Interior's $598K Postage Machine Lease to Pitney Bowes Competed Under SAP

Contract Overview

Contract Amount: $59,840 ($59.8K)

Contractor: Pitney Bowes Global Financial Services LLC

Awarding Agency: Department of the Interior

Start Date: 2023-05-05

End Date: 2027-05-31

Contract Duration: 1,487 days

Daily Burn Rate: $40/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STATEWIDE POSTAGE MACHINE LEASE

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85004

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $59,839.8 to PITNEY BOWES GLOBAL FINANCIAL SERVICES LLC for work described as: STATEWIDE POSTAGE MACHINE LEASE Key points: 1. The contract value is $598,399.80 over approximately 4 years. 2. Pitney Bowes Global Financial Services LLC is the sole awardee. 3. The contract was competed under SAP, suggesting a streamlined process. 4. The sector is Office Machinery and Equipment Rental and Leasing.

Value Assessment

Rating: fair

The contract value of $598,399.80 for a postage machine lease over nearly 5 years appears reasonable given the duration and potential features. Benchmarking against similar large-scale government leases would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process for acquisitions below certain thresholds. This method generally allows for price discovery through multiple quotes.

Taxpayer Impact: The use of competitive procedures under SAP aims to ensure taxpayer funds are used efficiently for necessary equipment.

Public Impact

Ensures operational efficiency for the Bureau of Land Management's mail processing needs. Provides access to modern postage machine technology without a large upfront capital investment. Supports government mailroom operations across Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 40 / 10

Warning Flags

Potential for price increases upon renewal if market conditions change.
Dependence on a single vendor for critical office machinery.

Positive Signals

Competitive bidding process utilized.
Firm fixed price contract limits cost uncertainty.

Sector Analysis

The lease falls within the Office Machinery and Equipment Rental and Leasing sector. Government spending in this area typically focuses on operational efficiency and technology upgrades for administrative functions.

Small Business Impact

The awardee is Pitney Bowes Global Financial Services LLC, a large corporation. There is no explicit indication of small business participation in this specific contract.

Oversight & Accountability

The contract was awarded via a Purchase Order, which is a standard procurement instrument. Oversight would involve monitoring lease terms, service delivery, and adherence to the firm fixed price.

Related Government Programs

Office Machinery and Equipment Rental and Leasing
Department of the Interior Contracting
Bureau of Land Management Programs

Risk Flags

Lease vs. Purchase Analysis
Vendor Lock-in
Service Level Agreement (SLA) Monitoring
End-of-Lease Options

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $59,839.8 to PITNEY BOWES GLOBAL FINANCIAL SERVICES LLC. STATEWIDE POSTAGE MACHINE LEASE

Who is the contractor on this award?

The obligated recipient is PITNEY BOWES GLOBAL FINANCIAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $59,839.8.

What is the period of performance?

Start: 2023-05-05. End: 2027-05-31.

What is the total cost per year for this postage machine lease?

The total contract value is $598,399.80 over a duration of 1487 days (approximately 4 years). Dividing the total value by the number of years gives an approximate annual cost. This calculation helps in understanding the yearly financial commitment and comparing it to operational budgets.

What are the specific risks associated with leasing office machinery versus purchasing?

Leasing office machinery avoids a large upfront capital expenditure, which can be beneficial for budget flexibility. However, risks include potentially higher long-term costs compared to purchasing, vendor lock-in, and limitations on customization or upgrades. The agency also doesn't gain an asset at the end of the lease term.

How does the use of SAP impact the effectiveness of this procurement?

Using Simplified Acquisition Procedures (SAP) for this contract likely streamlined the procurement process, allowing for faster acquisition of the needed postage machines. This can enhance operational effectiveness by quickly meeting agency needs. However, the effectiveness is also tied to ensuring sufficient competition within the SAP framework.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27 WATERVIEW DRIVE, SHELTON, CT, 06484

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

Financial Breakdown

Contract Ceiling: $76,421

Exercised Options: $59,840

Current Obligation: $59,840

Actual Outlays: $34,968

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline