september 15, 2010 - item 7 - operations committee...

Los Angeies County One Gateway Plaza 213.gz2.z000 Tel Metropolitan Transportation Authority Los Angeles, CA gooi2-zg~2 metro.net

0 Metro OPERATIONS COMMITTEE

SEPTEMBER 16,2010

SUBJECT: CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES

ACTION: AWARD CONTRACT NUMBER PS10642010

RECOMMENDATION

Authorize the Chief Executive Officer to:

A. Award a five-year, indefinite delivery, indefinite quantity contract beginning October 1,201 0 under RFP No. PS 1064201 0, 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 $1,866,15 1, 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-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 fi-om 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

Print Mana~ement

Currently, Metro deploys 1,180 printers, a combination of dedicated and networked printers 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 of their 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 to keep many different types of toner cartridges in inventory, some of which may not get used before the printer fails and cannot be economically repaired.

To mitigate this situation and to reduce printing costs, a one year pilot, consisting of two locations, will be conducted on the use of vendor provided print management services, a program similar to convenience copying service. The service will provide replacement printers for the oldest twenty-five percent of ow printer inventory, toner for all printers, and spare parts to repair them as needed. Use of this service is estimated to realize a fifty percent savings on the per page cost to print. At the conclusion of the pilot period, if the cost benefits of print management services are substantiated, we will extend the program to all Metro locations.

Document Management

Metro must become more effective and efficient in complying with its Records Management 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 eliminate the cost of procuring and servicing new scanners; (2) support efforts to move towards more efficient paperless processing; and (3) enable staff to easily convert documents into searchable 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 location on a network or throughout the world via the Internet promises to accelerate the distribution of critical documents, reduce courier costs, and provide better quality in transmitted documents than is available through a fax.

FINANCIAL IMPACT

The fimding of $543,491 for convenience copying service is included in the FY 1 1 budget in cost center 6420, Copy Services under project 10000 1, General Overhead, and line item 5 1205, Leases and Rentals. Funding of $2 1,370 for print management service is included in the FY 11 budget in cost center 9220, ITS Operations and Service Delivery under project 100001, General Overhead, and line item 50308, Contract Maintenance. Since this is a multi-year contract, the Executive Officer of Administration will be responsible 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 federally approved guidelines and cost allocation plan. In the FY 1 1 budget as adopted, approximately 74% of project 100001 expense goes to Bus and Rail Operations, 9% to Capital and Major Construction Projects and 17% to Planning activities. No other source of funds were considered for these activities because these services are used by all departments in the agency.

In FY10, $377,614 was expended on convenience copying services. During this period there were no expenditures for print management services.

ALTERNATIVES CONSIDERED

The alternatives to approving this recommendation would be (1) to continue using the current 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 print management program. These alternatives are not recommended for the following reasons:

1. Continue the current lease for multi-function devices. The equipment has been in use for almost five years. Many of machines are worn out and obsolete. Additionally, newer technology along with increased capabilities will allow staff to plan the elimination of stand-alone printers and improve document management processes.

2. Sending all photocopying and printing to the Copy Center andlor an outside vendor. This would impede workflow. Although staff already sends large copy projects to the Copy Center, efficient and effective office productivity requires the ability to scan, copy, and print documents in smaller quantities immediately within the individual work areas.

3. Purchasing new machines also is not recommended due to the large initial capital cost that would be involved in acquiring multi-function peripherals.

4. Total implementation of a print management program is not recommended at this time because of the uncertainty of the actual savings of a print management program without verification of the cost-benefits.


ATTACHMENTS

A Procurement Summary A- 1 Procurement History A-2 List of Subcontractors A-3 List of Bidders/Proposers

Prepared by: Elizabeth Bennett, Chief Information Officer Phyllis Meng, DEO General Services

Convenience Copying, Print Management and Document Management Sewices

Interim chief ~dministrative Services Officer

Arthur T. Leahy Chief Executive Officer


BOARD REPORT ATTACHMENT A PROCUREMENT SUMMARY

CONVENIENCE COPYING, PRINT MANAGEMENT AND DOCUMENT MANAGEMENT SERVICES


1. 2.

3.

4. 5.

6.

7.

8.

9.

1 0.

