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HomeMy WebLinkAbout04/15/2003, C9 - RFP FOR CONTRACT COPYING SERVICES council 415-03 acEnba Repom On CITY OF SAN LUIS O B I S P O FROM: Bill Statler,Director of Finance Debbie Malicoat,Accounting Supervisor SUBJECT: RFP FOR CONTRACT COPYING SERVICES CAO RECOMMENDATION Approve the Request for Proposal (RFP) for contract copy services and authorize the City Administrative Officer to award contract to the most responsive proposer. DISCUSSION The City currently contracts for approximately 50% of our copying needs. (The other half are made on in-house copiers.) These contract services are used for large reproduction requirements such as agenda packets and other reports. The City's Copying Management Policy (Financial Management Manual Section 725) recommends that documents requiring ten or more copies of a single sheet with a lead-time of six or more hours should be sent out for reproduction. The current extension period on the contract awarded to Poor Richard's Press in July of 1999 has expired. Staff will request proposals from all copy service firms located within the City for a one-year agreement with a renewal option for an additional two years. If the contract is extended, prices may be renegotiated based on the annual percentage change in the consumer price index. Selection will be based on the most responsive proposal with consideration given to cost per copy, proposal responsive, frequency of pickup and delivery, use of recycled paper, experience in providing similar services to others and the results of reference checks. Although cost is a major consideration, under the City's purchasing guidelines for RFP's, these other criteria will be also be considered in determining the most responsive proposal. FISCAL IMPACT The award of a contract to a copy service vendor allows for blanket purchasing by City departments based on their need for service and funding levels approved in their operating budgets. Its sets "per copy" pricing, but it does not commit the City to a specific volume or type of work. As such, the award of a copy service contract does not directly impact the City's budget. However, labor savings on high volume copy jobs makes contracting out more cost effective than in-house reproduction; and competitively bidding this work assures us the best possible combination of service and pricing. During the past year, the City paid about $46,000 to Poor Richard's Press under the current contract. Even though this is within the CAO's purchasing approval, we are bringing this to the Council for approval since the potential exists, based on actual volumes, of costs being more than $50,000 with the selected vendor, which is more than the CAO's current purchasing authority. ON - I o RPP for Contract Copying Services Page 2 ALTERNATIVES 1. Provide in-house copying services. To accommodate all of the City's reproduction needs in- house would require the purchase of additional copy machines, the hiring of additional personnel to operate the equipment,higher utility costs and the allocation of floor space to run a print shop. Due to these factors, contracting for large reproduction orders is a more cost-effective approach in meeting the City's needs. 2. Do not request competitive proposals. Case-by-case orders by departments with various vendors would result in higher costs and unclear performance requirements. The City is better served by a master agreement that sets uniform pricing and service standards for all departments. ON FILE IN COUNCIL OFFICES RFP for contact copying services G:Finance/Copy Contract/Agenda Report.April 15,2003 ca ^a