Department of Energy awards $25.5K for multi-function devices, highlighting potential for cost savings in device procurement
Contract Overview
Contract Amount: $25,501 ($25.5K)
Contractor: JTF Business Systems Corporation
Awarding Agency: Department of Energy
Start Date: 2024-10-28
End Date: 2026-10-31
Contract Duration: 733 days
Daily Burn Rate: $35/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE 6 MULTI-FUNCTION DEVICES FOR THE ENVIRONMENTAL MANAGEMENT CONSOLIDATED BUSINESS CENTER SERVICED SITES AT EMNV, ETC, LANL, AND SPRU.
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45202
State: Ohio Government Spending
Plain-Language Summary
Department of Energy obligated $25,501.2 to JTF BUSINESS SYSTEMS CORPORATION for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROCURE 6 MULTI-FUNCTION DEVICES FOR THE ENVIRONMENTAL MANAGEMENT CONSOLIDATED BUSINESS CENTER SERVICED SITES AT EMNV, ETC, LANL, AND SPRU. Key points: 1. The contract value of $25.5K for 6 devices suggests a per-unit cost of approximately $4,250, which warrants benchmarking against similar government and commercial purchases. 2. Competition dynamics appear favorable with 'Full and Open Competition', indicating a broad market solicitation and potential for competitive pricing. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. The duration of the delivery order is over two years, suggesting a need for ongoing support or a phased deployment. 5. The North American Industry Classification System (NAICS) code 323113 points to commercial screen printing, which may not directly align with 'multi-function devices' and requires clarification. 6. The contract is a delivery order under a larger contract, implying a pre-existing framework agreement.
Value Assessment
Rating: fair
The awarded amount of $25,501.20 for 6 multi-function devices results in a per-unit cost of approximately $4,250. This price point is on the higher end for standard multi-function devices, even considering potential specialized features or support. A comparison with similar government contracts for office equipment or commercial pricing for enterprise-grade devices would be necessary to fully assess value for money. The specific nature of 'multi-function devices' in this context (e.g., printing, scanning, copying capabilities, specialized environmental monitoring integration) is crucial for accurate benchmarking.
Cost Per Unit: Approximately $4,250 per device. This figure should be benchmarked against GSA schedules or other government-wide acquisition contracts for similar equipment to determine if it represents a competitive market rate.
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. This approach generally fosters a competitive environment, encouraging multiple vendors to offer their best pricing and terms. The fact that it is a delivery order suggests it was likely competed as part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. The number of bidders is not specified, but the open competition method is a positive indicator for price discovery.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best possible price through a wide range of offers, thereby reducing the likelihood of overpayment for goods and services.
Public Impact
The primary beneficiaries are the Environmental Management Consolidated Business Center (EMCBC) serviced sites at EMNV, LANL, and SPRU, which will receive enhanced operational capabilities through new multi-function devices. The services delivered include the provision of 6 multi-function devices, likely encompassing printing, scanning, and copying functionalities essential for administrative and operational tasks. The geographic impact is concentrated within the specific sites serviced by the EMCBC in Ohio. Workforce implications are minimal, primarily involving the end-users of the devices and potentially IT support staff for installation and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential misalignment between NAICS code 323113 (Commercial Screen Printing) and the procurement of 'multi-function devices' raises questions about the specific nature of the equipment or the procurement process.
- The per-unit cost, while not excessively high, warrants further investigation to ensure optimal value for taxpayer dollars, especially if the devices are standard office equipment.
- The duration of the delivery order (over two years) could imply a need for ongoing maintenance or support services that should be clearly defined and priced.
Positive Signals
- The use of 'Full and Open Competition' is a strong positive signal, indicating a commitment to maximizing market participation and achieving competitive pricing.
- The firm-fixed-price contract type provides cost certainty for the government, mitigating risks associated with price fluctuations or scope creep.
- The procurement is a delivery order, suggesting it leverages an existing, potentially pre-vetted, contract vehicle, which can streamline acquisition processes.
Sector Analysis
The procurement of multi-function devices falls within the broader Information Technology (IT) and General Services categories. While the NAICS code provided (323113) relates to commercial screen printing, the description points to standard office equipment. This suggests a potential discrepancy or a highly specialized application of multi-function devices within a printing context. The overall market for multi-function devices is mature and competitive, with numerous vendors offering a wide range of products and services. Government spending in this area is substantial, often facilitated through large IDIQ contracts and GSA schedules.
Small Business Impact
The data indicates that small business participation is not a primary focus for this specific delivery order, as 'sb' is listed as false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the prime contractor, JTF BUSINESS SYSTEMS CORPORATION, is not obligated to subcontract a specific portion of this work to small businesses under this award. The impact on the small business ecosystem is therefore likely minimal for this particular contract.