Contract Number: PS 1064201 0 Recommended Vendors: Canon Business Solutions and SoCal Office Technologies CostIPrice Analysis Information: A. BidProposed Price:

Canon $6,240,255 (fax server) SoCa1 $1,866,15 1

Recommended Price: Canon $6,240,255 (fax server) SoCal $1,866,15 1

B. Details of Significant Variances are in Attachment A-1 .D Contract Type: Procurement Dates: A. Issued: March 8,2010 B. Advertised: March 8,2010 C. Pre-proposal Conference: March 12,2010 D. Proposals Due: June 3,2010 E. Pre-Qualification Completed: July 15,2010 F. Conflict of Interest Form Submitted to Ethics: July 26,2010 Small Business Participation: A. BidProposal Goal:

No DALP recommended Date Small Business Evaluation Completed: July 13,20 10

Small Business Commitment: 0.0% Details are in Attachment A-2 Evaluation Information: A. BiddersIProposers Names:

See Attachment A-3

BidProposal Amount: $

Best and Final Offer Amount: $ n/a

B. Evaluation Methodology: Describe Methodology Details are in Attachment A- 1 .C Protest Information: A. Protest Period End Date: B. Protest Receipt Date: C. Disposition of Protest Date: Contract Administrator: Kenneth Takahashi Project Manager: Matthew Barrett Joe Giba Irma Licea

Telephone Number: 21 3-922-1 047 Telephone Number: 2 13-922-7444 213-922-3450 2 13-922-2207

BOARD REPORT ATTACHMENT A-1 PROCUREMENT HISTORY


A. Backgrounds on Contractors

Canon Business Solutions, Inc.

Canon Business Solutions, Inc. was founded in 1971. Canon Business Solutions, Inc. is a Canon U.S.A. Company providing integrated systems technology that comprises one of the strongest solutions portfolios in the document management industry. Canon Business Solutions, Inc. provides networked office systems, graphic systems, copiers, printers, scanners, and fax machines. Canon Business Solutions, Inc. is currently under contract and their performance has been satisfactory.

SoCal Office Technologies

SoCal Office Technologies is one of the largest subsidiaries of Global Imaging Systems, Inc. A Xerox wholly owned company since 2009. SoCal Office Technologies has been providing document technology and services since 1977. SoCal Office Technologies offers an innovative mix of products and services that have affected the way that organizations manage their document assets.

B. Procurement Background

Request for Proposals Number PS 106420 10 was released as a competitively negotiated procurement. Proposal submittals were evaluated in accordance with the criteria established in the RFP.

The Diversity and Economic Opportunity Department did not recommend a Disadvantaged Business Enterprise Anticipated Level of Participation (DALP) for this procurement.

C. Evaluation of Proposals

The procurement is in compliance with Procurement policies and procedures. Two proposers were deemed non-responsive because of failures to comply with the RFP requirements or excessive exceptions to the Metro terms and conditions that were contrary to established statutory or regulatory requirements.

D. CostIPrice Analysis Explanation of Variances

The recommended prices have been determined to be fair and reasonable based upon adequate price competition.


BOARD REPORT ATTACHMENT A-2 LIST OF SUBCONTRACTORS


PRIME CONTRACTOR - Canon Business Solutions, Inc.

Small Business Commitment Other Subcontractors

No DALP recommended. None

Total Commitment: 0%.

PRIME CONTRACTOR - SoCal Office Technologies

Small Business Commitment Other Subcontractors

No DALP recommended. None

Total Commitment: 0%

Convenience Copying, Print Management and Document Management Senices

BOARD REPORT ATTACHMENT A-3 LIST OF BIDDERSIPROPOSERS




Proposers Names

SoCal Office Technologies Alternative #1 (fax boards) Alternative #2 (fax server)

Toshiba No Fax Server proposed

Xerox Corporation Alternative #1 (65 cpm) Alternative #2 (reduced prints) Alternative #3 (46 cpm and reduced prints) Add Fax Server (for all proposals)

Proposal Amount MFP's, Print and

Document Management

$9,088,640 $9,092,950

$8,246,688

$9,793,095 $8,715,662

$7,599,786

$174,360

Proposal Amount MFP's Only

Print Cost

$3,372,000 $3,372,000

$3,150,000

$3,588,000 $717,888

$717,888

Lease Cost

$2,276,640 $2,280,950

$1,596,688

$3,453,096 $5,256,636

$4,136,770

Sub-Total

$5,648,640 $5,652,950

$4,746,688

$7,041,096 $5,974,524

$4,854,658

Sales Taxes on Lease Cost

$227,664 $228,095

$159,669

$345,310 $525,664

$413,677

Total

$5,876,304 $5,88 1,045

$4,906,357

$7,386,406 $6,500,188

$5,268,335


Proposal Amount For Pilot and Four Remaining Years Print Management Program

Proposer Name

Canon Business Solutions, Inc.

Ricoh Americas

SoCal Office Technologies

Toshiba

Xerox Corporation

Print Cost

$1,554,228

No Proposal

$1,280,071

$2,647,500

$2,432,414

Lease Cost

$397,005

$397,734

$532,800

No Proposal

$661,398

Lease Cost Sales Taxes

$39,701

$53,280

$66,140

Sub-Total

$1,951,233

No Proposal

$1,812,871

$2,647,500

$3,093,812

Grand Total

$1,990,934

No Proposal

$1,866,151

$2,647,500

$3,159,952

september 15, 2010 - item 7 - operations committee...

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