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Home My WebLink About04/07/1998, C-3 - RFP FOR COPIER PURCHASE AND MAINTENANCE AGREEMENT council ' °� j ac,Enaa Repout 1¢ N.0 CITY O F SAN LUIS O B I S P O FROM: Bill Statler, Director of Finance Prepared By: Carolyn Dominguez,Accounting Manager C D Linda Kirby, Office Assistant II MK SUBJECT: RFP FOR COPIER PURCHASE AND MAINTENANCE AGREEMENT CAO RECOMMENDATION Approve a request for proposal (RFP) for the purchase and maintenance of copier machines, and authorize the CAO to award the contract if the purchase price (less trade-in value) for the thirteen copiers scheduled for replacement in 1997-99 is within the two-year budget($112,000). DISCUSSION Background The City owns 19 Minolta copy machines, 13 of which are scheduled for replacement in the 1997-99 Financial Plan period. The City's three-year agreement with Danka, the current Minolta vendor, expired in March 1998. After careful analysis of all the options available to us for replacing the copiers (see Alternatives), the most prudent course is to issue an RFP for both the purchase of the machines and their ongoing maintenance. Replacement Process A team of representatives from each department has been assembled to determine the minimum standards for copier requirements, select maintenance contract performance standards, evaluate RFP responses, conduct reference checks, and field test qualifying copier machines. Replacement Copiers ■ Replacement criteria. Our current copying management policy sets a standard life for copiers of 40 months. This guideline is based on several factors, including: our past history in keeping copiers for periods longer than 36 months; increased downtime due to age after this point; and technological obsolescence. ■ Features. The City has standardized copier models by volume of copies produced. As noted in the RFP we have three basic types of copiers. Some of the features common to all three include the ability to use recycled paper and two-sided copying (to support our recycling goals); in addition, the medium and high volume copiers will have automatic document feeding, three-hole punching and stapling capabilities which assists in improving staff productivity. Council Agenda Report—RFP for Copier Purchase and Maintenance Agreement Page 2 Evaluation and Selection Process Under the proposed RFP process, we will consider factors other than price in determining the best overall value for the City. A review committee will use the following three-phase selection process: Phase 1— Written Proposal Review/Finalist Candidate Selection A group of finalist candidates (generally the top 3 to 5 proposers) will be selected for follow-up interviews and presentations based on the following criteria as evidenced in their written proposals: ■ Understanding of the work required by the City. ■ Quality,clarity and responsiveness of the proposal. ■ Recent experience in successfully performing similar services. ■ Service capacity of vendor. ■ Proposed approach in completing the work. ■ References. Phase 2—Copier Field Test For the finalist candidates a test packet will be developed and candidate copiers will be tested for the following criteria: ■ Copy qty. ■ Demonstrated performance, reliability, and dependability. ■ Copier speed. ■ System features (document feeder configuration, duplexing capability, reduction/enlargement,maximum size of paper output, operation speeds, etc.) ■ Ease of operation and maintenance(user-friendliness, clearing jams, etc.) Phase 3-Price Competitiveness Contract award will be based on a combination of factors that represent the best overall value for completing the workscope as determined by the City, including: the written proposal criteria described above; results of background and reference checks; results from the field test phase; and price competitiveness. In short, we will be looking for the best overall value for the City, after considering service, background checks, copier performance and price. FISCAL IMPACT The 1997-99 Financial Plan includes appropriations of$39,000 in 1997-98 and$73,000 in 1998- 99 for replacement of copiers in the Support Services operating budget. e—.3— Council Agenda Report—RFP for Copier Purchase and Maintenance Agreement Page 3 ALTERNATIVES Operating Lease. Vendors will be asked to give an alternative proposal for leasing. Although it has not been the City's standard practice to lease in the past, with rapidly changing technology, an operating lease (not a lease-purchase arrangement), would allow us the maximum flexibility to make changes. As mentioned above, we currently believe the 40 month replacement cycle allows us to keep reasonably current with technological advances. Cooperative Purchasing. We explored the option of using the State of California cooperative purchasing program - California Multiple Award Schedule (CMAS). We found that no two copiers provided by different vendors (based on the CMAS catalog) had enough of the same features to be comparable - creating a real "apples to oranges" exercise. Many of the copiers on the CMAS contract are older models no longer carried in the vendor's current catalogue. In addition, several local vendors said they could provide us with copiers at more advantageous pricing than listed on the CMAS contract. SUMMARY The City's contract for replacing copiers has expired, and in accordance with our replacement guidelines, several copiers are scheduled for replacement. While we always try to use cooperative purchasing when it is available, it appears that an RFP is the most prudent avenue to pursue for this copier purchase. A list of prospective proposers is attached. ATTACHMENT Mailing list of prospective proposers. ON FILE IN THE COUNCIL OFFICE Request for proposal for copier purchase and maintenance agreement. e-3-3 Attachment MAILING LIST COPY MACHINE/MAINTENANCE-SPECIFICATION NO.9205 Advanced Office Automation,Inc. Sharp 2315 Meredith Lane Santa Maria,CA 93455 Attn: Tim Thornton Cargil Copier Systems Mita, Copystar, &Sharp P O Box 12509 San Luis Obispo,CA 93401 Central Coast Copier Panasonic&Sharp 302 N.Russell Ave. Santa Maria,CA 93455 Chaparral Business Machines Ricoh 825 Riverside Avenue Paso Robles,CA 93447 Copy Data of SLO County Mita, Copystar,Konica, Sharp, P O Box 696 Canon, Xerox&Toshiba Pismo Beach,CA 93449 Danka Minolta 3442 Empresa,Unit 3 San Luis Obispo,CA 93401 Attn: Holly Pesenti-Prieto Golden State Systems Savin 4420 Broad Street,Bldg.E San Luis Obispo,CA 93401 Attn: Tracy Young IKON Office Solutions,hic. Canon&Mita 2975 McMillian,Suite 160 San Luis Obispo,CA 93401 Attn: Bradley J.Burke Pinnacle Office Systems Toshiba&Konica 2004 Preisker Lane, Suite H Santa Maria, CA 93454 Attn: Mike Mitchell Superior Office Systems Panasonic 914 Grand Avenue Arroyo Grande,CA 93420 Ultrex Business Products Minolta&Panasonic 3000 Broad Street, Suite 101 San Luis Obispo,CA 93401 Attn: Grant R.Berkefeld Xerox Xerox 3485 Sacramento Drive, Suite A San Luis Obispo,CA 93401 Attn: Dave Rudder � _3_y