DOJ's $17.8M Xerox Contract for Prison System Photocopying Equipment Faces Scrutiny

Contract Overview

Contract Amount: $17,777 ($17.8K)

Contractor: Xerox Corporation

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2026-02-28

Contract Duration: 515 days

Daily Burn Rate: $35/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: XEROX FY 26

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75266

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $17,777.4 to XEROX CORPORATION for work described as: XEROX FY 26 Key points: 1. The contract is for photocopying equipment, a mature market with many potential suppliers. 2. Xerox Corporation is the sole awardee, raising questions about competition. 3. The firm fixed price contract type offers some cost certainty. 4. The duration of 515 days suggests a need for ongoing services or equipment.

Value Assessment

Rating: questionable

The contract value of $17.8M over 515 days for photocopying equipment appears high. Benchmarking against similar government or commercial contracts for office equipment leasing and maintenance is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being listed as 'full and open competition,' only Xerox Corporation received the award. This suggests potential issues in the solicitation or evaluation process, or that only Xerox could meet specific requirements.

Taxpayer Impact: The lack of robust competition could lead to taxpayers overpaying for essential office equipment and services for the Federal Prison System.

Public Impact

Federal prisons rely on reliable copying and printing services for administrative and operational needs. The cost of this contract impacts the budget allocated to correctional facilities. Any disruption in service could affect the efficiency of prison operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential lack of true competition despite 'full and open' designation.
High contract value for a mature technology market.
Limited duration may necessitate future competitive procurements.

Positive Signals

Firm fixed price contract provides cost predictability.
Awarded to a well-known manufacturer in the field.

Sector Analysis

The Federal Prison System's need for photocopying equipment falls under general office equipment and services. Spending benchmarks for similar agencies on office equipment leasing and maintenance are typically in the millions annually, but specific per-unit costs vary widely.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract, which is a concern given the size of the award.

Oversight & Accountability

The 'full and open competition' designation requires careful review to ensure that all eligible vendors had a fair opportunity to compete and that the award was based on the best value to the government.

Related Government Programs

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

Risk Flags

Potential for limited competition despite 'full and open' status.
High contract value for a mature technology sector.
Lack of small business participation noted.
Need for detailed price reasonableness justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $17,777.4 to XEROX CORPORATION. XEROX FY 26

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 $17,777.4.

What is the period of performance?

Start: 2024-10-01. End: 2026-02-28.

Was the 'full and open competition' process truly effective in soliciting bids from all capable vendors, or were there barriers that limited participation?

The designation of 'full and open competition' alongside a single awardee warrants further investigation. Agencies must ensure that solicitations are broadly advertised and that evaluation criteria do not unduly restrict the field of potential bidders. Without evidence of extensive outreach or unique requirements, this situation raises questions about whether the competition was as robust as intended, potentially impacting price discovery and overall value.

What is the specific justification for awarding this contract solely to Xerox Corporation, and how does the pricing compare to market rates for similar equipment and services?

The justification for a sole awardee under a full and open competition needs to be clearly documented. A thorough price analysis comparing Xerox's bid against industry benchmarks for comparable equipment leases, maintenance, and supplies is crucial. Given the mature market for photocopying technology, the $17.8M value over 515 days suggests a need to validate that the government is receiving competitive pricing and not incurring unnecessary costs due to limited vendor engagement.

How does the operational necessity and cost-effectiveness of this Xerox contract align with the Bureau of Prisons' overall budget and mission objectives?

The Bureau of Prisons requires reliable document management solutions for its operations. Evaluating this contract's effectiveness involves assessing whether the chosen equipment and services meet the specific needs of correctional facilities efficiently and at a reasonable cost. The $17.8M expenditure must be weighed against alternative solutions and the overall impact on the BOP's budget, ensuring that taxpayer funds are utilized optimally to support the agency's core mission.

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: 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: $17,777

Exercised Options: $17,777

Current Obligation: $17,777

Actual Outlays: $2,595

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F137DA

IDV Type: FSS

Timeline