REQUEST FOR PROPOSAL AWARD: PHOTOCOPY SERVICES. Proverbs 14:23 All hard work brings a profit, but mere talk leads only to poverty.
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1 REQUEST FOR PROPOSAL AWARD: PHOTOCOPY SERVICES Proverbs 14:23 All hard work brings a profit, but mere talk leads only to poverty. Created, Draft First Tabling Review Approval Implementation April 5,2012 LEAD AUTHORS: M. Farrell Coordinator, Materials Management P. De Cock Comptroller, Business Services S. Pessione Associate Director, Business Services, CFO A. Sangiorgio Associate Director, Planning &Facilities A. Gauthier Associate Director, Academic Affairs Bruce Rodrigues Director of Education NOTES: This report is for the approval of the Board
2 A. EXECUTIVE SUMMARY A Request for Proposal was issued to solicit responses for the placement of new photocopy equipment for all TCDSB locations. This report recommends award to the highest scoring proponent being 4 Office Automation Limited for an estimated annual pretax amount of $1,357,200. B. PURPOSE The current contract for photocopying equipment has expired and there is a need to replace the existing copiers with new equipment. Newer digital copiers provide better functionality, upgraded speed, energy efficiency and lower copying costs Reliable photocopiers are essential to school and departmental operations Purchasing Policy F.P. 01: limits require approval by the Board C. BACKGROUND 1. The TCDSB has historically provided this service through a cost per copy contract. The TCDSB does not assume an ownership interest through purchase, rental or lease. The copy equipment remains the property of the service provider who must provide the copy equipment and all supplies, service and maintenance required to keep the equipment operational and ready to provide photocopies as required by TCDSB users. The cost per copy model provides a financial impetus to encourage the service provider to maintain an optimum level of copier performance. The TCDSB provides the paper and the electrical power to run the copiers. The copiers currently in use at TCDSB locations generate approximately 138 million copies per year. 2. Experience generated through prior contracts has determined that the optimum contract length for cost per copy photocopy contracts is five years. Contract terms of less than five years would require higher copy costs while contracts longer than five years result in significant increases in equipment malfunctions as the copiers age. 3. The key element in the determination of the number photocopiers required at school sites is the student population. The TCDSB requires that no school site shall have fewer than two copiers. Schools with an enrolment of 700 or more students will have three copiers. Schools with 1000 or more students will have four copiers. Schools with 1500 or more students will have five copiers. In recognition that secondary school programs have historically generated higher copy volumes per student, the TCDSB requires that secondary schools must have copy equipment capable of accommodating a high copy volume demand. The TCDSB s copy Page 2 of 5
3 equipment distribution model is also modified to accommodate multiple building school sites and multiple site school programs. 4. Technological advances have enabled the integration of photocopy devices into local computer networks. Copiers no longer merely reproduce images of hard copy originals. As networked devices, photocopiers can perform as photocopiers, network printers, fax machines, scanners for data entry. Digital copiers, working in a networked environment can scan and transmit a document to any address and can also produce copies of material directly from portable data storage units such as memory sticks. 5. In preparation for this project, TCDSB staff considered the possibility of a cooperative procurement venture with other coterminous school boards however none were in a position to participate in such a joint venture at this time. The TCDSB participated previously in a cooperative photocopy services initiative through the Catholic School Board Service Association (CSBSA) with two other member boards but determined that while other School Boards would benefit from lower costs, participation would have resulted in higher copy costs for TCDSB. The TCDSB withdrew from that CSBSA cooperative initiative and executed a separate photocopy service contract. 6. On October 20, 2011 the TCDSB issued a Request for Proposal (RFP) for the provision of multifunction networkable photocopy services. This RFP required respondents to submit proposals for the provision of networkable photocopy equipment. 7. On November 17, 2011 the TCDSB received proposals from seven respondents as follows; 4 Office Automation Limited Canon Canada Limited Konica Minolta (Canada) Limited Pitney Bowes of Canada Limited Ricoh Canada Limited Toshiba of Canada Limited Xerox Canada Limited 8. Evaluation of the proposals received was conducted in a three stage process, outlined as follows: a) Stage 1 of the evaluation, conducted by the TCDSB s Materials Management Department staff, confirmed that all seven proposals met the mandatory requirements presented in the TCDSB s RFP. Page 3 of 5
4 b) Stage 2 of the evaluation, conducted by staff from the TCDSB s Information Technology, Printing Services and Materials Management Departments scored the proposals in the following areas; manufacturer and local vendor information, proposed copy equipment configuration, proposed copier service protocols, proposed project management and new copier deployment plan, environmental and energy impact, value added services, references and cost per copy. The three highest scoring proposals from Stage 2 of the evaluation, being 4 Office Automation Limited, Konica Minolta (Canada) Limited and Xerox Canada Limited, were selected for a more detailed review that included testing of the proposed copiers at a representative sample of TCDSB sites. c) The Stage 3 evaluation scored the copy equipment according to the following criteria: copier delivery and set up user training copier performance copier servicing environmental impact energy consumption references finishing options value added services Cost per copy. Stage 3 on site testing was conducted at two secondary schools, two elementary schools, one continuing education site and two administrative locations. Each test site evaluated the copy equipment proposed by each of the three short listed vendors. 9. The two top rated proponents in Stage 2, being 4 Office Automation and Konica Minolta, had scored closely through the evaluation and on site testing. Xerox Canada performed relatively well on the testing but did not score as highly as the two other finalists. At the conclusion of Stage 3, 4 Office Automation Limited received the highest scores for the majority of categories including copier on site performance testing, environmental impact, energy use and value added services. In the final summary for Stages 2 and 3, the proponents ranked from highest to lowest in order, as follows: 4 Office Automation Limited Konica Minolta (Canada) Limited Xerox Canada Limited Page 4 of 5
5 10. The evaluation recommends that a five year contract for the provision of photocopy services at all TCDSB locations be awarded to the highest scoring proponent, being 4 Office Automation Limited, for an estimated annual pre tax amount of $1,357, The cost per copy charge obtained through this RFP process will provide an estimated 10% reduction in the TCDSB s photocopy costs, relative to the previous contract. STAFF RECOMMENDATION Staff recommends that a five year contract for the provision of photocopy services at all TCDSB locations be awarded to the highest scoring proponent, being 4 Office Automation Limited, for an estimated annual pre tax amount of $1,357,200. Page 5 of 5
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