GSA Federal Acquisition Service Print Management Office

Ordering Instructions

Federal Strategic Sourcing Initiative Print Management

Blanket Purchase Agreement(s)

Revised 10/1/2014

Program Contact Information:

Ryan SchrankProgram Manager/Contracting OfficerFederal Strategic Sourcing Initiative (FSSI) Print ManagementGSA Federal Acquisition Service (FAS), Mid-Atlantic Region 3Phone: 215-446-4893Fax: 215-829-2849Email: Ryan.Schrank@gsa.gov (or print.management@gsa.gov)

Conceptual Overview of Print Management

GSA has developed the following ordering guide for use of the multiple-award Federal Strategic Sourcing InitiativePrint Management Blanket Purchasing Agreements

1.0 Understanding Print Management

“Print Management” is defined, for the purposes of the Print Management Program Office, as adeliberative process of measuring and analyzing the way imaging output occurs within an organizationand connecting data to an acquisition strategy designed to yield measurable organizational benefits.

Generation I has been organized with three over-arching strategic objectives:

Provide acquisition guidance and solutions to lower the total cost of ownership (TCO) for imaging outputdevices

Offer agencies the most innovative technology designed to meet sustainability goalsmandated by Executive Orders 13423 and 13514

Enable data collection and reporting for managing government utilization and acquisition behaviors todrive fiscal and operational efficiencies.

The BPA is divided into two distinct award areas termed “functional areas” designed to separaterecommendations for devices (Fleet Assessment) from the procurement of devices (Device Plus). TheFunctional Area BPA awards are mutually exclusive. A contractor selected for Functional Area I, FleetAssessment, cannot be selected for Functional Area II, Device Plus, and cannot perform work under apartnership or sub-contracting agreement with a contractor in Functional Area II, and vice versa.

The Functional Area I-Fleet assessment phase measures and describes hardware,software, network capabilities, imaging output, imaging costs, procurement duplication,business needs, and identifies any organizational inefficiencies that may inhibit opti-mization. The initial data collection and analytical work occurring in the fleet assessmentphase informs the client “buying decisions” through Functional Area 2. With information,clients are empowered to create more accurate business cases, requirements documents,and government estimates for new device procurement.

The Functional Area II -Device Plus solution offers the lowest evaluated life-cycle costs for afederal agency seeking to procure new multifunction devices (MFD) and single functionNetwork Printers (NPs). Device Plus also offers devices that meet federal governmentrequirements for technical specifications and performance while also representing advancedtechnology in energy efficiency, greenhouse gas emission reduction, and use of recycled andreused materials. All devices are EnergyStar 2.0 and EPEAT Rated as well allowing forcompliance with FAR 23.103(a)(4).

2.0 Understanding Functional Area 1: Fleet Assessment

Functional Area I (FA I) is comprised of labor hour rates for a wide range of assessment and analysis activities.The phases of a Fleet Assessment can include the following:

Phase I: Device Discovery provides inventories of a fleet of multi-function devices (MFDs) and network printers(NPs)

Phase II: Cost Baseline determines the print volume and associated costs Phase III: Optimization provides vendor neutral recommendations to manage, move, add, change, or dispose of

imaging devices to give an agency the maximum return on investment Organizational Gap Analysis provides recommendations on how to re-structure organizational work flow and

user behavior to maximize the value of an existing fleet

Purpose of FA I:

The purpose of FA I assist agencies in gaining insight into what, where and why print costs are occurring and toassist in developing a plan to reduce those costs

– Historical analysis of fleet costs (hardware, software, network capabilities, imaging output, imaging costs)– Establishment of cost baselines– Point-in-time data collection and analysis

FA I emphasize the role of the contractor as consultant in a project-based role making vendor-neutral recommendations. Theassessment results in an alternative management solution for their existing print environment.

Benefits of FA I

Receive vendor-neutral recommendations to standardize devices, change patterns of usage, and projectfuture cost savings

Return on investment for an agency due to fact-based information to support future procurements

The scope of services awarded under (FA I) must be defined in depth by the Ordering Official in a Statement of Work,Performance Work Statement, or Statement of Objectives. Contracting Officers should clearly define stated outcomes orwork required to meet a set of deliverables for a specific organizational unit.

3.0 Understanding Functional Area 2: Device Plus

FA II: Device Plus is for the streamlined procurement of NEW equipment. FA II advances the consolidation of printdevices, consumables and all related services to improve fleet management in order to lower lifecycle costs. Theofferings include multifunction devices and single-function network printers, both color and monochromatic.

The awarded devices covers small workgroup solutions to high-speed multi-functional devices with variousfinishing capabilities; and are available from leading industry brands such as Canon, Sharp, HP, Konica Minolta,Lexmark, Ricoh, Xerox and Toshiba. There are nine vendors and include three small businesses and six largebusiness. FA2 also includes acquisition options encompassing Purchase, Lease-to-Own, Operating Leases, Flat-Rate Leasing, and Cost-per-Copy leasing solutions.

Purpose of FA II

Establish the most competitive ceiling prices in the federal government inclusive of basic cost drivers overfive years of use

Establish a default Standard Service Level Agreement that may be easily modified Establish basic security and configurations commonly used in the government Combine life-cycle cost drivers by integrating procurements for device, consumables, and maintenance Collect and report prices paid for Print Devices and their related supplies and services for use throughout

the federal government

Benefits of FA II

Reducing the cost of imaging output over time Guides agencies to optimal device selection for their needs Stream-lined procurements and cost transparency based on five year total lifecycle costs Simplify acquisition implementation by providing published guidance and client advisory support services

3.1 Defining Requirements/Using the Volume Bands

Ordering Activities should perform the following steps to ensure that requirements defined within the RFQutilize the correct volume bands.

Step 1: Review data from legacy devices to determine actual output requirements

Step 2: Determine if changes in businesses processes will drive an increase or decrease in output volume forprocured period of performance

Step 3: Develop an RFQ that specifically identifies the appropriate volume band for each organizational area

The awarded multi-function devices and single function network printers are structured as follows:

Multi-Function Devices

Monthly Capacity “A” Monthly Capacity “B” Minimum Copy Speed

Band 1 1 – 12,500 12,500-15,000 20 ppm

Band 2 15,001 – 25,000 25,001 - 50,000 30 ppm

Band 3 50,001 – 60,000 60,001 - 75,000 40 ppm

Band 4 75,001 – 90,000 90,001 - 100,000 50 ppmBand 5 >100,000 60 ppm

4.0 Sustainability Offerings

FSSI Print Management ensures compliance with policy and regulations supporting Sustainability within the FederalGovernment including requirements supporting EnergyStar 2.0 and EPEAT. Please see following chart detailinghow solution can assist:

CATEGORY IMPROVEMENT DRIVER BENEFITS

Reduced EnergyConsumption &Carbon Emissions

Energy STAR and efficiency COMPLIANCE WITH THEFOLLOWING EXECUTIVE ORDER:

EPEAT rated DevicesEO13423-Strenghthening Environmental,Energy, and Transportation Management

Improved device energy settingsEO13514-Federal Leadership inEnvironmental, Energy, and EconomicPerformance

Reduced device footprint EO13589-Promoting Efficient Spending

ImprovedRecyclability & Endof Life Management

Recycled content requirement

Device disposal

Reduced PaperConsumption

Duplex printing requirement

Network Printers

Monthly Capacity “A” Monthly Capacity “B” Minimum Print Speed

Band 1 1– 10,000 10,001 – 12,500 20 ppm

Band 2 12,501 – 25,000 25,001 – 50,000 30 ppm

Band 3 50,001 – 60,000 60,001 – 75,000 40 ppm

Band 4 75,001 – 90,000 90,001 – 100,000 50 ppm

Band 5 >100,000 60 ppm

5.0 Security Configurations

The security requirements set forth in this SOW and in Appendix B: Minimum Device Specifications have beenidentified as the basic requirements common across Government agencies. These are the minimum securityrequirements applicable to all offerings provided as part of this BPA. Each ordering activity may have its ownhardware/software acceptance processes. MFDs and NPs shall be subject to ordering activity hardware/softwareevaluation processes at the task order level. If the MFD or NP fails a security evaluation, the Contractor may select adifferent technology or mitigate the failed controls to fulfill this requirement. The Contractor shall be available tomeet with information technology (IT) and security personnel at a mutually convenient time during the evaluationprocess, and shall identify a mutually acceptable solution. The Contractor shall provide the necessary equipment orexpertise to complete security testing and integration into the existing environment.

