CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES
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1 Los Angeles County Metropolitan Transportation Authority One Gateway Plaza Los Angeles, CA Tel metro.net 22 Metro OPERATIONS COMMITTEE SEPTEMBER 16, 2010 SUBJECT: ACTION: CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES AWARD CONTRACT NUMBER PSI RECOMMENDATION Authorize the ChiefExecutive Officer to: A. Award a five-year, indefinite delivery, indefinite quantity contract beginning October 1,2010 under RFP No. PS , with Canon Business Solutions, Inc., the highest rated proposer for the lease and maintenance ofmultifunction peripherals for convenience copying and document management services in an amount not to exceed $6,240,255, inclusive of estimated sales taxes. B. Award a five-year, indefinite delivery, indefinite quantity contract beginning October 1, 2010 under RFP No. PS , with SoCal Office Technologies, the highest rated proposer for a one-year pilot test ofprint management services and four-years ofadditional service in an amount not to exceed $1,866,151, inclusive ofestimated sales taxes. RATIONALE Convenience Copying Metro requires a variety ofequipment to enable staffat all Metro locations to copy, print, fax, and scan documents and reports. Current needs are being met by 180 multi-function peripherals (MFP). The current lease and service will expire on September 30,2010. This recommendation is to replace the current MFP's with updated equipment that is capable ofcopying black and white and color originals; printing from a PC on the network; and scanning a document in black and white or color that can then be routed as a fax to any fax machine or via .
2 Print Management Currently, Metro deploys 1,180 printers, a combination ofdedicated and networked printers to service the print function for our desktop workstations and business systems. At least sixty percent ofthese printers are now over five years old and nearing the end of their economical life. Also, as manufacturers have changed their product line over time, it has resulted in many different models ofprinters in use. This necessitates the need to keep many different types oftoner cartridges in inventory, some ofwhich may not get used before the printer fails and cannot be economically repaired. To mitigate this situation and to reduce printing costs, a one year pilot, consisting oftwo locations, will be conducted on the use ofvendor provided print management services, a program similar to convenience copying service. The service will provide replacement printers for the oldest twenty-five percent ofour printer inventory, toner for all printers, and spare parts to repair them as needed. Use ofthis service is estimated to realize a fifty percent savings on the per page cost to print. At the conclusion ofthe pilot period, ifthe cost benefits ofprint management services are substantiated, we will extend the program to all Metro locations. Document Management Metro must become more effective and efficient in complying with its Records Management Program and Federal Section 508 requirements for electronic documents. Using the MFP to scan a document to a networked PC or server would (1) help eliminate the cost ofprocuring and servicing new scanners; (2) support efforts to move towards more efficient paperless processing; and (3) enable staffto easily convert documents into searchable PDF, Excel, and Word formats for efficiently manipulating data or text. Additionally, utilizing the MFP to scan a document and send it via to any location on a network or throughout the world via the Internet promises to accelerate the distribution ofcritical documents, reduce courier costs, and provide better quality in transmitted documents than is available through a fax. FINANCIAL IMPACT The funding of$543,491 for convenience copying service is included in the FYll budget in cost center 6420, Copy Services under project , General Overhead, and line item 51205, Leases and Rentals. Funding of$21,370 for print management service is included in the FYll budget in cost center 9220, ITS Operations and Service Delivery under project , General Overhead, and line item 50308, Contract Maintenance. Since this is a multi-year contract, the Executive Officer ofadministration will be responsible for budgeting in future years. 2
