DOJ's $33K monthly lease for Kyocera copiers via GSA contract faces scrutiny over value and competition

Contract Overview

Contract Amount: $33,052 ($33.1K)

Contractor: Kyocera Document Solutions America Inc

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $91/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: KYOCERA - FY26 GSA CONTRACT #GS-03F-045DA MONTHLY PAYMENT FOR LEASE COPIER SERVICES

Place of Performance

Location: FAIRFIELD, ESSEX County, NEW JERSEY, 07004

State: New Jersey Government Spending

Plain-Language Summary

Department of Justice obligated $33,051.96 to KYOCERA DOCUMENT SOLUTIONS AMERICA INC for work described as: KYOCERA - FY26 GSA CONTRACT #GS-03F-045DA MONTHLY PAYMENT FOR LEASE COPIER SERVICES Key points: 1. The monthly payment of $33,051.96 for copier lease services represents a significant recurring cost for the Federal Prison System. 2. Kyocera Document Solutions America Inc. is the sole awardee, raising questions about the extent of competition achieved. 3. The contract's fixed-price nature provides cost certainty but may not fully capture potential savings through negotiation. 4. The IT hardware sector, including office equipment, is highly competitive, suggesting potential for better pricing.

Value Assessment

Rating: fair

The monthly cost of $33,051.96 for copier lease services appears high without detailed benchmarking against similar GSA contracts for comparable equipment and service levels. Further analysis is needed to determine if this price reflects market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows for the best possible price discovery. However, the specific awardee and the resulting price warrant further examination to ensure competition was robust and effective.

Taxpayer Impact: Taxpayer funds are being utilized for this monthly lease payment. Ensuring the price is competitive and represents good value is crucial for responsible fiscal management.

Public Impact

Federal agencies rely on leased office equipment for daily operations, impacting productivity and administrative functions. The cost of such leases contributes to the overall federal IT and equipment procurement budget. Transparency in contract awards and pricing ensures public trust in government spending. The use of GSA schedules aims to streamline procurement and achieve better pricing for the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment given the monthly cost.
Limited insight into the specific copier models and service levels.
Lack of direct comparison data for this specific award.

Positive Signals

Awarded under full and open competition.
Utilizes GSA schedule for streamlined procurement.
Fixed-price contract provides budget predictability.

Sector Analysis

The procurement falls under the broader category of IT hardware and office equipment, a sector characterized by rapid technological advancements and diverse vendor offerings. Benchmarking against similar GSA schedule contracts for copier leases is essential to assess value.

Small Business Impact

While this specific award is to a large corporation, GSA schedules often include provisions and set-asides for small businesses in various IT and equipment categories. Further analysis would be needed to determine if small businesses were excluded or had opportunities in this specific procurement.

Oversight & Accountability

The use of GSA contracts and delivery orders is a standard oversight mechanism. However, the specific value and competitive nature of individual awards require ongoing review to ensure accountability and prevent waste.

Related Government Programs

Photographic and Photocopying Equipment Manufacturing
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

High monthly expenditure warrants value assessment.
Limited visibility into competitive bidding process details.
Potential for better pricing in a competitive IT hardware market.
Need for detailed equipment and service level comparison.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $33,051.96 to KYOCERA DOCUMENT SOLUTIONS AMERICA INC. KYOCERA - FY26 GSA CONTRACT #GS-03F-045DA MONTHLY PAYMENT FOR LEASE COPIER SERVICES

Who is the contractor on this award?

The obligated recipient is KYOCERA DOCUMENT SOLUTIONS AMERICA 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 $33,051.96.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What specific copier models and service levels are included in this $33,051.96 monthly lease, and how do they compare to market offerings?

The provided data does not specify the exact copier models or the comprehensive service level agreements included in the lease. A detailed breakdown of equipment specifications, maintenance, and support is necessary to accurately benchmark the $33,051.96 monthly cost against similar offerings in the market. Without this information, assessing the true value for money is challenging.

Given the 'full and open competition' award type, what was the bidding landscape, and were there any factors that may have limited effective price competition?

Although awarded under 'full and open competition,' the data only shows one awardee, Kyocera Document Solutions America Inc. It is unclear if other bids were received or if specific requirements or market conditions favored a single bidder. Further investigation into the solicitation process and the number of proposals received is needed to confirm if robust price competition was achieved.

What is the expected lifespan and total cost of ownership for these leased copiers over the contract duration, and how does it compare to purchasing outright?

The contract duration is 364 days, with a monthly payment of $33,051.96. This equates to an annual cost of approximately $396,623.52. Without knowing the specific equipment and its expected lifespan, it's difficult to calculate the total cost of ownership or compare it to purchasing. A lease-vs-buy analysis would be beneficial for long-term fiscal planning.

Industry Classification

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

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 SAND RD, FAIRFIELD, NJ, 07004

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

Financial Breakdown

Contract Ceiling: $33,052

Exercised Options: $33,052

Current Obligation: $33,052

Actual Outlays: $8,263

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F045DA

IDV Type: FSS

Timeline