DOT's FAA Spends $17.1M on Toner, Awarded to ODP Business Solutions via Full and Open Competition
Contract Overview
Contract Amount: $17,148,913 ($17.1M)
Contractor: ODP Business Solutions, LLC
Awarding Agency: Department of Transportation
Start Date: 2010-08-26
End Date: 2015-07-15
Contract Duration: 1,784 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ATO TONER FUNDS TAS::69 1301::TAS
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Transportation obligated $17.1 million to ODP BUSINESS SOLUTIONS, LLC for work described as: ATO TONER FUNDS TAS::69 1301::TAS Key points: 1. Significant spending on office supplies highlights ongoing operational needs. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of nearly 5 years indicates a long-term requirement. 4. The award to ODP Business Solutions, a known office supply vendor, is typical for this category.
Value Assessment
Rating: fair
The total award value of $17.1M over nearly 5 years for toner suggests a substantial volume. Benchmarking against similar government contracts for office supplies is necessary to assess if the pricing was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The number of offers received and the final negotiated price would be key indicators of price discovery effectiveness.
Taxpayer Impact: Taxpayer funds were used for this purchase. The effectiveness of the competition in securing a fair price directly impacts the value for taxpayers.
Public Impact
Ensures operational continuity for the Federal Aviation Administration by providing essential office supplies. Supports a large federal agency's daily functions through a consistent supply chain. The contract's duration and value represent a significant commitment of federal resources to office supply procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of per-unit cost data makes precise value assessment difficult.
- Potential for price creep over the contract's nearly 5-year duration.
- Reliance on a single vendor for a critical commodity like toner.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Contract supports a vital agency (FAA), ensuring operational readiness.
- Firm fixed price contract provides cost certainty.
Sector Analysis
Spending on office supplies falls under general administrative and operational costs for federal agencies. Benchmarks for this sector are typically tied to overall agency budgets and procurement efficiency metrics, with significant variation based on agency size and mission.
Small Business Impact
The data does not indicate if small businesses were involved in the subcontracting or prime contracting. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting adherence to standard procurement regulations. Oversight would focus on contract performance, delivery, and adherence to the firm fixed price.
Related Government Programs
- Office Supplies and Stationery Stores
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Lack of detailed pricing data (per-unit cost, bid comparison).
- Long contract duration (nearly 5 years) increases risk of price escalation.
- Potential for vendor lock-in despite initial open competition.
- No indication of small business participation.
Tags
office-supplies-and-stationery-stores, department-of-transportation, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $17.1 million to ODP BUSINESS SOLUTIONS, LLC. ATO TONER FUNDS TAS::69 1301::TAS
Who is the contractor on this award?
The obligated recipient is ODP BUSINESS SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $17.1 million.
What is the period of performance?
Start: 2010-08-26. End: 2015-07-15.
What was the average annual spending on toner during this contract period?
The total award was $17.1M over approximately 1784 days (roughly 4.88 years). This equates to an average annual spending of approximately $3.51 million ($17,148,913.28 / 4.88 years). This figure provides a clearer picture of the consistent expenditure on toner for the FAA.
How did the final negotiated price compare to initial bids received under the full and open competition?
Information on initial bids versus the final negotiated price is not provided in the data. To assess the effectiveness of the competition, it would be crucial to know if the final price represented a significant reduction from initial offers or if it remained close to the highest bids, indicating less competitive pressure.
What is the estimated per-unit cost of toner cartridges under this contract?
The provided data does not include specific quantities or per-unit pricing for toner cartridges. Without this information, it is impossible to establish a per-unit cost benchmark or assess the value proposition effectively against market rates or similar government contracts.
Industry Classification
NAICS: Retail Trade › Office Supplies, Stationery, and Gift Stores › Office Supplies and Stationery Stores
Product/Service Code: OFFICE SUPPLIES AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Office Depot, Inc. (UEI: 153531108)
Address: 6304 WOODSIDE CT STE 1, COLUMBIA, MD, 21046
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $268,606,517
Exercised Options: $17,148,913
Current Obligation: $17,148,913
Parent Contract
Parent Award PIID: DTFAWA10D00026
IDV Type: IDC
Timeline
Start Date: 2010-08-26
Current End Date: 2015-07-15
Potential End Date: 2015-07-15 00:00:00
Last Modified: 2015-07-30
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