Justice Department inks $22.1M copier lease with Kyocera, highlighting equipment manufacturing sector spending

Contract Overview

Contract Amount: $22,124 ($22.1K)

Contractor: Kyocera Document Solutions America Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-12-31

Contract Duration: 456 days

Daily Burn Rate: $49/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 M2/M - KYOCERA_COPIER LEASE AND MAINT

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Justice obligated $22,124.4 to KYOCERA DOCUMENT SOLUTIONS AMERICA INC for work described as: FY26 M2/M - KYOCERA_COPIER LEASE AND MAINT Key points: 1. Value for money assessed through benchmarking against similar equipment leases and maintenance contracts. 2. Competition dynamics indicate a full and open competition, suggesting potential for price discovery. 3. Risk indicators include contract duration and reliance on a single vendor for equipment and maintenance. 4. Performance context relies on vendor's ability to provide reliable equipment and timely maintenance. 5. Sector positioning places this contract within the broader 'Photographic and Photocopying Equipment Manufacturing' industry.

Value Assessment

Rating: good

The contract value of $22.1 million over its term appears reasonable for a large-scale copier lease and maintenance agreement. Benchmarking against similar federal and commercial contracts for high-volume equipment would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the total expenditure should be monitored against usage and service quality.

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 specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to more favorable pricing and terms for the government.

Taxpayer Impact: A full and open competition suggests that taxpayers benefit from potentially lower prices due to vendor rivalry, ensuring government funds are used efficiently for essential services.

Public Impact

Federal Prison System facilities across Arizona will benefit from reliable document management solutions. The contract ensures the provision and maintenance of essential office equipment for administrative and operational functions. Geographic impact is concentrated within Arizona, where the Bureau of Prisons facilities are located. Workforce implications include ensuring staff have access to functional equipment for daily tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased maintenance costs if equipment experiences frequent breakdowns.
Reliance on a single vendor could lead to price increases upon contract renewal.
Ensuring consistent service quality across all leased locations requires robust oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the agreement.
Full and open competition suggests a competitive initial award price.
Leasing equipment can offer access to newer technology compared to outright purchase.

Sector Analysis

This contract falls within the 'Photographic and Photocopying Equipment Manufacturing' sector, which includes the production and distribution of copiers, printers, and related supplies. Spending in this area supports the operational needs of government agencies by providing essential office technology. Comparable spending benchmarks would involve analyzing the total federal expenditure on office equipment leases and maintenance across various agencies.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Therefore, the primary contractor, Kyocera Document Solutions America Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Bureau of Prisons. Accountability measures would include adherence to the lease terms, service level agreements for maintenance, and timely equipment replacement. Transparency is facilitated through federal procurement databases where contract awards are publicly reported.

Related Government Programs

General Services Administration (GSA) Schedule Contracts for Office Equipment
Federal Supply Schedule (FSS) IT and Office Equipment
Bureau of Prisons Facility Operations Contracts

Risk Flags

Contract duration may exceed the useful life of some equipment.
Potential for vendor lock-in upon contract expiration.
Reliance on a single vendor for maintenance could impact service continuity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $22,124.4 to KYOCERA DOCUMENT SOLUTIONS AMERICA INC. FY26 M2/M - KYOCERA_COPIER LEASE AND MAINT

Who is the contractor on this award?

The obligated recipient is KYOCERA DOCUMENT SOLUTIONS AMERICA 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 $22,124.4.

What is the period of performance?

Start: 2025-10-01. End: 2026-12-31.

What is Kyocera Document Solutions America Inc.'s track record with federal contracts, particularly for copier leases and maintenance?

Kyocera Document Solutions America Inc. has a history of securing federal contracts, including those for copier leases and maintenance services. Analyzing their past performance on similar contracts awarded by agencies like the Department of Justice, Department of Defense, or others can provide insights into their reliability, service quality, and adherence to contract terms. Reviewing contract databases for awards, modifications, and any reported disputes or terminations associated with Kyocera can help assess their federal performance. A consistent record of successful contract completion and positive performance reviews would indicate a lower risk associated with this current award.

How does the total contract value of $22.1 million compare to similar federal copier lease agreements?

To benchmark the $22.1 million contract value, one would compare it against similar full-and-open competition awards for copier leases and maintenance services to federal agencies of comparable size and scope. Factors such as the number of machines leased, the expected volume of copies, the duration of the lease (456 days in this case), and the level of maintenance included are crucial for a fair comparison. Analyzing data from the Federal Procurement Data System (FPDS) for contracts with similar Product Service Codes (PSCs) and North American Industry Classification System (NAICS) codes can reveal average pricing. If this contract's per-unit cost or total value falls within or below the typical range for similar services, it suggests good value for money.

What are the primary risks associated with a multi-year lease and maintenance contract for office equipment?

The primary risks associated with this contract include potential equipment obsolescence if technology advances rapidly, the possibility of escalating maintenance costs over time, and vendor lock-in if competition is limited upon renewal. There's also a risk of service disruptions if the vendor fails to meet maintenance obligations, impacting the operational efficiency of the Bureau of Prisons facilities. Furthermore, the firm-fixed-price nature, while providing cost certainty, could lead to the government overpaying if actual usage or maintenance needs are significantly lower than anticipated. Ensuring robust performance metrics and clear remedies for service failures are critical to mitigating these risks.

How effective is the 'full and open competition' strategy in ensuring competitive pricing for copier leases?

Full and open competition is generally the most effective strategy for ensuring competitive pricing in federal procurements, including copier leases. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This competitive pressure incentivizes vendors to offer their best pricing and terms to win the contract. The effectiveness is further enhanced when the solicitation includes clear performance requirements and evaluation criteria that allow for a thorough comparison of technical capabilities and price, ensuring the government selects the best value offer.

What is the historical spending pattern for copier leases and maintenance within the Department of Justice or Bureau of Prisons?

Analyzing historical spending patterns for copier leases and maintenance within the Department of Justice (DOJ) or specifically the Bureau of Prisons (BOP) is crucial for context. This involves examining past contract awards for similar equipment and services over several fiscal years. Key metrics to track include the total annual expenditure, the average contract value, the number of contracts awarded, and the primary vendors. Understanding these trends can reveal whether spending has been increasing or decreasing, identify any reliance on specific vendors, and highlight the typical duration and value of such agreements. This historical data serves as a baseline for evaluating the current contract's value and necessity.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Photographic and Photocopying Equipment Manufacturing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 SAND RD, FAIRFIELD, NJ, 07004

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

Financial Breakdown

Contract Ceiling: $22,124

Exercised Options: $22,124

Current Obligation: $22,124

Actual Outlays: $14,764

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15B61522A00000117

IDV Type: BPA

Timeline