HHS Spends $17.1M on Xerox Reproduction Services, Awarded via Competitive Delivery Order
Contract Overview
Contract Amount: $17,133,651 ($17.1M)
Contractor: Xerox Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2008-10-01
End Date: 2009-09-30
Contract Duration: 364 days
Daily Burn Rate: $47.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REPRODUCTION SERVICES
Place of Performance
Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15222, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Health and Human Services obligated $17.1 million to XEROX CORPORATION for work described as: REPRODUCTION SERVICES Key points: 1. The contract for reproduction services was awarded to Xerox Corporation, a major player in the industry. 2. The spending of $17.1M represents a significant investment in printing machinery and equipment manufacturing. 3. Competition was present, indicated by the 'COMPETITIVE DELIVERY ORDER' type, suggesting potential for price negotiation. 4. The sector is related to office equipment and services, with potential for automation and digital alternatives impacting future needs.
Value Assessment
Rating: fair
The contract value of $17.1M for reproduction services over one year appears high. Benchmarking against similar contracts for large-scale printing and copying solutions is necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded as a 'COMPETITIVE DELIVERY ORDER', this suggests that multiple vendors were likely solicited, and the contract was awarded based on a competitive process. This method generally promotes price discovery and potentially better value.
Taxpayer Impact: Taxpayer funds were used for this contract. The competitive nature of the award is a positive sign for efficient use of funds, but the overall value needs further scrutiny.
Public Impact
Government agencies rely on reproduction services for essential document management and dissemination. The choice of vendor and contract terms can impact the cost and efficiency of internal operations. Technological advancements in digital document management may influence the long-term need for traditional reproduction services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a single year.
- Potential for obsolescence of services due to digital transformation.
Positive Signals
- Awarded through a competitive process.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
The spending falls within the broader 'Information Technology' or 'Professional Services' sectors, specifically related to office equipment and reproduction. Benchmarks for similar government contracts for printing and copying services would be relevant.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The 'Office of the Assistant Secretary for Administration' within HHS is responsible for overseeing administrative functions, including procurement. Standard oversight mechanisms for contract performance and financial management would apply.
Related Government Programs
- Printing Machinery and Equipment Manufacturing
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- High annual spending amount.
- Potential for service obsolescence due to digital trends.
- Lack of explicit small business participation data.
- Dependence on a single vendor for a significant period.
Tags
printing-machinery-and-equipment-manufac, department-of-health-and-human-services, pa, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $17.1 million to XEROX CORPORATION. REPRODUCTION SERVICES
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 (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $17.1 million.
What is the period of performance?
Start: 2008-10-01. End: 2009-09-30.
What is the benchmark cost for similar reproduction services contracts of this scale?
Determining the benchmark cost requires comparing this $17.1M contract against other government or large-scale private sector contracts for reproduction services. Factors like volume, service level agreements, equipment provided, and contract duration are crucial for an accurate comparison. Without specific benchmark data, it's difficult to definitively assess if this price is optimal.
What are the risks associated with relying on a single vendor for reproduction services, even if competitively awarded?
Even with a competitive award, over-reliance on a single vendor like Xerox for reproduction services carries risks. These include potential price increases in future contract renewals, vendor lock-in, and reduced flexibility if service quality declines. Furthermore, the rapid evolution of digital document management could render extensive physical reproduction services less critical, posing a risk of underutilization or obsolescence.
How effectively does this contract support the HHS's mission and operational needs?
The effectiveness of this contract hinges on how critical high-volume reproduction services are to the HHS's daily operations and mission objectives. If essential documents, reports, or public information require extensive printing, then the contract is effective. However, if digital alternatives could achieve similar or better outcomes at a lower cost or with greater accessibility, the effectiveness of this specific spending may be questionable.
Industry Classification
NAICS: Manufacturing › Industrial Machinery Manufacturing › Printing Machinery and Equipment Manufacturing
Product/Service Code: PHOTO, MAP, PRINT, PUBLICATION › PHOTOGR, MAPPING, PRINTING, PUBLISH
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7900 WESTPARK DR STE A400, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,133,651
Exercised Options: $17,133,651
Current Obligation: $17,133,651
Parent Contract
Parent Award PIID: GS25F0062L
IDV Type: FSS
Timeline
Start Date: 2008-10-01
Current End Date: 2009-09-30
Potential End Date: 2010-02-26 00:00:00
Last Modified: 2016-04-18
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