease agreement avoids large upfront capital expenditure for equipment purchase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to SAP and BPA Call.
- Lack of small business participation.
- Potential for higher costs compared to full and open competition.
Positive Signals
- Lease provides necessary equipment for agency operations.
- Fixed price contract offers budget predictability.
Sector Analysis
The IT and office equipment sector sees significant government spending on rentals and leases. Benchmarks for similar copier leases vary widely based on features, volume, and contract duration.
Small Business Impact
This contract does not appear to include any provisions for small business participation. Further analysis would be needed to determine if opportunities were missed or if the nature of the procurement precluded their involvement.
Oversight & Accountability
Oversight would involve monitoring lease terms, equipment performance, and adherence to the BPA call procedures. The Department of Justice's internal controls should ensure efficient use of funds.
Related Government Programs
- Office Machinery and Equipment Rental and Leasing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for suboptimal pricing due to limited competition.
- Lack of small business engagement.
- Lease costs could exceed purchase costs over the long term.
- Dependence on a single vendor for equipment and service.
Tags
office-machinery-and-equipment-rental-an, department-of-justice, nj, bpa-call, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $58,778.81 to CANON FINANCIAL SERVICES, INC.. CANON COPIER LEASE
Who is the contractor on this award?
The obligated recipient is CANON FINANCIAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $58,778.81.
What is the period of performance?
Start: 2022-10-01. End: 2026-04-08.
What was the specific rationale for using SAP and a BPA Call instead of a broader competition for this lease?
The use of SAP and a BPA Call suggests the agency may have deemed the anticipated value to be within simplified acquisition thresholds or that a pre-existing BPA offered a convenient and efficient procurement vehicle. The specific rationale likely centers on perceived efficiency and speed for acquiring standard office equipment, though it may limit the potential for achieving the absolute lowest price compared to a full and open competition.
How does the per-unit cost of these Canon copiers compare to market rates for similar leased equipment?
Without specific details on the copier models, features, and print volumes included in the lease, a direct per-unit cost comparison is difficult. However, given the limited competition and the nature of leasing, it's crucial to benchmark against industry standards for comparable equipment to ensure fair pricing and avoid potential overpayment by taxpayers.
What is the long-term cost-effectiveness of leasing versus purchasing these copiers for the Federal Prison System?
Leasing offers flexibility and avoids large upfront capital outlays, which can be beneficial for budget management. However, over the long term, especially with multiple renewals, leasing can become more expensive than purchasing outright. A total cost of ownership analysis, considering maintenance, upgrades, and potential residual value, would be needed to determine the most cost-effective strategy.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Office Machinery and Equipment Rental and Leasing
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Canon Inc.
Address: 158 GAITHER DR STE 200, MOUNT LAUREL, NJ, 08054
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,779
Exercised Options: $58,779
Current Obligation: $58,779
Actual Outlays: $58,563
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 15B20322A00000022
IDV Type: BPA
Timeline
Start Date: 2022-10-01
Current End Date: 2026-04-08
Potential End Date: 2026-04-08 00:00:00
Last Modified: 2026-04-08
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