Security Level Device Type Security Feature

Device

MFDOptional security kits capable of data overwrite and user access control for all

models containing hard drives

MFD Physical separation of fax functions from print, copy, and scan functions

MFD/ NP

Network Protocol features including:

1) Ability to prevent downloads from external sites

2) HTTPS sockets for approved web-enabled services

3) Ability to disable wireless capabilities

4) Ability to assign static and dynamic IP addresses and domain nameservices

5) Support of IPv4 and IPv6

6) Optional capability for IPSEC or TSL Support

MFD/ NP Data encryption in accordance with FIPS 140-2

MFD/ NPProhibition of hard drive removal from end user location once device has

been installed

End-User MFD/ NP

User authentication from Homeland Security Presidential Directive 12(HSPD12) card readers, Common Access Card/Public Key Infrastructure(CAC/PKI)

MFD/ NPCapability of a “secure print” function using an identification (ID) and

password identification number (PIN) to retrieve documents from the device

6.0 Statement of Work/Performance Work Statement/Statement of Objectives Preparation

Orders under this BPA are subject to terms and conditions of the BPA and FAR Part 8.405-3, Blanket PurchaseAgreements.

BPA-level agreements with contractors establish minimum technical specifications and minimum service levelrequirements at firm-fixed labor hour rate and firm-fixed prices. The Ordering Official must develop workrequirements at the Order level that meet individual agency security, performance, and IT requirements. However, theOrdering Activities are strongly encouraged to leverage the awarded BPA Service level agreements and Appendix B:Minimum Device Specifications to the maximum extent possible (See attached documents).

Ordering Activity Administrative Information

Ordering Officials should develop a written statement of work/performance work statement or statement of objectives withclearly defined deliverables used in accordance with FAR 8.405-3. Standardized templates for specific Ordering Activities maybe available. Contact the Print Management Program Office for more information.

The Ordering Official mayrequest a level of service or a specific technical specification above and beyond what is established in theBPA. Price for additional levels of service or unique specifications are allowed, but must be within the scope of the Contractor’sMultiple Award Schedule 36 and must not exceed prices established in the schedule contract.

Ordering Officials should utilize performance-based contracting methods to the maximum extent possible, including thedevelopment of specific performance standards and methods of quality surveillance.

7.0 New Device Procurements

7.1 Device Purchase

When an Agency makes the decision to purchase a device, the ordering activity should plan forservice/maintenance/consumable plans at time of award to include the base period and also be inclusive of optionperiods to manage the device for a total useful life of 4-5 years. Currently, there are agencies that procure deviceswith service/ maintenance/consumable plans for a period of 12 months with no plans for the subsequent years. Asthese devices (if used in accordance with their identified manufacturer monthly usage cycles) have an anticipateduseful life of 4-5 years, an Agency should envision managing the total cost of ownership for that period of time.The Original Equipment Manufacturer controls the distribution channels for the service/maintenance/consumablestherefore it will assist an Agency in ensuring these devices are properly maintained for their entire useful life ANDprevent Agencies from having to re-issue these requirements utilizing a brand-name justification or a logical followon after the base year. Even if the option periods for service/maintenance/consumables are not exercised by theAgency, it is a best practice to plan for them as a potential solution in subsequent years.

7.2 Equipment Leasing

FAR Part 7.4 provides guidance to Ordering Officials attempting to determine whether to buy or lease devices.Ordering Officials should examine options and choose the most appropriate, given the needs of the agency. Eachmethod presents advantages and disadvantages. FA II provides the following acquisition options for agencies:purchase, lease to own, operating lease, rental, cost per copy, and flat rate.

Device purchase is the least expensive acquisition method. However, funding for purchases issometimes subject to additional regulations depending on the dollar value of the purchase.Circumstances may justify an acquisition through methods other than purchase.

Ordering Activities who wish to fund multiple year leases with annual operating appropriations are advisedthat in a multiple year contract, the full term of the lease must be funded OR the Ordering Activity mustseparately fund a termination liability fee that ensures the contractor in the event that the lease is terminated forthe convenience of the government for a reason other than the unavailability of government funds prior to thelease’s scheduled end.

A five year lease, funded with annual appropriations, will be divided into five, 12-month orderingperiods. The full termination liability is calculated as percentage of the full lease cost and is reduced intwelve month increments over the period of the lease.

Ordering Activities should consider the terms of Schedule 36, Operating Lease and Lease-To-Ownership Plans(LTOP) SINs (see attached) when placing orders. Ordering Agencies are responsible for the obligation of thefunding consistent with fiscal law when entering into any lease arrangement, particularly with respect to long-termleasing arrangements and early termination liability fees. Particularly, agencies should consult Schedule 36, leasingterms, Leasing of General Purpose Commercial Equipment.

Ordering Activities are encouraged to perform acquisition planning and to consider obtaining approval for eithercapital funds for purchase or approval to enter into a multi- year contract as described in FARPart 17. Particularly,Ordering Activities are encouraged to consider the authorityunder a multi-year contract to cancel a contract (FARPart17.106-1).

Please see Schedule 36 leasing terms attached that were incorporated at time of awardfor additionalinformation.

8.0 Competition

RFQs for orders are to be issued in accordance with FAR 8.405-3(c)(2)(i), (ii), or (iii) depending on thedollar value. Orders exceeding the simplified acquisition threshold must be posted in eBuy or acomparable RFQ tool to ensure fair opportunity is given to all vendors. Ordering Activities will choosebetween one of the following procedures when issuing an Order-level RFQ:

Orders at or below the micro-purchase threshold:o The ordering activity may place orders with any BPA holder that can meet the agency needs.

The ordering activity should attempt to distribute any such orders among the BPA holders.o NOTE: THIS WILL BE UNUSUAL AS MOST REQUIREMENTS EXCEED MICRO-

PURCHASE THRESHOLD

Orders exceeding the micro-purchase threshold but not exceeding the simplified acquisitionthreshold:

o The ordering activity must provide each multiple-award BPA holder a fair opportunity to beconsidered for each order exceeding the micro-purchase threshold, but not exceeding thesimplified acquisition threshold unless one of the exceptions at 8.405-6(a)(1)(i)

o Need not contact each BPA Holders if information is available to ensure that each awardee isprovided fair opportunity

o Document conditions and circumstances for restricting consideration to less than all BPAawardees

Orders exceeding the simplified acquisition threshold:

o Unless the requirement is waived on the basis of a limited source justification that is preparedand approved in accordance with FAR 8.405-6, the ordering activity should follow thefollowing process:(1) Provide an RFQ to all BPA holders offering the required supplies or services under

the multiple-award BPAs, to include a description of the supplies to be delivered orthe services to be performed and the basis upon which the selection will be made;

(2) Afford all BPA holders responding to the RFQ an opportunity to submit a quote; and(3) Fairly consider all responses received and make award in accordance with the

selection procedures.(4) The ordering activity shall document evidence of compliance with these procedures

and the basis for the award decision or document supporting rationale if they areciting one of the exceptions at 8.405-6(a)(1)(i)

If the ordering activity is not following these procedures in accordance with FAR requirements due toconsiderations such as “logical follow on” or “brand name requirements”, etc, the agency is required toprepare a Limited Sources Justification in accordance with FAR 8.405-6 and it must be posted in e-buy.

NOTE: In an effort to provide a total solution and cover the entire print imaging environment, anyitems not available through the BPA, the Client Agency can allow for a Vendor to quote in accordancewith their Schedule 36 contract. For example, an Agency requires production devices in addition tomulti-function devices.

9.0 Can Orders under non-set aside BPAs be set-aside for small businesses?

The short answer is “no”. For existing multiple award BPAs, such as Functional Area II, BPAs that wereestablished without prior notification to prospective BPA-holders that orders may be set-aside under the BPAs,ordering activities should NOT have set-aside orders. Procedures for placing orders against BPAs come from 8.405-3(c) and require that the ordering activity give “fair opportunity” to all BPA holders. While Section 1331 of theSmall Business Jobs Act of 2010 provided set-aside authority “notwithstanding fair opportunity requirements,” itwould be inappropriate to restrict the competition on existing BPAs, or on any non-set-aside BPAs where use ofSection 1331 authority at the order level was not specified, and prospective BPA-holders were not notified prior tothe BPAs being established.

