VA awards $27.3M in copier leases to Xerox, highlighting long-term equipment needs

Contract Overview

Contract Amount: $27,281,074 ($27.3M)

Contractor: Xerox Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-09-01

End Date: 2015-08-31

Contract Duration: 2,190 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COPIER LEASE FOR VISN 21

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.3 million to XEROX CORPORATION for work described as: COPIER LEASE FOR VISN 21 Key points: 1. Lease agreement for printing equipment demonstrates sustained demand for office technology. 2. The contract's duration suggests a strategic approach to managing equipment lifecycle. 3. Fixed-price structure provides cost predictability for the Department of Veterans Affairs. 4. Competition level indicates a potentially efficient market for these services. 5. Geographic focus on California suggests concentrated needs within VISN 21. 6. The absence of small business set-asides warrants further examination of market participation.

Value Assessment

Rating: good

The total award of $27.3 million over six years for copier leases represents a significant investment by the Department of Veterans Affairs. Benchmarking this against similar multi-year equipment leases is challenging without more specific details on the types and volumes of copiers. However, the firm fixed-price nature of the contract suggests that the VA aimed to secure predictable costs, which is generally a positive indicator for value, assuming the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that there were two bids suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids often leads to more aggressive pricing and a wider range of solutions, potentially offering better value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing, potentially driving down costs. The presence of two bidders suggests a competitive environment that likely benefited the government, though more bidders could have potentially yielded even greater savings.

Public Impact

Veterans Affairs Medical Centers (VISN 21) in California benefit from reliable access to essential printing and copying services. The contract ensures the availability of modern office equipment necessary for administrative and clinical operations. Geographic impact is concentrated within the VISN 21 network, serving facilities across California. Workforce implications include ensuring administrative staff have the tools needed for daily tasks, indirectly supporting healthcare delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation could limit opportunities for smaller vendors in the office equipment sector.
Long-term lease agreements may not always be the most cost-effective solution compared to outright purchase or shorter-term rentals.

Positive Signals

Full and open competition suggests a robust bidding process was followed.
Firm fixed-price contract provides cost certainty for the duration of the agreement.
The award to a single, established vendor like Xerox implies a focus on reliability and established service capabilities.

Sector Analysis

The market for office equipment leasing and maintenance is a mature sector within the broader business services industry. This contract falls under the 'Printing Machinery and Equipment Manufacturing' category, though it primarily represents a service contract for equipment provision and maintenance. Spending in this area is driven by the ongoing need for document management solutions across all federal agencies. Comparable spending benchmarks would typically involve analyzing other agencies' multi-year leases for similar volumes and types of office equipment.

Small Business Impact

This contract does not appear to have a small business set-aside. The fact that it was competed fully and openly, with only two bidders, raises questions about whether small businesses were aware of or able to compete for this requirement. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this large award to Xerox.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers responsible for VISN 21. Accountability is established through the terms and conditions of the firm fixed-price delivery order, including performance standards and payment schedules. Transparency is facilitated by the public availability of contract award data, though detailed operational performance metrics are typically not publicly disclosed.

Related Government Programs

Federal Office Equipment Procurement
Department of Veterans Affairs Information Technology Services
Government Printing and Copying Services
VISN 21 Operations Support

Risk Flags

Long-term equipment lease duration
Limited number of bidders in a full and open competition
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.3 million to XEROX CORPORATION. COPIER LEASE FOR VISN 21

Who is the contractor on this award?

The obligated recipient is XEROX CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2009-09-01. End: 2015-08-31.

What is the typical lifespan and replacement cycle for the copiers leased under this contract?

The contract duration is six years (2009-2015), which is a common term for large-scale office equipment leases. Copier lifespans can vary significantly based on usage, model, and maintenance, but a six-year lease often aligns with the point at which technology advances, maintenance costs increase, or equipment becomes less efficient. Federal agencies typically aim to replace equipment before it becomes a significant maintenance burden or technologically obsolete. This lease term suggests the VA planned for a standard refresh cycle within this period, balancing the need for current technology with the cost-effectiveness of longer-term leasing.

How does the total contract value of $27.3 million compare to the average annual spending on copier leases by federal agencies of similar size?

Comparing the $27.3 million total award to average federal spending on copier leases requires context on the scale of operations within VISN 21. This figure represents an average of approximately $4.55 million per year over the six-year term. To benchmark effectively, one would need to analyze spending patterns of other large federal networks or agencies with comparable numbers of facilities and employees. Without specific data on the number of copiers, their capabilities, and the geographic spread of VISN 21 facilities, a direct comparison is difficult. However, for a large regional network like VISN 21, this annual spend might be considered within a reasonable range, assuming it covers a substantial number of high-volume, multi-function devices across numerous locations.

What specific types and models of copiers were included in this lease agreement?

The provided data does not specify the exact makes, models, or types of copiers included in this $27.3 million lease agreement. The contract falls under the Product Service Code (PSC) of '3408 - Printing, Duplicating, and Bookbinding Equipment,' and the North American Industry Classification System (NAICS) code '333293 - Other Printing Machinery and Equipment Manufacturing.' These broad classifications indicate the general nature of the equipment but lack granular detail. Understanding the specific models would be crucial for a precise assessment of technological relevance, cost per unit, and feature sets compared to current market offerings.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this copier lease contract. Typically, such agreements for equipment leases would include metrics related to uptime/availability, response times for service calls, repair turnaround times, and potentially print quality standards. The Department of Veterans Affairs would have established these to ensure operational continuity and user satisfaction. Failure to meet these SLAs could result in contract remedies, such as service credits or penalties, which are standard components of government equipment service contracts.

Were there any performance issues or contract modifications during the six-year period of this lease?

The provided data summary does not include information on contract modifications or performance issues encountered during the six-year term of this copier lease (2009-2015). Government contracts, especially those of this duration and value, often undergo modifications for various reasons, such as changes in requirements, funding adjustments, or scope changes. Performance issues are also common and are typically addressed through contract management processes, including discussions with the contractor, potential remedies, or formal performance reviews. Accessing the contract file or official modification logs would be necessary to determine if any such events occurred.

Industry Classification

NAICS: Manufacturing › Industrial Machinery Manufacturing › Printing Machinery and Equipment Manufacturing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8260 WILLOW OAKS CORPORATE DR 6TH FL, FAIRFAX, VA, 22031

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

Financial Breakdown

Contract Ceiling: $27,313,265

Exercised Options: $27,313,265

Current Obligation: $27,281,074

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS25F0062L

IDV Type: FSS

Timeline