Los Angeles County Metropolitan Transportation Authority Metro One Gateway Plaza Los Angeles, CA 90012-2952 213.922.2000 Tel metro.net 22 OPERATIONS COMMITTEE SEPTEMBER 16, 2010 SUBJECT: CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES ACTION : AWARD CONTRACT NUMBER PSI0642010 RECOMMENDATION Authorize the Chief Executive Officer to: A. Award a five-year, indefinite delivery, indefinite quantity contract beginning October 1,2010 under RFP No. PS10642010, with Canon Business Solutions, Inc., the highest rated proposer for the lease and maintenance of multi- function 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. PS10642010, with SoCal Office Technologies, the highest rated proposer for a one-year pilot test of print management services and four-years of additional service in an amount not to exceed $1,866,151, inclusive of estimated sales taxes. RATIONALE Convenience Copying Metro requires a variety of equipment 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 of copying 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 email. Convenience Copying, Print Management and Document Management Services
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Los Angeles CountyMetropolitan Transportation Authority
A. Award a five-year, indefinite delivery, indefinite quantity contract beginningOctober 1,2010 under RFP No. PS10642010, with Canon Business Solutions,Inc., the highest rated proposer for the lease and maintenance of multifunction peripherals for convenience copying and document managementservices in an amount not to exceed $6,240,255, inclusive of estimated salestaxes.
B. Award a five-year, indefinite delivery, indefinite quantity contract beginningOctober 1, 2010 under RFP No. PS10642010, with SoCal OfficeTechnologies, the highest rated proposer for a one-year pilot test of printmanagement services and four-years of additional service in an amount not toexceed $1,866,151, inclusive of estimated sales taxes.
RATIONALE
Convenience Copying
Metro requires a variety of equipment to enable staff at all Metro locations to copy, print,fax, and scan documents and reports. Current needs are being met by 180 multi-functionperipherals (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 iscapable of copying black and white and color originals; printing from a PC on thenetwork; and scanning a document in black and white or color that can then be routed asa fax to any fax machine or via email.
Currently, Metro deploys 1,180 printers, a combination of dedicated and networkedprinters to service the print function for our desktop workstations and business systems.At least sixty percent of these printers are now over five years old and nearing the end oftheir economical life. Also, as manufacturers have changed their product line over time,it has resulted in many different models of printers in use. This necessitates the need tokeep many different types of toner cartridges in inventory, some of which may not getused before the printer fails and cannot be economically repaired.
To mitigate this situation and to reduce printing costs, a one year pilot, consisting of twolocations, will be conducted on the use of vendor provided print management services, aprogram similar to convenience copying service. The service will provide replacementprinters for the oldest twenty-five percent of our printer inventory, toner for all printers,and spare parts to repair them as needed. Use ofthis service is estimated to realize a fiftypercent savings on the per page cost to print. At the conclusion of the pilot period, if thecost benefits of print management services are substantiated, we will extend the programto all Metro locations.
Document Management
Metro must become more effective and efficient in complying with its RecordsManagement 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 eliminatethe cost of procuring and servicing new scanners; (2) support efforts to move towardsmore efficient paperless processing; and (3) enable staff to easily convert documents intosearchable PDF, Excel, and Word formats for efficiently manipulating data or text.
Additionally, utilizing the MFP to scan a document and send it via email to any locationon a network or throughout the world via the Internet promises to accelerate thedistribution of critical documents, reduce courier costs, and provide better quality intransmitted documents than is available through a fax.
FINANCIAL IMPACT
The funding of$543,491 for convenience copying service is included in the FYll budgetin cost center 6420, Copy Services under project 100001, General Overhead, and lineitem 51205, Leases and Rentals. Funding of$21,370 for print management service isincluded in the FYll budget in cost center 9220, ITS Operations and Service Deliveryunder project 100001, General Overhead, and line item 50308, Contract Maintenance.Since this is a multi-year contract, the Executive Officer of Administration will beresponsible for budgeting in future years.
Impact on Bus and Rail Operating and Capital Costs
The source of funds for project 100001 is a combination of all available agency funds.General Overhead project 100001 is allocated to all direct projects based on federallyapproved guidelines and cost allocation plan. In the FY11 budget as adopted,approximately 74% ofproject 100001 expense goes to Bus and Rail Operations, 9% toCapital and Major Construction Projects and 17% to Planning activities. No other sourceof funds were considered for these activities because these services are used by alldepartments in the agency.
In FY10, $377,614 was expended on convenience copying services. During this periodthere were no expenditures for print management services.
ALTERNATIVES CONSIDERED
The alternatives to approving this recommendation would be (1) to continue using thecurrent 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 printmanagement program. These alternatives are not recommended for the following reasons:
1. Continue the current lease for multi-function devices. The equipment has been in usefor almost five years. Many ofmachines are worn out and obsolete. Additionally,newer technology along with increased capabilities will allow staff to plan theelimination of stand-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 staff already sends large copy projects to theCopy Center, efficient and effective office productivity requires the ability to scan,copy, and print documents in smaller quantities immediately within the individualwork areas.
3. Purchasing new machines also is not recommended due to the large initial capital costthat would be involved in acquiring multi-function peripherals.
4. Total implementation of a print management program is not recommended at thistime because of the uncertainty of the actual savings of a print management programwithout verification of the cost-benefits.
B. Details of Significant Variances are in Attachment A-I.D4. Contract Type:
5. Procurement Dates:A. Issued: March 8, 2010B. Advertised: March 8, 2010C. Pre-proposal Conference: March 12,2010D. Proposals Due: June 3, 2010E. Pre-Qualification Completed: July 15, 2010F. Conflict of Interest Form Submitted to Ethics: July 26,2010
6. Small Business Participation:A. Bid/Proposal Goal: Date Small Business Evaluation Completed:
No DALP recommended July 13, 2010Small 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/aB. 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 of Protest Date:
CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENTMANAGEMENT SERVICES
A. Backgrounds on Contractors
Canon Business Solutions, Inc.
Canon Business Solutions, Inc. was founded in 1971. Canon Business Solutions, Inc. is aCanon U.S.A. Company providing integrated systems technology that comprises one of thestrongest solutions portfolios in the document management industry. Canon BusinessSolutions, Inc. provides networked office systems, graphic systems, copiers, printers,scanners, and fax machines. Canon Business Solutions, Inc. is currently under contract andtheir performance has been satisfactory.
SoCal Office Technologies
SoCal Office Teclmologies is one of the largest subsidiaries of Global Imaging Systems, Inc.A Xerox wholly owned company since 2009. SoCal Office Technologies has been providingdocument technology and services since 1977. SoCal Office Technologies offers anilmovative mix of products and services that have affected the way that organizations managetheir document assets.
B. Procurement Background
Request for Proposals Number PS10642010 was released as a competitively negotiatedprocurement. Proposal submittals were evaluated in accordance with the criteria establishedin the RFP.
The Diversity and Economic Opportunity Department did not recommend a DisadvantagedBusiness Enterprise Anticipated Level of Participation (DALP) for this procurement.
C. Evaluation ofProposals
The procurement is in compliance with Procurement policies and procedures. Two proposerswere deemed non-responsive because of failures to comply with the RFP requirements orexcessive exceptions to the Metro terms and conditions that were contrary to establishedstatutory or regulatory requirements.
D. Cost/Price Analysis Explanation of Variances
The recommended prices have been determined to be fair and reasonable based uponadequate price competition.
