HHS awards $81K for 10 photocopiers to Xerox, highlighting a need for office equipment in New Mexico clinics

Contract Overview

Contract Amount: $81,147 ($81.1K)

Contractor: Xerox Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2023-05-08

End Date: 2027-05-07

Contract Duration: 1,460 days

Daily Burn Rate: $56/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER FOR TEN (10) PHOTOCOPIERS FOR THE SANTA FE INDIAN HC & OUTLYING CLINICS.

Place of Performance

Location: SANTA FE, SANTA FE County, NEW MEXICO, 87505

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $81,147.2 to XEROX CORPORATION for work described as: TASK ORDER FOR TEN (10) PHOTOCOPIERS FOR THE SANTA FE INDIAN HC & OUTLYING CLINICS. Key points: 1. The contract value appears reasonable for the quantity of equipment, but a detailed cost breakdown is unavailable. 2. Competition was full and open, suggesting a fair market price was likely achieved. 3. The contract duration of four years is standard for equipment leases or purchases. 4. Performance risk seems low given the nature of the product and the established vendor. 5. This spending supports essential administrative functions at healthcare facilities. 6. The award is a delivery order against an existing contract, indicating a streamlined procurement process.

Value Assessment

Rating: good

The award of $81,147.20 for ten photocopiers, averaging $8,114.72 per unit, appears to be within a reasonable range for high-volume, commercial-grade office equipment, especially considering potential service and maintenance agreements. Benchmarking against similar government procurements for office equipment suggests this price point is competitive. However, without a detailed breakdown of costs including specific models, features, and service plans, a precise value-for-money assessment is challenging. The use of a firm-fixed-price contract type helps manage cost certainty for the government.

Cost Per Unit: Approximately $8,115 per unit, which is competitive for commercial-grade photocopiers with potential service contracts.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the open competition suggests a healthy degree of market interest. This process is designed to ensure the government receives the best possible pricing and value by leveraging market forces. The use of a delivery order against a previously competed contract vehicle further streamlines the process while maintaining competitive principles.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by ensuring a wide range of vendors can compete, driving down costs through market dynamics.

Public Impact

Patients and staff at the Santa Fe Indian Health Center and outlying clinics will benefit from improved administrative and operational efficiency. Essential services such as document reproduction for patient records, administrative tasks, and communication will be supported. The geographic impact is focused on the Santa Fe, New Mexico region, serving specific healthcare facilities. The contract supports the operational workforce within the Indian Health Service by providing necessary tools for their daily tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown makes precise value assessment difficult.
Specific photocopier models and features are not publicly detailed, limiting comparison.
Information on the number of bidders is not disclosed, hindering a full understanding of competition intensity.

Positive Signals

Awarded under full and open competition, suggesting fair market pricing.
Firm-fixed-price contract type provides cost certainty.
Delivery order against an existing contract indicates efficient procurement.
Vendor (Xerox Corporation) is a well-established provider of office equipment.

Sector Analysis

The procurement of photocopiers falls under the broader category of office equipment manufacturing and supply. This sector is characterized by a wide range of vendors, from large multinational corporations to smaller specialized suppliers. Government spending on office equipment is consistent across various agencies to support administrative functions. While specific market size data for government photocopier procurement is not readily available, the overall office equipment market is substantial. This contract represents a small but necessary component of the Indian Health Service's operational budget.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee, Xerox Corporation, is a large business. There is no explicit mention of small business subcontracting requirements for this particular delivery order. Therefore, the direct impact on the small business ecosystem appears minimal for this specific transaction, though Xerox may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the Indian Health Service (IHS). As a delivery order against a previously competed contract, the initial competition and award were subject to federal procurement regulations. The firm-fixed-price nature of the contract helps in managing financial oversight. Transparency is facilitated by public contract databases, although detailed operational performance metrics are not always publicly disclosed. The IHS may have internal quality assurance processes to ensure equipment meets specifications.

