DOJ's $167.2M Xerox Copier Lease for Federal Prisons: Competed Under SAP, BPA Call
Contract Overview
Contract Amount: $16,728 ($16.7K)
Contractor: Xerox Corporation
Awarding Agency: Department of Justice
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $46/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FPC MRG XEROX LEASE FOR COPIERS, SERVICE AND PARTS FY26
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75266
State: Texas Government Spending
Plain-Language Summary
Department of Justice obligated $16,728 to XEROX CORPORATION for work described as: FPC MRG XEROX LEASE FOR COPIERS, SERVICE AND PARTS FY26 Key points: 1. Spending on copier leases and services is a recurring operational cost for federal agencies. 2. Competition under SAP and a BPA call suggests some level of price discovery, but details are limited. 3. Risk of vendor lock-in and potential for higher costs if maintenance/parts are not competitively priced. 4. The IT hardware and services sector sees significant government spending on equipment leasing.
Value Assessment
Rating: fair
The total award amount is $167.2M over one year. Without specific unit counts or detailed service levels, a direct pricing comparison is difficult. However, for large-scale agency-wide copier leases, this figure represents a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures) and awarded via a BPA Call. While this indicates competition, SAP is typically used for smaller procurements, and a BPA call might limit the scope of competition compared to a full and open solicitation.
Taxpayer Impact: Taxpayer funds are being used for operational equipment leasing. The effectiveness of the competition method will determine if taxpayers are receiving fair value for the services.
Public Impact
Federal Prison System relies on leased copiers for essential administrative functions. Taxpayers fund the lease, service, and parts for these office machines. The contract duration of one year with potential for renewal impacts long-term budget planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition details
- Potential for price creep on parts/service
- Reliance on a single vendor for a large fleet
Positive Signals
- Competed under SAP
- Utilizes existing BPA
- Firm Fixed Price contract type
Sector Analysis
The government spends billions annually on IT hardware and related services, including equipment leasing. This contract falls within the broader category of office machinery and equipment rental, a common expenditure for agencies needing operational tools.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Given the large contract value and the nature of the vendor (Xerox Corporation), it is unlikely that small businesses were primary awardees for the main contract, though they might be involved as subcontractors.
Oversight & Accountability
Oversight would involve monitoring contract performance, ensuring service level agreements are met, and reviewing invoices for accuracy. The Federal Prison System's contracting office is responsible for this oversight.
Related Government Programs
- Office Machinery and Equipment Rental and Leasing
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Limited competition details
- Potential for price escalation on parts/service
- Lack of transparency on unit costs
- Vendor lock-in risk
Tags
office-machinery-and-equipment-rental-an, department-of-justice, tx, bpa-call, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $16,728 to XEROX CORPORATION. FPC MRG XEROX LEASE FOR COPIERS, SERVICE AND PARTS FY26
Who is the contractor on this award?
The obligated recipient is XEROX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $16,728.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the average cost per copier or per user, and how does it compare to industry benchmarks for similar government or commercial leases?
Without specific details on the number of machines, their capabilities, or the scope of services included (e.g., print volume, maintenance levels), calculating a meaningful per-unit cost is impossible. Industry benchmarks vary widely based on equipment type, lease term, and service agreements. A thorough analysis would require itemized data to compare against commercial and government leasing rates for comparable equipment and service packages.
What are the specific risks associated with this sole-source-like arrangement, even if competed under SAP, and how are they mitigated?
Even with SAP competition, if the BPA call leads to a de facto sole-source situation with Xerox, risks include potential price inflation over time, limited flexibility to adopt newer technologies, and dependence on Xerox for parts and service, which could be costly. Mitigation strategies might include strict performance metrics, regular market research to ensure continued fair pricing, and clear contract clauses for service responsiveness and parts availability.
How effectively does this lease arrangement support the operational needs of the Federal Prison System, and what is the overall value proposition?
The effectiveness hinges on the reliability of the leased equipment and the responsiveness of Xerox's service. If the copiers consistently function well and service is prompt, it supports administrative efficiency. The value proposition is realized if the total cost, including lease, service, and parts, is competitive with alternatives and the equipment meets the demanding operational requirements of the prison system without significant downtime.
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: SPECIAL INDUSTRY MACHINERY
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1800 M ST NW STE 500N, WASHINGTON, DC, 20036
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,728
Exercised Options: $16,728
Current Obligation: $16,728
Actual Outlays: $2,788
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 15B11321A00000002
IDV Type: BPA
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-09
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