However, if an Ordering Activity is seeking small business participation, the Agency can examine whether theywant to include socio-economic goals as an evaluation factor or request a socio-economic plan as part of theevaluation criteria to allow all participating large business vendors to identify how small businesses will be utilizedin support of their specific requirements. Contact the FSSI Print Management PMO to discuss further.

10.0 Post-Award Reporting Requirements

All Contracting Officers who use the FSSI BPA are responsible for reporting the date of award, the task ordernumber, the award amount, and the contractor to the GSA FSSI Program Management Office (PMO) atprint.management@gsa.gov within 10 days of task order award. Information submitted by the Ordering Activity willbe cross-referenced with information provided by the contractors.

The GSA PMO will monitor the contractor’s compliance with the initial and monthly reporting requirements inAppendix C. Ordering Activities will be contacted by the FSSI Print Management PMO and asked to submitevaluations of contractor and sub-contracting performance.

11.0 Service Level Agreements

At the BPA level, there is an awarded Service Level Agreement and the Ordering Guide has it included as anAppendix for Agency review. This SLA can be modified to best meet your requirements. Ordering Activitiesare encouraged to use a performance based approach in the form of a Quality Assurance Surveillance Plan(QASP) in order to ensure performance compliance with the Service Level Agreement (SLA) that has beenestablished by the ordering activity. A sample QASP is provided below:

PERFORMANCE

REQUIREMENTS

METHOD OF

SURVEILLANCE

STANDARDS (Numbersmay be adjusted afterreal data is collected)

INCENTIVE /

DISINCENTIVE

PerformanceRequirementsaretakendirectlyfromtasks in the

SOW

Performance RequirementA: The contractorshalldeliver15MFDs to location xno later

than4 weeks ARO

IdentifytheCORorCOTR, thedatathatwillbecollected,howdatawillbecollected,andhowthedata

qualitywillbeensured

COR will verify delivery

Describe standards in terms ofquality, quantity, timeliness,

and cost-effectiveness

Met: Delivery date is on orbefore 4 weeks ARO

NotMet: Deliverydate isafter 4 weeks ARO

The government mayidentifydisincentives and incentives, orallow the contractor to proposedis-incentives and incentives. If

incentives are proposed, theContracting Officer must ensure

that funds are available

Disincentive:TheGovernment willassess thefull costofwork

interruption orother collateral costs tothecontractor

PerformanceRequirement B: Thecontractor shall provide

break/fix support

COR will monitorreports of downmachine swill

Eachquarter, devicefleetsbe95%operational100%of thedays when thegovernment is

openforbusiness

Ordering Official shouldnegotiate with Contractor

Performance Requirement C:The contractor shall report meter

reads fordata outlined inAppendixC in a timelyand

accurate manner

GSA FSSI PMO willcollect random samples

100%ofdatawill be entered10daysaftertheendofthe

quarter with 98% accuracy

Ordering Official shouldnegotiate with Contractor

12.0 Remedies for Performance Failure

Ordering Officials are encouraged to identify delivery milestones, delivery instructions, and specific informationregarding the specifications of the device to the maximum extent possible in the Order SOW. Remedies forperformance failure range from taking corrective action through the assessment of disincentives under a QualityAssurance Surveillance Plan (QASP), to termination for cause using the procedures described in 8.405-6,Remedies for Non-Conformance. FAR Part 52.212-4, Contract Terms and Conditions, Commercial Items, isincorporated into every Schedule 36 contract against which the FSSI BPAs are placed.

If the Ordering Official encounters a performance failure, the Ordering Official may issue a cure letter withcorrective action steps outlined. If the cure letter fails to remedy performance, the Ordering Official may issuea show cause letter. If the contractor fails to respond meaningfully to the show cause letter, the OrderingOfficial may proceed with a termination for cause, and award the Order to the contractor next in line foraward during competition. The government may assess any costs associated with the termination against thecontractor. Additionally, Ordering Officials are encouraged to document non-performance, slow performance,and poor customer service in government-wide past performance databases.

13.0 Place Indefinite Quantity Orders Against the FSSI BPAs

The FAR does not specifically address placing orders against a Blanket Purchase Agreement established using theprocedures in FAR Part 8.405-3 that intent to fill repetitive needs at established prices over times for commodities whenthe exact quantity of commodities is unknown.

However, when an agency-level, enterprise-wide FSSI order is planned, two conditions often occur. First, the exactquantity of devices required over the period of performance of the order is unknown. Second, multiple sources of fundsacross the agency will be obligated when needs occur. Both conditions are well-suited to establishing a Blanket PurchaseAgreement or Indefinite Quantity/Indefinite Delivery acquisition vehicle. This analysis states GSA’s position on theFSSI Order as an indefinite quantity acquisition vehicle.

FAR Part 8.405-3(b)(2)(ii) addresses placing Orders under Blanket Purchase Agreements established againstMultiple Award Schedules.

This section of the FAR states a clear preference for the placement of firm-fixed price orders for commercial serviceswhen orders are placed under a BPA, and requires the development of a Statement of Work.

Firm-fixed price orders are most appropriate when the quantity of devices ordered, the salient performancecharacteristics of the devices, the service agreement performance standards for the devices, the requirements for thedevices to integrate within the anticipated operating environment, and the locations where devices will be orderedand installed are clearly defined.

Furthermore, establishing clear quantities at the order level allows procuring agencies to leverage the full potentialof quantity and other discounts that occur when the dollar value of a contract is known or estimated within a narrowrange of values.

Therefore, if an agency has engaged in extensive development of requirements prior to conducting an acquisition, theestablishment of an order with a Statement of Work that addresses the salient performance characteristics of a device, therequirements of the devices to be integrated into an operating environment, and the service agreement performancestandards for the devices, then establishing an order with a minimum and maximum quantity, as if the order were placedusing the procedures in FAR Part 16, is not prohibited by the FAR, and clearly aligns with stated preferences for placingorders with defined requirements that maximize the potential for acquisition discounts, and may be awarded using afirm-fixed price structure that minimizes risk to the government.

An order structured in this manner may allow for delegated obligation of funds to direct installation and removal ofdevices throughout the period of performance of the order without being made indistinguishable from a BlanketPurchase Agreement.

While the FAR does not specifically address whether or not an order placed against a BPA may function to fillrepetitive needs, it does address the preference for an order for services to be placed on a firm-fixed price basis,which assumes a clear definition of the funds that will be obligated at the time of award and a robust development ofa related SOW.

When attempting to award a task order that reflects the above situation, the FSSI Print Management team suggestsfollowing these steps and best practices:

1) The Statement of Work clearly defines, in multiple contract line items, if necessary, the salient performancerequirements of the device.

2) The Statement of Work clearly defines the operating conditions for devices3) The Statement of Work identifies the acceptance testing process to ensure security and other performancerequirements

4) The Statement of Work identifies the service level performance standards for the devices5) The RFQ establishes the location where devices will be installed and the procedures for initiating theinstallation or removal of devices

6) The RFQ establishes a minimum quantity over the period of performance

7) The RFQ establishes a maximum quantity over the period of performance

14.0 RFQ Issuance Process

Step 1: Identify your procuring contracting office

Step 2: Develop requirements

Step 3: Issue RFQ in eBuy

Step 4: Report award to the FSSI PMO within 10 business days

Step 5: Perform contract administration and quality assurance activities

15.0 Appendix B: Minimum Device Specifications (See Attached)

Please see attached Appendix B that provides the awarded device specifications for multi-function devices andnetwork printers. The awarded device configurations can and should be incorporated into your requirements.However, it can be reviewed and edited to meet your unique needs if not captured in the current configuration- forexample, your Agency does not require the fax capabilities, your order requirements can identify that and the deviceconfiguration will be updated in the vendor’s quote.

16.0 Ordering Activity Service Level Agreement (See Attached)

Please see attached Service Level Agreement that was awarded with the FSSI Print Management Blanket PurchaseAgreements. This SLA can and should be incorporated into your requirements. However, it can be reviewed andedited to meet your unique needs if not captured in the current format.

17.0 Program Contact InformationRyan SchrankProgram Manager/Contracting OfficerFederal Strategic Sourcing Initiative (FSSI) Print ManagementGSA Federal Acquisition Service (FAS), Mid-Atlantic Region 3Phone: 215-446-4893Fax: 215-829-2849Email: Ryan.Schrank@gsa.gov

APPENDIX B: MINIMUM DEVICE SPECIFICATIONS

The Contractor shall provide multifunction imaging devices (MFDs), network printers (NPs), and ancillary productswith the specifications set forth in this appendix. These specifications represent the base configuration that should beapplied to all MFDs and NPs under this BPA. The Contractor shall indicate as part of its offerings all of the optionalfeatures and accessories that can be added to each device.

