DoD's III CORPS COPIERS contract with Canon U.S.A. totals $10.5M over 6 years
Contract Overview
Contract Amount: $10,552,078 ($10.6M)
Contractor: Canon U.S.A., Inc.
Awarding Agency: Department of Defense
Start Date: 2007-10-01
End Date: 2013-07-31
Contract Duration: 2,130 days
Daily Burn Rate: $5.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: III CORPS COPIERS (CURRENT)
Place of Performance
Location: KILLEEN, BELL County, TEXAS, 76540
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $10.6 million to CANON U.S.A., INC. for work described as: III CORPS COPIERS (CURRENT) Key points: 1. Contract value is moderate at $10.5M. 2. Canon U.S.A. is the sole awardee. 3. Risk appears low due to firm fixed price and full and open competition. 4. Spending is within the IT/Office Machinery sector.
Value Assessment
Rating: good
The contract value of $10.5M over six years suggests a reasonable annual spend for copier rental and leasing services. Benchmarking against similar government contracts for office machinery rental would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services provided.
Public Impact
Ensures operational readiness for III Corps by providing essential office machinery. Supports federal agencies' need for reliable document management solutions. Contributes to the broader IT and office equipment leasing market.
Waste & Efficiency Indicators
Waste Risk Score: 49 / 10
Warning Flags
- Lack of specific per-unit cost data.
- No explicit mention of small business participation.
Positive Signals
- Full and open competition.
- Firm fixed price contract type.
- Long-term contract providing stability.
Sector Analysis
This contract falls within the Office Machinery and Equipment Rental and Leasing sector, a common expenditure for government operations. Benchmarks for this sector vary widely based on equipment type and service level agreements.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract, as the awardee is Canon U.S.A., Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded through a delivery order under a larger agreement, suggesting a structured procurement process. Oversight would involve monitoring performance and adherence to the contract terms by the Department of the Army.
Related Government Programs
- Office Machinery and Equipment Rental and Leasing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole awardee.
- Long contract duration.
- No small business participation noted.
- Lack of detailed per-unit cost data.
Tags
office-machinery-and-equipment-rental-an, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.6 million to CANON U.S.A., INC.. III CORPS COPIERS (CURRENT)
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 Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2007-10-01. End: 2013-07-31.
What is the average annual cost per unit for copier rental under this contract?
The provided data does not specify the number of units leased or the exact breakdown of costs per unit. To determine the average annual cost per unit, we would need to know the total number of copiers rented and the total value attributed to those rentals. Without this granular information, a precise per-unit cost benchmark cannot be established from the current data.
What specific risks are associated with relying on a single vendor for copier services over a six-year period?
While the contract was awarded competitively, a long-term reliance on a single vendor like Canon U.S.A. could introduce risks such as vendor lock-in, potential price increases upon renewal if competition is limited then, and reduced leverage for negotiating new technologies or service improvements. However, the firm fixed price structure mitigates some financial risk during the contract term.
How does the total contract value of $10.5M compare to similar leasing agreements for office machinery within the Department of Defense?
The $10.5M total contract value over six years equates to approximately $1.75M annually. This figure needs to be benchmarked against similar contracts for copier rental and leasing within the DoD, considering factors like the number and type of machines, geographic scope, and included services. Without comparative data, it's difficult to definitively assess if this represents a cost-effective or high-spending scenario.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Office Machinery and Equipment Rental and Leasing
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
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
Parent Company: Quality Electrodynamics LLC (UEI: 690549662)
Address: 2110 WASHINGTON BLVD STE 300, ARLINGTON, VA, 22204
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,923,998
Exercised Options: $10,923,997
Current Obligation: $10,552,078
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS25F0023M
IDV Type: FSS
Timeline
Start Date: 2007-10-01
Current End Date: 2013-07-31
Potential End Date: 2013-07-31 00:00:00
Last Modified: 2021-11-29
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