DOJ's $14M printer contract with World Wide Technology shows long-term vendor reliance and potential for price drift

Contract Overview

Contract Amount: $14,016,167 ($14.0M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Justice

Start Date: 2007-09-27

End Date: 2011-09-30

Contract Duration: 1,464 days

Daily Burn Rate: $9.6K/day

Sector: IT

Official Description: PRINTER/MULTIFUNCTION EQUIPMENT FOR EOUSA

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $14.0 million to WORLD WIDE TECHNOLOGY LLC for work described as: PRINTER/MULTIFUNCTION EQUIPMENT FOR EOUSA Key points: 1. The contract, spanning over three years, indicates a sustained need for printer and multifunction equipment. 2. Analysis of pricing trends and comparison to similar government-wide contracts is crucial for assessing value. 3. The absence of specific performance metrics makes it difficult to gauge the effectiveness of the equipment provided. 4. This contract falls within the broader category of IT hardware procurement, a significant area of federal spending. 5. The long duration suggests a potential for vendor lock-in, which could impact future cost savings. 6. Geographic concentration in Washington D.C. may limit broader federal adoption and associated economies of scale.

Value Assessment

Rating: fair

Benchmarking this contract's pricing against current General Services Administration (GSA) schedules for similar equipment is recommended. Without detailed breakdowns of equipment models and quantities, a precise value-for-money assessment is challenging. The extended duration of the contract (over three years) could lead to above-market pricing if not actively managed and recompeted. Comparing the per-unit cost to industry standards for enterprise-level multifunction devices would provide further insight into its fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this specific Blanket Purchase Agreement (BPA) Call is not detailed in the provided data. Typically, BPAs are established through full and open competition, but individual calls against them can vary. If this was a sole-source call or competed among a very limited number of vendors, it could indicate less competitive pricing. Further investigation into the BPA's original competition and the process for this specific call is needed.

Taxpayer Impact: A limited competition could result in higher costs for taxpayers if better pricing was available through a more robust bidding process.

Public Impact

Federal agencies, particularly within the Department of Justice, benefit from reliable access to essential printing and multifunction equipment. The contract ensures the delivery of hardware necessary for daily administrative and operational functions. The primary geographic impact is within Washington D.C., supporting federal operations in the capital. Workforce implications are indirect, focusing on enabling productivity through functional office equipment rather than direct job creation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases over the contract's extended duration.
Lack of detailed performance metrics makes value assessment difficult.
Risk of vendor lock-in due to long-term relationship.
Limited geographic scope may prevent broader cost-saving opportunities.

Positive Signals

Ensures consistent availability of critical office equipment.
Established relationship with a known vendor can streamline procurement.
Long contract duration may offer some price stability if negotiated well.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically hardware procurement. The market for office equipment, including printers and multifunction devices, is mature and highly competitive, with numerous manufacturers and resellers. Federal agencies often leverage GSA schedules and BPAs to procure such equipment efficiently. The total federal spending on IT hardware is in the billions annually, making individual contracts like this a small but essential component of overall IT infrastructure.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting goals. World Wide Technology LLC is a large business. Without specific information on subcontracting plans, it's difficult to assess the impact on the small business ecosystem. Future procurements of this nature should explore opportunities for small business participation to foster a more diverse supplier base.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's procurement and financial management offices. The Federal Acquisition Regulation (FAR) provides the framework for contract administration. Transparency is generally maintained through contract databases like FPDS-NG, though detailed performance reviews and audits are internal processes. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

GSA Schedule IT Hardware
Department of Justice Office Equipment Procurement
Federal Blanket Purchase Agreements (BPAs)
General Services Administration (GSA) Contracts

Risk Flags

Long contract duration may lead to price drift.
Lack of detailed performance metrics.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14.0 million to WORLD WIDE TECHNOLOGY LLC. PRINTER/MULTIFUNCTION EQUIPMENT FOR EOUSA

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2007-09-27. End: 2011-09-30.

What specific models of printers and multifunction equipment were procured under this contract, and what were their individual unit costs?

The provided data does not specify the exact models of printers and multifunction equipment procured under this contract, nor does it break down the costs by individual unit. The total award amount of $14,016,167.46 represents the aggregate value over the contract's duration. To perform a detailed unit cost analysis, access to the specific line-item details within the BPA call would be necessary. This would allow for comparison against market rates for specific models and configurations at the time of purchase, providing a clearer picture of the value received.

How does the total spending of $14 million on printer equipment compare to other federal agencies or similar contracts over the same period?

Comparing the $14 million spent by the Department of Justice (DOJ) on printer equipment over approximately three years requires context. Federal spending on IT hardware is substantial, often reaching tens of billions annually across all agencies. While $14 million is a significant sum for a single agency's printer needs, it represents a fraction of the overall federal IT budget. To assess its relative scale, one would need to benchmark it against similar procurements by agencies of comparable size (e.g., other large cabinet-level departments) or against government-wide contracts for office equipment. Without such comparisons, it's difficult to definitively state whether this spending level is high, low, or average.

What were the key performance indicators (KPIs) for this contract, and did the contractor meet them?

The provided data does not include information on Key Performance Indicators (KPIs) established for this contract. Typically, government contracts include clauses related to delivery timelines, equipment reliability, service response times, and potentially energy efficiency. Assessing whether World Wide Technology LLC met these (unspecified) KPIs would require access to contract performance reports, customer satisfaction surveys, or any documented instances of non-compliance. The absence of this information limits the ability to evaluate the contractor's performance beyond the basic fulfillment of equipment delivery.

What is World Wide Technology LLC's track record with the Department of Justice and other federal agencies for similar IT hardware contracts?

World Wide Technology LLC has a significant track record of contracting with the federal government, including the Department of Justice. Publicly available data indicates numerous awards across various agencies for IT hardware, software, and services. For the DOJ specifically, WWT has likely held multiple contracts for IT equipment. A comprehensive review of their past performance ratings, any past performance issues, and the volume and value of their previous awards would be necessary to fully assess their track record. Generally, WWT is considered a major federal IT contractor, suggesting a substantial history of engagement.

Were there any identified risks or challenges associated with this contract, and how were they mitigated?

The provided data does not explicitly list risks or challenges associated with this specific contract. However, common risks in long-term hardware procurement contracts include technology obsolescence, price increases due to market fluctuations, vendor performance issues, and potential over-reliance on a single vendor. Mitigation strategies could have included regular price reviews, performance management clauses, contingency planning for equipment failures, and potentially exploring alternative vendors or technologies towards the end of the contract term. Without specific documentation, these remain general assumptions about potential risk management.

What is the historical spending trend for printer and multifunction equipment by the Department of Justice over the last decade?

The provided data only covers a single contract award totaling approximately $14 million for printer and multifunction equipment to World Wide Technology LLC from 2007 to 2011. To analyze the historical spending trend for the Department of Justice (DOJ) over the last decade, a broader dataset encompassing all relevant contracts, including those with different vendors and for different types of printing solutions (e.g., managed print services), would be required. This would involve querying federal procurement databases for all DOJ spending tagged under relevant product and service codes related to printing and imaging over a ten-year period to identify patterns, fluctuations, and overall expenditure levels.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Contractor Details

Parent Company: World Wide Technology Holding CO., Inc.

Address: 127 WELDON PKWY, MARYLAND HEIGHTS, MO, 63043

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,016,167

Exercised Options: $14,016,167

Current Obligation: $14,016,167

Parent Contract

Parent Award PIID: DJJ07F1596

IDV Type: BPA

Timeline