Treasury's Bureau of Engraving and Printing awards $18.5M for offset presses, with delivery extending to 2032

Contract Overview

Contract Amount: $18,547,520 ($18.5M)

Contractor: Komori America Corp

Awarding Agency: Department of the Treasury

Start Date: 2025-01-13

End Date: 2032-12-31

Contract Duration: 2,909 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OFFSET PRESSES FOR BEP FACILITIES DELIVERY ORDER

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76131

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $18.5 million to KOMORI AMERICA CORP for work described as: OFFSET PRESSES FOR BEP FACILITIES DELIVERY ORDER Key points: 1. The contract value of $18.5 million for offset presses appears reasonable given the long delivery timeline extending over seven years. 2. Full and open competition was utilized, suggesting a robust process for selecting the vendor. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. The Bureau of Engraving and Printing (BEP) is acquiring essential machinery for its printing operations. 5. This procurement falls within the broader industrial machinery manufacturing sector.

Value Assessment

Rating: good

The $18.5 million award for offset presses, with a delivery period spanning from January 2025 to December 2032, suggests a significant investment in specialized printing equipment. Benchmarking this against similar large-scale industrial machinery procurements is challenging without more specific details on the press capabilities. However, the long-term delivery schedule implies a phased approach to acquisition or manufacturing, which can sometimes lead to better pricing through economies of scale or by allowing the contractor to manage production efficiently. The firm fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the use of this procurement method generally fosters a competitive environment, which is expected to drive down prices and encourage innovation. This approach allows the Bureau of Engraving and Printing to select the best value offering based on technical specifications, price, and other evaluation factors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for obtaining the best possible price and quality for the required offset presses, ensuring government funds are used efficiently.

Public Impact

The Bureau of Engraving and Printing will benefit from updated offset printing capabilities, crucial for producing currency and other secure documents. The delivery of these offset presses will support the BEP's ongoing mission to meet the nation's demand for currency. The contract's impact is primarily national, supporting a key federal agency's operational infrastructure. While not directly creating new jobs, the contract ensures the continued operation and potential modernization of the BEP's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long delivery timeline (over 7 years) could introduce risks related to technological obsolescence or changes in operational needs.
Firm fixed-price contracts can sometimes lead to higher initial bids if contractors anticipate unforeseen costs over an extended period.
Lack of specific details on the number of bidders makes it difficult to fully assess the intensity of competition.

Positive Signals

Full and open competition suggests a thorough vetting process and potential for competitive pricing.
Firm fixed-price contract type provides cost certainty and limits the government's exposure to price increases.
The award to Komori America Corp, a known entity in the printing press industry, may indicate a reliable choice.

Sector Analysis

This contract falls within the Industrial Machinery Manufacturing sector, specifically focusing on printing machinery. The market for high-volume, specialized offset presses is typically dominated by a few key global manufacturers. The Bureau of Engraving and Printing is a significant consumer of such equipment due to the critical nature of its operations. Comparable spending benchmarks would depend on the specific type and capacity of the offset presses procured, but large government procurements for industrial equipment often represent substantial investments.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). As this is a delivery order for specialized industrial machinery, it is unlikely that small businesses would be primary manufacturers or suppliers of the core equipment. However, there may be opportunities for small businesses to participate in subcontracting roles related to installation, maintenance, or ancillary services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Engraving and Printing's contracting and program management offices. As a firm fixed-price contract with a long duration, regular performance reviews and milestone tracking will be crucial. Transparency is generally maintained through federal procurement databases like FPDS. The Treasury Inspector General for Tax Administration (TIGTA) may have jurisdiction for audits or investigations if concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Bureau of Engraving and Printing Operations
Federal Secure Document Production
Industrial Machinery Procurement
Government Printing Services

Risk Flags

Long contract duration increases potential for market shifts or technological obsolescence.
Lack of specific bidder count limits assessment of competitive intensity.
Specialized nature of equipment makes direct cost benchmarking difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $18.5 million to KOMORI AMERICA CORP. OFFSET PRESSES FOR BEP FACILITIES DELIVERY ORDER

Who is the contractor on this award?

