Managed Print Services (MPS) Frequently Asked Questions

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1 The University of Pennsylvania Business Services Division Purchasing Services Managed Print Services (MPS) Frequently Asked Questions 1. What is Managed Print Services ( MPS ) and the purpose of this initiative? The Managed Print Services (MPS) is a service provided by an external provider to analyze and manage document output devices with the goal of reducing the total cost of ownership and improving internal efficiency and productivity. A robust MPS program typically includes printer/copier equipment, service, and supplies, with some or all of the following provisions: Equipment including multi functional devices (MFD), copiers, printers, scanners and fax machines Preventive maintenance, parts, and ink/toner supplies (excluding paper) Guaranteed service level response times with near or on-campus support, break/fix, and supplies replenishment Detailed account usage and simplified billing utilizing a cost per impression model Flexibility for equipment changes; up-scaling and down-scaling as your business needs dictate Single contract for increased efficiency in managing contract terms and conditions MPS typically begins with a print environment assessment. An MPS provider will conduct a physical walk-through of your office environment, followed by use of a software DCA (data collection agent) tool to understand print volumes, devices in use, ink/toner coverage, and business needs of each person. Following the assessment, which typically takes 2-4 weeks, the MPS provider will make a recommendation for device optimization or right-sizing, as well as other changes to the print environment that will yield per-page and per-employee cost savings. A comparison of your current print costs versus the recommended changes will be presented by the MPS provider. 2. Why is Penn Purchasing conducting this sourcing initiative? As a means of reducing expenses and improving sustainability measures, an increasing number of areas on campus have implemented MPS or are currently seeking to do so. Currently, three incumbent suppliers provide various levels of MPS services and expertise, with inconsistent contracts and highly disparate fee arrangements. Lowering the total cost of ownership - It is projected Penn will spend over $7M this year on direct printing output costs (hardware purchases, leases, price per page charges, toner or print cartridges and maintenance). Fully loaded to account for indirect costs, such as local IT support, networking, and supplies inventory, these costs exceed $10M annually. On a blended rate average across campus, Penn currently spends over 10x what printing typically costs under a managed print contract. Using industry standard measures, printing at Penn costs approximately $0.12-$0.15 per printed page, or an average of $375 - $450 per employee, per year. The MPS program will offer participants an average blended price per page that will be significantly less than current print expenses, with the possibility of declining or remaining steady over the term of the contract. Depending on the total number of business areas and print devices eventually folded into the preferred MPS contract, annual average print costs will be reduced accordingly. Reduce the environmental impact - There are an estimated 15,000 printers, 650 copiers, several hundred device models, and over 25,000 ink/toner cartridges in inventory across Penn s campus; each contributing to the undesired impacts on the environment (landfill, waste, etc.). Penn currently prints over 60,000,000 impressions per year, using over 285 tons of paper and generating over 15 tons of plastic and electronic waste. V1.0 07AUG2012 Page 1

2 Reduce energy consumption The program will monitor and reduce the number of output devices in addition to replacing high energy usage equipment with energy efficient devices, where appropriate. Power consumed by print devices on campus costs over $1,000,000 in energy, most of which is used during idle equipment time. Streamline operations, standardize equipment and increase efficiency - The preferred MPS supplier will manage equipment, supplies and maintenance, increasing efficiencies by standardizing on equipment and supplies. MPS participants will only be required to purchase and maintain their paper supply locally. 3. How does MPS relate to Penn s sustainability priorities? The MPS Program will contribute to advancement of Penn s environmental and sustainability initiatives through the elimination of equipment that consumes high levels of energy and by reducing electronic and plastic waste. Purchasing Services is coordinating this sourcing initiative with sustainability subject matter experts from Facilities & Real Estate Services (FRES). A number of MPS metrics will be assessed pre- and post-implementation and rolled up to a campuswide report. Implementation of MPS complement s the Penn Climate Action Plan, and is consistent with the goals of the American College and University Presidents Climate Commitment (ACUPCC). 4. How will a preferred supplier be selected? A competitive Request for Proposal (RFP) will be sent to incumbent suppliers around Labor Day, A cross-functional team, led by Purchasing Services, will evaluate a short list of candidates after the RFP is closed. An evaluation of the experience, scalability, financial stability, and print assessment expertise/methodology will be conducted. Currently, three of Penn s twelve individual schools and three departments have opted to participate in this initiative with the intent of implementing an MPS solution in their respective areas. Several additional departments have expressed an interest in undergoing a no-obligation print assessment only, after which each respective department will further evaluate whether an MPS solution is right for them. 5. What experience in MPS do the current slate of suppliers have? All of Penn s current MPS providers and Ricoh (formerly Ikon Office Solutions) have demonstrated expertise in MPS. Each supplier uses their own DCA (data collection agent) software tools and analytical methodologies to assess a particular office print environment. A key part of this RFP evaluation process will be to understand and evaluate the print assessment methodologies employed by a short list of suppliers, in addition to an in-depth review of post-assessment MPS recommendations. Independent research firms, such as IDC, Gartner, and Forrester name HP, Xerox, and Ricoh as the global industry leaders in MPS. Penn s current incumbent suppliers represent each of these leaders directly or through their authorized reseller relationships. 6. What is included in the program? What type of equipment will be provided in the MPS program? The MPS Program includes equipment, supplies (excluding paper), preventive maintenance, parts and repair, software, installation and training. The type, models, and quantities of equipment will be determined through the on-site assessment. The models of equipment will vary based on departmental needs, though the preferred MPS provider will be contractually obligated to support OEM devices, such as HP, Epson, Lexmark, etc. 7. Does my equipment have to be networked to be on the MPS program? In order to leverage automatic supplies delivery and ongoing monitoring of your print environment, in-scope print devices must be connected to the Penn network. Non-networked devices can be included in the MPS program for break/fix or maintenance service. However, automated supply levels and usage monitoring will not be possible with non-networked devices. 8. What happens if a department s output needs change? If there is a substantial change in output needs such as volume, number of users, application changes, etc., the MPS provider will re-evaluate the needs and make appropriate equipment adjustments after consulting with your business area. No changes will be made by the MPS provider without appropriate business area consultation and approval. 9. Do I have to participate in the MPS program? Participation in the preferred MPS program is entirely voluntary. All OEM output equipment, including supplies and maintenance, is included in the contract. V1.0 07AUG2012 Page 2

