DOJ Leases Canon Copiers for $587K, Ending April 2026

Contract Overview

Contract Amount: $58,779 ($58.8K)

Contractor: Canon Financial Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2022-10-01

End Date: 2026-04-08

Contract Duration: 1,285 days

Daily Burn Rate: $46/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CANON COPIER LEASE

Place of Performance

Location: MOUNT LAUREL, BURLINGTON County, NEW JERSEY, 08054

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $58,778.81 to CANON FINANCIAL SERVICES, INC. for work described as: CANON COPIER LEASE Key points: 1. Lease agreement for Canon copiers valued at $587,788.81. 2. Contract awarded to Canon Financial Services, Inc. 3. Procurement method was 'Competed under SAP' with a BPA Call. 4. Lease duration spans from October 2022 to April 2026. 5. No small business participation noted.

Value Assessment

Rating: fair

The total value of $587,788.81 over approximately 5.5 years suggests a moderate annual cost. Benchmarking against similar office equipment leases would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures) via a BPA Call. While competed, the limited scope of SAP and reliance on a BPA may restrict the breadth of competition and potentially impact price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for office equipment leasing. The effectiveness of the competition method in securing the best price for taxpayers is a key consideration.

Public Impact

Ensures operational continuity for the Federal Prison System by providing essential office machinery. Potential for cost savings through competitive bidding, though SAP limitations might affect this. Lease agreement avoids large upfront capital expenditure for equipment purchase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT and office equipment sector sees significant government spending on rentals and leases. Benchmarks for similar copier leases vary widely based on features, volume, and contract duration.

Small Business Impact

This contract does not appear to include any provisions for small business participation. Further analysis would be needed to determine if opportunities were missed or if the nature of the procurement precluded their involvement.

Oversight & Accountability

Oversight would involve monitoring lease terms, equipment performance, and adherence to the BPA call procedures. The Department of Justice's internal controls should ensure efficient use of funds.

Related Government Programs

Risk Flags

Tags

office-machinery-and-equipment-rental-an, department-of-justice, nj, bpa-call, under-100k

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $58,778.81 to CANON FINANCIAL SERVICES, INC.. CANON COPIER LEASE

Who is the contractor on this award?

The obligated recipient is CANON FINANCIAL SERVICES, INC..

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 $58,778.81.

What is the period of performance?

Start: 2022-10-01. End: 2026-04-08.

What was the specific rationale for using SAP and a BPA Call instead of a broader competition for this lease?

The use of SAP and a BPA Call suggests the agency may have deemed the anticipated value to be within simplified acquisition thresholds or that a pre-existing BPA offered a convenient and efficient procurement vehicle. The specific rationale likely centers on perceived efficiency and speed for acquiring standard office equipment, though it may limit the potential for achieving the absolute lowest price compared to a full and open competition.

How does the per-unit cost of these Canon copiers compare to market rates for similar leased equipment?

Without specific details on the copier models, features, and print volumes included in the lease, a direct per-unit cost comparison is difficult. However, given the limited competition and the nature of leasing, it's crucial to benchmark against industry standards for comparable equipment to ensure fair pricing and avoid potential overpayment by taxpayers.

What is the long-term cost-effectiveness of leasing versus purchasing these copiers for the Federal Prison System?

Leasing offers flexibility and avoids large upfront capital outlays, which can be beneficial for budget management. However, over the long term, especially with multiple renewals, leasing can become more expensive than purchasing outright. A total cost of ownership analysis, considering maintenance, upgrades, and potential residual value, would be needed to determine the most cost-effective strategy.

Industry Classification

NAICS: Real Estate and Rental and LeasingCommercial and Industrial Machinery and Equipment Rental and LeasingOffice Machinery and Equipment Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENTLEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Canon Inc.

Address: 158 GAITHER DR STE 200, MOUNT LAUREL, NJ, 08054

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

Financial Breakdown

Contract Ceiling: $58,779

Exercised Options: $58,779

Current Obligation: $58,779

Actual Outlays: $58,563

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15B20322A00000022

IDV Type: BPA

Timeline

Start Date: 2022-10-01

Current End Date: 2026-04-08

Potential End Date: 2026-04-08 00:00:00

Last Modified: 2026-04-08

Other Department of Justice Contracts

View all Department of Justice contracts →

Explore Related Government Spending