The obligated recipient is KOMORI AMERICA CORP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2025-01-13. End: 2032-12-31.

What specific capabilities do the Komori offset presses offer that are critical for the Bureau of Engraving and Printing's operations?

The provided data does not detail the specific capabilities of the Komori offset presses being procured. However, the Bureau of Engraving and Printing (BEP) is responsible for designing, engraving, and printing U.S. currency, along with other government securities and documents. Therefore, the presses are likely high-capacity, high-security offset printing machines designed for precision, speed, and the integration of security features essential for currency production. This could include advanced intaglio or offset printing units, specialized inks, and sophisticated quality control systems to ensure the integrity and durability of the printed products. The long delivery timeline suggests these might be custom-configured or require significant manufacturing lead time.

How does the $18.5 million contract value compare to historical spending on similar offset presses by the BEP or other federal agencies?

Direct comparison of the $18.5 million contract value is difficult without knowing the exact specifications, quantity, and capabilities of the offset presses. The Bureau of Engraving and Printing (BEP) has a history of procuring large, specialized printing equipment. For instance, past awards for currency printing presses have run into tens of millions of dollars. The current award, spread over a delivery period ending in 2032, suggests a phased acquisition or a very substantial single order. To provide a precise benchmark, one would need to analyze historical BEP procurements for offset presses of comparable technological sophistication and production capacity, considering inflation and market changes over time.

What are the primary risks associated with a firm fixed-price contract that extends over a seven-year delivery period?

The primary risks associated with a firm fixed-price contract spanning over seven years include potential contractor underestimation of costs, leading to reduced profit margins or potential contractor default if costs escalate unexpectedly. For the government, the risk lies in the possibility that the initial price might be higher than necessary to account for the contractor's perceived risk over such a long term. Additionally, over an extended period, technological advancements could render the procured equipment less efficient or obsolete by the time it is fully delivered and implemented, although this is mitigated by the specialized nature of BEP equipment. Ensuring robust contract administration and monitoring is key to managing these risks.

What does the 'All Other Industrial Machinery Manufacturing' NAICS code imply about the nature of this procurement?

The North American Industry Classification System (NAICS) code 33248 (All Other Industrial Machinery Manufacturing) indicates that the contractor, Komori America Corp, operates within a broad category of industrial machinery production that doesn't fit into more specific subcategories. This suggests the offset presses are highly specialized equipment, possibly custom-built or designed for unique industrial applications, rather than mass-produced machinery. For the Bureau of Engraving and Printing, this implies the need for equipment tailored to the exacting standards of currency and security document production, which requires advanced manufacturing capabilities beyond standard industrial machinery.

Given the long delivery period, what measures are in place to ensure the offset presses remain relevant and functional throughout their lifecycle?

While the data doesn't explicitly detail lifecycle management measures, federal agencies procuring long-term assets like these offset presses typically incorporate several strategies. These include phased delivery schedules that align with operational needs, robust warranty clauses covering defects and performance for a specified period post-delivery, and service/maintenance agreements. The Bureau of Engraving and Printing likely has internal technical experts who will oversee installation and integration, ensuring the presses meet evolving security and production standards. Furthermore, the firm fixed-price nature, while setting the initial cost, doesn't preclude future modernization or upgrade discussions if technology significantly advances and operational requirements change.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › All Other Industrial Machinery Manufacturing

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Komori Corporation

Address: 5520 MEADOWBROOK INDUSTRIAL CT, ROLLING MEADOWS, IL, 60008

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $37,095,040

Exercised Options: $18,547,520

Current Obligation: $18,547,520

Actual Outlays: $1,417,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2031ZA25D00002

IDV Type: IDC

Timeline