Report # 02-337

Previous Council Item	Next Council Item	Corresponding Agenda
List of Council Meetings	List of Reports to Council	Sunnyvale Home Page

Report # 02-337 August 27, 2002

SUBJECT:

Award of Request for Proposals No. F0206-78 for a Citywide Copier Cost-per-Copy Lease Program (RTC#02-337)

REPORT IN BRIEF

Approval is requested for the award of a five-year contract to MBA of California, Inc. of Hayward for a cost-per-copy lease program as required by the Information Technology (IT) Department.

BACKGROUND

In the mid-1980s, Information Technology staff determined that it was more cost effective to lease copiers than to purchase them. Leasing provided flexibility in meeting needs as a result of rapid technological improvements and changing City requirements.

In 1996, Council awarded a three-year contract to Pitney-Bowes as a result of a competitive bidding process. In July 1999, Council awarded a second three-year contract to Pitney-Bowes (now known as Imagistics) under the same terms and conditions and pricing structure as the 1996 contract. The existing contract with Imagistics expires on September 30, 2002.

DISCUSSION

After review of copier lease programs in place at other public agencies, Information Technology staff determined that it would be in the best interest of the City to issue a Request for Proposals based on a cost-per-copy plan. As a result, Information Technology and Purchasing staff prepared Request for Proposals No. F0206-78. The specifications grouped the forty-two copiers used by various City departments into five categories. A sixth category was specified for a replacement copier in the City’s centralized Print/Copy Center managed by the Information Technology Department. The technical requirements included the ability to digitally copy, scan and print and to be network-ready so that the equipment proposed could be added to the City’s data network in the future.

The specifications developed for the cost-per-copy plan included all equipment costs, full service maintenance, supplies (excluding paper and staples), training and all applicable taxes.

The Request for Proposals was directly distributed to nine Bay Area copier dealers (representing the major copier manufacturers) and broadcast to fifty-six potential proposers through the DemandStar by Onvia public procurement network. Fourteen firms requested proposal documents. Sealed proposals were received and publicly opened on June 26, 2002.

Proposer

Copiers Proposed

Cost per Copy

Overage Cost per Copy

CPO Ltd., of Santa Clara

Konica

$.0455

$.0080

Imagistics Inc., of San Francisco

Pitney-Bowes

$.0376

$.0099

Lanier Worldwide, Inc., of San Jose

Note: With additional scanners to meet required specifications, cost per copy = $.0301

Lanier

$.0252

$.0065

MBA of California of Hayward

Mita

$.040

$.008

Minolta Business Solutions of Sunnyvale

Minolta

$.0299

$.0100

New Cal Industries of Pleasant Hill

Canon

$.0520

$.0080

OCE′-USA, Inc., of Santa Clara

OCE′

$.054593

$.0160

Pinnacle Document Systems of Pleasanton

Sharp

$.03827

$.0070

Xerox Corporation of San Jose

Xerox

$.0978

$.0060

Information Technology staff members evaluated the proposals using a point system based on the following components: technical capabilities and support, maintenance plan, training plan, installation process, contract billing and management reports, manufacturer support, equipment features, references and cost. The highest number of points for each component was 20 with the exception of cost, which had a maximum number of 100 points possible.

Staff has determined that MBA of California, Inc. offers the best and most advantageous proposal to the City for the following reasons:

The Mita digital copier equipment proposed substantially meets all of the City’s required features for the five categories of satellite copiers. The Lanier proposal includes an additional stand-alone color scanner to meet the required features for three out of the five categories of copiers; this does not present the best solution for the City’s needs. Minolta proposed copiers that do not meet the paper weight features on four of the categories, and the proposed copier for the fifth category does not meet the reduction/enlargement feature. The Sharp copier proposed by Pinnacle for the third category does not meet the required copy-per-minute speed, and the Sharp copiers proposed for the fourth and fifth categories do not have the required file format and imaging protocol. The Pitney-Bowes copiers proposed by Imagistics meet most of the required features; however, there are concerns with the proposed contract as stated below.
The cost-per-copy pricing proposed by MBA includes the cost of staples.
The reference checks indicate that MBA will provide the level of service required to meet City needs. In addition, MBA has been providing and maintaining facsimile machines installed throughout the City for almost three years and has a proven record of consistently meeting service expectations.
MBA had no exceptions to the proposed terms and conditions contained in the Request for Proposals. Minolta required a separate agreement when copiers are added in the future. The proposal submitted by Imagistics was considered incomplete due to lack of responses to all questions, insufficient business hours for service (proposed 9am-5pm versus the required 8am-5pm), charge for copier moves was not included in the cost-per-copy plan, and additional training after 90 days of install would be billable to the City.
The Lanier proposal is based on a cost-per-copy plan for the combined minimum volume for both the satellite copiers and the centralized Print/Copy Center copier. Based on initial review of the responses, the Lanier copier proposal does not appear to be the best solution for the Print/Copy Center.

The Request for Proposals stated that the City could award a contract "in part or in whole". Staff is continuing to review the responses for the system specified for the IT centralized Print/Copy Center and will request an award of a separate contract after the evaluation is completed. Because the existing contract with Imagistics (previously Pitney-Bowes) expires at the end of September 2002, staff is requesting Council’s award of the contract for the satellite copiers only at this time.

FISCAL IMPACT

Exact costs to the City for a five-year contract are difficult to predict due to fluctuations in copier usage. Estimates based on last fiscal year’s usage indicate a cost of approximately $156,000 per year for a total five-year cost of $780,000. Funds are available in the Information Technology Account No. 760090.

RECOMMENDATION

It is recommended that Council award a five-year contract in substantially the same form as the attached draft to MBA of California, Inc. for the lease of satellite copiers installed throughout the City.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Shawn Hernandez
Director, Information Technology

Approved by:

Robert S. LaSala
City Manager

Attachments

Service Agreement between the City of Sunnyvale and MBA of California for Digital Photocopy Machines

Previous Council Item	Next Council Item	Corresponding Agenda
List of Council Meetings	List of Reports to Council	Sunnyvale Home Page

Proposer	Copiers Proposed	Cost per Copy	Overage Cost per Copy
CPO Ltd., of Santa Clara	Konica	$.0455	$.0080
Imagistics Inc., of San Francisco	Pitney-Bowes	$.0376	$.0099
Lanier Worldwide, Inc., of San Jose Note: With additional scanners to meet required specifications, cost per copy = $.0301	Lanier	$.0252	$.0065
MBA of California of Hayward	Mita	$.040	$.008
Minolta Business Solutions of Sunnyvale	Minolta	$.0299	$.0100
New Cal Industries of Pleasant Hill	Canon	$.0520	$.0080
OCE′-USA, Inc., of Santa Clara	OCE′	$.054593	$.0160
Pinnacle Document Systems of Pleasanton	Sharp	$.03827	$.0070
Xerox Corporation of San Jose	Xerox	$.0978	$.0060