USDA Managed Print Services Contract Awarded to Conduent for $109M, Ending 2026

Contract Overview

Contract Amount: $109,296,377 ($109.3M)

Contractor: Conduent Federal Solutions LLC

Awarding Agency: Department of Agriculture

Start Date: 2016-08-22

End Date: 2026-06-12

Contract Duration: 3,581 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: UNITES STATES DEPARTMENT OF AGRICULTURE ENTERPRISE-WIDE MANAGED PRINT SERVICES. IGF::OT::IGF

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $109.3 million to CONDUENT FEDERAL SOLUTIONS LLC for work described as: UNITES STATES DEPARTMENT OF AGRICULTURE ENTERPRISE-WIDE MANAGED PRINT SERVICES. IGF::OT::IGF Key points: 1. The contract is for enterprise-wide managed print services, indicating a broad scope of IT support. 2. Conduent Federal Solutions LLC is the sole awardee, raising questions about competition. 3. The contract value is substantial at over $109 million, requiring careful oversight. 4. The sector appears to be IT services, specifically computer systems design. 5. The contract duration is nearly 10 years, suggesting a long-term need.

Value Assessment

Rating: fair

The contract value of $109M over nearly 10 years suggests a significant investment in managed print services. Benchmarking against similar large-scale IT service contracts would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to fully assess the competitive landscape.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently. The final price reflects market competition, but the long-term nature of the contract warrants ongoing scrutiny.

Public Impact

Federal agencies rely on managed print services to streamline document management and reduce costs. This contract impacts the Department of Agriculture's ability to manage its vast information resources. The long duration of the contract means potential for significant cost savings or overspending over time. The IT services sector is crucial for modern government operations, and this contract is a key component.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 10 years) may limit flexibility and opportunities for cost renegotiation.
Lack of specific performance metrics or outcome-based pricing details.
Potential for vendor lock-in with managed print services.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm fixed price contract type can provide cost certainty.
Managed print services can lead to efficiency gains and cost reductions if implemented effectively.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for managed print services can vary widely based on agency size and scope, but a $109M contract over 10 years represents a significant commitment.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. The prime contractor, Conduent Federal Solutions LLC, is a large entity, suggesting that subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award.

Oversight & Accountability

The Office of the Chief Financial Officer is overseeing this contract. Regular performance reviews and audits are crucial to ensure the agency is receiving value for money and that the contractor is meeting its obligations.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Long contract duration may lead to inflexibility.
Potential for vendor lock-in.
Lack of detailed performance metrics in the provided data.
Substantial contract value requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $109.3 million to CONDUENT FEDERAL SOLUTIONS LLC. UNITES STATES DEPARTMENT OF AGRICULTURE ENTERPRISE-WIDE MANAGED PRINT SERVICES. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CONDUENT FEDERAL SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $109.3 million.

What is the period of performance?

Start: 2016-08-22. End: 2026-06-12.

What specific metrics are used to measure the success and cost-effectiveness of these managed print services over the contract's lifespan?

The success and cost-effectiveness of managed print services are typically measured through metrics such as cost per page, device utilization rates, reduction in print volume, uptime of equipment, and user satisfaction. The contract should clearly define these Key Performance Indicators (KPIs) and the associated reporting requirements to ensure accountability and demonstrate value to taxpayers.

How does the agency ensure that the firm fixed price remains competitive and reflects current market conditions throughout the nearly 10-year contract term?

While a firm fixed price provides initial cost certainty, agencies can ensure competitiveness through periodic market research, benchmarking against similar contracts, and incorporating price adjustment clauses tied to relevant economic indices. Regular performance reviews should also assess whether the fixed price still represents fair value, with options to renegotiate or seek alternative solutions if significant market shifts occur.

What is the anticipated environmental impact of consolidating and managing print services across the entire USDA, and are there sustainability goals included?

Consolidating managed print services can lead to environmental benefits through reduced energy consumption from fewer devices, optimized paper usage, and potentially more efficient recycling programs. The contract should ideally include specific sustainability goals, such as targets for paper reduction, use of recycled content, and responsible disposal of old equipment, aligning with broader government environmental mandates.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: AG-3144-S-16-0017

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12410 MILESTONE CENTER DR FL 5, GERMANTOWN, MD, 20876

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $109,296,377

Exercised Options: $109,296,377

Current Obligation: $109,296,377

Actual Outlays: $91,896,774

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200003W

IDV Type: GWAC

Timeline