GSA awards $25,869 contract for Lexmark toner cartridges, highlighting standard yield and OEM genuine quality

Contract Overview

Contract Amount: $25,869 ($25.9K)

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: $4.3K/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 72K00KG CARTRIDGE TYPE NEW (OEM GENUINE) SPECIAL FEATURES STANDARD YIELD CARTRIDGE FOR USE WITH LEXMARK LASERPRINT CS820, CX820, CX825, CX860 SERIES AND ANY OTHER PRINTER USING LEXMARK P

Place of Performance

Location: GREENACRES, PALM BEACH County, FLORIDA, 33463

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $25,869.16 to SUPPLIES NOW INC for work described as: CARTRIDGE, TONER: ITEM NAME CARTRIDGE, TONER I.A.W. LEXMARK P/N 72K00KG CARTRIDGE TYPE NEW (OEM GENUINE) SPECIAL FEATURES STANDARD YIELD CARTRIDGE FOR USE WITH LEXMARK LASERPRINT CS820, CX820, CX825, CX860 SERIES AND ANY OTHER PRINTER USING LEXMARK P Key points: 1. Value for money assessed through fixed-price contract with economic price adjustment. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators include reliance on a single OEM part number, potentially limiting long-term cost savings. 4. Performance context is a short-term call against a BPA, suggesting immediate supply needs. 5. Sector positioning within office supplies, a mature and competitive market.

Value Assessment

Rating: fair

The contract value of $25,869.16 for toner cartridges appears reasonable for a short-term supply need. However, without specific volume data or comparison to similar GSA Schedule contracts for this exact Lexmark part number, a definitive value assessment is challenging. The fixed-price with economic price adjustment (EPA) clause introduces some uncertainty regarding final cost if market prices for raw materials or manufacturing increase significantly. Benchmarking against other OEM toner suppliers or compatible alternatives would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was followed. This approach is generally intended to foster price discovery and ensure the government receives the best value by considering a wide range of potential suppliers.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the most advantageous pricing by allowing all qualified vendors to participate, potentially leading to lower overall costs compared to less competitive methods.

Public Impact

Federal agencies requiring Lexmark CS820, CX820, CX825, CX860 series printers benefit from a reliable supply of essential consumables. The contract ensures the availability of standard yield, OEM genuine toner cartridges, maintaining print quality and operational continuity. Geographic impact is focused on Florida, where the supplies will likely be delivered. Workforce implications are minimal, primarily affecting administrative staff managing office supply procurement and end-users operating the specified printers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to reliance on a specific OEM part number.
Economic price adjustment clause could lead to cost increases if market conditions change.
Limited visibility into the number of competing offers within the full and open competition.

Positive Signals

Awarded under a full and open competition, suggesting a competitive process.
Contract ensures supply of genuine OEM toner, maintaining equipment performance.
Short duration (6 days) minimizes long-term financial commitment and risk.

Sector Analysis

The office supplies sector, particularly for printer consumables, is a mature and highly competitive market. Major manufacturers like Lexmark dominate through proprietary parts, while a robust aftermarket of compatible and remanufactured options exists. Government spending in this category is consistent, driven by the widespread use of printers across federal agencies. This contract fits within the broader category of office equipment and supplies, a segment where agencies often leverage GSA Schedules for efficient procurement.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the nature of the product (OEM toner cartridges), it is possible that the primary awardee, Supplies Now Inc., is a larger entity or a distributor. There is no explicit information on subcontracting plans, but for a contract of this size and type, significant subcontracting to small businesses is less likely unless it involves distribution logistics.

Oversight & Accountability

Oversight for this contract falls under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA's procurement processes are subject to federal regulations and internal policies designed to ensure fair and transparent acquisition. The use of a GSA Schedule BPA call implies adherence to pre-negotiated terms and conditions, which include oversight mechanisms. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics are not publicly available.

