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HomeMy WebLinkAbout04.h. Reprographic Services Agreement with Xerox CorporationCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: June 16, 2011 Subject: AWARD A FIVE -YEAR CONTRACT FOR REPROGRAPHIC SERVICES AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH XEROX CORPORATION Submitted By. Initiating Dept./Div.: Randall M. Musgraves Administration /Communication Services Director of Administration REVIEWED AND RECOMMENDED FOR BOARD ACTION. '5K' M. Scahill S. K' g . M graves James M. Oily, General Mapager ISSUE: Board authorization is requested for the General Manager to execute a five - year contract with Xerox for a total amount of $1,421,865. RECOMMENDATION: Authorize the General Manager to execute the five -year contract for reprographic and mail services with Xerox Corporation. FINANCIAL IMPACTS: The five -year contract is for approximately $284,373 per year or $1,421,865 for five years, including equipment for a full reprographics service center (RSC), 15 walk -up copiers /printers /scanners, and staffing of the RSC for production, equipment maintenance, and mail service in District facilities. ALTERNATIVES /CONSIDERATIONS: Reject all proposals, which is not recommended. BACKGROUND: A Request for Proposals (RFP) for reprographic and mail services was initiated on March 17, 2011, and proposals received on April 20, 2011. As part of the RFP process, a committee consisting of Purchasing and Communication Services staff was formed to identify needs, develop scope of work, and to evaluate the proposals. The committee used the following criteria to evaluate the proposals: Knowledge and Expertise, Overall Strategy in Providing Required Services, Equipment/Software Demonstrations, Record of Past Performance, Cost to the District, Merit, Quality & Completeness of Proposal, Conformance to Agreement Terms and Conditions, and Financial Stability. Three proposals were received and evaluated: • Canon Business Services $194,556 / year • Xerox Corporation $282,081 / year • Perfect Output $357,076 / year POSITION PAPER Board Meeting Date: June 16, 2011 subject AWARD A FIVE -YEAR CONTRACT FOR REPROGRAPHIC SERVICES AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH XEROX CORPORATION After review and evaluation of these proposals, including follow -up inquiries to ensure a reasonable and equitable comparison of the three responses, the evaluation committee scored Xerox Corporation as the highest ranked proposal and therefore, the most suitable vendor for the equipment and services required. Xerox's proposal adhered best to the District's requirements in terms of equipment, maintenance, and staffing to ensure productivity and minimize District costs. Canon proposed significantly slower copy machines, contrary to the specifications in the RFP, thereby shifting costs from the contract to the District due to unproductive waiting time. Staff was required to seek clarification from Canon four times regarding their proposal and answers. Canon's understanding of the District's requirements was poor as was evident in the amount of clarification staff needed from Canon. Canon failed to provide several pieces of equipment, equipment capabilities, and software capabilities. These are undetermined additional costs. During the review process, Canon stated that they did not read the RFP and requirements very well. In addition, Canon took exception to District required liquidated damages to ensure an adequate service level for reprographic and mail activities. Canon's proposal was an attempt to provide a lower cost, even though it did not meet the District's stated RFP requirements. Staff finds the Canon proposal does not meet the District's needs. Perfect Output's proposal was significantly more costly than Canon and Xerox. They too had proposed slower machines, shifting costs from the contract to the District. Perfect Output was unable to meet several requirements stated in the RFP. Staff finds that the Perfect Output proposal does not meet the District's needs. Xerox ranked highest in the majority of the evaluation criteria: Knowledge and Expertise, Overall Strategy in Providing Required Services, Equipmenb'Software Demonstrations, Record of Past Performance, and Merit, Quality & Completeness of Proposal, and equal to Canon in Conformance to Agreement Terms and Conditions, and Financial Stability. Xerox has been the operator of the Reprographic Service Center for two five -year contracts over the past ten years. Its proposal, $1,421,865, is very much in line with the most recent contract, $1,475,400 which expires at the end of June 2011. Actual costs vary due to actual usage versus estimated usage for the proposal. The actual five -year costs under the current contract for reprographic and mail services is expected to be $1,635,000. POSITION PAPER Board Meeting Date: June 16, 2011 subject. AWARD A FIVE -YEAR CONTRACT FOR REPROGRAPHIC SERVICES AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS WITH XEROX CORPORATION RECOMMENDED BOARD ACTION: Authorize the General Manager to execute the five -year contract for reprographic and mail services with Xerox Corporation.