Florida ACCESS Mailing/Scanning/ Indexing Services

Transcription

1 Florida ACCESS Mailing/Scanning/ Indexing Services State of Florida Department of Children and Families ITN#: 01F12GC1 Submitted on: October 2, 2012, 12:00 p.m. EST Submitted by: Xerox State & Local Solutions, Inc Willow Oaks Corporate Drive Fairfax, VA Federal Tax ID Number: Person who can respond to inquiries regarding the reply: Carla Capps Vice President Sales Human Services Solutions Xerox State & Local Solutions, Inc. Suite Summit Lake Drive Tallahassee FL Phone: (850) Mobile: (850) XEROX and the XEROX logo design are trademarks of the Xerox Corporation in the United States and/or other countries.

2 Mark D. Mayo Senior Vice President Human Services Solutions Xerox State & Local Solutions, Inc. October 2, 2012 Leah McCarthy Procurement Manager Florida Department of Children and Families Economic Self Sufficiency Services Program Office 1317 Winewood Blvd., Building 3, Room 473 Tallahassee, FL Willow Oaks Corporate Drive Fairfax, VA tel fax RE: State of Florida Department of Children and Families FL ACCESS Mailing/Scanning/Indexing Services, ITN# 01F12GC1 Vendor Negotiations REQUEST FOR INTERIM REVISED REPLY (IRR) Dear Ms. McCarthy: Xerox State & Local Solutions, Inc. (Xerox) is pleased to submit our response to the dated September 28, 2012 to ITN #01F12GC1 that will be used in the negotiation process. Our response to the IRR, which follows this letter, contains the requested information that fully addresses the questions asked in: A. Focus Area A Availability of DCF Space Our contacts for any questions pertaining to this clarification response submission are: Primary Contact: Carla Capps Vice President Sales Human Services Solutions Xerox State & Local Solutions, Inc. Suite Summit Lake Drive Tallahassee FL Phone: (850) Mobile: (850) Carla.Capps@xerox.com Secondary Contact: Chuck Cliburn Senior Vice President & Client Executive Government Solutions Group Xerox State & Local Solutions, Inc. Suite Summit Lake Drive Tallahassee FL Phone: (850) Mobile: (202) Chuck.Cliburn@xerox.com

3 We thank you for your consideration of our response and look forward to the opportunity to successfully implement, operate, and fulfill DCF s mission for this project. Sincerely, Mark D. Mayo Page 2

4 FL ACCESS Mailing/Scanning/Indexing Services for the State of Florida Department of Children and Families ITN Number: 01F12GC1 The following are Xerox State & Local Solutions, Inc. s (Xerox s) responses to DCF s Interim Revised Reply (IRR) regarding ITN Number 01F12GC Focus Area A Availability of DCF Space Item A Vendor Instructions Vendor is being requested to review the information below and make a determination as to whether this information will assist the vendor in lowering their overall operating costs, improve their ability to provide quality services to the DCF Mail Scan Program and further, what impact it would have on the cost per document last supplied by the Vendor in the DCF IRR # 4 dated September 19, The Wildwood facility currently leases 4995 sq feet and utilizes approximately 2/3 of this space (3330 sq ft). As Vendors were able to see during the site visit of 8/23/12, some of the space is open concept and other work was performed in larger office space. DCF has the following space available at the Winewood location on the 1 st floor of Building 3: o o o o 3,718 +/- space available on 1st floor of Bldg 3 at Winewood Close to 2,500 Sq ft could be made into open space The space is located on two sides of a main hallway. With the addition of doors, it would make the space dedicated to the Vendor and fully secure Vendor would be responsible for any construction and improvement costs to make ready for their operations Vendor must use the Exhibit 2 below to respond to the following: 1. Is the space noted above adequate, after Vendor upgrades, to run your Mail Scan operations for DCF? Yes or No. Please explain. 2. Could the space provided reduce your overall lease / operating costs for the Mail Scan Program? Yes or No. Please explain. 3. Would locating your DCF Mail Scan Operations at Winewood have a positive or negative impact on your operating efficiencies? Please explain. 4. What would the impact be to the cost per document if you located the Mail Scan Operations utilizing the DCF facility? Please utilize the attached spreadsheet to provide a revised price. Vendor Response: (The Vendor should utilize the space provided below each question and the attached spreadsheet. Should additional space be required, please attach additional material in appendices and reference accordingly. Please keep total response to less than 10 pages.) Exhibit 1 Vendor Confirmation 2012 Xerox State & Local Solutions, Inc. -1

