DOE's $562K Copier Contract with Cartridge Technologies Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $562,277 ($562.3K)
Contractor: Cartridge Technologies, LLC
Awarding Agency: Department of Energy
Start Date: 2021-09-24
End Date: 2025-09-30
Contract Duration: 1,467 days
Daily Burn Rate: $383/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: COPIERS, AND COPIER SOFTWARE AND MAINTENANCE.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $562,276.56 to CARTRIDGE TECHNOLOGIES, LLC for work described as: COPIERS, AND COPIER SOFTWARE AND MAINTENANCE. Key points: 1. The contract value of $562,276.56 for copiers and maintenance appears moderate for the duration. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing. 3. Risk is moderate, with potential for price creep in maintenance and software over the multi-year term. 4. The sector is IT/Office Equipment, a common area for government procurement.
Value Assessment
Rating: fair
The contract value of $562,276.56 over approximately 4 years for copiers and maintenance is difficult to benchmark without specific unit details. However, it falls within a typical range for federal agencies requiring such services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', which is a positive indicator for price discovery. However, the specific impact on pricing is not detailed, and the 'Delivery Order' nature suggests it might be part of a larger framework agreement.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding process.
Public Impact
Federal agencies rely on reliable office equipment and maintenance to ensure operational efficiency. The duration of the contract (ending 2025) means taxpayers will be funding these services for an extended period. Ensuring competitive pricing for consumables like toner and maintenance is crucial for cost savings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit pricing for copiers and software.
- Potential for price increases in maintenance and software over the contract term.
- No indication of small business participation.
Positive Signals
- Awarded under Full and Open Competition.
- Firm Fixed Price contract type limits cost overruns for the base equipment.
- Long contract duration may offer stability in service provision.
Sector Analysis
The IT and office equipment sector is characterized by rapid technological advancements and a wide range of suppliers. Government spending in this area is substantial, with agencies often seeking multi-year contracts for predictable service and maintenance.
Small Business Impact
The data indicates that this contract did not involve small businesses (sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the requirement precluded small business participation.
Oversight & Accountability
The contract is a Delivery Order, suggesting it may be under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Oversight would involve monitoring the performance of Cartridge Technologies, LLC and ensuring adherence to the terms and conditions of the order.
Related Government Programs
- Computer and Office Machine Repair and Maintenance
- Department of Energy Contracting
- Federal Energy Regulatory Commission Programs
Risk Flags
- Lack of detailed unit cost data.
- Potential for price escalation in maintenance/software over time.
- No small business participation noted.
- Contract duration is significant (approx. 4 years).
Tags
computer-and-office-machine-repair-and-m, department-of-energy, dc, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $562,276.56 to CARTRIDGE TECHNOLOGIES, LLC. COPIERS, AND COPIER SOFTWARE AND MAINTENANCE.
Who is the contractor on this award?
The obligated recipient is CARTRIDGE TECHNOLOGIES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $562,276.56.
What is the period of performance?
Start: 2021-09-24. End: 2025-09-30.
What is the total cost per unit for the copiers and the annual maintenance/software cost per machine?
The provided data lacks specific unit costs for the copiers and the breakdown of annual maintenance and software expenses per machine. This information is crucial for a precise value assessment and comparison against industry benchmarks. Without it, determining if the $562,276.56 represents a fair price is challenging.
What is the risk associated with the 'firm fixed price' contract type for maintenance and software over a multi-year period?
While the 'firm fixed price' protects against cost increases for the base equipment, it can pose a risk for maintenance and software over a multi-year term if the initial pricing did not adequately account for inflation, increased service demands, or technological obsolescence. The vendor might face reduced profit margins, potentially impacting service quality, or the government might be locked into a price that becomes unfavorable over time.
How effective is the 'full and open competition' in ensuring optimal value for copier services?
Full and open competition is generally effective in driving down prices and encouraging innovation by allowing all responsible sources to submit bids. However, its effectiveness in this specific case depends on the clarity of the solicitation, the number and competitiveness of the bids received, and whether the contract structure incentivizes ongoing cost efficiency throughout its term. Without details on the bidding process, the ultimate effectiveness remains to be fully assessed.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Computer and Office Machine Repair and Maintenance
Product/Service Code: IT AND TELECOM - DATA CENTER
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: 15738 CRABBS BRANCH WAY, ROCKVILLE, MD, 20850
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $754,771
Exercised Options: $562,277
Current Obligation: $562,277
Actual Outlays: $557,663
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS03F0151X
IDV Type: FSS
Timeline
Start Date: 2021-09-24
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-04-08
More Contracts from Cartridge Technologies, LLC
- Enterprise Services - Managed Printing Services — $2.5M (Department of Commerce)
- THE Purpose of This Contract IS for the Lease of Multifunctional Devices (mfds) for OCC Office Locations Throughout the Continental United States — $2.2M (Department of the Treasury)
- Lcdo Xerox Copy Equipment — $52.6K (Department of the Interior)
- Copiers — $10.8K (Department of Commerce)
- OFO Xerox C8170HG Multifunction Printer and Maintenance — $9.2K (Department of the Interior)
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)