3 10. Who do I contact with additional questions? If the answer to your question is not available here, then please Brent Friedman, Purchasing Services, at brentf@upenn.edu. 11. Why should my department enroll in the MPS program? Robust MPS programs can yield print savings of 25-40%, lessen internal IT support burden, and allow for controllable, predictable printing costs. Print costs without MPS are typically fragmented and buried in office supplies costs to such an extent that many departments do not know their true costs of office printing. Printer supplies and paper account of over 40% of Penn s entire office supplies budget. MPS allows a business area to see and understand costs and volumes associated with day to day printing with precision. 12. How does my department enroll in the MPS program? When should we enroll? If you are interested in enrolling in Penn s Preferred MPS program, send an request to Brent Friedman, Penn Purchasing Services, at brentf@upenn.edu. Penn has several pilot groups that have volunteered for early implementation, including three of Penn s twelve schools. Other areas can be added to the implementation schedule as interest dictates. Interested business areas enrolling now are slated for a print environment assessment and implementation in the January-March timeframe. 13. What criteria are used to determine the department s equipment needs? When placing printer hardware, the MPS provider will consider multiple factors to ensure the satisfaction of all users. Although monthly print output volume is a major consideration, they will also evaluate other needs such as speed, quality, finishing capabilities, ease-of-use, confidentiality requirements, and paper handling capacity. The MPS provider will also review the department's needs to print from special applications, such as Ben Financials, to ensure the appropriate device is selected. 14. What does the departmental assessment include? Am I required to talk to the supplier? How will I know when they are coming to my area? Once you are on the MPS project list, you will be contacted prior to the assessment with a short list of items that should be submitted prior to the assessment. A print analyst from our MPS provider will contact you to schedule the best time to conduct the assessment after the information has been received. The analyst will need an escort through the area to ensure required access to all areas. 15. I have security and compliance requirements; can those requirements be maintained and incorporated into an MPS implementation for my area? All security and compliance requirements will be noted during the assessment and factored into the final recommendation for your individual business area. 16. Will equipment be removed from the department? Will the supplier decide if the department can keep equipment? In assessing Penn s current printing environment, several opportunities were identified. Findings in the initial review revealed Penn s current fleet includes 12,000-15,000 print devices, redundant layers of equipment, and devices that are most often overkill for the actual printing need. With this in mind, cost savings can only be achieved by skillfully balancing the ratio of equipment to employees and matching equipment needs more effectively to the users throughout a business area seeking to implement MPS. Each department assessment will take into consideration the current printing environment and recommend cost saving opportunities within the assessment proposal. NO CHANGES TO ANY PRINTER WILL OCCUR WITHOUT CONSULTATION AND AGREEMENT OF THE PARTICIPATING BUSINESS AREA (School, Department/Center, Office Suite, Building, etc.) 17. What if my department doesn t agree with the assessment proposal and wants to keep additional print equipment? V1.0 07AUG2012 Page 3