5 FL ACCESS Mailing/Scanning/Indexing Services for the State of Florida Department of Children and Families ITN Number: 01F12GC1 Question / Vendor Response 1. Is the space noted above adequate, after Vendor upgrades, to run your Mail Scan operations for DCF? Yes or No. Please explain. Response: No. Assessing strictly the allocation of space at the Winewood facility, our original plan to allocate 4,200 square feet at our own facility exceeds the 3,700 square feet of available space identified at Winewood. While it may be feasible to accommodate a production operation in the designated space, we are particularly concerned with the adequacy and constraint of open floor space at Winewood, which is limited to 2,500 square feet. Our operational efficiency depends on proven workflows that rely on our proprietary Task Specific Positioning (TSP) of staff, and technology. Without an opportunity to view the space and evaluate our options and the extent of required upgrades, it is difficult to provide a confident and thorough assessment based only on available square footage and the floor plan provided. However, a more complete assessment of the overall adequacy of the space, including such critical requirements as security, back-up power supply, data center requirements, scalability and our experience standing up similar operations is detailed in Appendix Could the space provided reduce your overall lease / operating costs for the Mail Scan Program? Yes or No. Please explain. Response: No. For all of the reasons explained in response to question #1 above and Appendix 1, including the added implementation and transition costs, facility improvements and upgrades, security enhancements and back-up power, our start-up and operating costs would actually increase should we locate our Mail Scan operation at the Winewood site. 3. Would locating your DCF Mail Scan Operations at Winewood have a positive or negative impact on your operating efficiencies? Please explain. Response: Negative. Site selection for the new Image API production facility was selected based exclusively on the components of our proprietary TSP formula. All TSP components including infrastructure, security, capacity, staff positioning, support systems, backup, and IT requirements (as well as other components) necessary to operate at maximum efficiency were incorporated in the design, construction and implementation. Based on the floor plan provided by DCF, there are many aspects of the plan that do not meet our requirements and would introduce risk and additional cost into our implementation plan. As a result, the Xerox Team sees little operational benefit or advantage to using the Winewood facility. In fact, we expect a negative impact as compared to the efficiency we expect at our current location. 4. What would the impact be to the cost per document if you located the Mail Scan Operations utilizing the DCF facility? Please utilize the attached spreadsheet to provide a revised price on the Round 5 Year 1 worksheet. If the price does not change, please enter the same price from the previous round of negotiations. Please also complete the All Years work sheet. If pricing is not changing in this round, please enter the pricing from the previous round. Explanation: Based only on the information provided by DCF in the IRR, we are unable to provide the specific cost impact of locating our operation in the Winewood space. However, the assessment we did perform indicates that the potential cost is significant enough to result in an increase in the per document price a result opposite of what DCF hopes to achieve. Moreover, we also maintain that using the Winewood facility instead of our existing world class facility adds risk to the implementation and far outweighs the benefit of free rent. However, we fully embrace the out-of-thebox thinking and exploration of this alternative. In the spirit of partnership and as a show of good will, we have offered an approximately $53, annual decrease in our previously submitted pricing, which our research indicates is DCF s annual cost for this space. Please refer to Appendix 2 for the details behind this reduction. The Department asked what the impact of the cost per document would be if we used the Winewood facility. Xerox Team As stated our costs would increase and to answer your question we estimate our 2012 Xerox State & Local Solutions, Inc. -2