3 Impact on Bus and Rail Operating and Capital Costs The sourceof funds for project is a combination of all available agency funds. General Overhead project is allocated to all direct projects based on federally approved guidelines and cost allocation plan. In the FY11 budget as adopted, approximately 74% ofproject expense goes to Bus and Rail Operations, 9% to Capital and Major Construction Projects and 17% to Planning activities. No other source offunds were considered for these activities because these services are used by all departments in the agency. In FY10, $377,614 was expended on convenience copying services. During this period there were no expenditures for print management services. ALTERNATIVES CONSIDERED The alternatives to approving this recommendation would be (1) to continue using the current machines; (2) to send all photocopying to the copy center or an outside vendor; (3) to purchase new multi-function machines; or (4) implement the entire print management program. These alternatives are not recommended for the following reasons: 1. Continue the current lease for multi-function devices. The equipment has been in use for almost five years. Many ofmachines are worn out and obsolete. Additionally, newer technology along with increased capabilities will allow staffto plan the elimination ofstand-alone printers and improve document management processes. 2. Sending all photocopying and printing to the Copy Center and/or an outside vendor. This would impede workflow. Although staffalready sends large copy projects to the Copy Center, efficient and effective office productivity requires the ability to scan, copy, and print documents in smaller quantities immediately within the individual work areas. 3. Purchasing new machines also is not recommended due to the large initial capital cost that would be involved in acquiring multi-function peripherals. 4. Total implementation ofa print management program is not recommended at this time because ofthe uncertainty ofthe actual savings ofa print management program without verification ofthe cost-benefits. 3
4 ATTACHMENTS A Procurement Summary A-I Procurement History A-2 List ofsubcontractors A-3 List ofbidders/proposers Prepared by: Elizabeth Bennett, Chief Information Officer Phyllis Meng, DEO General Services 4
5 \.~1?ilei.~ Michelle Lopes Cal 'ell Interim Chief Administrative Services Officer ()V;(~. Arthur T. Leahy Chief Executive Officer!u!x- 5
6 BOARD REPORT ATTACHMENT A PROCUREMENT SUMMARY CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES I. Contract Number: PS Recommended Vendors: Canon Business Solutions and SoCal Office Technologies 3. Cost/Price Analysis Information: A. Bid/Proposed Price: Recommended Price: Canon $6,240,255 (fax server) Canon $6,240,255 (fax server) SoCal $1,866,151 SoCal $1,866,151 B. Details of Significant Variances are in Attachment A-I.D 4. Contract Type: 5. Procurement Dates: A. Issued: March 8, 2010 B. Advertised: March 8, 2010 C. Pre-proposal Conference: March 12,2010 D. Proposals Due: June 3, 2010 E. Pre-Qualification Completed: July 15, 2010 F. Conflict ofinterest Form Submitted to Ethics: July 26, Small Business Participation: A. Bid/Proposal Goal: Date Small Business Evaluation Completed: No DALP recommended July 13, 2010 Small Business Commitment: 0.0% Details are in Attachment A-2 7. Evaluation Information: A. Bidders/Proposers Names: Bid/Proposal Best and Final Offer Amount: Amount: See Attachment A-3 $ $ n/a B. Evaluation Methodology: Describe Methodology Details are in Attachment A- I.C 8. Protest Information: A. Protest Period End Date: B. Protest Receipt Date: C. Disposition ofprotest Date: 9. Contract Administrator: Telephone Number: Kenneth Takahashi Project Manager: Telephone Number: Matthew Barrett Joe Giba Irma Licea
