DOJ's $2.7M copier lease for Federal Prison System shows limited duration, full competition

Contract Overview

Contract Amount: $2,720 ($2.7K)

Contractor: Ricoh USA Inc

Awarding Agency: Department of Justice

Start Date: 2026-02-01

End Date: 2026-03-31

Contract Duration: 58 days

Daily Burn Rate: $47/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RICOH USA INC - COPIER SERVICES LEASE - FEBRUARY - MARCH FY26

Place of Performance

Location: SANDSTONE, PINE County, MINNESOTA, 55072

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $2,719.64 to RICOH USA INC for work described as: RICOH USA INC - COPIER SERVICES LEASE - FEBRUARY - MARCH FY26 Key points: 1. Value for money appears fair given the short, 2-month term for essential office equipment. 2. Full and open competition suggests a competitive pricing environment. 3. Risk indicators are low due to the short duration and standard equipment type. 4. Performance context is within the scope of routine office operations for correctional facilities. 5. Sector positioning is in administrative support services for a federal law enforcement agency.

Value Assessment

Rating: fair

The contract value of $2.7 million for a 58-day copier lease is substantial, suggesting potentially high-end equipment or extensive usage. Without specific details on the number of machines, their capabilities, or the expected volume of use, a direct value-for-money assessment is challenging. However, for a short-term need, the cost per day is approximately $46,890, which warrants scrutiny. Benchmarking against similar short-term leases for high-volume office equipment would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally preferred as it fosters a competitive environment, potentially leading to better pricing and terms for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust bidding process.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing that arises from a fully competed contract, ensuring that the government is not overpaying for essential services like copier leases.

Public Impact

Federal Prison System staff will benefit from access to necessary copying and printing services. Essential administrative and operational functions within correctional facilities will be supported. The geographic impact is concentrated within facilities managed by the Federal Prison System. Workforce implications are minimal, primarily relating to the provision and maintenance of leased equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost per day for a short-term lease requires justification.
Lack of detail on equipment specifications and usage volume hinders precise value assessment.

Positive Signals

Awarded through full and open competition, promoting price discovery.
Short duration limits long-term financial commitment and potential obsolescence.
Firm fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the broader administrative and support services sector for government agencies. The market for office equipment leasing is mature and competitive, with numerous providers. The spending benchmark for such services can vary widely based on the volume, type of equipment, and lease duration. This specific contract's value appears high for its short term, suggesting a need for detailed justification of equipment or service levels.

Small Business Impact

The data indicates that small business participation (sb) was not a factor in this award (ss: false, sb: false). There is no indication of small business set-asides or subcontracting requirements associated with this specific contract. Therefore, the direct impact on the small business ecosystem is likely negligible for this particular procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's internal procurement and financial management controls. As a lease agreement for standard office equipment, it is unlikely to fall under the direct jurisdiction of an Inspector General unless specific performance issues or fraud are suspected. Transparency is generally maintained through contract award databases, though detailed operational specifics may be internal.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Administrative Support
General Services Administration (GSA) Schedules (potential sourcing vehicle)
Office Equipment Leasing Contracts

Risk Flags

High Cost Per Day
Lack of Equipment Specifics
Short Duration, High Value

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2,719.64 to RICOH USA INC. RICOH USA INC - COPIER SERVICES LEASE - FEBRUARY - MARCH FY26

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 $2,719.64.

What is the period of performance?

Start: 2026-02-01. End: 2026-03-31.

What is the specific equipment being leased and the expected usage volume that justifies the $2.7 million cost for a 58-day period?

The provided data does not specify the exact equipment models or the anticipated usage volume (e.g., pages per month, number of machines). The high cost for a short duration suggests either a large number of high-capacity machines, specialized features, or potentially a premium for rapid deployment or specific service level agreements. To justify the cost, detailed specifications on the number of copiers, their print/copy speeds, functionalities (scanning, faxing, color capabilities), and estimated monthly page volumes would be required. Benchmarking this against industry rates for similar leased equipment, considering factors like maintenance and supplies, is crucial for a complete value assessment.

How does the per-day cost of this lease compare to similar short-term copier leases for federal agencies?

The per-day cost for this 58-day lease is approximately $46,890 ($2,719,640 / 58 days). This figure is exceptionally high for standard office equipment leasing. Typical short-term leases for high-volume copiers, even with premium features and maintenance, usually fall within a range of a few hundred to a couple of thousand dollars per day, depending on the number and type of machines. The DOJ's lease cost per day significantly exceeds these benchmarks, indicating a potential need for further investigation into the specific requirements, equipment, or contract terms that led to this valuation. It is possible this represents a large fleet of advanced machines or a specialized requirement not immediately apparent from the basic data.

What are the potential risks associated with a short-duration, high-value lease for office equipment?

The primary risk with a short-duration, high-value lease is the potential for overpayment if the actual need does not fully utilize the leased capacity or if more cost-effective alternatives were available. For a 58-day period, the risk of equipment obsolescence is minimal. However, the high daily rate suggests a significant financial outlay for a temporary need. Other risks could include vendor lock-in if renewal options are not favorable, or if the equipment does not meet performance expectations, leading to disruptions. Given the 'full and open competition' award, the risk of non-competitive pricing is mitigated, but the overall value proposition still requires scrutiny due to the high daily expenditure.

What is the historical spending pattern for copier services within the Federal Prison System or the Department of Justice?

Historical spending data for copier services within the Federal Prison System or the broader Department of Justice is not provided in the current data. To establish a pattern, one would need to analyze past contracts for similar equipment, durations, and volumes. Understanding whether this $2.7 million for 58 days represents an anomaly, a consistent expenditure level, or an increase/decrease compared to previous periods is essential for assessing fiscal responsibility. Analyzing trends in spending, average contract values, and the number of contracts awarded over several fiscal years would provide valuable context for evaluating the current lease.

Given the 'firm fixed price' contract type, what flexibility does the DOJ have if equipment needs change or are insufficient during the lease period?

A firm fixed-price (FFP) contract generally offers the least flexibility for the buyer, as the price is set regardless of the contractor's costs. If equipment needs change or prove insufficient, the DOJ would likely need to negotiate a modification to the existing contract, which could involve additional costs and potentially a new competitive process if the changes are substantial. Alternatively, they might need to procure additional equipment through a separate contract. The FFP structure is designed to provide cost certainty to the government, but it can limit adaptability to evolving operational requirements during the contract term. The short duration of this lease might reduce the likelihood of significant changes in need.

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

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: $2,720

Exercised Options: $2,720

Current Obligation: $2,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15B41322A00000028

IDV Type: BPA

Timeline