MFD Device Specifications

Ability to print, network scan, copy, and fax Capability for color output, when required (see chart on page 7 of the SOW) Ability to connect to ordering activity networks with operating platforms including Wintel, Apple, Unix, and

Linux; other specific platforms may be outlined at the task order level Automatic document feeder Automatic duplex; must be capable of fully automatic duplexing (two-sided printing, copying and scanning)

from 8.5” x11” through 8.5” x14” size paper; the ability to duplex 11” x 17” shall be provided as an option,when available; fully automatic means that no operator handling of throughput or originals is required to obtaintwo-sided copies from one- or two-sided originals once the originals are inserted into the feeder and the startbutton is pressed

Keypad or touch screen Self-diagnostic system that indicates at a minimum, the following conditions: maintenance needs, toner needs,

paper needs, and paper jams Energy Star certification Ability to handle letter (8.5” x11”) and legal (8.5” x 14”) size paper Ability to handle 11” x17” shall be provided as an optional accessory, when available Adjustable size paper trays (minimum of two) Ability to perform all functions with recycled paper without experiencing failure rates or errors outside the

normal range of operation Ability to sort, collate, staple, hole punch, and make booklets, when available Wireless connectivity through Bluetooth and/or Wi-Fi, when available Functional separation, including physical and logical separation of facsimile (fax) functions from copy, scan,

self-contained document server/repository, and e-mail functions Optional hard drive, if needed for device functionality; once a device is delivered and installed at an ordering

activity location, the ordering activity will retain ownership of the hard drive For all MFDs containing hard drives, security data kits provided must be an available option on all models

providing capability for data overwrite and control of user access; the data overwrite function shall have theability to purge all images retained at the buffer cache/RAM level

Ability to be reformatted and restored to factory condition Printer control language (PCL) and post-script (PS) printer language Capability for user authentication from Homeland Security Presidential Directive 12 (HSPD-12) card readers,

Common Access Card/Public Key Infrastructure (CAC/PKI), and user login and password and authentication(LDAP and Active Directory compatibility)

Capability of a “secure print” function using an identification (ID) and password identification number (PIN) toretrieve documents from the device

Newly manufactured equipment must be in current production at the time it is provided to the ordering activity;“current production” means the equipment is being manufactured as new equipment for the United StatesGovernment market; no equipment provided under this BPA will be equipment that has been converted to newmodel status or the like

NP Device Specifications

Color output capability, when required (see chart on page 7 of the SOW)

Ability to connect to ordering activity networks with operating platforms including Wintel, Apple, Unix, andLinux; other specific platforms may be outlined at the task order level

Minimum of two drawer paper storage Automatic duplex; must be capable of fully automatic duplexing (two-sided printing, copying and scanning)

from 8.5” x11” through 8.5” x14” size paper; the ability to duplex 11” x 17” shall be provided as an option,when available; fully automatic means that no operator handling of throughput or originals is required to obtaintwo-sided copies from one- or two-sided originals once the originals are inserted into the feeder and the startbutton is pressed

Keypad or touch screen Self-diagnostic system that indicates at a minimum, the following conditions: maintenance needs, toner needs,

paper needs, and paper jams Energy Star certification Ability to handle letter (8.5” x11”) and legal (8.5” x14”) size paper Ability to handle 11” x17” paper shall be provided as an optional accessory, when available Adjustable size paper trays (minimum of two) Ability to perform all functions with recycled paper without experiencing failure rates or errors outside the

normal range of operation Optional capability to sort, collate, staple, hole punch, and make booklets. when available Wireless connectivity through Bluetooth and/or Wi-Fi, when available Optional hard drive, if needed for device functionality; once a device is delivered and installed at an ordering

activity location, the ordering activity will retain ownership of the hard drive For all NPs containing hard drives, security data kits must be an available option on all models providing

capability for data overwrite and control of user access; the data overwrite function shall have the ability topurge all images/data retained at the buffer cache/RAM level

Ability to be reformatted and restored to factory condition PCL and PS printer language Capability for user authentication from HSPD-12 card readers, CAC/PKI, and LDAP and Active Directory

compatibility Capability of a “secure print” function using an ID and PIN to retrieve documents from the device Newly manufactured equipment must be in current production at the time it is provided to the ordering activity;

“current production” means the equipment is being manufactured as new equipment for the United StatesGovernment market; no equipment provided under this BPA will be equipment that has been converted to newmodel status or the like

Hardware and Software Security

All devices offered by the Contractor under this BPA shall meet the hardware and software security requirementsoutlined below. For each statement made by the Contractor confirming compliance with industry standards,substantiation shall be provided by independent certifications and documentation confirming the statement (e.g.Federal Information Processing Standard (FIPS) 140-2, etc.).

All MFDs and NPs shall have hard drive data encryption or image overwrite after each print, copy, scan,facsimile (fax), and e-mail job. Overwrite shall include, at a minimum, the capability of a hard drive overwriteand overwrite capabilities for fax read-only memory (ROM), Flash, and any other memory source where data isbuffered. The available method shall be described by the Contractor for all devices offered under this BPA.

MFDs shall provide functional separation, meaning physical and logical separation of fax functions from copy,scan, self-contained document server/repository, and e-mail functions. The Contractor shall provide third-partydocumentation that verifies or certifies the separation.

All MFDs shall have the ability to password-protect fax address books. MFDs and NPs shall offer the ability to encrypt documents being faxed or e-mailed. Encryption must be

compliant with FIPS 140-2. MFDs and NPs shall allow access by only approved USB encryption devices and shall be capable of disabling

firewire interfaces. MFDs and NPs shall be capable of disabling serial connectors and Bluetooth interfaces.

All removable memory chips or cards, hard drives, optional removable hard drives with locks, and optionalphysical locks to secure internal parts capable of storing information shall be surrendered to an appropriatesecurity official as determined by the ordering activity for destruction, upon request.

The Contractor and the ordering activity shall ensure that memory and hard drives do not leave the facility oncea device is installed.

Electronic Products Environmental Assessment Tool (EPEAT)

EPEAT is an environmental procurement tool designed to help institutional purchasers and consumers evaluate,compare, and select desktop computers, laptops, displays, and imaging equipment based on their environmentalattributes. In the EPEAT system, manufacturers declare their products’ conformance to a comprehensive set ofenvironmental criteria in different environmental performance categories. To participate in EPEAT, manufacturersmust sign an agreement with EPEAT that requires them to be accurate in their declarations, and must pay an annualfee.

The operations of the EPEAT system and the environmental criteria for each of its product categories are containedin the Institute of Electrical and Electronic Engineers (IEEE) 1680 family of public standards. The standard forimaging equipment is IEEE 1680.2, and is currently being drafted in accordance with ANSI’s EssentialRequirements for processes and procedures. Currently, the standards for 1680.2 are scheduled to be finalizedDecember 2011.

At the BPA level, the Government reserves the right to require, via upcoming technology refreshes, that productsmeet the upcoming IEEE 1680.2 standard for the environmental assessment of imaging equipment once thesestandards are final and publicly available. The registration requirements and a list of all equipment meeting therequirements will be available at www.epeat.net. At the time that these new IEEE standards are final, the Contractorwill be required to provide quarterly reports quantifying the number of EPEAT-registered products purchased underthis BPA, broken out by the product registration levels of bronze, silver, or gold.

Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794d)

The Contractor shall support the Government in its compliance with Section 508 throughout the development andimplementation of the work to be performed. Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C.794d) requires that when Federal agencies develop, procure, maintain, or use electronic information technology,Federal employees with disabilities have access to and use of information and data that is comparable to the accessand use by Federal employees who do not have disabilities, unless an undue burden would be imposed on theagency. Section 508 also requires that individuals with disabilities, who are members of the public seekinginformation or services from a Federal agency, have access to and use of information and data that is comparable tothat provided to the public who are not individuals with disabilities, unless an undue burden would be imposed onthe agency.