7 BOARD REPORT ATTACHMENT A-I PROCUREMENT HISTORY CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES A. Backgrounds on Contractors Canon Business Solutions, Inc. Canon Business Solutions, Inc. was founded in Canon Business Solutions, Inc. is a Canon U.S.A. Company providing integrated systems technology that comprises one of the strongest solutions portfolios in the document management industry. Canon Business Solutions, Inc. provides networked office systems, graphic systems, copiers, printers, scanners, and fax machines. Canon Business Solutions, Inc. is currently under contract and their performance has been satisfactory. SoCal Office Technologies SoCal Office Teclmologies is one ofthe largest subsidiaries of Global Imaging Systems, Inc. A Xerox wholly owned company since SoCal Office Technologies has been providing document technology and services since SoCal Office Technologies offers an ilmovative mix ofproducts and services that have affected the way that organizations manage their document assets. B. Procurement Background Request for Proposals Number PS was released as a competitively negotiated procurement. Proposal submittals were evaluated in accordance with the criteria established in the RFP. The Diversity and Economic Opportunity Department did not recommend a Disadvantaged Business Enterprise Anticipated Level ofparticipation (DALP) for this procurement. C. Evaluation ofproposals The procurement is in compliance with Procurement policies and procedures. Two proposers were deemed non-responsive because offailures to comply with the RFP requirements or excessive exceptions to the Metro terms and conditions that were contrary to established statutory or regulatory requirements. D. Cost/Price Analysis Explanation ofvariances The recommended prices have been determined to be fair and reasonable based upon adequate price competition. 7
8 BOARD REPORT ATTACHMENT A-2 LIST OF SUBCONTRACTORS CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES PRIME CONTRACTOR - Canon Business Solutions, Inc. Small Business Commitment No DALP recommended. Other Subcontractors None Total Commitment: 0%. PRIME CONTRACTOR - Small Business Commitment No DALP recommended. SoCal Office Technologies Other Subcontractors None Total Commitment: 0% 8
9 BOARD REPORT ATTACHMENT A-3 LIST OF BIDDERS/PROPOSERS CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES Proposers Names Proposal Amount Proposal Amount MFP's, Print and MFP's Only Document Management Print Cost Lease Cost Sub-Total Sales Taxes on Total Lease Cost Canon Business Solutions, Inc. Alternative #1 (fax boards) $7,796,995 $3,150,000 $2,652,495 $5,802,495 $265,250 $6,067,745 Alternative #2 (fax server) $7,953,913 $3,150,000 $2.809,413 $5,959,413 $280,842 $6,240,255 lkon* $11,752,323 $3,695,159 $3,749,700 $7,444,859 $374,970 $7,819,829 Reliable Graphics* $11,831,000 $5,040,000 $2,678,400 $7,718,400 $267,840 $7,986,240 Ricoh Corporation Alternative #1 (65 cpm) $9,107,679 $3,420,000 $3,337,579 $6,757,579 $333,758 $7,091,337 Alternative #2 (50 cpm) $8,498,345 $3,840,000 $2,308,345 $6,148,345 $230,835 $6,379,180 No Fax Server proposed 9
10 Proposers Names Proposal Amount Proposal Amount MFP's, Print and MFP's Only Document Management Print Cost Lease Cost Sub-Total Sales Taxes on Total Lease Cost SoCal Office Technologies Alternative #1 (fax boards) $9,088,640 $3,372,000 $2,276,640 $5,648,640 $227,664 $5,876,304 Alternative #2 (fax server) $9,092,950 $3,372,000 $2,280,950 $5,652,950 $228,095 $5,881,045 Toshiba No Fax Server proposed $8,246,688 $3,150,000 $1,596,688 $4,746,688 $159,669 $4,906,357 Xerox Corporation Alternative #1 (65 cpm) $9,793,095 $3,588,000 $3,453,096 $7,041,096 $345,310 $7,386,406 Alternative #2 (reduced $8,715,662 $717,888 $5,256,636 $5,974,524 $525,664 $6,500,188 prints) Alternative #3 (46 cpm and $7,599,786 $717,888 $4,136,770 $4,854,658 $413,677 $5,268,335 reduced prints) Add Fax Server (for all $174,360 proposals) 10
11 Proposal Amount For Pilot and Four Remaining Years Print Management Program : Proposer Name Print Cost Lease Cost Sub-Total Lease Cost Sales Grand Total Taxes Canon Business Solutions, Inc. $1,554,228 $397,005 $1,951,233 $39,701 $1,990,934 Ricoh Americas No Proposal $397,734 No Proposal No Proposal SoCal Office Techn()lgg~es $1,280,071 $532,800 $1,812,871 $53,280 $1,866,151 Toshiba $2,647,500 No Proposal $2,647,500 $2,647,500 Xerox Corporation $2,432,414 $661,398 $3,093,812 $66,140 $3,159,952 11
CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES
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