DHS awards $14M to Xerox for computer equipment, bypassing competition

Contract Overview

Contract Amount: $14,011,102 ($14.0M)

Contractor: Xerox Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-08

End Date: 2008-08-27

Contract Duration: 1,084 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OFFICE SUPPLY

Place of Performance

Location: ABBEVILLE, LAFAYETTE County, MISSISSIPPI, 38601

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.0 million to XEROX CORPORATION for work described as: OFFICE SUPPLY Key points: 1. Significant contract value of $14 million. 2. Sole-source award to Xerox Corporation raises competition concerns. 3. Contract duration of 1084 days suggests long-term need. 4. Focus on computer equipment and peripherals.

Value Assessment

Rating: questionable

The contract value of $14 million for computer equipment is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This method limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the required computer equipment and peripherals.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency in the procurement process. Potential for reduced innovation by not engaging a wider market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Clear contract awardee
Defined product category

Sector Analysis

The procurement falls under the IT sector, specifically for computer equipment and peripherals. The benchmark for such contracts can vary widely based on specific hardware and service needs.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this sole-source award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received the best possible value and that the justification for not competing was sound.

Related Government Programs

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.0 million to XEROX CORPORATION. OFFICE SUPPLY

Who is the contractor on this award?

The obligated recipient is XEROX CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2005-09-08. End: 2008-08-27.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further documentation, it's impossible to determine the specific rationale used by FEMA in this instance, but it is a critical factor in assessing the procurement's validity and potential value.

How does the $14 million award compare to market rates for similar computer equipment?

Benchmarking this $14 million award against market rates is challenging without detailed specifications of the computer equipment and peripherals procured. However, the absence of competition suggests a potential for inflated pricing compared to what could have been achieved through a competitive bidding process.

What is the long-term impact of awarding such a large contract without competition?

Awarding large contracts without competition can set a precedent, potentially discouraging future competition and leading to sustained higher costs for the government. It also limits opportunities for innovative solutions from a broader range of vendors and may reduce overall efficiency in government spending.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 CARILLON PKWY, SAINT PETERSBURG, FL, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,011,102

Exercised Options: $14,011,102

Current Obligation: $14,011,102

Timeline