GSA awards $20.9K contract for Lexmark toner cartridges, highlighting standard yield and OEM genuine quality

Contract Overview

Contract Amount: $20,900 ($20.9K)

Contractor: Supplies NOW Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-09

Contract Duration: 6 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CARTRIDGE, TONER: ITEM NAME CARTRIDGE, TONER I.A.W. LEXMARK P/N 74C0SMG CARTRIDGE TYPE NEW (OEM GENUINE) SPECIAL FEATURES STANDARD YIELD CARTRIDGE FOR USE WITH LEXMARK LASERPRINT CS720, CS725, CX725 SERIES AND ANY OTHER PRINTER USING LEXMARK P/N 74C0

Place of Performance

Location: GREENACRES, PALM BEACH County, FLORIDA, 33463

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $20,900.25 to SUPPLIES NOW INC for work described as: CARTRIDGE, TONER: ITEM NAME CARTRIDGE, TONER I.A.W. LEXMARK P/N 74C0SMG CARTRIDGE TYPE NEW (OEM GENUINE) SPECIAL FEATURES STANDARD YIELD CARTRIDGE FOR USE WITH LEXMARK LASERPRINT CS720, CS725, CX725 SERIES AND ANY OTHER PRINTER USING LEXMARK P/N 74C0 Key points: 1. Value for money assessed by comparing unit prices to market benchmarks for similar OEM toner cartridges. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, given the standard nature of the product and established OEM part number. 4. Performance context is a short-term call-off against a broader BPA, implying routine supply needs. 5. Sector positioning is within the office supplies category, a mature and competitive market.

Value Assessment

Rating: good

The contract value of $20,900.25 for toner cartridges appears reasonable for a short duration. Benchmarking against market rates for Lexmark P/N 74C0SMG would provide a clearer picture of value. However, the use of an OEM genuine part suggests a focus on quality and compatibility, which can sometimes command a premium over third-party alternatives. The fixed-price with economic price adjustment structure offers some protection against market fluctuations.

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 process is designed to foster price discovery and ensure the government receives competitive pricing. The specific number of bidders is not provided, but the nature of the competition suggests a healthy market for these supplies.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through vendor rivalry, ensuring the government isn't overpaying for necessary supplies.

Public Impact

Federal agencies utilizing Lexmark CS720, CS725, CX725 series printers will benefit from a reliable supply of toner. The service delivered is the provision of essential office consumables, crucial for daily operations. The geographic impact is focused on Florida, where the contract is being fulfilled. Workforce implications are minimal, as this is a straightforward supply contract with no direct service personnel involved.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause if market conditions change unfavorably.
Reliance on a single OEM part number could limit long-term cost-saving opportunities if alternative compatible options are not explored.
Short contract duration may lead to frequent re-competition, incurring administrative costs.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing was achieved.
Use of a specific OEM part number ensures compatibility and reduces the risk of printer damage from non-genuine supplies.
Contract is a call-off against a larger BPA, indicating a streamlined procurement process for established needs.

Sector Analysis

This contract falls within the Office Supplies (except Paper) Manufacturing sector, specifically for printer consumables. The market for toner cartridges is mature, with numerous manufacturers and distributors. Spending in this category is consistent across government agencies requiring printing capabilities. Comparable spending benchmarks would involve analyzing historical GSA schedules or other agency procurements for similar OEM toner cartridges.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements. This suggests that the primary awardee, Supplies Now Inc., is likely a larger entity or that the procurement mechanism did not prioritize small business participation for this specific award.

Oversight & Accountability

Oversight for this contract is managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability is ensured through the terms of the fixed-price with economic price adjustment contract. Transparency is facilitated by the public nature of federal contract awards, allowing for review of contract details and performance.

Related Government Programs

GSA Schedules
Office Supply Procurement
Printer Consumables
Lexmark Printer Maintenance

Risk Flags

Potential for price volatility due to Economic Price Adjustment clause.
Short contract duration may necessitate frequent re-ordering and administrative overhead.
Lack of small business set-aside or subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20,900.25 to SUPPLIES NOW INC. CARTRIDGE, TONER: ITEM NAME CARTRIDGE, TONER I.A.W. LEXMARK P/N 74C0SMG CARTRIDGE TYPE NEW (OEM GENUINE) SPECIAL FEATURES STANDARD YIELD CARTRIDGE FOR USE WITH LEXMARK LASERPRINT CS720, CS725, CX725 SERIES AND ANY OTHER PRINTER USING LEXMARK P/N 74C0

Who is the contractor on this award?

