DOE awards $409K for RMR Duplicating Printer Maintenance to Ricoh USA Inc
Contract Overview
Contract Amount: $40,925 ($40.9K)
Contractor: Ricoh USA Inc
Awarding Agency: Department of Energy
Start Date: 2025-05-21
End Date: 2027-05-20
Contract Duration: 729 days
Daily Burn Rate: $56/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TO ACQUIRE RMR DUPLICATING PRODUCTION PRINTER MAINTENANCE AGREEMENT
Place of Performance
Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $40,924.8 to RICOH USA INC for work described as: TO ACQUIRE RMR DUPLICATING PRODUCTION PRINTER MAINTENANCE AGREEMENT Key points: 1. Contract value is $409,248 over two years. 2. Sole-source award to Ricoh USA Inc. 3. Risk of higher pricing due to lack of competition. 4. Sector: IT (Printing Machinery and Equipment Manufacturing).
Value Assessment
Rating: questionable
The contract is for printer maintenance, a common service. Without competitive bidding, it's difficult to assess if the $409,248 price is reasonable compared to market rates for similar agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for printer maintenance services.
Public Impact
Taxpayers may be overpaying for essential printer maintenance. Government agencies rely on functioning printers for daily operations. Lack of transparency in sole-source contracts can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Potential for overpricing
- Limited transparency
Positive Signals
- Essential service for agency operations
Sector Analysis
This contract falls under Printing Machinery and Equipment Manufacturing, a segment within the broader IT and services sector. Spending benchmarks for printer maintenance vary widely based on printer type, volume, and service level agreements.
Small Business Impact
The awardee is Ricoh USA Inc., a large corporation. There is no indication that small businesses were involved in this specific procurement, nor was there an effort to set aside a portion for them.
Oversight & Accountability
Sole-source awards warrant close oversight to ensure they are justified and that pricing is fair. The Department of Energy should have internal controls to review and approve such awards.
Related Government Programs
- Printing Machinery and Equipment Manufacturing
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in procurement process.
- No small business participation noted.
Tags
printing-machinery-and-equipment-manufac, department-of-energy, co, bpa-call, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $40,924.8 to RICOH USA INC. TO ACQUIRE RMR DUPLICATING PRODUCTION PRINTER MAINTENANCE AGREEMENT
Who is the contractor on this award?
The obligated recipient is RICOH USA INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $40,924.8.
What is the period of performance?
Start: 2025-05-21. End: 2027-05-20.
What is the justification for this sole-source award, and was a market research conducted to confirm no other vendors could provide the service?
The justification for a sole-source award is critical for ensuring taxpayer funds are used efficiently. Agencies typically need to demonstrate that only one vendor can meet the specific requirements, often due to proprietary technology or unique capabilities. Without this information, it's impossible to validate the necessity of bypassing competitive bidding and to assess potential price inflation.
How does the per-unit cost of this maintenance agreement compare to industry benchmarks for similar Ricoh printer models and service levels?
Benchmarking the per-unit cost against industry standards is essential for evaluating value. This involves comparing the contract's pricing structure, including parts, labor, and response times, against publicly available data or industry reports for comparable printer models and maintenance plans. A significant deviation could indicate overpricing or an inadequate service scope.
What is the potential impact on agency operational efficiency if this printer maintenance agreement is not cost-effective?
If the maintenance agreement is not cost-effective, it could lead to budget overruns that divert funds from other critical agency programs or operational needs. Furthermore, inefficient maintenance could result in increased downtime for essential printing equipment, potentially hindering the agency's ability to perform its core functions and meet its mission objectives.
Industry Classification
NAICS: Manufacturing › Industrial Machinery Manufacturing › Printing Machinery and Equipment Manufacturing
Product/Service Code: SPECIAL INDUSTRY MACHINERY
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Ricoh Company,Ltd.
Address: 300 EAGLEVIEW BOULEVARD STE 200, EXTON, PA, 19341
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $81,850
Exercised Options: $40,925
Current Obligation: $40,925
Actual Outlays: $13,642
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303021AMA000025
IDV Type: BPA
Timeline
Start Date: 2025-05-21
Current End Date: 2027-05-20
Potential End Date: 2029-05-20 00:00:00
Last Modified: 2026-04-08
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