R2017-022 2017-02-13RESOLUTION NO. R2017-22
A Resolution of the City Council of the City of Pearland, Texas,
awarding a unit price bid for the lease of Multi -function Devices
(printers, copier, scanners) to Ricoh Business Solutions in the
estimated annual amount of $97,000 for the period of March 13, 2017
through March 12, 2020.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City opened unit priced bids for the lease of Multi -function
Devices, and such bids have been reviewed and tabulated.
Section 2. That the City Council hereby awards a bid to Ricoh Business
Solutions, in the unit price amounts reflected in Exhibit "A" attached hereto.
Section 3. The City Manager or his designee is hereby authorized to execute
a unit price contract for the lease of Multi -function Devices.
PASSED, APPROVED and ADOPTED this the 13th day of February, A.D., 2017.
ATTEST:
Iff1VORFING/ R 0ITY SRETAR
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
c -
TOM REID
MAYOR
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ITEM NO:
DEPT. OF OR
❑ Grant
❑ Bonds - So
AGENDA REQUEST
BUSINESS OF THE CITY COUNCIL
CITY OF PEARLAND, TEXAS
AGENDA OF:
DATE SUBMITTED:
PREPARED BY:
Regular Meeting - 13 Feb
2017
02 Feb 2017
Julie Blackmore
SUBJECT:
Resolution No. R2017-22
Exhibit "A"
AIR - 0242
IGIN: Finance Department
Consideration and Possible Action - Resolution No. R2017-22 A Resolution of the
City Council of the City of Pearland, Texas, awarding a unit price contract for the lease of Multi-
function Devices (printers, copier, scanners) to Ricoh Business Solutions in the estimated
annual amount of S97,000 for the period of March 13, 2017 through March 12, 2020.
EXHIBITS: Resolution R2017-22
FUNDING:
[1 Bonds To Be Sold
EXPENDITURE REQUIRED:
$291,000 est.
(equipment cost
plus estimated
usage charges)
AMOUNT AVAILABLE: $48,500
ACCOUNT NO: Various Departme
ADDITIONAL APPROPRIATION REQUIRED:
ACCOUNT NO:
PROJECT NO:
To be completed by Department:
BACKGROUND
Id
❑ Developer/Other
❑ LIP - Sold
® Cash
❑ L/P - To Be Sold
AMOUNT BUDGETED:
PROJECT NO:
nts Operating Budgets
$48,500 FY
2017; And upon
budget approval:
FY 2018
$97,000, FY
2019 $97,000
and Six Mon. of
FY 2020
$48,500
EXECUTIVE SUMMARY
In November 2013, City Council authorized replacement of the City's inventory of twenty-eight (28) multi-
function devices (MFDs) utilizing the HCDE cooperative purchasing program for a 36 -month lease with Dahill
for Xerox machines. The majority of those leases expire in March 2017. Purchasing staff recently conducted a
solicitation of sealed proposals for replacement MFDs, with the IT Department recommending two changes to
the previous contract specifications. The first change is that all equipment should have color print capability to
allow all departments to produce quality correspondence to. and materials for, residents and external parties;
while the default settings for each unit will be set to black and white. The second recommended change is to
add one unit to the Public Works Annex location to replace multiple desk top printers currently being taken out
of use, which will provide full multifunction device capabilities and will be more economical than maintaining the
desk top printers.
SCOPE OF CONTRACT/AGREEMENT
Provision of twenty-eight multi -function devices currently deployed throughout all City facilities, pursuant to
execution of a 36 -month lease for the machines. A non -appropriation of funds clause will be applicable, which
will allow for termination of the leases in the event of subsequent non -funding of departmental budgets for
MFDs.
The City will continue with the same fee structure, which is a set monthly fee per device plus a usage charge
for each print and copy. There will continue to be no charge for scanned documents.
BID AND AWARD
The RFP issued by the City solicited proposals based upon existing cooperative contracts held by interested
respondents, as it is widely acknowledged that such contracts for copiers offer volume discounts on equipment
and usage charges that most municipalities cannot achieve through in-house bids. The overall pricing for each
proposal is comprised of two components: equipment fixed lease cost, and a per print/copy fee for both color
and black and white copies.
