DHS awards $352K for copier services, with Canon U.S.A. Inc. securing the contract

Contract Overview

Contract Amount: $35,282 ($35.3K)

Contractor: Canon U.S.A., Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-06-03

End Date: 2026-06-30

Contract Duration: 1,853 days

Daily Burn Rate: $19/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HI-SPEED COPIER PURCHASE WITH MAINTENANCE SERVICES IN SUPPORT OF DAILY OPERATIONS AT THE VERMONT SERVICE CENTER

Place of Performance

Location: SAINT ALBANS, FRANKLIN County, VERMONT, 05478

State: Vermont Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35,282.21 to CANON U.S.A., INC. for work described as: HI-SPEED COPIER PURCHASE WITH MAINTENANCE SERVICES IN SUPPORT OF DAILY OPERATIONS AT THE VERMONT SERVICE CENTER Key points: 1. The contract value appears to be relatively small, suggesting a focused need for specific equipment and services. 2. The use of a firm-fixed-price contract indicates that the total cost is predetermined, offering budget certainty. 3. The duration of the contract (over 1800 days) suggests a long-term need for ongoing maintenance and support. 4. The award was made under full and open competition, implying a robust bidding process. 5. The North American Industry Classification System (NAICS) code 333316 points to the manufacturing of photographic and photocopying equipment. 6. The contract is for delivery order, indicating it's part of a larger existing agreement or framework.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the copier model, features, and the scope of maintenance services. However, a total value of approximately $352,000 over nearly five years for high-volume copier equipment and associated maintenance suggests a moderate per-year expenditure. Compared to enterprise-level managed print services contracts which can run into millions, this appears to be a localized or specific departmental need. The firm-fixed-price structure helps control costs, but the overall value proposition depends heavily on the operational requirements it fulfills.

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 a bid. The presence of two bids suggests a competitive process, though the exact number of potential bidders in the market for this specific type of equipment and service is unknown. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award helps ensure that taxpayer funds are used efficiently by driving down prices and encouraging vendors to offer their best value.

Public Impact

The Vermont Service Center of U.S. Citizenship and Immigration Services (USCIS) will benefit from reliable high-speed copying capabilities. Essential administrative and operational functions at the Vermont Service Center will be supported by this contract. The contract ensures the availability of necessary equipment for daily tasks, contributing to the efficiency of immigration services processing. The geographic impact is localized to the Vermont Service Center, supporting its specific operational needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if maintenance services are highly specialized and difficult to switch.
Risk of overpaying if the competitive process did not yield the lowest possible price due to limited market awareness.
Dependence on a single vendor for critical equipment and maintenance could lead to operational disruptions if issues arise.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm-fixed-price contract provides cost certainty and protects against unexpected price increases.
Long-term contract duration indicates a stable and predictable operational support for the agency.

Sector Analysis

The contract falls within the broader Information Technology and Office Equipment sector, specifically related to document management and reproduction. The market for high-speed copiers and associated maintenance services is mature, with several established manufacturers and service providers. Spending benchmarks for such equipment vary widely based on volume, features, and service level agreements. This contract appears to represent a standard procurement for operational equipment within a government agency, rather than a large-scale technology deployment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor, Canon U.S.A., Inc., voluntarily engages small businesses in its supply chain or subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Citizenship and Immigration Services (USCIS) contracting officer and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is generally maintained through contract databases like FPDS. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the DHS Office of Inspector General has broad oversight authority over DHS spending.

Related Government Programs

Office Equipment Procurement
Document Management Solutions
Government IT Services
Agency Operational Support

Risk Flags

Potential for price premium due to fixed-price structure if competition was not robust.
Dependence on a single vendor for critical equipment and maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35,282.21 to CANON U.S.A., INC.. HI-SPEED COPIER PURCHASE WITH MAINTENANCE SERVICES IN SUPPORT OF DAILY OPERATIONS AT THE VERMONT SERVICE CENTER

Who is the contractor on this award?

The obligated recipient is CANON U.S.A., INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $35,282.21.

What is the period of performance?

Start: 2021-06-03. End: 2026-06-30.

What specific models of high-speed copiers were procured under this contract, and what are their key features and capabilities?

The provided data does not specify the exact models of high-speed copiers procured. However, given the contract's purpose is 'HI-SPEED COPIER PURCHASE WITH MAINTENANCE SERVICES IN SUPPORT OF DAILY OPERATIONS AT THE VERMONT SERVICE CENTER,' it can be inferred that the equipment is designed for high-volume, continuous use. Key features likely include rapid printing/copying speeds (measured in pages per minute), robust paper handling capabilities (multiple trays, duplexing), advanced finishing options (stapling, collating), network connectivity for shared access, and potentially features like scanning and faxing. The maintenance services would cover routine servicing, repairs, and replacement of parts to ensure optimal performance and minimize downtime.

How does the total contract value of $352,822.21 compare to typical spending on similar equipment and services by federal agencies?

The total contract value of approximately $352,822 over nearly five years (from June 2021 to June 2026) translates to an average annual expenditure of roughly $70,564. This figure is moderate for government procurements of office equipment and maintenance. Larger agencies or those with higher operational demands might spend significantly more on managed print services or fleets of high-volume copiers. Conversely, smaller offices or those with lower printing needs would spend less. Without knowing the exact number of units, their specifications, and the service level agreement, a precise comparison is difficult, but it suggests a focused need rather than a widespread enterprise solution.

What are the potential risks associated with a firm-fixed-price contract for copier equipment and maintenance?

A firm-fixed-price (FFP) contract offers cost certainty to the government, as the price is set upfront. However, potential risks include the contractor potentially overpricing the services if competition was weak or if they anticipate higher-than-expected costs. If the government's needs change significantly during the contract period, modifying an FFP contract can be complex and may require renegotiation, potentially leading to price adjustments. Additionally, if the contractor underestimates their costs, they might cut corners on service quality to maintain profitability, although the fixed price protects the government from cost overruns. The primary risk for the government is potentially paying a premium if the initial price was not sufficiently competitive.

What is the significance of the contract being a 'Delivery Order' (DO) under a larger agreement?

A Delivery Order (DO) indicates that this contract is likely a task order issued against an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract. This means that the basic terms, conditions, and pricing structure were likely established during a prior, broader competition for a larger contract vehicle. Issuing a DO allows agencies to procure specific goods or services as needed, up to certain limits, without conducting a full, separate procurement each time. For this specific contract, it suggests that Canon U.S.A., Inc. was awarded a master agreement, and this DO represents a specific order for copiers and maintenance for the Vermont Service Center.

How does the NAICS code 333316 ('Photographic and Photocopying Equipment Manufacturing') relate to the services being provided?

The NAICS code 333316, 'Photographic and Photocopying Equipment Manufacturing,' directly relates to the 'purchase' aspect of the contract, indicating that the procured items are manufactured by the vendor or their affiliates. While the contract also includes 'maintenance services,' the primary classification often reflects the core product being acquired. This code signifies that the government is purchasing physical equipment manufactured within this industrial category. The maintenance services are a necessary component to ensure the ongoing functionality of these manufactured goods throughout the contract period.

Industry Classification

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

Product/Service Code: SPECIAL INDUSTRY MACHINERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR21Q00000117

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4100 N. FAIRFAX DRIVE, SUITE 200, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $35,282

Exercised Options: $35,282

Current Obligation: $35,282

Actual Outlays: $6,708

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS03F046DA

IDV Type: FSS

Timeline