CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Cooperative Procurement 21-136, Multi-Function Copier Devices and Service Solutions, to Canon Solutions America, Inc. for an amount not to exceed $212,919 with a 2% contingency, and for a five-year term (Item 1 of 2)
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DEPARTMENT: Information Technology
SUBMITTED BY: Jacqueline Nguyen, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Over time the City has consolidated a large number of stand-alone printers into a limited number of networked, multi-function copiers that serve the printing and copying needs of various departments throughout most City locations. This has reduced total direct cost for printing and copying, along with associated support, maintenance, and supply costs. Additionally, the multi-function machines have provided higher quality output, more features, faster operation, fewer problems, and less downtime. Currently the City has a total of 60 such multi-function copiers across all locations. These machines are divided into four separate, non-coterminous contract phases to enable four separate waves of refreshes or updates. Highlights of the new replacement phases under the contract to be awarded are as follows:
1. Phase I is comprised of 18 black and white devices and four color devices. These serve the following departments: the Mayor’s Office, Department of Public Works, TED, Police, Fire, DPU-E, DPU-W, Naper Settlement, Finance, and Information Technology.
2. Phase II is comprised of 12 black and white devices. These serve the following departments: Police, Fire, Department of Public Works, Finance, and TED.
3. Phase III is comprised of 2 black and white devices and 12 color devices at various locations across the City.
4. Phase IV is comprised of 9 color devices and 2 high-quality, production devices at various locations throughout the City.
The Reprographics Division of the Information Technology Department manages the placement of the multi-functional copiers through a Cost-per-Copy (CPC) Program. The CPC Program includes the installation of new equipment, maintenance, training, parts, supplies and data security retention. The CPC is similar to a rental program; however, the City is buying copies, not copiers. “Copies” is an industry term and can be thought of as pages of output, either from photocopying or printing.
The entire CPC Program will be implemented in four non-coterminous phases. This award is for Phases I and II. Awards for Phases III and IV will be requested as the expiration dates approach.
The new contract phases schedule follows:
1. Phase I (April 2021): 22 copiers (18 Black & White and 4 Color)
2. Phase II (June 2021): 12 copiers (All Black and White)
3. Phase III (May 2022): 14 copiers (2 Black and White and 12 Color)
4. Phase IV (November 2023), 11 copiers (1 Black and White and 10 Color)
Due to the extended time it has taken staff to negotiate the contract with Canon, both Phases I and II are being requested together. Coordination of Phase II replacements will need to begin soon after Phase I is complete.
Assuming the copiers perform at an acceptable level, staff will return to the Council for approval of Phases III and IV. The criteria for the replacement of these copiers includes:
1. age
2. useful life
3. technological obsolescence
4. fulfillment of the prior contract
For the last several months, Reprographics has been working with Canon to negotiate modifications to the Cooperative Procurement 20-019. On December 7, 2020, the City Manager approved Change Order #1 to Contract 15-181, Multi-Functional Copiers Cost-per-Copy, to Canon Solutions America, Inc. in the amount of $8,178 for a three-month extension to the current Phase I equipment. It is now apparent that the City and Canon were too aggressive in estimating that the negotiations could be completed in that time frame. However, by taking the additional time to negotiate the upcoming contract, the City will realize an additional savings of $32,297. An additional two-month extension is requested in order to allow the vendor and staff adequate time to complete the new Phase I. Change Order #2 will increase the total contract award for Contract 15-181 by $5,452.
DISCUSSION:
Staff has identified an approved cooperative contract, Omnia Cooperative Contract #FI-R-0251-18 through Canon, for the procurement of Multi-Function Copier Devices and Service Solutions. The Omnia Contract was originally solicited by DuPage County, so the City is in line with what entities in our area are administering for their copier program.
Staff requests the award of Phases I and II for an amount of $212,919 and a five-year term. Staff also requests a 2% contingency, to the contract, to allow for overages in the number of copies made. Staff anticipates increases, throughout the contract, as volumes fluctuate monthly and the return to normal, pre-Covid business operations expand. This contingency would cover those additional costs.
The $212,919.00 requested includes all five years for both Phases I and II:
• Phase I = $29,232.48 x 5 years = $146,162.40
• Phase II = $13,351.32 x 5 years = $66,756.60
Though daily printing has reduced, there are still several projects which are printed in-house, such as:
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Council and other Board Agendas Forms (All kinds for all departments used both internally and for the Public) Resident Notification letters (Road Construction, Utility Turn Off, Meetings, etc.) Brochures, Booklets, Postcards, Posters, Manuals (Both internal and external) Map Books (For staff) FOIA’s |
Electrical License Renewal Letters Fire Department Standard Operating Procedure Books Police and Fire Annual Reports New Employee Benefits Binders Water Lock Out Tags (Used on Residents homes) Quarterly Commuter Parking Sticker Notification to the Public |
Quarterly Lead Water Notification letters to Residents Semi Annual Tree Replacement Notification to Residents Annual Water Quality Report Annual Be Smart Be Safe Materials for Police Crime Prevention to be handed out to Students Annual Employee Benefits Information Annual Operating Budget and CIP Books |
*Reprographics will soon start the Water 2.0 Meter Replacement Project including letters to residents and door hangers (This will be ongoing coordinating with Finance Billing Cycles for at least a year).
By using the cooperative contract, the City will save $25,771 (based on current monthly usage) on the first two phases of 34 replacement copiers over the five-year contract period compared to the current CPC program in place. These savings are in addition to incorporating equipment power filters and hard drive removal/surrenders previously not included in the contract terms and requested separately.
Staff also requests the award of Change Order #2 to Contract 15-181 Multi-Functional Copiers Cost per Copy Phase I to Canon Solutions America, Inc. for an amount not to exceed $5,452 for a total contract award of $637,947 for an additional two-month extension.
The contract term is October 1, 2018 thru September 30, 2023 (*With a Survival Clause incorporating all Phases and Terms)
FISCAL IMPACT:
CIP#: N/A
Cost-per-copy program is budgeted in the Operational service account listed below for a total of $158,000 in 2021. Costs for future years will be budgeted accordingly during the budget process. The requested change order #2 for the extension of the Phase I program will also be allocated within this budget.
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Account Number |
Fund Description |
Total Budget Amount |
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16201100-531308 |
General Fund |
$160,500 |