The Contractor should review the following websites for additional 508 information.

http://www.section508.gov/index.cfm?FuseAction=Content&ID=12 http://www.access-board.gov/508.htm http://www.w3.org/WAI/Resources

Ordering Activity Service Level Agreements

4.0 Performance Requirements for MFDs and NPs

The following sections address performance requirements for MFD and NP solutions as part of this BPA. Theperformance requirements establish the framework for the standard service level agreement (SLA) that is beingincorporated at the BPA level. The SLA is the metric with which contractor performance at the task order level willbe measured. At the task order level, the ordering activity may adjust the SLA components, but the requirementsoutlined in the following sections (3.8-3.8.15) shall be the standard.

4.1 Delivery and Installation

Delivery and installation shall be coordinated by the ordering activity as part of the ordering process whenplacing orders against this BPA. The Contractor shall deliver and install MFDs and NPs within thirty (30)calendar days from the date of award for each task order, or within the timeframe specified by the orderingactivity at the task order level. Each MFD and NP shall be permanently marked by the Contractor on thefront frame with a unique identification/asset tracking label that includes, at a minimum, the model number,serial number, and a toll-free service telephone number. As a baseline, deliveries and installations shall beconducted Monday through Friday between the hours of 8:00 am and 5:00 pm (local time), excludingfederal holidays. Delivery and/or installation may be necessary during other hours due to specificrequirements of the ordering activity. If the Contractor’s proposed delivery or installation time is notacceptable to the ordering activity, both parties shall negotiate a mutually agreeable alternate time.

At the task order level, the Contractor should be prepared to offer storage services to the ordering activityfor orders that may require a phased delivery, or that involve a delayed start date for the performance of theorder. All storage services shall be provided at no additional cost to the ordering activity.

At the time of the initial delivery, the Contractor shall provide one month’s consumable supplies for eachMFD or NP, excluding paper. The supplies will be stored by the Government.

The Contractor shall provide a substitute MFD or NP of equal or superior features and capabilities if forany reason the original model is not available. The substitute shall be approved by the ordering activityprior to installation. Only those devices that have been awarded as part of this BPA can be used assubstitutes.

Note: Lease times shall not restart for substitute MFDs or NPs.

Ordering activity and facility security procedures shall be followed and may require off-site screening of equipmentand supplies prior to delivery. Specific ordering activity and building security screening procedures will beidentified at the task order level prior to award. If security procedures result in an additional cost to the Government,the Contractor shall immediately notify the task order Contracting Officer in writing.

4.2 Installation Report

The Contractor shall provide an installation report at the task order level to the designated personnel member withinten (10) calendar days from the date of installation for each MFD or NP unless otherwise negotiated by the OrderingActivity and the contractor. The installation report shall include, at a minimum, the ordering activity BPA number,task order number, device manufacturer, model number, serial number, and placement location, including roomnumber, building number, office name, customer’s name and phone number, name and job title of the individualinstalling the device, and the key operator’s signature of installation approval with the date and item number of thetask order.

4.3 Product Upgrade

The Contractor shall ensure continuity and availability of all products under the terms and conditions of theBPA. When a Contractor’s device is no longer available (e.g., discontinued production), the Contractor

shall propose a replacement device of equal or greater capabilities and value that consists of all new partsand current manufacturing production parts.

The Contractor shall be allowed to replace the MFD(s) and NP(s) on the BPA with new technology onetime during each ordering period. The new technology shall be approved by the BPA Contracting Officer.Under no circumstances shall the ordering activity incur additional costs for product upgrades, unless thecost variance is approved by the BPA Contracting Officer and incorporated via formal contractmodification.

Upon approval of a product upgrade, the Contractor shall retain resources necessary to address all taskorder requirements for the legacy MFD(s) and NP(s). If resources are not available to address allrequirements for the legacy MFD(s) and NP(s), the legacy MFD(s) and NP(s) shall be replaced with theContractor’s new MFD(s) and NP(s) to meet the requirements of the existing task order at no additionalcost to the Government.

4.4 Training

At a minimum, the Contractor shall provide training to the key operator for each device provided under atask order. The schedule for that training shall be determined by the ordering activity. If the key operator isnot available during this time period, the Contractor is required to establish a mutually agreeable alternatetime to provide training at no additional cost to the Government. If the key operator has previously receivedtraining for a specific device, the training requirement has been fulfilled and no additional training shall berequired.

Training shall include, at a minimum, how to operate the basic function keys of the MFD or NP; locationand procedures for installing consumable parts, such as paper, toner, staples, etc.; how to operate specialfeatures, including but not limited to duplexing, enlargements, and reductions; multiple job queues;diagnosis and resolution of basic device malfunctions, etc. In addition, the training shall give the keyoperator the necessary knowledge to sanitize the device(s) after classified information has been exposed(e.g., copied, faxed, e-mailed, scanned, or printed) or spilled.

The Contractor shall provide access to training materials that meet the initial ordering activity’s keyoperator training requirements for the training of new key operators within thirty (30) business days ofcontract award. Acceptable training methods include CD-ROM, web-based, and/or in-person training at noadditional cost to the ordering activity.

4.5 Maintenance Services

For those solutions provided with maintenance/repair agreements, the Contractor shall be responsible formaintaining the devices at a 95% monthly availability/up-time rating. The 95% rating shall apply to thosedevices not considered to be in remote or outside of the continental United States (OCONUS) locations.Availability/up-time ratings are based on the nine (9)-hour Government business day and industrystandards. Exact requirements will be established at the task order level. These service levels are minimumsunder this BPA. Ordering activities are authorized to adjust these up-time ratings, as well as officialdesignation of required up-time rates for remote and OCONUS locations at the task order level.

All device components required to ensure that the up-time requirements of this BPA are met shall beincluded in the maintenance agreement. For devices not owned by the ordering activity, the Contractorshall replace any MFD or NP that operates at less than the required up-time for two (2) consecutive monthswith an MFD or NP of equal or greater capabilities at no cost to the ordering activity.

Unless otherwise specified by the ordering activity, the Contractor shall affix identification/asset trackinglabels to all devices under a maintenance agreement. All labels shall clearly identify the device serialnumber and the toll free number that is to be ordered for service, training, supplies/consumables, anddevice support. This number shall not be an automated answering device. This number shall be availableduring normal business hours from 8:00 am to 5:00 pm with respect to the time zone in which the device is

located. The identification/asset tracking label shall be clearly visible to the end users during normaloperation of the device, and shall remain so throughout the duration of the maintenance agreement. Unlessotherwise specified by the ordering activity, the key operator will be the primary point of contact (POC)regarding preventive maintenance, service orders, and re-ordered consumables.

The Contractor shall provide maintenance and repair service to all devices that, at a minimum, includes installation;IT and operational troubleshooting; service orders; preventive maintenance; repairs, including parts and labor; andnetwork connectivity guidance throughout the term of each task order. Additional requirements may be outlined atthe task order level.

The Contractor shall provide, at a minimum, annual service orders at no charge to the Government. The annualservice orders are a preventive maintenance service for devices covered by a maintenance agreement to ensure thedevices furnished are maintained in good working condition. Such preventive maintenance shall be in accordancewith the manufacturer’s recommendations and shall be equal to maintenance provided to commercial customers forthe same MFD or NP model.

For service orders placed by the ordering activity, the Contractor shall dispatch a technician within six (6) hours torespond to all noncritical devices requiring onsite service. The exact definition of critical and noncritical devices willbe established at the task order level. Response time on a service order begins when the order, if placed by phone, isreceived by the Contractor. Service orders received after normal hours of operation shall begin the followingbusiness day at 8:00 am. After determining that an MFD or NP cannot be repaired, the Contractor shall provide atemporary device of equal or greater capabilities within two (2) business days at no additional cost to the orderingactivity. After the service order is completed, the service technician shall notify the key operator about whether ornot service was completed satisfactory. If the original MFD or NP is not repaired within fourteen (14) calendar days,the Contractor shall provide a permanent replacement MFD or NP with equal or superior features and capabilities.

Devices for “critical use” shall be identified as part of the ordering process for resulting task orders by the task orderContracting Officer. The Contractor shall dispatch a technician within two (2) hours for devices designated for“critical use” requiring onsite service, at an additional cost. If a device for “critical use” cannot be restored to itsfully operational state, the Contractor shall install a substitute device within one (1) business day of the serviceresponse, at no additional cost to the Government. Devices for “critical use” may require maintenance on federalholidays. The Contractor may be required to interact with personnel that provide IT help desk support.

