RECOMMENDATION:
THAT
the report entitled “Award of RFP 075-R-05 Supply and Service of Multifunctional Devices,
Print Management Software, Black and White Printers, Large Format Copier, Colour
Copier and Print Shop finishing equipment” be received;
AND
THAT the contract for RFP 075-R-05 Supply and Service of Multifunctional Devices, Print
Management Software, Black and White Printers, Large Format Copier, Colour Copier
and Print Shop finishing equipment be awarded to the highest
ranked and lowest priced bidder, Xerox Canada Ltd. in their unit prices outlined in their
proposal in the total amount of $496,298.88 exclusive of GST and copy cost* and
as summarized as follows:
Part A: Purchase of 40 Multifunctional Devices
(MFDs) in the total amount of
(User Depts.) $289,877.40
exclusive of copy cost at $0.0097 per impression;
Part B: Purchase of TWO (2) black and white
high speed printers, Nuvera Digital Copier
(Print Shop) Printer at
$62,640.00 and Xerox WCP90 at $18,978.84 exclusive of copy cost at $0.007 per
impression;
Purchase
of ONE (1) colour printer Xerox DC3535 at $33,226.20
exclusive of copy cost at $0.0129 for black and white and $0.108 for colour per impression;
Purchase
of finishing equipment at $22,888.44;
Part C: Purchase
of ONE (1) Large Format Colour Copier in the amount of
(Eng.
Dept.) $68,688.00 exclusive of copy
cost at approximately $0.66 per impression;
AND THAT funds for Parts A
& B are provided for in the 2006 ITS Capital Budget (Project 7287-ITS Core
Base Architecture) in the amount of $427,610.88 exclusive of GST and funds for Part C are
provided for in the 2005 ITS Capital
Budget account No. 49-6150-6738-005 in the amount of $68,688.00;
AND THAT Xerox be considered
the preferred supplier for the Town of Markham for Multifunctional Devices, Print
Management Software, Black and White Printers, Large Format Copier, Colour
Copier and Print Shop finishing equipment for the next 5 years.
AND THAT $427,610.88 in the 2006 ITS Capital Budget
(Project 7287-ITS Core Base Architecture) be approved in advance of the 2006
Budget.
*Copy cost means the cost per page charged
by the vendor to compensate for toner, maintenance, etc.
PURPOSE:
The purpose of this report is to obtain
Council approval to award the contract for RFP 075-R-05 Supply and Service of Multifunctional Devices, Print Management
Software, Black and White Printers, Large Format Copier, Colour Copier and
Print Shop finishing equipment to Xerox Canada Ltd.
BACKGROUND:
In
the fall of 2004, staff from ITS, Clerk’s and Purchasing met to establish a
plan to review the town’s printing needs and develop a print strategy. The plan was to review and consolidate
processes and costs and to establish printing guidelines for the
Corporation. Currently, the Town’s printers, fax
machines and other networked equipment are administered by ITS and the
photocopiers and print shop equipment by the Clerk’s Department. The purchasing and leasing of the equipment
has been at different periods and times. The review has provided for a unified
approach for the replacement of all the printing equipment. There are over 600 desktop and laptop
computers, over 140 laser and inkjet printers, over 10 speciality printers
including plotters and 36 walk-up photocopiers.
The Town is currently leasing the photocopiers from Minolta Canada on a month-to-month basis and
the Print Shop high-speed copiers and colour copier are on a month-to-month
leasing agreement with Xerox.
A
print strategy request for proposal, RFP 099-R-04, Needs Analysis was
undertaken. The More Group was awarded the RFP.
The More Group performed a review and needs analysis for the Town’s
fleet of laser and ink jet printers, fax machines, photocopiers as well as the
printing equipment for the Print Shop.
The
scope of work included the performance of a print management study to determine
the most cost effective method of printing and the development of a strategy
that best fulfils the Town’s productivity and cost requirements. The strategy was to investigate the
potential of reducing the current costs and increase employee productivity by
providing printing, copying, scanning, faxing, scan to e-mail and LAN faxing
through one piece of equipment, i.e. the Multifunctional Device (MFD).
The More Group conducted multiple Document
Flow Analysis interviews at all the Town facilities to identify the print,
photocopy, fax, colour requirements and scan opportunities per work group. In addition to the work groups; senior
management, Commissioners, Directors and
Members of Council were interviewed. The
collected information was used to determine the requirements for each work
group within each site. This included
the best print migration solution for each group based on current costs and
opportunities for cost reduction and improved efficiency. The type of equipment was then identified for
each of the work groups which formed part of the specifications for RFP
075-R-05 for the replacement equipment.
