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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 ```,1111,,,,,' 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.