VA awards $3.38M for copier leases to Xerox Corporation, impacting Maryland

Contract Overview

Contract Amount: $3,376,802 ($3.4M)

Contractor: Xerox Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-12-30

End Date: 2027-03-24

Contract Duration: 1,910 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PRODUCTION COPIER LEASE

Place of Performance

Location: PERRY POINT, CECIL County, MARYLAND, 21902

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.4 million to XEROX CORPORATION for work described as: PRODUCTION COPIER LEASE Key points: 1. The contract value is $3.38 million over its term. 2. Xerox Corporation is the sole awardee. 3. The contract is for production copier leases. 4. The spending is categorized under Photographic and Photocopying Equipment Manufacturing.

Value Assessment

Rating: fair

The pricing for this lease appears to be within a reasonable range for similar government contracts, though specific per-unit cost data is not readily available for direct comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the award type is a delivery order, which may indicate it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Taxpayer Impact: Taxpayer funds are being used for equipment leasing, which is a standard operational expense for government agencies.

Public Impact

Federal agencies rely on leased equipment for essential office functions. The contract supports the operational needs of the Department of Veterans Affairs. Leasing agreements ensure access to updated technology without large capital outlays.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed per-unit cost data for benchmarking.
Potential for higher costs over the lease term compared to outright purchase.

Positive Signals

Awarded through full and open competition.
Provides necessary equipment for agency operations.

Sector Analysis

This spending falls within the broader Information Technology and Office Equipment sector. Government spending on leased office equipment is common, with benchmarks varying based on equipment type, volume, and lease duration.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The award was made to Xerox Corporation, a large business.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms apply to ensure compliance and performance.

Related Government Programs

Photographic and Photocopying Equipment Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lease vs. purchase analysis missing.
Limited transparency on specific copier models and features.
Potential for higher long-term cost compared to outright purchase.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.4 million to XEROX CORPORATION. PRODUCTION COPIER LEASE

Who is the contractor on this award?

The obligated recipient is XEROX CORPORATION.

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 $3.4 million.

What is the period of performance?

Start: 2021-12-30. End: 2027-03-24.

What is the total cost per copier over the lease period?

The total contract value is $3,376,801.78 over approximately 1910 days (around 5.2 years). With 2 units, this suggests a cost of roughly $884,000 per unit over the contract term, or approximately $170,000 per unit per year. This figure needs to be compared against specific copier models and features to assess value.

What are the risks associated with a long-term copier lease?

Risks include potential overpayment if technology advances rapidly, inflexibility if needs change, and the cumulative cost of lease payments potentially exceeding the purchase price of new equipment. Vendor lock-in and service issues are also potential concerns.

How effective is this lease in meeting the VA's operational needs?

The lease is likely effective in providing the VA with necessary production copiers, ensuring operational continuity. The full and open competition suggests a competitive process was used to select a vendor that could meet these needs at a reasonable price point.

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: 2

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: $3,376,802

Exercised Options: $3,376,802

Current Obligation: $3,376,802

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F137DA

IDV Type: FSS

Timeline