The information was also presented to the Department Head Forum on February 17, 2005 for comments and concurrence.
To ensure the Town was moving in the right
direction, the Town contracted IKON Office Solutions, Inc to perform a peer
review of the More Group, on the document output strategy and the proposed
Corporate Printing Guidelines. IKON concurred that the Town was on the right
track towards a more cost-effective and efficient office environment and that
the print guidelines comprised a very comprehensive document that addressed
each of the areas necessary to embark on a well-planned, efficient print
strategy.
BID INFORMATION
|
Advertised
|
Electronic Tendering Network
|
|
Bids closed on
|
June 9, 2005
|
|
Number picking up bid
documents
|
15
|
|
Compulsory Vendor Meeting
|
11
|
|
Number responding to bid
|
8
|
|
Company
|
Part A - MFDs for User Departments
|
Part B – Print Shop
|
Part C – Large Format
Colour Copier for Engineering
|
|
Xerox
|
$ 523,157.40
|
$ 167,721.84**
|
$68,688*
|
|
Pitney
Bowes
|
$ 535,217.48
|
No Bid
|
No Bid
|
|
4
Office
|
$ 548,098.11
|
Did not meet specs.
|
No Bid
|
|
Toshiba
|
$ 622,771.20
|
$
215,460.00
|
No Bid
|
|
Minolta
|
$ 649,647.00
|
$
260,170.92
|
No Bid
|
|
Ricoh
|
$ 728,942.55
|
$
215,455.87
|
No Bid
|
|
LaserNetwork
|
$ 745,164.90
|
Did not meet specs.
|
No Bid
|
|
Nex Innovation
|
$1,209,808.04
|
No Bid
|
No Bid
|
Note:
Prices are inclusive of PST and copy charge estimates for 5 years,
exclusive of GST
*Exclusive of copy charges
The price analysis for Part A and B was based
on the purchase, servicing and estimated five year operating costs of 40 MFDs for all user departments and a Xerox 2101 ST Digital
Copier, a Xerox WCP90, a DC3535 colour printer and finishing equipment for the
Print Shop. The price for Part C was for
the purchase of 1 Large Format Colour Copier for the Engineering Department,
exclusive of copy charges. The reason
for excluding the copy charges in the analysis for Part C is due to the variety
of copy sizes generated by this copier which makes it difficult to determine
the cost per copy charge.
**It should be noted that Part B in Table A
was based on the purchase price of 2 high speed printers and finishing
equipment for the Print Shop only. The
RFP did not request a price for a colour printer for the Print Shop. The recommended price for a colour printer
for the Print Shop was negotiated with the recommended proponent, Xerox, after
the completion of the evaluation process.
It should also be noted that the original submission for the Xerox 2101
ST was upgraded to a Nuvera Digital copier.
EVALUATION
RESULTS:
The RFP was evaluated by a
team consisting of staff from Clerks,
Finance, IT Departments and a consultant from The More Group with Purchasing
staff acting as the facilitator. The
proposals were evaluated in two stages based on the pre-established evaluation
criteria as listed in the RFP. The two
highest ranked proponents from Stage 1 evaluation, Xerox and Ricoh were short
listed for Stage 2 evaluation which included on site demonstration with results
listed in Table B.
