VA awards $267K lease for mailroom equipment to Native Instinct LLC, spanning over 5 years

Contract Overview

Contract Amount: $267,569 ($267.6K)

Contractor: Native Instinct LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-01-01

End Date: 2027-04-14

Contract Duration: 1,929 days

Daily Burn Rate: $139/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAILROOM EQUIPMENT LEASE

Place of Performance

Location: BOYNTON BEACH, PALM BEACH County, FLORIDA, 33436

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $267,568.8 to NATIVE INSTINCT LLC for work described as: MAILROOM EQUIPMENT LEASE Key points: 1. Lease agreement for essential office machinery demonstrates ongoing operational needs. 2. Contract was competed under simplified acquisition procedures, suggesting a focus on efficiency for smaller procurements. 3. The firm fixed price structure provides cost certainty for the duration of the contract. 4. A 5-year term indicates a long-term requirement for mailroom equipment. 5. The award to a single entity suggests a focused procurement strategy for this specific equipment type.

Value Assessment

Rating: fair

The total contract value of $267,568.80 over approximately 5 years for mailroom equipment lease appears to be within a reasonable range for such services. Benchmarking against similar leases for office machinery is difficult without more specific equipment details. However, the firm fixed price nature of the contract helps in managing cost expectations. The value proposition hinges on the reliability and functionality of the leased equipment over the contract term.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders than full and open competition. While the specific number of bids received is not detailed, SAP is designed for procurements under a certain dollar threshold, aiming for efficiency. The limited competition inherent in SAP may result in less aggressive pricing compared to a broader competition, but it ensures a timely award for essential needs.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean slightly higher prices than might be achieved in a wider bidding process. However, the efficiency gains and faster delivery of necessary equipment can also represent value by ensuring operational continuity.

Public Impact

The Department of Veterans Affairs benefits from updated or maintained mailroom equipment, ensuring efficient processing of communications and documents. Federal employees within the VA facility will utilize the leased equipment for daily operations. The primary geographic impact is within Florida, where the contract is managed and equipment is likely deployed. This contract supports the operational infrastructure of the VA, indirectly contributing to the services provided to veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for equipment obsolescence over the 5-year lease term.
Dependence on a single vendor for maintenance and support of critical mailroom functions.

Positive Signals

Firm fixed price contract provides budget predictability.
Awarded under SAP, indicating an efficient procurement process for essential needs.
Long-term lease ensures continuous availability of mailroom equipment.

Sector Analysis

The market for office machinery rental and leasing is a segment of the broader business services industry. This contract falls under the 'Office Machinery and Equipment Rental and Leasing' category (NAICS 532420). Spending in this sector is driven by the operational needs of government agencies and private businesses requiring flexible access to equipment without outright purchase. Comparable spending benchmarks would depend on the specific type and volume of mailroom equipment leased.

Small Business Impact

This contract does not appear to have a small business set-aside. The data indicates the award was made to 'Native Instinct LLC'. Further investigation would be needed to determine if this entity qualifies as a small business and if any subcontracting opportunities for small businesses are anticipated or required under this agreement.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Veterans Affairs. The firm fixed price nature simplifies financial oversight. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule for office equipment.
Other agency-specific procurements for mailroom and office equipment.

Risk Flags

Potential for equipment obsolescence
Limited competition may impact price optimization

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $267,568.8 to NATIVE INSTINCT LLC. MAILROOM EQUIPMENT LEASE

Who is the contractor on this award?

The obligated recipient is NATIVE INSTINCT 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 $267,568.8.

What is the period of performance?

Start: 2022-01-01. End: 2027-04-14.

What specific types of mailroom equipment are included in this lease agreement?

The provided data identifies the contract's purpose as 'MAILROOM EQUIPMENT LEASE' and assigns it the North American Industry Classification System (NAICS) code 532420, which covers 'Office Machinery and Equipment Rental and Leasing'. However, the specific details regarding the exact types of mailroom equipment (e.g., postage meters, folders, inserters, sorters, shredders) are not explicitly stated in the abbreviated data. To understand the full scope, one would need to review the contract's statement of work or detailed specifications. This information is crucial for assessing the appropriateness of the price and the value delivered.

How does the lease cost compare to purchasing similar mailroom equipment outright?

Directly comparing the lease cost to an outright purchase is complex without knowing the specific equipment, its expected lifespan, and current market prices for acquisition. A lease spreads the cost over time, which can be beneficial for cash flow and avoiding large capital expenditures. However, over the 5-year term (1929 days), the total lease cost of $267,568.80 implies a significant investment. To assess value, one would need to calculate the total cost of ownership for purchasing the equipment, including maintenance, potential depreciation, and disposal costs, and compare that to the total lease payments. If the lease payments significantly exceed the depreciated value plus maintenance of purchased equipment over the same period, it might indicate a less favorable financial arrangement.

What is the track record of Native Instinct LLC in providing similar leased equipment to government agencies?

The provided data indicates that Native Instinct LLC is the contractor for this mailroom equipment lease. However, it does not offer details on their past performance, track record, or experience specifically with leasing similar equipment to government entities. A comprehensive assessment would require reviewing past performance evaluations, contract history databases (like the Federal Procurement Data System - FPDS), and any available contractor performance assessment reporting (CPARS) for Native Instinct LLC. Understanding their history is key to evaluating the risk associated with this contract and the likelihood of successful performance.

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

The abbreviated data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) tied to this mailroom equipment lease. Typically, such contracts would include metrics related to equipment uptime, response time for maintenance and repairs, and potentially equipment performance standards. The effectiveness of the contract in meeting the VA's operational needs hinges on these performance standards. Without them, it's difficult to objectively measure the contractor's performance beyond basic delivery and invoicing. Reviewing the full contract document is necessary to identify these critical performance benchmarks.

What is the historical spending pattern for mailroom equipment leasing by the Department of Veterans Affairs?

The provided data snippet focuses on a single contract award and does not offer historical spending patterns for mailroom equipment leasing by the Department of Veterans Affairs (VA). To analyze historical spending, one would need to query federal procurement databases (like FPDS or USASpending.gov) for similar contracts over multiple fiscal years, filtering by agency (VA), product/service code (PSC), or NAICS code (532420). This analysis would reveal trends in spending volume, average contract values, types of equipment leased, and potentially shifts in procurement strategies (e.g., from leasing to purchasing or vice versa).

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Office Machinery and Equipment Rental and Leasing

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25521Q0385

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4413 CYCAD LN, BOYNTON BEACH, FL, 33436

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $267,569

Exercised Options: $267,569

Current Obligation: $267,569

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline