Treasury's $14.2M contract for SCAMP maintenance awarded to Bowe Bell + Howell Company without competition

Contract Overview

Contract Amount: $14,221,225 ($14.2M)

Contractor: Bowe Bell + Howell Company

Awarding Agency: Department of the Treasury

Start Date: 2004-02-03

End Date: 2009-03-31

Contract Duration: 1,883 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE ON SITE MAINTENANCE ON 20 SCAMPS

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27713

State: North Carolina Government Spending

Plain-Language Summary

Department of the Treasury obligated $14.2 million to BOWE BELL + HOWELL COMPANY for work described as: PROVIDE ON SITE MAINTENANCE ON 20 SCAMPS Key points: 1. The contract value of $14.2 million over approximately five years suggests a significant investment in maintaining essential office equipment. 2. The absence of competition for this contract raises questions about potential overpricing and the lack of market-driven cost efficiencies. 3. The duration of the contract (1,883 days) indicates a long-term reliance on the incumbent provider for critical maintenance services. 4. Awarding this contract on a firm-fixed-price basis provides cost certainty but may limit flexibility if service needs change. 5. The contract's classification as 'Not Competed' warrants scrutiny regarding the justification for foregoing a competitive bidding process. 6. The geographic location in North Carolina for this service delivery is a key operational detail.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source maintenance agreements for SCAMPs. However, a $14.2 million expenditure over five years for office equipment maintenance, especially without competition, suggests a potentially high per-unit cost. The lack of competitive bids means there's no market validation to ensure the pricing reflects fair market value. This raises concerns about whether taxpayers received the best possible price for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for this approach is not provided in the data. Typically, sole-source awards occur when only one vendor can provide the required goods or services, or in emergency situations. The lack of competition means that the government did not explore potential cost savings or service improvements that could have been achieved through a bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, which usually drives down prices and encourages innovation.

Public Impact

Federal agencies, specifically the IRS, benefit from the continued operational readiness of their SCAMP equipment. Essential services for the maintenance and support of 20 SCAMP units are delivered under this contract. The primary geographic impact is likely within the operational areas served by the IRS offices utilizing these SCAMPs, with a specific service location noted in North Carolina. The contract supports the workforce responsible for operating and maintaining these critical office equipment systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source awards can reduce transparency and accountability.
Potential for vendor lock-in and reduced service innovation.
Absence of market-based pricing validation.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Long-term contract ensures continuity of essential maintenance services.
Specific service location identified for operational clarity.

Sector Analysis

The market for office equipment maintenance is diverse, with numerous providers offering services for various types of machinery. However, specialized equipment like SCAMPs may have a more limited pool of qualified service providers. This contract falls within the broader 'Office Equipment Merchant Wholesalers' category, suggesting a focus on the maintenance and support of specific business machines rather than general office supplies. Comparable spending benchmarks for sole-source maintenance contracts of this nature are difficult to establish without more specific market data.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of small business subcontracting requirements (sb: false). This suggests that the primary contractor, Bowe Bell + Howell Company, is likely a larger entity, and the contract did not leverage small business participation as a strategic goal. Consequently, the direct impact on the small business ecosystem from this specific award appears minimal.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. However, as a federal contract, it would typically be subject to oversight by the contracting agency (Department of the Treasury, IRS) and potentially the Government Accountability Office (GAO) for bid protests or performance issues. Transparency is limited due to the sole-source nature. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

IRS Equipment Maintenance Contracts
Department of the Treasury IT and Equipment Procurement
Sole-Source Office Equipment Services
Federal Maintenance and Repair Contracts

Risk Flags

Sole-source award without clear justification
Potential for non-competitive pricing
Lack of transparency in procurement process
Long-term reliance on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $14.2 million to BOWE BELL + HOWELL COMPANY. PROVIDE ON SITE MAINTENANCE ON 20 SCAMPS

Who is the contractor on this award?

The obligated recipient is BOWE BELL + HOWELL COMPANY.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2004-02-03. End: 2009-03-31.

What is the specific function and importance of SCAMPs within the IRS?

SCAMPs, likely referring to specialized document processing or scanning equipment, are crucial for the Internal Revenue Service's operations, particularly in handling tax forms, financial documents, and other critical paperwork. Their efficient functioning is vital for timely processing of tax returns, managing taxpayer information, and ensuring data integrity. Disruptions or failures in SCAMP maintenance could lead to significant backlogs, delays in processing, and potential impacts on taxpayer services and agency efficiency. The IRS relies on these systems for core functions, making their maintenance a high priority.

What is the typical duration and cost for similar SCAMP maintenance contracts?

Determining typical durations and costs for SCAMP maintenance contracts is challenging without specific market data for this niche equipment. However, federal contracts for specialized equipment maintenance often range from one to five years, with options for renewal. Costs can vary significantly based on the complexity of the equipment, the number of units, the scope of services (e.g., preventative maintenance, on-site repair, parts replacement), and the vendor's pricing structure. A $14.2 million contract over approximately five years for 20 units suggests a substantial investment, potentially indicating high-value or complex machinery, or a lack of competitive pricing.

What are the risks associated with awarding a sole-source contract for essential equipment maintenance?

Sole-source contracts carry several risks. Primarily, the absence of competition can lead to higher prices than might be achieved through a competitive bidding process, as the vendor faces no pressure to offer the lowest cost. There's also a risk of reduced service quality or innovation, as the incumbent provider may become complacent without the threat of losing the contract. Furthermore, sole-source awards can limit transparency and make it harder to ensure accountability. Taxpayers may not be receiving the best value for their money. Dependence on a single vendor can also create risks if that vendor experiences financial difficulties or goes out of business.

What is the track record of Bowe Bell + Howell Company in federal contracting, particularly for maintenance services?

Bowe Bell + Howell Company has a history of federal contracting, often related to mail processing, document handling, and related equipment and services. Their involvement in maintenance contracts is consistent with their product lines. Assessing their specific track record for this type of SCAMP maintenance would require a deeper dive into past performance reviews, contract completion history, and any reported issues or successes on similar government contracts. Without that detailed performance data, it's difficult to definitively assess their reliability and effectiveness in this specific instance.

How does the $14.2 million contract value compare to the IRS's overall spending on office equipment maintenance?

The $14.2 million contract represents a significant portion of the IRS's budget allocated to maintaining a specific type of office equipment (SCAMPs). To contextualize this, one would need to compare it against the IRS's total annual spending on all office equipment maintenance, as well as the total budget for IT and operational equipment. If the IRS spends billions annually on various equipment, $14.2 million might be a relatively small, albeit important, segment. Conversely, if the IRS's total maintenance budget is lower, this contract would represent a substantial investment, warranting closer examination of its necessity and cost-effectiveness.

What are the potential implications of the contract's end date in 2009 for current IRS operations?

The contract's end date of March 31, 2009, indicates that this specific award is historical and no longer active. This means that the IRS has since procured maintenance services for these SCAMPs through subsequent contracts, likely after a competitive process or another sole-source justification. Analyzing this historical contract provides insight into past procurement practices and spending patterns. It highlights the long-term nature of equipment maintenance needs and suggests that the IRS has had ongoing requirements for SCAMP support, necessitating continuous contract awards over the years.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Office Equipment Merchant Wholesalers

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: BBH, Incorporated (UEI: 124320370)

Address: 3501 TRICENTER BLVD STE B, DURHAM, NC, 04

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

Financial Breakdown

Contract Ceiling: $16,047,194

Exercised Options: $14,819,626

Current Obligation: $14,221,225

Contract Characteristics

Cost or Pricing Data: NO

Timeline