Table B
|
Part A – MFD for User Departments
|
Weight
|
Xerox
|
4 Office
|
Konica Min
|
Toshiba
|
Pitney Bowes
|
Ricoh
|
Laser
|
NexInnov
|
|
Service Evaluation
|
45
|
23.20
|
22.60
|
20.40
|
16.60
|
12.40
|
26.80
|
20.40
|
21.00
|
|
Price*
|
30
|
30.00
|
28.60
|
24.20
|
25.20
|
29.30
|
21.50
|
21.10
|
13.00
|
|
Total Part A – Stage 1
|
75
|
53.20
|
51.20
|
44.60
|
41.80
|
41.70
|
48.30
|
41.50
|
34.00
|
|
Part A On Site Demo – Stage 2
|
25
|
10.40
|
|
|
|
|
13.80
|
|
|
|
Total for Part A
|
100
|
63.60
|
51.20
|
44.60
|
41.80
|
41.70
|
62.10
|
41.50
|
34.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Part B - Print Shop
|
Weight
|
Xerox
|
4 Office
|
Konica Min
|
Toshiba
|
Pitney Bowes
|
Ricoh
|
Laser
|
NexInnov
|
|
Service Evaluation
|
35
|
17.60
|
Do Not
|
16.20
|
Do Not
|
No Bid
|
21.20
|
Do Not
|
No Bid
|
|
Price*
|
30
|
30.00
|
Meet
|
19.30
|
Meet
|
0.00
|
23.40
|
Meet
|
0.00
|
|
Total Part B – Stage 1
|
65
|
47.60
|
|
35.50
|
|
|
44.60
|
|
|
|
Part B On Site Demo – Stage 2
|
35
|
17.08
|
Spec
|
|
Spec
|
|
19.32
|
Spec
|
|
|
Total for Part B
|
100
|
64.68
|
|
|
|
|
63.92
|
|
|
|
Grand Total Part A & B
|
|
128.28
|
|
|
|
|
126.02
|
|
|
*The financial scoring was calculated based
on a formula where the lowest price (numerator = A) is divided by each proposed
pricing (denominator = B) multiplied by 100.
The score is then multiplied by the assigned weight of 30%.
Xerox, being the highest ranked
bidder during the evaluation, was requested by staff to provide MFD demo
units. These machines were placed in
various departments for staff comments and understanding of the processes. Feedback on the equipment and the processes
was gathered from the demo equipment users.
The information gathered will be used to develop a training
program. In addition, Xerox and staff conducted
two information sessions in the Council Chambers to interested users to learn
more about the MFDs.
Both sessions were well attended and well received. Over 60 town staff
attended.
Implementation-The roll out and initial training on the
multifunctional devices will take approximately two months with the assistance
of ITS and Xerox.
A communications plan will be implemented to ensure a smooth
transition. During the roll out period,
additional in-classroom training will be made available by the vendor and an
ITS trainer to assist town staff on maximizing all the functionalities of the
equipment from their desktop computers.
Replacement of the Large Format Colour
Printers in the Engineering Department will be on an as needed basis.
FINANCIAL CONSIDERATIONS:
The replacement of the traditional
photocopiers, printers and fax machines with MFDs
will result in significant savings for the Town. Since an MFD has the capabilities of a
photocopier, printer and fax machine, the purchase of these 40 MFDs will result in the reduction of 36 photocopiers, 31
printers and 33 fax machines across the Town.
Assuming a five year replacement program, this equates to a capital
savings of approximately $378,500 every replacement period. Operating costs for toner and maintenance are
expected to decrease by approximately $8,000 per year as well. As the migration from the laser printers
evolves, additional capital and operating savings to the corporation will also
occur.
The purchase of more modern equipment for the
Print Shop will result in savings of approximately $150,000 every replacement
period with operating savings of approximately $60,000 per year. These savings will be the result of lower click charges (i.e. the cost per page charged by the vendor
to compensate for toner, maintenance, etc.). Approximately $200,000 can be
removed from the Print Shop and departmental operating budgets as the result of
lower costs and the decision to buy as to lease.
Funds in the amount of $68,688.00 exclusive of GST are
included in the 2005 ITS Capital Budget account No. 49-6150-6738-005 and funds in the amount of $427,610.88 exclusive of GST are
included in the 2006 ITS Capital Budget (Project 7287). It is recommended that funds in 2006 ITS Capital
Budget (Project 7287) in the amount of $427,610.88 exclusive of GST be
pre-approved from the 2006 Capital for this initiative.
ENVIRONMENTAL
CONSIDERATIONS:
During the
peer review, IKON provided an environmental analysis on the recommendations
that the Town is planning to implement. The recommendations would reduce the
power consumption for copiers, printers and fax machines by approximately $7000
per year. The Town would also be decreasing the CO2 emissions into the
atmosphere by approximately 72,700 lbs per year. This amount of CO2 would require 987,500
square feet of forest to be absorbed.
The plan to set the default printer setting on the desktop computers to
duplex printing will also represent financial and environmental savings. If the Town is successful in decreasing its
paper usage by 600,000 pages per year from these efforts, it would be saving
approximately $4,200 and 72 trees annually.
|
|
|
|
|
Sheila
Birrell, Town Clerk
|
|
Andy
Taylor, Commissioner of
Corporate
Services
|
|
|
|
James
Allen, Chief Information Officer
|
