VA awards $155K multi-function copier lease to Cynergy Professional Systems, highlighting a competitive procurement

Contract Overview

Contract Amount: $154,809 ($154.8K)

Contractor: Cynergy Professional Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-03

End Date: 2027-04-02

Contract Duration: 1,460 days

Daily Burn Rate: $106/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MULTI-FUNCTION COPIER LEASE

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37203

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $154,808.64 to CYNERGY PROFESSIONAL SYSTEMS LLC for work described as: MULTI-FUNCTION COPIER LEASE Key points: 1. The contract value of $155K for a four-year lease appears reasonable for multi-function copier services. 2. Full and open competition suggests a healthy market for these services, potentially driving better pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This lease supports the Department of Veterans Affairs' operational needs in Tennessee. 5. The contract's duration of four years aligns with typical equipment leasing cycles. 6. The NAICS code 541519 indicates a broad category, but the specific service is copier leasing.

Value Assessment

Rating: good

The contract value of approximately $155,000 over four years for copier leasing is within a reasonable range for government procurements of this nature. Without specific details on the number and type of machines, or service level agreements, a precise benchmark is difficult. However, compared to similar multi-function device leases for federal agencies, this price point does not immediately raise concerns about value for money, especially given the competitive nature of the award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A fully and openly competed contract like this one increases the likelihood that taxpayer funds are used efficiently, as multiple vendors vie to offer the best price and terms.

Public Impact

Federal employees within the Department of Veterans Affairs will benefit from access to modern multi-function copiers. Essential office functions such as printing, copying, scanning, and faxing will be supported. The services are geographically focused within Tennessee, supporting VA operations in that state. The contract supports the operational infrastructure necessary for VA staff to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of machines and service levels makes a precise value assessment challenging.
The broad NAICS code (541519) could encompass a wide range of IT services, making direct comparisons difficult without further context.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially good pricing.
Fixed-price contract type helps control costs and mitigate budget uncertainty.
The contract duration is standard for equipment leasing, allowing for predictable budgeting.

Sector Analysis

The market for office equipment leasing, including multi-function copiers, is a mature sector with numerous providers. Federal agencies are significant consumers of these services, often procuring them through competitive solicitations. Spending benchmarks vary widely based on the volume, features, and service level agreements required. This contract fits within the broader IT services and equipment procurement category for the federal government.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Cynergy Professional Systems LLC's size status is not detailed here, the procurement method of 'Full and Open Competition' generally allows all responsible businesses, including small businesses, to compete. There is no explicit information on subcontracting requirements for small businesses within this award.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program managers within the Department of Veterans Affairs. Accountability is established through the firm-fixed-price terms and the delivery order structure, requiring the contractor to meet specified service levels. Transparency is facilitated by the public availability of contract data, though detailed performance metrics are not included in this summary.

Related Government Programs

General Services Administration (GSA) Schedule contracts for office equipment
IT Equipment and Services Procurement
Department of Veterans Affairs Operational Support Contracts

Risk Flags

Potential for uncompetitive pricing if competition was limited in practice despite 'full and open' designation.
Risk of inadequate service levels if SLAs are not clearly defined or enforced.
Dependency on a single vendor for critical office equipment functionality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $154,808.64 to CYNERGY PROFESSIONAL SYSTEMS LLC. MULTI-FUNCTION COPIER LEASE

Who is the contractor on this award?

The obligated recipient is CYNERGY PROFESSIONAL SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $154,808.64.

What is the period of performance?

Start: 2023-04-03. End: 2027-04-02.

What is the specific type and quantity of multi-function copiers being leased under this contract?

The provided data does not specify the exact make, model, or quantity of multi-function copiers included in this lease agreement. It only indicates the service category as 'MULTI-FUNCTION COPIER LEASE'. To fully assess the value and appropriateness of the contract, details regarding the number of devices, their capabilities (e.g., print speed, scanning resolution, color capabilities), and any included software or managed print services would be necessary. This information is typically found in the contract's statement of work or associated technical specifications.

How does the per-device cost compare to similar leases for other federal agencies?

A direct per-device cost comparison is not possible with the current data. The total contract value is $154,808.64 over 1460 days (4 years). To benchmark, we would need to know the number of devices leased. If, for example, 10 devices were leased, the average annual cost per device would be approximately $2,654. This figure would then need to be compared against GSA Schedule pricing or recent awards for similar equipment and service levels to other agencies. Without the quantity, any comparison remains speculative.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this copier lease?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, copier leases include terms related to response times for maintenance and repair, uptime guarantees, toner and supply delivery, and potentially cost-per-page metrics. The Department of Veterans Affairs would have established these SLAs to ensure operational continuity. Performance against these metrics would be monitored by the contracting officer's representative (COR) to ensure the contractor is meeting their obligations.

What is the track record of Cynergy Professional Systems LLC in fulfilling federal government contracts, particularly for copier leases?

Information regarding Cynergy Professional Systems LLC's specific track record with federal contracts, especially for copier leases, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), the number and value of previous federal awards, and any history of contract disputes or terminations. The fact that they were awarded this contract under full and open competition suggests they met the basic qualifications and responsibility criteria set forth by the VA.

What is the historical spending pattern of the Department of Veterans Affairs for multi-function copier leases?

The provided data focuses solely on this specific contract award. To understand the historical spending patterns of the Department of Veterans Affairs (VA) for multi-function copier leases, one would need to analyze aggregate spending data over several fiscal years. This would involve querying federal procurement databases (like FPDS or USASpending) for similar contracts awarded by the VA, looking at trends in contract values, number of awards, and primary contractors. This single award does not provide sufficient information to establish a historical spending trend.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 23187 LA CADENA, STE 102, LAGUNA HILLS, CA, 92653

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $193,511

Exercised Options: $154,809

Current Obligation: $154,809

Actual Outlays: $109,606

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD20B

IDV Type: GWAC

Timeline