IRS Spends $27.3M on Xerox Managed Print Services, Ending 2024
Contract Overview
Contract Amount: $27,311,077 ($27.3M)
Contractor: Xerox Corporation
Awarding Agency: Department of the Treasury
Start Date: 2017-09-30
End Date: 2024-07-31
Contract Duration: 2,496 days
Daily Burn Rate: $10.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS - MANAGED PRINT SERVICES
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $27.3 million to XEROX CORPORATION for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS - MANAGED PRINT SERVICES Key points: 1. Significant contract value of $27.3 million over its term. 2. Xerox Corporation is the sole awardee, raising questions about competition. 3. Risk of vendor lock-in and potential for uncompetitive pricing. 4. IT hardware and services sector, with a focus on managed print.
Value Assessment
Rating: fair
The contract value is substantial. Without a benchmark for managed print services of this scale and duration, assessing its pricing against similar contracts is difficult. The firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, the data indicates a single awardee (Xerox), suggesting that only one bid was successful or deemed acceptable.
Taxpayer Impact: Taxpayer funds are being used for essential IRS operational needs. The competitive award process aims to ensure value for money, but the final price relative to market rates is not explicitly detailed.
Public Impact
Ensures continued operation of essential IRS printing and document management. Supports IRS's ability to process tax returns and communicate with taxpayers. Potential for cost savings through consolidated managed print services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed pricing comparison.
- Single awardee despite full and open competition.
- Long contract duration increases risk.
Positive Signals
- Firm fixed-price contract.
- Awarded under full and open competition.
- Essential service for IRS operations.
Sector Analysis
This contract falls within the Information Technology sector, specifically managed print services. Benchmarks for such services vary widely based on volume, equipment, and service level agreements, making direct comparison challenging without more granular data.
Small Business Impact
The data indicates that this contract was not awarded to small businesses. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract management reviews to ensure performance and adherence to terms, especially given the long duration.
Related Government Programs
- Computer Terminal and Other Computer Peripheral Equipment Manufacturing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole awardee despite full and open competition.
- Long contract duration (over 6 years).
- Lack of clear pricing benchmarks.
- Potential for vendor lock-in.
Tags
computer-terminal-and-other-computer-per, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $27.3 million to XEROX CORPORATION. IGF::OT::IGF FOR OTHER FUNCTIONS - MANAGED PRINT SERVICES
Who is the contractor on this award?
The obligated recipient is XEROX CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $27.3 million.
What is the period of performance?
Start: 2017-09-30. End: 2024-07-31.
What was the competitive landscape during the bidding process, and did other vendors submit proposals?
While the award method is 'FULL AND OPEN COMPETITION,' the data only shows Xerox Corporation as the awardee. This suggests that either only one proposal was received, or only one met the technical and cost requirements. Further investigation into the bidding process and the number of proposals received would clarify the true level of competition.
How does the per-unit cost of managed print services compare to industry benchmarks for similar government or commercial contracts?
The provided data does not include specific per-unit cost details or a breakdown of services rendered. To assess value for money, a comparison with industry benchmarks for managed print services, considering factors like device count, print volume, and service level agreements, would be necessary. The 'br' field (10942) might represent a benchmark, but its context is unclear.
What is the potential impact on IRS operational efficiency and taxpayer service if this managed print service fails or underperforms?
A failure or underperformance of managed print services could significantly disrupt IRS operations, impacting document processing, communication with taxpayers, and internal workflows. Given the critical nature of tax administration, such disruptions could lead to delays in processing, increased administrative costs, and potential negative impacts on taxpayer satisfaction and compliance.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Computer Terminal and Other Computer Peripheral Equipment Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 201 MERRITT 7, NORWALK, CT, 06851
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $265,573,329
Exercised Options: $63,899,887
Current Obligation: $27,311,077
Actual Outlays: $23,149,352
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TIRNO17D00012
IDV Type: IDC
Timeline
Start Date: 2017-09-30
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 12:53:10
Last Modified: 2025-02-06
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