DHS Awards $9.58M Copier Lease to Kyocera for CBP, Utilizing Full and Open Competition

Contract Overview

Contract Amount: $9,585 ($9.6K)

Contractor: Kyocera Document Solutions America Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $7/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COPIER LEASE

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80249

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9,585 to KYOCERA DOCUMENT SOLUTIONS AMERICA INC for work described as: COPIER LEASE Key points: 1. Kyocera Document Solutions America Inc. secured a significant contract for copier leasing. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The total value of the contract is $9.58 million over approximately four years. 4. This spending falls within the 'Photographic and Photocopying Equipment Manufacturing' sector.

Value Assessment

Rating: good

The contract value of $9.58 million for 8 units over 1460 days appears reasonable given the duration and the nature of the equipment. Benchmarking against similar large-scale copier leases would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair price for essential office equipment.

Public Impact

Ensures operational continuity for U.S. Customs and Border Protection through reliable document management solutions. Supports federal agency needs for essential office equipment, impacting daily workflows. The lease agreement represents a significant investment in office infrastructure for a key security agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data makes precise value assessment challenging.
No indication of small business participation.

Positive Signals

Awarded through full and open competition.
Contract duration aligns with typical equipment lifecycle needs.

Sector Analysis

This contract falls under the 'Photographic and Photocopying Equipment Manufacturing' sector, which includes the provision and maintenance of office printing and copying solutions. Spending in this area is crucial for agency operations, and competitive procurement is key to managing costs effectively.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the prime contractor is Kyocera Document Solutions America Inc. Further analysis would be needed to determine if any subcontracting opportunities were extended to small businesses.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security to U.S. Customs and Border Protection, indicating internal agency oversight. The use of a delivery order under a larger contract framework suggests established procurement procedures are in place.

Related Government Programs

Photographic and Photocopying Equipment Manufacturing
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

High per-unit cost raises value concerns.
No small business participation noted.
Leasing may be more expensive than purchasing long-term.
Potential for technology obsolescence within the lease term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9,585 to KYOCERA DOCUMENT SOLUTIONS AMERICA INC. COPIER LEASE

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $9,585.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the estimated cost per copier per year, and how does this compare to industry benchmarks?

With a total contract value of $9.58 million over 1460 days (approximately 4 years) for 8 units, the average cost per unit is roughly $1.197 million over 4 years, or about $299,375 per unit per year. This figure seems exceptionally high for a copier lease and warrants further investigation into whether this includes extensive service, supplies, or other bundled services, or if it represents a misunderstanding of the data provided.

What specific risks are associated with leasing rather than purchasing this equipment, especially given the long-term nature of the contract?

Leasing can lead to higher overall costs compared to purchasing over the long term, and the agency may not build equity in the assets. Risks include potential price increases upon renewal, vendor lock-in, and the possibility of the leased technology becoming obsolete before the lease term ends, requiring potential early termination fees or continued use of outdated equipment.

How effectively does this lease agreement support the operational needs of U.S. Customs and Border Protection, and are there alternative solutions that could offer better value?

The lease provides essential document management capabilities, crucial for CBP's extensive operations. However, the high per-unit cost raises questions about its effectiveness in terms of value. Exploring options like bulk purchasing agreements, evaluating total cost of ownership for owned equipment, or investigating managed print services from different vendors could reveal more cost-effective alternatives.

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

Offers Received: 8

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: $15,975

Exercised Options: $9,585

Current Obligation: $9,585

Actual Outlays: $7,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F045DA

IDV Type: FSS

Timeline