DOJ's $33.7M Ricoh printer contract awarded to Ricoh USA Inc. for Federal Prison System

Contract Overview

Contract Amount: $33,710 ($33.7K)

Contractor: Ricoh USA Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-02-28

Contract Duration: 150 days

Daily Burn Rate: $225/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY25 RICOH - M2 & R&D PRINTERS

Place of Performance

Location: EXTON, CHESTER County, PENNSYLVANIA, 19341

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $33,709.8 to RICOH USA INC for work described as: FY25 RICOH - M2 & R&D PRINTERS Key points: 1. Contract focuses on essential printing and R&D equipment for correctional facilities. 2. Firm Fixed Price contract type aims to control costs for the duration. 3. Full and Open Competition suggests a competitive bidding process was utilized. 4. Delivery Order award indicates a specific need within a larger framework. 5. Contract duration of 150 days suggests a focused, short-term requirement. 6. The contract is managed by the Federal Prison System, a key component of DOJ.

Value Assessment

Rating: good

The contract value of $33.7 million for a 150-day period for printers and related services appears reasonable given the scale of the Federal Prison System. Without specific details on the number and type of units, a direct per-unit cost comparison is difficult. However, the firm fixed-price structure provides cost certainty for the government. Benchmarking against similar large-scale government printer procurements would offer further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process designed to solicit the best offers. The specific number of bidders is not provided, but the designation implies multiple entities likely participated, fostering price discovery and potentially leading to more competitive pricing.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a wider range of suppliers to compete, which can drive down prices and improve the quality of goods and services received.

Public Impact

Federal Prison System facilities nationwide will benefit from updated printing and R&D equipment. Improved printing capabilities can enhance administrative efficiency and operational support within correctional institutions. The contract supports the Bureau of Prisons' mission to manage and oversee federal inmates. Workforce implications include the need for installation, maintenance, and support staff for the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if maintenance and supplies are exclusively tied to Ricoh.
Dependence on a single supplier for critical office equipment could pose supply chain risks.
Ensuring equitable distribution and access to new equipment across all facilities.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Full and Open Competition suggests a competitive market was leveraged.
Award to a known entity (Ricoh USA Inc.) implies familiarity with their capabilities.

Sector Analysis

This contract falls within the 'Photographic and Photocopying Equipment Manufacturing' sector, specifically focusing on the procurement of printers and related R&D equipment. The market for office equipment is highly competitive, with numerous manufacturers and distributors. Government spending in this area is substantial, driven by the operational needs of various agencies. This procurement represents a significant, albeit short-term, investment in essential office technology for a large federal agency.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (sb: false). While the prime contractor is Ricoh USA Inc., a large corporation, there may be opportunities for small businesses to participate as subcontractors for installation, maintenance, or supply of consumables. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

The contract is managed by the Federal Prison System within the Department of Justice. Oversight would typically involve contract officers, program managers, and potentially the DOJ Office of the Inspector General for audits and investigations. Transparency is facilitated by public contract databases, but detailed performance metrics and spending breakdowns are often internal.

Related Government Programs

General Services Administration (GSA) Schedule Contracts for Office Equipment
Department of Defense (DoD) Printing and Imaging Solutions
Other Agency-Specific Office Supply Procurements

Risk Flags

Potential for vendor lock-in
Supply chain dependency
Cybersecurity vulnerabilities of networked devices

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $33,709.8 to RICOH USA INC. FY25 RICOH - M2 & R&D PRINTERS

Who is the contractor on this award?

The obligated recipient is RICOH USA 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 $33,709.8.

What is the period of performance?

Start: 2025-10-01. End: 2026-02-28.

What is the historical spending pattern for printers and related equipment by the Federal Prison System?

