VA Leases Mailroom Equipment for $322K Over 5 Years, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $32,216 ($32.2K)
Contractor: Pitney Bowes Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-01-01
End Date: 2027-01-31
Contract Duration: 1,856 days
Daily Burn Rate: $17/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PHOENIX VA REGIONAL OFFICE MAILROOM EQUIPMENT LEASE.
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85012
State: Arizona Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $32,216.4 to PITNEY BOWES INC. for work described as: PHOENIX VA REGIONAL OFFICE MAILROOM EQUIPMENT LEASE. Key points: 1. The lease covers essential mailroom equipment for the Phoenix VA Regional Office. 2. Pitney Bowes Inc. is the contractor, indicating a potentially concentrated market. 3. The contract was awarded through full and open competition, suggesting a competitive pricing process. 4. The firm fixed price contract type provides cost certainty for the VA.
Value Assessment
Rating: good
The lease price of $322,164 over five years appears reasonable for mailroom equipment. Benchmarking against similar government leases for office machinery and equipment rental would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically drives competitive pricing. The specific pricing discovery mechanism within this competition is not detailed but the method itself is favorable.
Taxpayer Impact: The competitive award process likely resulted in a fair market price, minimizing unnecessary taxpayer expenditure for essential mailroom services.
Public Impact
Ensures continued operation of essential mailroom services at the Phoenix VA Regional Office. Supports the administrative functions of the Department of Veterans Affairs. Provides necessary equipment for efficient mail processing and distribution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if renewal is not competitive.
- Reliance on a single vendor for critical mailroom operations.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides budget certainty.
Sector Analysis
This contract falls under the Office Machinery and Equipment Rental and Leasing sector. Government spending in this area is generally stable, supporting administrative functions across various agencies.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of Veterans Affairs, which has established oversight mechanisms for procurement. The delivery order structure suggests it's part of a larger framework agreement.
Related Government Programs
- Office Machinery and Equipment Rental and Leasing
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Contract awarded as a Delivery Order.
- Sole contractor identified: Pitney Bowes Inc.
- No small business participation indicated.
- Lease term of 5 years.
Tags
office-machinery-and-equipment-rental-an, department-of-veterans-affairs, az, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $32,216.4 to PITNEY BOWES INC.. PHOENIX VA REGIONAL OFFICE MAILROOM EQUIPMENT LEASE.
Who is the contractor on this award?
The obligated recipient is PITNEY BOWES INC..
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $32,216.4.
What is the period of performance?
Start: 2022-01-01. End: 2027-01-31.
What is the total cost of ownership over the lease term, including potential maintenance and service fees?
The total lease cost is $322,164 over 1856 days (approximately 5 years). Without specific details on maintenance, service fees, or potential early termination penalties, the total cost of ownership is not fully calculable. Further inquiry into the contract's service level agreements and fee structures is recommended.
What is the risk of equipment obsolescence given the 5-year lease term?
The risk of equipment obsolescence is moderate. While 5 years is a significant period for technology, mailroom equipment often has a longer functional lifespan than rapidly evolving IT hardware. The VA should assess if the leased equipment meets future needs or if upgrade options are available within the contract.
How effectively does this lease support the VA's mission compared to alternative solutions like outright purchase?
Leasing provides flexibility and avoids a large upfront capital expenditure, which can be beneficial for budget management. However, over the long term, purchasing might be more cost-effective. The effectiveness depends on the VA's strategic financial planning, anticipated equipment lifespan, and the specific terms of the lease versus potential purchase costs.
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: 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
Address: 3001 SUMMER ST, STAMFORD, CT, 06926
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,216
Exercised Options: $32,216
Current Obligation: $32,216
Actual Outlays: $23,625
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 36C10X19D0020
IDV Type: IDC
Timeline
Start Date: 2022-01-01
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-04-02
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