Oversight & Accountability
Oversight for this delivery order would typically fall under the contracting officer and the Department of Energy's internal procurement and financial management systems. As a delivery order under a larger contract, the oversight mechanisms established for the parent contract would likely apply. Transparency is facilitated by public contract databases, but detailed operational oversight and accountability for the specific use and performance of these devices would be managed by the end-user agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- General Services Administration (GSA) Schedules
- IT Equipment Procurement
- Office Equipment Contracts
- Environmental Management Programs
Risk Flags
- NAICS Code Mismatch
- Potentially High Per-Unit Cost
- Lack of Detailed Performance Metrics
Tags
department-of-energy, environmental-management, multi-function-devices, delivery-order, firm-fixed-price, full-and-open-competition, office-equipment, jtf-business-systems-corporation, ohio, it-procurement
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $25,501.2 to JTF BUSINESS SYSTEMS CORPORATION. THE PURPOSE OF THIS TASK ORDER IS TO PROCURE 6 MULTI-FUNCTION DEVICES FOR THE ENVIRONMENTAL MANAGEMENT CONSOLIDATED BUSINESS CENTER SERVICED SITES AT EMNV, ETC, LANL, AND SPRU.
Who is the contractor on this award?
The obligated recipient is JTF BUSINESS SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $25,501.2.
What is the period of performance?
Start: 2024-10-28. End: 2026-10-31.
What is the specific nature of the 'multi-function devices' being procured, and how does it relate to the NAICS code 323113 (Commercial Screen Printing)?
The provided data lists the NAICS code as 323113, which pertains to 'Commercial Screen Printing'. However, the contract description specifies the procurement of '6 multi-function devices'. This presents a potential discrepancy. Multi-function devices typically refer to office equipment that combines printing, scanning, and copying capabilities. Commercial screen printing involves a different manufacturing process for applying ink to various substrates. It is possible that the 'multi-function devices' are specialized printers used within a screen printing operation, or there may be an error in the NAICS code assignment. Clarification is needed to understand if these are standard office MFDs or specialized industrial printing equipment, which would significantly impact cost benchmarking and risk assessment.
How does the per-unit cost of approximately $4,250 compare to similar government and commercial procurements for multi-function devices?
A per-unit cost of approximately $4,250 for a multi-function device is generally considered high for standard office equipment. For instance, enterprise-level multi-function printers with advanced features and service contracts typically range from $1,000 to $3,000. Government agencies often leverage GSA Schedules or other large IDIQ contracts that provide pre-negotiated, discounted pricing. Without knowing the specific capabilities (e.g., print volume, speed, advanced finishing options, security features, integration requirements) or the specific contract vehicle used, it's difficult to definitively assess value. However, this price point warrants a thorough review against comparable offerings to ensure it represents a fair market value and that the government is not overpaying.
What are the specific performance expectations and service level agreements (SLAs) associated with these multi-function devices over the two-year delivery order period?
The provided data indicates a delivery order duration of 733 days (approximately two years) with an award date of October 28, 2024, and an expected completion date of October 31, 2026. While the contract type is Firm Fixed Price, the specifics regarding performance expectations, maintenance, support, and service level agreements (SLAs) are not detailed in the summary. For a procurement of this duration, it is crucial that clear SLAs are established to ensure device uptime, response times for service calls, and availability of consumables. The government should have mechanisms in place to monitor adherence to these SLAs and potentially penalize the contractor for non-performance. The absence of this detail in the summary suggests it might be covered in the parent contract or task order details.
What is the track record of JTF BUSINESS SYSTEMS CORPORATION in delivering similar multi-function devices or related IT equipment to government agencies?
JTF BUSINESS SYSTEMS CORPORATION is listed as the contractor. To assess their track record, one would typically examine their past performance on similar government contracts. This includes evaluating their ability to deliver on time, within budget, and to the required specifications. Information on past performance is often available through sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). A review of their history would reveal if they have successfully executed similar procurements, managed device deployments, and provided adequate post-delivery support. Without this specific performance data, it is difficult to gauge their reliability for this particular task order.
Given the 'Full and Open Competition' award, how many bids were received, and what was the range of pricing offered by other vendors?
The summary states the contract was awarded under 'Full and Open Competition', which is a positive indicator for competitive pricing. However, the specific number of bids received and the pricing details of non-selected offers are not provided in the summary data. Typically, this information is available in more detailed contract award documents. Knowing the number of bidders helps assess the robustness of the competition. If only one or two bids were received, it might suggest limited market interest or potential issues with the solicitation. A wide range of pricing among bidders would further indicate effective price discovery. This data is crucial for a comprehensive value-for-money assessment.
What is the historical spending pattern for multi-function devices or similar equipment by the Department of Energy's Environmental Management Consolidated Business Center?
The provided data focuses on a single, relatively small delivery order ($25.5K). To understand historical spending patterns, one would need to analyze broader contract data for the Department of Energy, specifically for the Environmental Management Consolidated Business Center (EMCBC), over several fiscal years. This analysis would involve identifying all contracts related to office equipment, printers, copiers, scanners, and potentially specialized printing equipment. Examining the volume, value, and types of contracts awarded would reveal trends in spending, identify key vendors, and highlight any significant changes in procurement strategies or technology adoption. This context is essential for evaluating whether this current award is consistent with past spending or represents a deviation.
Industry Classification
NAICS: Manufacturing › Printing and Related Support Activities › Commercial Screen Printing
Product/Service Code: OFFICE MACH/TEXT PROCESS/VISIB REC
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7370 STEEL MILL DR, SPRINGFIELD, VA, 22150
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,501
Exercised Options: $25,501
Current Obligation: $25,501
Actual Outlays: $14,918
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS03F0182V
IDV Type: FSS
Timeline
Start Date: 2024-10-28
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2026-04-01
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