Analyzing historical spending data for the Federal Prison System (FPS) on printers and related equipment is crucial for understanding trends and identifying potential cost efficiencies. Without access to specific historical FPS procurement databases, a precise analysis is challenging. However, federal agencies typically procure office equipment through various channels, including GSA Schedules, direct solicitations, and other agency-specific contracts. Spending can fluctuate based on equipment refresh cycles, new facility openings, and changes in operational requirements. It is common for agencies to consolidate procurements to leverage economies of scale, as suggested by this $33.7 million award. A review of past FPS contracts, potentially spanning several fiscal years, would reveal the frequency of such large awards, the types of equipment procured, and the average cost per unit or per device over time. This context would help determine if the current award represents a typical expenditure or an outlier.

How does the pricing of this contract compare to similar government printer procurements?

Benchmarking the pricing of this $33.7 million Ricoh printer contract against similar government procurements requires access to detailed pricing data for comparable contracts. Factors such as the number and models of printers, included services (maintenance, installation, supplies), contract duration, and the specific agency's needs all influence pricing. Generally, large-volume procurements awarded through full and open competition tend to yield competitive pricing due to market forces. However, without specific unit costs or service level agreements for this contract, a direct comparison is difficult. Resources like the Federal Procurement Data System (FPDS) can be used to identify similar contracts awarded to other agencies or for different printer types. Analyzing the price per page, cost per device, or total cost of ownership over the contract period, if available, would provide a more robust comparison against market rates and other government contracts.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Key performance indicators (KPIs) for a contract of this nature, involving the supply and potential maintenance of printers, typically focus on delivery timeliness, equipment functionality, service response times, and overall customer satisfaction. For this specific contract, awarded as a Delivery Order with a Firm Fixed Price, the government would likely be measuring: 1. On-time delivery of all specified equipment by the required dates. 2. Successful installation and operational readiness of all units. 3. Uptime guarantees and adherence to service level agreements (SLAs) for any included maintenance or support. 4. Responsiveness of Ricoh USA Inc. to any reported issues or service requests. 5. Compliance with contract terms and conditions. Performance measurement would likely involve regular reporting from the contractor and feedback from end-users within the Federal Prison System. Failure to meet these KPIs could result in contractual remedies, including potential financial penalties or termination.

What is Ricoh USA Inc.'s track record with similar large-scale government contracts?

Ricoh USA Inc. has a significant track record of providing printing, imaging, and document management solutions to government entities, including federal agencies. They are a well-established player in the office equipment market and frequently appear in federal procurement data. Their experience often includes large-scale deployments, managed print services, and supply contracts. Analyzing their past performance on similar contracts, particularly those with the Department of Justice or other large correctional systems, would provide insight into their ability to meet delivery schedules, provide reliable equipment, and offer effective support. Publicly available contract databases can be queried to review their award history, contract values, and any reported performance issues or successes. A positive track record with comparable contracts suggests a lower risk for this specific award.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks associated with this $33.7 million printer contract include: 1. **Equipment Malfunction/Downtime:** Printers are complex machines prone to failure, which could disrupt operations within correctional facilities. Mitigation: Robust maintenance SLAs, rapid response times for service, and potentially backup equipment. 2. **Supply Chain Disruptions:** Delays in toner, parts, or new equipment delivery could impact operations. Mitigation: Strong vendor management, clear delivery schedules, and potentially requiring the contractor to maintain adequate inventory. 3. **Cost Overruns (if not strictly FFP):** While this is a Firm Fixed Price contract, unforeseen issues could arise if scope creep occurs or if maintenance terms are not clearly defined. Mitigation: Strict contract management and change control processes. 4. **Cybersecurity Risks:** Networked printers can be vulnerable to cyber threats. Mitigation: Ensuring equipment meets federal cybersecurity standards and secure network integration protocols. 5. **Vendor Lock-in:** Dependence on a single vendor for supplies and service. Mitigation: Periodic re-competition and exploring multi-vendor strategies where feasible.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Photographic and Photocopying Equipment Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ricoh Company,Ltd.

Address: 300 EAGLEVIEW BLVD, EXTON, PA, 19341

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: $33,710

Exercised Options: $33,710

Current Obligation: $33,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS03F0085U

IDV Type: FSS

Timeline