The obligated recipient is SUPPLIES NOW INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $20,900.25.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-09.

What is the historical spending pattern for this specific toner cartridge (Lexmark P/N 74C0SMG) through GSA or other federal channels?

Analyzing historical spending data for Lexmark P/N 74C0SMG is crucial for understanding long-term cost trends and identifying potential price escalations. Without access to a comprehensive federal procurement database that tracks specific part numbers across all agencies and contract vehicles, it is difficult to provide precise historical figures. However, general trends in the office supply market suggest that OEM toner prices can remain relatively stable but are subject to increases due to manufacturing costs, supply chain disruptions, and manufacturer pricing strategies. The current award's price should be compared against any previous awards for the same item to assess if the price is consistent, increasing, or decreasing over time. If this is a new requirement or a shift to a new contract vehicle, historical data from previous suppliers or alternative compatible cartridges would be relevant for comparison.

How does the unit price of this toner cartridge compare to market rates for similar OEM cartridges from other suppliers?

To assess the unit price competitiveness, a direct comparison with current market rates for Lexmark P/N 74C0SMG from various commercial vendors and potentially other government contract holders is necessary. Online office supply retailers and major distributors often list OEM toner cartridges. Benchmarking should consider factors such as bulk purchasing discounts, shipping costs, and any service agreements that might be bundled. If the contract is a call-off from a GSA Multiple Award Schedule (MAS) or a similar large-volume agreement, the awarded price should ideally be at or below the ceiling prices established within that schedule. A significant deviation from established market prices, either higher or lower, warrants further investigation into the reasons behind it, such as special promotions, bundled services, or potential discrepancies in product specifications.

What are the specific risks associated with using an 'OEM Genuine' toner cartridge versus a compatible or remanufactured option?

The primary risk associated with using 'OEM Genuine' toner cartridges is typically a higher cost compared to compatible or remanufactured alternatives. However, the benefits often outweigh this cost for many government agencies. OEM cartridges are guaranteed to be compatible with the specified printer models (Lexmark CS720, CS725, CX725 series), minimizing the risk of printer malfunctions, damage, or voided warranties that can arise from using non-genuine supplies. Furthermore, OEM cartridges generally offer consistent print quality and yield, ensuring reliable performance for critical documents. While compatible or remanufactured options can offer significant cost savings, they may carry risks related to inconsistent quality, lower page yields, potential for leaks or printer damage, and sometimes, intellectual property concerns. For an agency prioritizing reliability and guaranteed compatibility, the 'OEM Genuine' designation mitigates these risks.

What is the expected duration and frequency of need for this specific toner cartridge based on its 'standard yield' designation?

The 'standard yield' designation for the Lexmark P/N 74C0SMG cartridge indicates it is designed for average print volumes, as opposed to high-yield or extra-high-yield cartridges. Standard yield cartridges typically print fewer pages per cartridge, meaning they need to be replaced more frequently in environments with moderate to heavy printing needs. The exact page yield varies by cartridge and printer model but is usually specified by the manufacturer (e.g., around 5,000-7,000 pages for a standard color toner). This implies that agencies with significant printing requirements will need to reorder these cartridges more often. The short contract duration (6 days from start to end date, though this likely refers to the delivery window within a BPA call) suggests this is for immediate or near-term replenishment rather than a long-term supply agreement for a single large order. Understanding the actual consumption rate is key to forecasting future needs and ensuring timely replenishment.

How does the 'Fixed Price with Economic Price Adjustment' (FP/EPA) clause impact the final cost to the government for this toner cartridge?

The 'Fixed Price with Economic Price Adjustment' (FP/EPA) clause allows for adjustments to the contract price based on specified economic factors, typically changes in the cost of labor or materials. For toner cartridges, this could be linked to fluctuations in raw material costs (like pigments, plastics) or transportation expenses. While the base price is fixed, the EPA clause introduces a degree of uncertainty regarding the final cost. The contract specifies the economic index or formula to be used for adjustments, and there are usually caps on how much the price can increase. This clause aims to protect the contractor from unforeseen cost increases, which can help ensure a stable supply, but it also means the government might pay more than the initially quoted fixed price if economic conditions change unfavorably. The specific terms of the EPA clause in this contract would need to be reviewed to quantify the potential impact.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › Office Supplies (except Paper) Manufacturing

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 3900 WOODLAKE BLVD, GREENACRES, FL, 33463

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,900

Exercised Options: $20,900

Current Obligation: $20,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSSC26A0005

IDV Type: BPA

Timeline