Lexmark International announced Friday it has signed an estimated $50 million deal to manage printing for the U.S. Department of Agriculture.
It's the latest in a series of deals with the federal government for the Lexington-based printer maker, which has focused on growing its managed print services offering in recent years.
As part of supervising the printer fleets of companies, Lexmark says it helps them understand the number of printers and pages being used and their costs, as well as develops ways to convert paper-based processes to paperless to save money.
"One of the main criteria of the USDA win was past performance," said Brian Henderson, Lexmark's federal consulting director.
The deal is structured so that USDA offices can determine when they would like to begin having their printing managed.
"What the USDA has done, and what we advise a lot of our customers to do, is set up a strategy and a contract at the enterprise level, but each individual department can leverage that contract as they see fit and out of their own budget," Henderson said.
The USDA contract has a five-year duration, according to Lexmark. The deal comes on top of procurement agreements announced in the past two years with the U.S. Department of Veterans Affairs and the Social Security Administration.
Managed print services has been a key focus of Lexmark's in recent years. During its most recent earnings conference call, CEO Paul Rooke said the company had a 100 percent contract renewal rate among its global Fortune 500 clients in 2011. It also has won 23 new contracts from Fortune 500-class clients globally during the past two years.
"Customers will only stay with you if they're satisfied," he said at the time. "These customers had a choice, and they stayed with Lexmark. I think that's a very powerful testament."