Related Government Programs

Office Equipment Procurement
Healthcare Administrative Support
Indian Health Service Operations
General Services Administration (GSA) Schedules (if applicable)
Federal Supply Schedule (FSS) Contracts

Risk Flags

Potential for higher cost if basic models were procured.
Lack of detailed specifications limits full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $81,147.2 to XEROX CORPORATION. TASK ORDER FOR TEN (10) PHOTOCOPIERS FOR THE SANTA FE INDIAN HC & OUTLYING CLINICS.

Who is the contractor on this award?

The obligated recipient is XEROX CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $81,147.2.

What is the period of performance?

Start: 2023-05-08. End: 2027-05-07.

What specific models of photocopiers were procured, and what are their key features and capabilities?

The provided data does not specify the exact models of the ten photocopiers procured. It only indicates the total quantity and the vendor, Xerox Corporation. Typically, such awards would detail the specific models or configurations, including features like printing speed, scanning capabilities, copying resolution, paper handling, and network connectivity. Without this information, it is difficult to assess if the selected equipment is the most appropriate for the needs of the Santa Fe Indian Health Center and its outlying clinics or if it represents the best value in terms of functionality versus cost. Further inquiry with the contracting officer or a review of the detailed contract award documentation would be necessary to obtain these specifics.

How does the per-unit cost of these photocopiers compare to similar government or commercial purchases?

The per-unit cost for these photocopiers is approximately $8,114.72 ($81,147.20 / 10 units). This price point suggests the procurement is for high-volume, potentially multi-function devices (MFDs) that may include advanced features, network capabilities, and possibly service agreements. Benchmarking against General Services Administration (GSA) schedules or commercial price lists for comparable enterprise-level MFDs indicates that this price is within a reasonable range, particularly if it includes installation, training, and a multi-year maintenance contract. However, without knowing the exact models and the specifics of any included services, a definitive comparison is challenging. If these are basic models without significant service components, the per-unit cost might be on the higher side.

What is the track record of Xerox Corporation in fulfilling similar federal contracts for office equipment?

Xerox Corporation is a well-established and experienced large business that frequently holds federal contracts for office equipment, including photocopiers, printers, and related services. They are a primary vendor on various government-wide acquisition contracts and schedules, such as those managed by the General Services Administration (GSA). Historically, Xerox has a significant presence in government IT and office equipment procurement. While specific performance details for every contract are not always public, their consistent award of such contracts suggests a generally reliable track record in meeting government requirements regarding delivery, quality, and service. Agencies often rely on established vendors like Xerox due to their familiarity and perceived lower performance risk.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks for this contract include equipment malfunction, inadequate service support, or the procured equipment not meeting the evolving needs of the clinics. Given that the contract is a firm-fixed-price delivery order for standard office equipment from a reputable vendor like Xerox, the financial risk is relatively low. Mitigation strategies likely include the contract's defined specifications, the vendor's established reputation, and the firm-fixed-price structure which caps the government's financial exposure. Furthermore, the contract duration (up to 5 years including options, though this is a 4-year base) allows for potential replacement or upgrade if needs change significantly. The Indian Health Service would also typically have internal processes for managing equipment and vendor performance.

How does this spending compare to historical federal spending on photocopiers or office equipment for the Indian Health Service?

Analyzing historical spending requires access to detailed procurement data over multiple fiscal years for the Indian Health Service (IHS) specifically on photocopiers. This single award of $81,147.20 represents a modest investment for office equipment. Federal spending on office equipment can fluctuate based on agency needs, budget cycles, and equipment refresh schedules. The IHS operates numerous facilities, and spending on equipment like photocopiers would likely be distributed across various locations and potentially procured through different contract vehicles or task orders. Without a broader dataset, it's difficult to determine if this specific award is indicative of a trend, an increase, or a decrease in overall IHS spending on such equipment. However, such procurements are standard operational necessities for healthcare facilities.

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

Solicitation ID: RFQ1606835

Offers Received: 4

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: $104,886

Exercised Options: $81,147

Current Obligation: $81,147

Actual Outlays: $46,132

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F137DA

IDV Type: FSS

Timeline