NHLBI Spends $3,597 on Canon Copier Maintenance, Renewal Needed for 35 Machines

Contract Overview

Contract Amount: $3,597 ($3.6K)

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

Awarding Agency: Department of Health and Human Services

Start Date: 2021-02-24

End Date: 2022-02-28

Contract Duration: 369 days

Daily Burn Rate: $10/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NHLBI ITAC REQUIRES RENEWAL OF ITS ANNUAL MAINTENANCE CONTRACT FOR 35 CANON DIGITAL COPIERS USED ACROSS THE NHLBI IN ORDER TO OBTAIN SUPPORT, REPAIRS, & TONER REPLACEMENT AND KEEP THESE FREQUENTLY-USED MACHINES IN WORKING ORDER.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3,597.08 to CANON U.S.A., INC. for work described as: NHLBI ITAC REQUIRES RENEWAL OF ITS ANNUAL MAINTENANCE CONTRACT FOR 35 CANON DIGITAL COPIERS USED ACROSS THE NHLBI IN ORDER TO OBTAIN SUPPORT, REPAIRS, & TONER REPLACEMENT AND KEEP THESE FREQUENTLY-USED MACHINES IN WORKING ORDER. Key points: 1. Contract covers essential maintenance, repairs, and toner for 35 Canon copiers. 2. Renewal is required to ensure continued operation of frequently used equipment. 3. The contract value is relatively low, suggesting a standard maintenance agreement. 4. Focus on IT hardware maintenance within the healthcare research sector.

Value Assessment

Rating: good

The annual cost of $3,597.08 for maintenance of 35 copiers appears reasonable, averaging around $100 per copier annually. This is in line with typical maintenance contracts for office equipment.

Cost Per Unit: $102.20

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process generally leads to competitive pricing.

Taxpayer Impact: The spending on essential equipment maintenance is a necessary operational cost, and competitive bidding helps ensure taxpayer funds are used efficiently.

Public Impact

Ensures continued operation of critical document reproduction services for NHLBI staff. Supports research activities by providing reliable access to copying and scanning. Maintains equipment health, potentially extending its lifespan and reducing future capital expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases upon renewal if competition is not maintained.
Dependence on a single vendor for specialized parts and service.

Positive Signals

Contract awarded through full and open competition.
Firm fixed price contract provides cost certainty.
Essential service for operational continuity.

Sector Analysis

This contract falls within the IT hardware maintenance sector, specifically for office equipment. Spending benchmarks for such services vary widely based on equipment type and volume, but this appears to be a modest expenditure for the number of units covered.

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 Health and Human Services, National Institutes of Health, suggesting established procurement processes are in place. Oversight would involve monitoring contract performance and adherence to terms.

Related Government Programs

Photographic and Photocopying Equipment Manufacturing
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for price increase upon renewal.
Dependence on a single vendor for parts and service.
Lack of information on equipment lifespan and replacement strategy.
Need to confirm small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3,597.08 to CANON U.S.A., INC.. NHLBI ITAC REQUIRES RENEWAL OF ITS ANNUAL MAINTENANCE CONTRACT FOR 35 CANON DIGITAL COPIERS USED ACROSS THE NHLBI IN ORDER TO OBTAIN SUPPORT, REPAIRS, & TONER REPLACEMENT AND KEEP THESE FREQUENTLY-USED MACHINES IN WORKING ORDER.

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 Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $3,597.08.

What is the period of performance?

Start: 2021-02-24. End: 2022-02-28.

What is the expected lifespan of these Canon copiers, and is this renewal part of a strategy to extend their use or prepare for replacement?

The provided data does not specify the expected lifespan of the Canon copiers or the agency's replacement strategy. Understanding this would help assess the long-term value of continued maintenance versus investing in new equipment. This information is crucial for future budget planning and ensuring cost-effectiveness over the equipment's lifecycle.

Given the full and open competition, what were the key factors that led to Canon U.S.A., Inc. being awarded the contract, and are there any potential risks associated with relying on them for maintena

Canon U.S.A., Inc. likely won the contract due to competitive pricing, established service capabilities, and potentially OEM (Original Equipment Manufacturer) status, which can be advantageous for parts and expertise. A potential risk is vendor lock-in if specialized knowledge or parts are exclusively held by Canon, which could limit future competitive options or lead to price escalations.

How does the annual maintenance cost per copier compare to industry averages for similar models and service levels, and what is the impact on overall IT budget efficiency?

The per-unit cost of approximately $102 annually appears reasonable for comprehensive maintenance, including repairs and toner, for business-grade copiers. This cost-effective approach to maintaining existing assets likely contributes positively to the NHLBI's IT budget efficiency by preventing costly emergency repairs and extending the useful life of the equipment, thus deferring capital expenditure.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $3,597

Exercised Options: $3,597

Current Obligation: $3,597

Actual Outlays: $3,254

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F046DA

IDV Type: FSS

Timeline