4.6 Repairs

For those solutions provided with maintenance/repair agreements, the Contractor shall dispatch a repairtechnician within six (6) hours to respond to all noncritical purchased devices requiring onsite repairservice. Response time on a service order begins when the order, if placed by phone, is received by theContractor. Service orders received after normal hours of operation shall begin the following business dayat 8:00 am (local time). The Contractor shall dispatch a repair technician within two (2) hours forpurchased devices designated for “critical use” requiring onsite repair service, at an additional cost.

For any repair that requires a device to be taken off site, the hard drives must be removed and left with theordering activity. No hard drives will be permitted to leave the site once a device has been delivered andinstalled.

4.7 Meter Reads

To promote continued reduction in the TCO for the FSSI program, the Government understands the criticalneed for data collection and monitoring of the devices deployed under this BPA. For all devices providedwith a maintenance and repair agreement and/or a consumables agreement, the contractor will beresponsible for providing device meter reads to the ordering activity. The data collected from these meterreadings will allow the Government to track savings and identify potential areas for additional processimprovement.

The contractor shall conduct meter reads for every individual device deployed in a Order/Task Order issuedagainst this BPA. GSA will advise ordering activities to address the handling of remote readings of metersthrough their task order requests.

If allowable by the ordering activity at the task order level, the Contractor shall remotely collect and submitmeter reads for all devices. Each ordering activity shall decide, based on risk assessment and networkrequirements, to approve the remote retrieval of meter reads. Approval will be determined by the networksystem owner’s acceptance of risk. Note: Remote access will be subject to security review and modified toprotect the ordering activity’s IT resources from intrusion or compromise.

For orders placed by ordering activities where remote meter reading is not allowed, the Contractor shallpropose a plan outlining how those meter reads will be collected as part of the package at the BPA level.The plan shall clearly outline the process that will be followed and the methodology that will be used tocollect the meter readings. Monthly and quarterly readings shall be the standard for meter read collection.Any frequency other than the standard will be addressed at the task order level.

The Contractor shall notify the ordering activity, in writing, about a possible monthly usage level change ifa device’s output is below the contracted monthly allowance rate for two (2) consecutive months. If thelower usage level continues beyond a consecutive six (6)-month period, the Contractor shall downgrade themonthly usage level/volume band at no penalty to the Government. The adjustment shall be reflected in thetask order invoice. The ordering activity and the Contractor will be responsible for monitoring monthlyusage of devices.

4.8 Consumables

For those solutions provided with consumables agreements, Contractor shall provide all consumablesupplies, excluding paper and transparencies, necessary for the continuous operation of the devicesthroughout the duration of the task order or consumable agreement. All consumable items required toensure that the up-time ratings of the task order are met shall be included in the agreement.

Supplies shall be delivered to the destination location within three (3) to five (5) business days of receipt ofthe consumable request. The Contractor also shall provide the ordering activity the option to have suppliesdelivered to the destination location within two (2) business days of receipt of the consumable request at anadditional cost. Supplies shall be delivered to the designated locations listed by the ordering activity andcoordinated by the key operator or designated ordering activity personnel.

At the task order level, ordering activities may request bio-based or remanufactured toner as part of theirrequired consumables solutions. Contractors are encouraged to provide sustainable offerings as an optionalconsumables solutions at the BPA where available. The contractor shall clearly identify those offerings aspart of the submission package at the BPA level.

4.9 Geographical Coverage

The Contractor may be required to deliver products and provide onsite services in all 50 states in the UnitedStates (U.S.), the District of Columbia, and all U.S. territories. If there are additional charges for delivery toAlaska, Hawaii, Puerto Rico, or the territories, this shall be clearly addressed in the pricing quotation.

Each ordering activity will clearly identify all locations requiring products and services at the task orderlevel. Location classifications such as “metro” versus “remote” locations also will be agreed on by theordering activity and the Contractor at the task order level.

4.10 Equipment Relocation, Removal, and Disposal

For devices provided to the Government through methods other than purchasing, the Contractor shallprovide one (1) relocation per year, per device, within twenty-five (25) miles of the previous installedlocation when the equipment is located within the 50 U.S. states or the District of Columbia. At the task

order level, the Contracting Officer will notify the Contractor of the new location and requirements (e.g.,special rigging) via contract modification. Upon receipt of the contract modification, the Contractor shallrelocate the device within five (5) business days at no additional cost to the Government. Any arrangementsrequiring relocation outside of the normal five (5) day standard will be addressed at the task order level.Relocations shall be coordinated with the key operator and/or other authorized personnel as defined at thetask order level.

For devices provided to the Government through methods other than purchasing, the Contractor shallremove those devices within five (5) business days of the task order expiration date at no additional cost tothe Government. Any arrangements requiring removal outside of the normal five (5) day standard will beaddressed at the task order level. Removals shall be coordinated with the key operator and/or otherauthorized personnel. The Contractor should notify the key operator and/or other authorized personnel of aremoval one (1) month prior to the expiration date of the task order. The Government will not assume anyresponsibility for non-purchased devices left at a facility beyond the task order expiration date.

The Contractor shall provide a removal report to the key operator and/or other authorized personnel uponremoval of each device. This report shall include, at a minimum, the serial number(s), model(s), BPAnumber(s), task order number(s) and expiration date(s), and a description of how each device was sanitizedto remove residual information.

The Contractor shall assess the salvage value of purchased equipment at the end of its useful life based onits current retail value. The Government may return the equipment to the Contractor and use the assessedsalvage value to offset the purchase price of a new device.

As part of the proposal, the Contractor shall clearly identify its approach to device disposal, including aplan to mitigate the amount of material that will enter a landfill once a device has exceeded its useful lifeand increase the amount of material that is recycled and re-used.

For any equipment removed by the Contractor and scheduled to be refurnished or disposed of, theContractor is required to demonstrate as part of its disposal plan that those actions will be handled by arefurbisher or recycler that is third-party certified to either the Responsible Recycling Standard or the EStewards Standard.

http://www.epa.gov/osw/inforesources/news/2009news/08-r2.htmhttp://e-stewards.org/certifi cation-overview/program-details/

LEASING OF GENERAL PURPOSE COMMERCIAL PRODUCTS

Lease-to-Ownership Plan (LTOP)Operating Lease Plan

1. STATEMENT OF GOVERNMENT INTENT

For the purpose of this solicitation, Lease Term is defined as the duration of the lease in months (not to exceed 60months) as shown on the Ordering Agency’s initial delivery order. It is understood by all parties to this contract thatthis is a leasing arrangement. In that regard, the Government anticipates fulfilling the leasing agreement subject tothe availability of appropriated funds and the continued needs of the Ordering Agency. The Ordering Agency, uponissuance of any delivery order intends to use the equipment for the lease term specified in the initial delivery orderso long as the needs of the Ordering Agency for the equipment or functionally similar equipment continues to existand adequate funds are appropriated. Each lease hereunder shall be initiated by a delivery order which shall, eitherthrough a statement of work or other attachment specify the equipment being leased, and the terms of the transactionas required in the specific Special Item Number (SIN) description. The lease commencement is the date ofacceptance as defined by FAR Subpart 12.4

The first period or initial term of the leasing agreement will be through September 30th of the fiscal year in which theorder is placed, or as extended by act of Congress, unless the ordering office has multi-year funding.

Ordering Agencies are advised to follow the guidance provided in Federal Acquisition Regulation (FAR) Subpart7.4 Equipment Lease or Purchase, and to review the lease terms and conditions prior to ordering and obligatingfunding for a lease. Ordering Agencies are responsible for the obligation of the funding consistent with fiscal lawwhen entering into any lease arrangement.

2. ORDERING PROCEDURES

(a) Ordering Agencies are strongly encouraged to conduct a needs assessment prior to the procurement.(b) When the Ordering Agency expresses an interest in leasing a product(s), the Ordering Agency will provide

the following information to the prospective vendors:

(i) Which product(s) is (are) required.(ii) The required delivery date.(iii) The proposed term of the lease.(iv) Where the equipment will be located.(v) Description of the intended use of the equipment.

(c) The contractor will respond with:

(i) Whether the contractor can provide the required equipment.(ii) The monthly payment based on the rate and the initial and residual values of the equipment.(iii) The estimated cost, if any, of applicable State or local taxes.(iv) A confirmation of the availability of the equipment on the required delivery date.(v) Extent of warranty coverage, if any, of the leased products.(vi) Cite the cost of any mandatory maintenance as applicable.(vii) The Termination Ceiling Charges, as applicable. (See Section 13, Early Termination Charges).