Related Government Programs

GSA Federal Supply Schedule
Office Supplies Procurement
Printer Consumables
Lexmark Printer Maintenance

Risk Flags

Potential for price escalation due to EPA clause
Limited competition due to specific OEM part number requirement
Short contract duration suggests reactive procurement rather than strategic planning

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25,869.16 to SUPPLIES NOW INC. CARTRIDGE, TONER: ITEM NAME CARTRIDGE, TONER I.A.W. LEXMARK P/N 72K00KG CARTRIDGE TYPE NEW (OEM GENUINE) SPECIAL FEATURES STANDARD YIELD CARTRIDGE FOR USE WITH LEXMARK LASERPRINT CS820, CX820, CX825, CX860 SERIES AND ANY OTHER PRINTER USING LEXMARK P

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 $25,869.16.

What is the period of performance?

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

What is the typical price range for Lexmark P/N 72K00KG toner cartridges in the federal market?

Determining a precise typical price range for the Lexmark P/N 72K00KG toner cartridge is challenging without access to a comprehensive database of federal contract awards for this specific part number. However, based on general market knowledge for OEM toner cartridges, prices can vary significantly based on yield (standard, high, extra-high), vendor, and contract vehicle. For standard yield OEM cartridges for enterprise-level printers, prices often range from $100 to $300 per cartridge. The awarded price of approximately $25,869.16 for an unspecified quantity suggests a unit price within this general range, assuming a significant number of cartridges were procured. Further analysis would require comparing this award to other GSA Schedule BPAs or IDIQs for similar Lexmark consumables to establish a more accurate benchmark.

How does the 'Fixed Price with Economic Price Adjustment' (EPA) clause impact the final cost for taxpayers?

The 'Fixed Price with Economic Price Adjustment' (EPA) clause allows for adjustments to the contract price based on fluctuations in specified economic factors, such as labor or material costs. For taxpayers, this means the final cost of the toner cartridges could be higher than the initial fixed price if the EPA triggers an upward adjustment. While intended to protect contractors from unforeseen market volatility and ensure supply continuity, it introduces an element of cost uncertainty. The government aims to mitigate this by carefully defining the economic indicators and establishing caps on potential price increases. Without knowing the specific EPA formula and caps for this contract, it's difficult to quantify the exact potential impact, but it represents a risk of paying more than initially budgeted.

What are the potential risks associated with procuring a specific OEM part number like Lexmark P/N 72K00KG?

Procuring a specific Original Equipment Manufacturer (OEM) part number, such as Lexmark P/N 72K00KG, carries several potential risks for taxpayers. Firstly, it can limit competition, as only suppliers authorized or capable of providing that exact part can bid, potentially leading to higher prices compared to a market that allows for compatible or remanufactured alternatives. Secondly, it creates vendor lock-in, making it difficult and potentially costly to switch to different printer models or consumable types in the future. Thirdly, reliance on a single OEM can make the government vulnerable to price increases dictated by the manufacturer. While ensuring compatibility and quality, this specificity can reduce the government's leverage in price negotiations over the long term.

What does the short contract duration (6 days) imply about the agency's procurement strategy?

The extremely short contract duration of six days (April 3, 2026, to April 9, 2026) for this toner cartridge purchase strongly suggests an urgent, immediate need for supplies. This is likely a 'spot buy' or a rapid replenishment action to address a critical stock-out situation or an unforeseen surge in demand. It implies that the agency did not have sufficient inventory on hand or a longer-term contract in place to cover this immediate requirement. Such short-term procurements, especially when executed via a Blanket Purchase Agreement (BPA) call, are designed for speed and efficiency to resolve urgent needs, rather than for strategic, long-term supply chain management.

How does this contract fit into the broader category of 'Office Supplies (except Paper) Manufacturing' (NAICS 339940)?

This contract falls squarely within the NAICS code 339940, 'Office Supplies (except Paper) Manufacturing.' This sector encompasses the production of a wide array of office-related items, including writing instruments, binders, folders, and, crucially, printer consumables like toner cartridges. The manufacturing of toner involves complex chemical processes and specialized equipment. While this specific award is for the purchase of finished goods (toner cartridges), the underlying product is manufactured within this industrial classification. The government's spending in this category reflects the ongoing operational needs of federal agencies for essential office equipment and supplies.

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: $25,869

Exercised Options: $25,869

Current Obligation: $25,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSSC26A0005

IDV Type: BPA

Timeline