Eleven (11) proposals were received, with the responses evaluated by the IT Department with respect to the
specified award criteria: cost proposal, quality of the proposed equipment and service, references and
compliance with proposal request. This initial review yielded five top-rated companies, as identified below,
which were then evaluated and scored by a selection committee of City staff. The committee consisted of
representatives from the Budget, Finance, Human Resources, IT, Parks, and Police Departments.
Top five (5) scoring companies were as follow, with initial individual scores averaged:
• Ricoh Business Solutions: 88.16
• Canon Solutions America, Inc.: 82.46
• Marimon Business Systems: 76.48
• Dahill Office Technology Corporation: 76.14
• American Business Machines: 70.77
The three (3) highest -ranked respondents were subsequently invited to provide equipment demonstrations and
presentations for the evaluation committee and Purchasing personnel. The selection committee scored the top
three companies again after the presentations, with the final scoring results as follow:
• Ricoh Business Solutions: Ricoh machines 91.57
• Marimon Business Systems: Canon machines 89.04
• Canon Solutions America, Inc.: Canon machines 80.59
Upon the completion of the demonstrations and presentation sessions,and best and final offers received from
the top two scoring companies,the City staff completed scoring (as reflected below) and the consensus was
that the proposal by Ricoh business Solutions for Ricoh equipment offers the best combination of pricing,
service and product offering to the City.
Company
Brand
Total Annual Estimated
Expense (inclusive of copy
charge estimates)
Color
Cost Per
Page
B/W
Cost Per
Page
Ave
Score
Ricoh Business
Solutions
Ricoh
$95,692
0.041
0.0068
93.33
Marimon Business
Systems
Canon
S102,157
0.045
0.006
93.02
Expiring contrac pricing
(includes 12 machines having
no color print capability)
$92,897
.04
.0055
Determining factors in the panel's recommendation for Ricoh include the following:
• The pricing submitted as best and final offer is competitive with current contract pricing, and was the
lowest in comparison with the other proposals.
• Reference checks yielded positive responses with regard to the equipment and service provided by
Ricoh — these references included Brazoria County and City of Brenham.
• Equipment is user-friendly, with intuitive controls and editing features. Equipment speeds will meet or
exceed current copier fleet in all applications. Sample documents produced in the Ricoh demonstration
session were of very high quality.
• Service response time is very desirable. After the user places the service call, a Technician will contact
the user within one hour to ensure understanding of the problem and to provide an estimated time of
arrival. A response time of four hours or less has been committed to. with four primary technicians in
the area available to the City of Pearland to ensure the response time is fulfilled. Technicians start
their work day from their home, making it probable they will be on site for repairs earlier than those
starting from the company's central location.
• Ricoh technicians will apply a "Total Service Call" procedure when providing service. The entire
machine will be serviced, not just the part requiring repair/replacement, thus ensuring full functionality
on every service request.
The proposals received are all cooperatively bid contracts held by the respective respondents, and through
which the City is eligible to purchase without the requirement for competitive bidding, as provided for by Texas
Local Government Code, Section 252.022. However, Purchasing staff believed it to be in the best interest of
the City to conduct an open solicitation for proposals to assure a quality award, and thereby recommend award
of this 36 month copier lease to Ricoh.
The proposal submitted by Ricoh is based upon their cooperative contract with Texas Department of
Information Resources (Dir TSO -3041). The DIR cooperative provides technology leadership, solutions, and
value to Texas state government, education and local government entities to enable and facilitate the
fulfillment of core missions. All DIR contracts comply with state purchasing requirements.
SCHEDULE
The awarded vendor will provide required multi -function devices to City facilities, with installation to be
scheduled for mid-March.
POLICY/GOAL CONSIDERATION
This purchase is contemplated and recommended for the purpose of providing City employees with efficient, cost-effective
document reproduction as necessary for the delivery of quality services to its residents.
CURRENT AND FUTURE CIP FUNDING/FINANCIAL IMPACTS/DEBT SERVICE
Funding for the purchase of this system will come from various departmental operating budgets.
Recommended Action
A Resolution of the City Council of the City of Pearland, Texas, awarding a unit price contract for the lease of multi-
function devices (printers, copier, scanners) to Ricoh Business Solutions in the estimated annual amount of S97,000 for
the period of thirty-six (36) months, March 2017 through March 2020.