(d) The ordering agency and contractor shall agree upon a termination ceiling charge which is established inaccordance with the appropriate formula in Section 13. Early Termination Charges (See FAR Subpart17.1)

(e) The Contracting Officer shall insert the agreed upon termination ceiling charge for the first year in theorder and modify it for successive years upon availability of funds.

3. ORDERS AND PERIOD OF LEASING ARRANGEMENTS

(a) Lease Options: At a minimum, Ordering Agencies placing orders for equipment under a leasingarrangement must specify on the delivery order the applicable leasing SIN under which the equipment isbeing leased.

(i) Lease to Ownership Plan (LTOP) (Lease/Purchase)(ii) Lease with Option to Own (Operating Lease)

(b) Annual Year Funding. When using annually appropriated funds when placing an order for leasing, thefollowing applies:

(i) Any lease executed by the Ordering Agency shall be on the basis that the known requirements exceedthe remainder of the fiscal year. Due to funding constraints, however, the Ordering Agency cannotnormally commit to a term longer than one fiscal year at the commencement of the lease. To facilitatethe exercise of renewal options for future fiscal years, the lease term will be specified in the deliveryorder. All orders for leasing shall remain in effect through the Government fiscal year (or asextended by Act of Congress), or the planned expiration date of the lease, whichever is earlier, unlessthe Ordering Agency exercises its rights hereunder to acquire title to the equipment prior to theplanned expiration date. Despite the fact that the delivery order will specify the total lease term, ordersunder the lease shall not be deemed to obligate succeeding fiscal year’s funds or to otherwise committhe Ordering Agency to a renewal.

(ii) All orders for leasing automatically terminate at the end of the Government fiscal year (or as extendedby Act of Congress) or the contract term, whichever is earlier. However, Ordering Agencies shouldnotify the contractor in writing thirty (30) calendar days prior to the expiration of such orders as to theGovernment’s intent to renew. Ordering Agencies are instructed to follow the guidelines set forth inParagraph 14 of this section with regard to termination of lease terms for non-appropriation or agencydecisions not to renew. Should Ordering Agencies decide to terminate the lease prior to the expirationof the lease term under any other condition other than those set forth in Paragraph 14, early terminationcharges shall apply, (See Section 13, Early Termination).

(c) Multi-Year Funding Within contract Period: Where an Ordering Agency’s specific appropriationauthority provides for funds in excess of a 12 month (fiscal year) period, the Ordering Agency may place aschedule contract order for leasing for a period up to the expiration of its period of appropriationavailability, or the expiration of the contract period whichever comes first, notwithstanding the interveningfiscal years.

(d) In recognition of the types of products on this Schedule and the potential adverse impact to theGovernment’s mission, the Government’s quiet and peaceful possession and unrestricted use of theequipment shall not be disturbed in the event the equipment is sold by the Contractor, or in the event ofbankruptcy of the contractor, corporate dissolution of the Contractor, or other event, so long as theGovernment is not in default. The equipment shall remain in the possession of the Government until theexpiration of the lease. Any assignment, sale, bankruptcy, or other transfer of the leased equipment by thecontractor will not relieve the Contractor of its obligations to the Government, and will not change theGovernment’s duties or increase the burdens or risks imposed on the Government.

(e) Assignment of Claims: In accordance with GSAR 552.232-23 Assignment of Claims under this contract,the Ordering Agency Contracting Officer may approve the assignment of claim for an order under theseleasing Special Item Numbers (SINs) in accordance with FAR 32.803. Contractors cannot prohibit orotherwise limit the Government’s ability to setoff lease payments under any lease or assignment of a lease.

(f) Government Rights under Lease: The Government does NOT waive any performance requirements,warranty rights nor other contract or statutory rights, such as the right to set off payments against otherGovernment debt, as a part of the lease. The Government’s acceptance of an assignment of a lease, doesnot waive any of the Government contract provisions.

4. MAINTENANCE AND INSTALLATION(a) Maintenance and installation, when applicable, are not included in the lease payments. The Ordering

Agency will obtain installation and/or maintenance from the contractor or a designated authorized serviceprovider.

(b) When installation and/or maintenance are to be performed by the Contractor, the payments, terms andconditions will be as stated in this contract. Maintenance payments and terms and conditions duringsubsequent renewal periods of this lease will be those of the prevailing GSA Schedule contract in effect.

5. MONTHLY PAYMENTS(a) Prior to the placement of an order under this SIN, the Ordering Agency and the contractor must agree on a

“base value” for the products to be leased. The base value will be the contract purchase price (less anydiscounts). For operating leases the residual value is independent of the purchase option price. Theresidual value will be used in the calculation of the original lease payment.

(b) To determine the initial lease term payment, the contractor agrees to apply the negotiated lease factor to theagreed upon base value:

Examples: Lease factor one (1) percent over the rate for the three year (or other term) Treasury Bill(T-bill) at the most current U. S. Treasury auction.

or

The Contractor’s most favored finance rate factor as agreed to during contract negotiations.

The lease payment may be calculated by using a programmed business calculator or by using “rate”functions provided in commercial computer spreadsheets (e.g., Lotus 1-2-3, Excel).

(c) The purchase option price will be based upon the unamortized principle of the product. The payment willbe based upon the unamortized principle, as shown on the payment schedule as of the last payment prior to dateof transfer of ownership. In the event the Government desires, at any time, to acquire title to equipment leasedhereunder, the Government may make a one-time lump sum payment.

6. EXPIRATION OF LEASE TERM:

(a) Upon the expiration of the Lease Term, the Ordering Agency will:

(i) Upon 30 day written notice, return the Equipment to the Contractor or -(ii) Purchase the equipment at the fair market value of the equipment or;(iii) Obtain requirements in accordance with FAR 8.4 (Ordering Procedures) by issuing a new request for

quote.

Note: Customers are advised to see paragraph 15-18 for additional lease expiration provisions.

7. ADDITIONS

For the purpose of this solicitation the definition of an addition is defined as follows:

Additions: The addition of accessories features or other enhancements available for lease under this contract to anexisting model (base unit) already installed. Additions shall not change the functionality of the installed equipment.

(a) The ordering agency may require the contractor to modify existing leased equipment through ordermodifications, provided the modifications are customarily offered by the contractor for the equipmentleased. The price of the modification will be mutually agreed upon by the ordering agency and thecontractor. The ordering agency may pay for the modification at full price upon acceptance, or themodification price may be leased coterminous with the initial lease term. The contract lease interest rate in

effect at the time of order of the modification will be used to calculate the monthly payment applicable tothe modification. For Operating leases a residual value should be negotiated for the modification.

For example:

Lease to ownership

Price of the modification - $1,000

Months remaining on the equipment lease - 19

Current contract lease factor at the time of the modification - 045 for 24 month lease, the term closest toremainder of lease.

Interest equivalent (i) for lease factor is 0.625% per month [rate(N,-pmt,Price)/rate(24,-0.045,1)]

Modification Payment $55.98 [PMT(i,N,P)/PMT(.625%,19,1000)]

(b) The Ordering Agency may affix or install any accessory, addition, equipment or device on the equipment("additions") provided that such additions:

(i) can be removed without causing material damage to the equipment;(ii) do not reduce the value of the equipment; and(iii) are obtained from or approved by the contractor, and are not subject to the interest of any third party

other than the contractor.

(c) Any other additions may not be installed without the contractor's prior written consent. At the end of thelease term, the Government shall remove any additions which:

(i) were not leased from the contractor, and(ii) are readily removable without causing material damage or impairment of the intended function, use, or

value of the equipment, and restore the equipment to its original configuration.

(d) Any additions, which are not removable, will become the contractor's property (lien free).

(e) Payment may be modified based on the schedule price adjusted to reflect the actual period until the end ofthe lease term.

(f) Should the Ordering Agency elect to replace equipment under the lease, a new FAR 8.4 competition isrequired. This does not preclude substitution for failure to perform. Ordering Agencies are advised thatwhen making the decision to conduct a new competition, consideration must be given to the earlytermination of existing equipment and/or the financial considerations involved with the rollover of existingequipment should the current contractor prevail. Ordering Agencies are strongly advised to perform a costbenefit analysis in accordance with their agency procedures and policies with regard to rollovers.

8. RISK OF LOSS OR DAMAGE

The Government is relieved from all risk of loss or damage to the equipment during periods of transportation,installation, and during the entire time the equipment is in possession of the Government, except when loss ordamage is due to the fault or negligence of the Government. The Government shall assume risk of loss or damage tothe equipment during relocation unless the Contractor shall undertake such relocation.