4 Each participating department will have the opportunity to review print recommendations with the MPS provider and tailor the recommendation to satisfy the participant s needs. One size does not fit all, and a key characteristic of the preferred program will be the high degree of flexibility to a variety of individualized office printing needs. MPS DOES NOT EQUATE TO ELIMINATION OF ALL PERSONAL PRINTERS. To the contrary, MPS seeks to optimize the print environment already in place. 18. Will the price per impression be the only charge once my department has enrolled in the program? Yes, when the department accepts and implements the assessment proposal as recommended all costs are included in the price per impression. 19. What are the costs? How will my department be charged? We anticipate negotiating the best overall value for MPS on campus, leveraging Penn s increasing MPS business as much as possible. Specific costs will be identified after the RFP is awarded, and pricing details will be published on the Penn Purchasing website. Payment options will also be identified. Participating departments will only pay for exactly what is printed; no more, no less. 20. Will departments have to buy new equipment after we enroll in the program? No. Existing print equipment that your department already owns can be incorporated into the MPS program for supplies, maintenance, and break/fix service. All equipment, service, maintenance and supplies (excluding paper) are included in the price per impression. Generally, an MPS installation will include costs of new print devices in the per-impression costs you pay monthly. 21. What happens to the current equipment I have on leases with another supplier? Departments with existing leased equipment should still consider a department assessment in light of potential savings. However, existing lease obligations and other MPS contracts will need to be honored through their expiration. At this point in time, regular photocopiers under the existing Ricoh/Ikon contract, are out of scope for this effort. 22. I just bought new equipment; how is that impacted? The MPS Program allows for newly purchased equipment to roll into the program. The MPS supplier will assess the equipment and determine the best process to implement cost savings measures. 23. Will training be provided if I receive new equipment? The MPS provider will provide on-site training for all devices placed under the MPS Program. If there are additional questions after your initial training, please feel free to contact the MPS project team after implementation. Contact information will be published on the Purchasing Services website. 24. How often will equipment be refreshed in the program? Equipment will be refreshed on an as needed basis; it is in the best interest of both parties to have good working equipment. 25. What happens to equipment that isn t needed anymore? Will I get a credit for equipment that still has a useful life? Depending on the age and condition of the equipment, the MPS provider may determine to take the equipment as a trade in; your department will receive a credit for the selected equipment based on fair market pricing. NO CHANGES WILL OCCUR to print equipment without appropriate consultation and approval from your department. All internal procedures for equipment disposal must be followed. Equipment with no residual value will be delivered to surplus by the MPS supplier or via established processes to dispose of electronic waste. 26. Once I have enrolled in the program, who will I contact for immediate equipment service? V1.0 07AUG2012 Page 4

5 A dedicated service number will be determined and affixed by label to each print device incorporated into the MPS program. Additionally, service details will be posted to the Penn Purchasing MPS website after the RFP award, toward end of the calendar year. 27. My department is not yet part of any MPS program and my print equipment needs service now; who should I contact? Contact your current maintenance provider; the number should be provided on the equipment. If you do not have a current provider, check with your local IT support provider or contact Purchasing Services for a recommended equipment service company. 28. My department is not yet part of the any MPS program. Where do I obtain supplies for my print equipment? Outside of the preferred MPS program, you can continue to source supplies and print devices from the preferred channels, such as Telrose/Office Depot (supplies) and CDWG or GovConnection (devices). 29. How should departments handle current supplies after enrolling in the MPS program? It is suggested departments reduce current supply inventory when enrolling in the preferred MPS program. Supplies already purchased can continue to be used locally, or provided back to the preferred supplier for use in the MPS program. 30. How will the MPS supplier know when I need toner or service? The preferred supplier will monitor supply levels through intelligent device monitoring software that will report all critical supplies to the printer fleet service team for inventory purposes. Many service needs will also be monitored through this software. Additionally, there will be a label on your device that will explain how to place service and supply calls if needed. After award of the preferred contract, a link to service and supplies information will be located at the Penn Purchasing website, at Are departments required to purchase extra supplies? Will departments be responsible for ordering, installing, and tracking supplies? Supplies will be provided by the preferred MPS provider. Supplies are included in your cost per impression so purchasing extra supplies will not be necessary. Automatic ink/toner supplies delivery will also be included, and eliminate the need to maintain an inventory within your office area. The preferred MPS provider will have flexibility to provide OEM-brand, recycled, and remanufactured ink/toner options, depending on your specific needs and cost savings goals. 32. What will the supplier s response time be? Specific service levels will be negotiated into the preferred contract. Generally, an urgent break/fix response time of under four hours, and next-day regular service will be planned. Near- or on-campus presence for service and supplies will be incorporated into the program. Currently, incumbent MPS Providers are not located on or near Penn s campus. 33. Are student lab printers or other student print environments part of this program? Student shared printers will only be included to the extent an individual business area seeks to incorporate those devices into the program. This decision will be yours. A variety of options to allow for student charge-backs will be assessed and incorporated into the MPS program. 34. Are specialty printers, such as research lab printers, wide format printers, plotters, etc., part of the MPS program? Generally, specialty printers will not be included in the MPS program. During a print assessment, the MPS provider will discuss your specific printing device needs and determine what can or cannot be incorporated into the program. 35. Can I choose a different supplier than the preferred supplier awarded this RFP? While we anticipate greater overall leverage and best-in-class pricing and service levels under the preferred contract, individuals are free to continue sourcing MPS services from other incumbent suppliers. Key contractual and relationship V1.0 07AUG2012 Page 5

6 benefits, however, may not be addressed in competing MPS contracts. Problem escalation procedures, dedicated nearor on-campus support, and unified, reduced pricing are significant benefits that will be incorporated into the preferred MPS contract. The preferred supplier will be contractually obligated to not only consistently act in Penn s best financial interest, but will also be obligated to continuously improve service and reduce costs over the life of the contract. These fundamental requirements do not exist with existing MPS contracts. V1.0 07AUG2012 Page 6