9. WARRANTY

In accordance with Clause 552.246-73 under this contract, the contractor’s warranty, as stated in the contractor’sGSA Authorized Price List, is applicable to the lease.

10. EQUIPMENT PERFORMANCE

(a) The equipment supplied must be in operational or repairable condition throughout the term of the lease.

(i) Operational condition means the equipment is performing as intended, all accessories are operating asintended and in all respects the equipment is performing up to the standards in the manufacturer’sspecifications.

(ii) Repairable condition means that the equipment can be repaired by a qualified technician within theterms of the maintenance agreement. Additionally, all required replacement parts are available and theequipment down time does not exceed that specified in the maintenance agreement.

(b) After a thirty (30) day notice and cure period, if the equipment continues to fail to be operational orrepairable as defined above, the Ordering Agency may take those remedies available to it under either thecontractor warranty provisions or default clause set forth in FAR 52.212-4(m). Such recourse will not bethe basis for increasing the monthly payment or extending the term of the lease.

(c) Maintenance and Support:

Preventive Maintenance: The contractor shall provide preventive maintenance at least equal to thecommercial practice. Intervals between scheduled maintenance services shall be no greater than thoseprovided to commercial customers for the same products.

Response to Service Calls: At minimum, during normal working hours (as specified by the using activity),Monday through Friday (excluding holidays observed by the Government), the contractor shall respond toverbal or written requests for service calls. The contractor shall repair the products within either nine (9)working hours or sixteen (16) working hours (as specified by the User Activity) after the verbal or writtenrequest for the service call. However, for products identified as critical, the contractor shall respond toverbal requests for service calls and shall repair the products within four (4) working hours. Productsdesignated critical will be identified by the ordering activity in the order and shall not exceed 5% of thetotal number of products on the order. The contractor’s response time on a service call starts, whenauthorized personnel of an ordering activity place a verbal request to the contractor for a service call or awritten request is received by the contractor requesting a service call, whichever is earlier.

Contractors are required to submit a contingency plan to maintain full and proper operation of products andto avoid extended delays for repair or replacement of products.

Repair and Maintenance Service: Offerors shall submit and include in their pricelist’s, a list of Names,addresses, and phone number(s) of authorized representatives, responsible to the contractor, who may becontacted by ordering activities for repair and maintenance of products. Only those authorizedrepresentatives listed may render maintenance service, unless the list is subsequently modified by mutualagreement between the contractor and the Contracting Officer, to add or terminate authorizedrepresentatives. Contractor shall notify ordering activities of any changes to authorized repair andmaintenance representatives.

11. TITLE

During the Lease Term, the equipment shall always remain the property of the contractor. The Government shallhave no right or interest in the equipment except as provided in this leasing agreement and shall hold the equipmentsubject and subordinate to the rights of the contractor.

12. STATE AND LOCAL TAXES (52.229-1):

Notwithstanding the terms of the Federal, State, and Local Taxes Clause, the contract price excludes all State andLocal taxes levied on or measured by the contract or sales price of the services or completed supplies furnishedunder this contract. The contractor shall state separately on its invoices taxes excluded from the contract price, andthe Government agrees either to pay the amount of the taxes (based on the current value of the equipment) to thecontractor or provide evidence necessary to sustain an exemption.

See FAR clauses 52.229-1 State and Local Taxes; 52.229-3 Federal, State, and Local Taxes, which are incorporatedby reference.

13. EARLY TERMINATION CHARGES

Equipment leased under this agreement may be terminated at any time during a Government fiscal year by theOrdering Agency’s Contracting Office responsible for the delivery order in accordance with FAR 52.212-4,paragraph (l) Termination for the Ordering Activity’s Convenience.

The Termination Ceiling Charge is a limit on the amount that a contractor may claim from the Ordering Agency onthe termination for convenience of a lease or failure to renew a lease prior to the end of the lease term for reasonsother than those set forth in section 14, Termination for Non-Appropriation. Termination ceiling charges will applyfor each year of the lease term (See FAR 17.1). The Ordering Agency and contractor shall establish a TerminationCeiling amount. The Contracting Officer shall insert the Termination Ceiling Charge for amount of the first year inthe order and modify it for successive years upon availability of funds.

No claim will be accepted for future costs: supplies, maintenance, usage charges or interest expense beyond the dateof cancellation. In accordance with the bona fide needs rule, all termination charges must reasonably represent thevalue the Ordering Agency received for the work performed at cancellation based upon the shorter lease term. Notermination cost will be associated with the expiration of the lease term.

Formula 1: FOR Lease To Own (LTOP)

Termination Fee = pmt(i,n,P) *n - sum of PMT - FMV

"P" = Schedule Price of equipment at time of order, inclusive of Ordering Agency negotiated price reductionsshould be considered.

"PMT" = Actual Monthly Payment paid on order to termination

"i" = Monthly Interest Rate applicable to the order

"n" = number of months from order to termination

"pmt" = Monthly payment corrected to actual lease term"

"FMV" = Fair Market Value of equipment if returned at termination. Unit price adjustments, residual or FMVvalues used to calculate operating leases, should not be considered

Formula 2: For Operating leases

Termination Fee = PV (i, n,-PMT)

"PV"= Present Value

"i" = Interest rate per month, equal to the interest rate applicable to the calculation of the payment on thedelivery order

"n"= Number of months remaining from termination date to the end of the lease term

"PMT" = Current monthly payment amount of the original payments through end of the lease

14. TERMINATION FOR NON-APPROPRIATION

The Ordering Agency reasonably believes that the bona fide need will exist for the entire lease term andcorresponding funds in an amount sufficient to make all payment for the lease term will be available to the OrderingAgency. Therefore, it is unlikely that leases entered under the Lease to Own, Operating Lease, and all otherequipment will be terminated prior to the full lease term. Nevertheless, the Ordering Agency’s Contracting Officermay terminate or not renew leases at the end of any initial base period or renewal period under this paragraph if (a)it no longer has a bona fide need the equipment or functionally similar equipment; or (b) there is a continuing need,but adequate funds have not been appropriated to the ordering agency in an amount sufficient to continue to makethe lease payments. If this occurs, the Ordering Agency will promptly notify the contractor and the equipment leasewill be cancelled at the end of the last fiscal year for which funds were appropriated. The determination of theavailability of funds is made solely by the Government.

15. LEASE EXTENSIONS

Extension of the present lease term is not permitted. Future requirements shall be procured in accordance with FAR8.4, FSS Ordering Procedures.

16. LEASE EXPIRATIONS –LEASE TO OWN

Title to equipment installed automatically transfers to the Government upon conclusion of the Lease TermAgreement.

17. LEASE EXPIRATIONS –OPERATING LEASE AND ALL OTHER EQUIPMENT

Extension of the present lease term is not permitted. Future requirements shall be procured in accordance with FAR8.4 covering Ordering Procedures.

Unless notified by the Ordering Agency that the Government intends to exercise its option to purchase theequipment, the equipment, upon the expiration of the lease term, will be removed by the contractor at the earliestpracticable time. The Ordering Agency is responsible for removal charges. Unless specified under the schedulecontract, removal charges will be administered outside the scope of the contract.

The equipment shall be in the same condition as when delivered, with the exception of ordinary wear and tear. Thecontractor shall conduct a timely inspection of the returned products and within thirty (30) days of the return, asserta claim if the condition of the equipment exceeds normal wear and tear.

In the event the Ordering Agency desires, at any time, to acquire title to equipment leased hereunder, the price willbe mutually agreed upon by the parties.

18. RETURN OF EQUIPMENT

The Government will provide written instructions for the removal of the equipment. The Ordering Agency isrequired to provide serial numbers and exact location of equipment for pick up.

Upon receipt of this notice the contractor shall remove the equipment within thirty (30) days or a mutually agreeddate and time. The Ordering Agency is responsible for removal charges. Unless specified under the schedulecontract, removal charges will be administered outside the scope of the contract.

The equipment shall be in the same condition as when delivered, with the exception of ordinary wear and tear. Thecontractor shall conduct a timely inspection of the returned products and within thirty (30) days of the return, asserta claim if the condition of the equipment exceeds normal wear and tear.

Equipment not removed by the contractor within thirty (30) days of the date of notification by the Order Agencyshall be considered as abandoned and subject to such disposal as the Government may deem appropriate.