6 FL ACCESS Mailing/Scanning/Indexing Services for the State of Florida Department of Children and Families ITN Number: 01F12GC1 cost per document would increase by $0.02-$0.05 per document. Impact to Price: Revised pricing sheets are attached as appendices 3 and 4. Please see our price decrease on the attached appendices. Appendix 1 Exhibit 2 Vendor Confirmation Justification for Our Answers to Questions 1 and 3 After reviewing the documentation provided in this IRR, we believe the use of the Winewood space, while an option that deserves consideration, is not adequate for our Mail Scan operation. It is important to note that our Tallahassee facility was selected and designed to support high-volume transaction processing based on our TSP methodology. While upgrades to the Winewood space may improve the adaptability of the facility for use, establishing a standalone production operation less than one mile away from our facility would significantly reduce DCF s ability to leverage our existing infrastructure and capacity. Moreover, it eliminates DCF s ability to realize cost benefits since our fixed costs for infrastructure are allocated across many projects. By shifting our production operation to Winewood, DCF would bear close to 100% of these costs. Replicating key elements of our operation at Winewood, including security, IT/Data Center, back-up power, etc., will add significant start-up costs and introduce risks to the project implementation, including possible lengthy delays to the launch schedule. We understand and recognize DCF s desire to reduce its lease costs at the Winewood facility. To offset the Department s current lease costs, the Xerox Team is pleased to offer a $53,000 annual reduction in price. Under this proposal, the Xerox Team would keep our production operation at our Tallahassee facility and reduce our annual price to an amount equal to the estimated lease cost of the Winewood space. Our counter proposal is explained in more detail below. The Xerox team continues to emphasize our readiness for a quick and smooth transition and as such, we continue to propose using our state-of-the-art Tallahassee facility for the Mail Scan operation that is fully functional today. Below, we further explain why we believe that we should locate the Mail Scan operations at our Tallahassee facility: Ready to Go. As we have emphasized in our proposal and in our interim responses, the Xerox Team and our Tallahassee facility are ready to begin mail, scanning and indexing operations for DCF. Our readiness ensures that DCF will be in a position to transition mail/scanning/indexing operations from DCF to Xerox by mid-december, or sooner if the current timetable is not extended further. The use of the Winewood space, would add risk to our project plan since the facility requires upgrades and infrastructure much of which will need to be performed by third-party contractors requiring notable lead time. Specifically, we would like to emphasize the following points: Space Allocation and Configuration. Our original proposal to DCF dedicates 4,200 square feet of space for the Mail/Scanning/Indexing operation, including a mailroom and storage area with access to our loading dock, open floor space with line-of-sight view of the document prep, scanning, indexing and quality assurance staff, and space for our Production Manager, Project Manager and other support staff. While the Winewood facility may offer up to 3,700 square feet of space for the DPC, the 2,500 square feet of open floor space is inadequate for the production operation. The multi-room configuration of this space is much less efficient Xerox State & Local Solutions, Inc. -3

7 FL ACCESS Mailing/Scanning/Indexing Services for the State of Florida Department of Children and Families ITN Number: 01F12GC1 Back-Up Power. We purchased and installed a diesel generator at our Tallahassee Document Processing Center (DPC) to supply back-up power to our facility in the event of a power outage. Back-up power is critical to maintain operations and meet DCF s service level agreements, particularly the 4 hour turn-around time. Assuming back-up power is deemed critical by DCF, we would need to acquire and install a generator at an estimated cost of $120,000. Purchasing and installing a generator will require a minimum of 60 days, including permits, acquisition and installation not to mention the $120,000 plus investment in the generator itself. Construction and Improvements. The tight turnaround time on this IRR did not allow our team an opportunity to visit and assess the proposed Winewood space, our assessment of the space and the likely upgrades is based on the floor plan provided by DCF. Based on this, significant modifications and upgrades would be required to configure the space to our standards, including removing and erecting walls and doors, adjustments to lighting and installing power drops, data lines and security systems. These modifications and upgrades will require permits and additional lead time to complete all of which will add time, risk and cost to the project implementation. Under optimum conditions, obtaining construction permits and make the necessary improvements will require days. Scalability. Our new Tallahassee facility, with over 14,000 square feet of production space, was selected, designed and configured to allow for growth and expansion. It has adequate floor space and the necessary infrastructure, including power and data drops, to support the current and future growth of our customers. Based on the information provided, the Winewood facility lacks the space to scale the DPC operation if required. Security. Our proposed Tallahassee facility has state-of-the-art security systems, including intrusion detection, monitored electronic access control, recorded video surveillance and bio-metric fingerprint scanners to restrict access to the production floor and non-production areas of the facility. These security measures are critical to safeguard important documents and maintain HIPAA compliance. At a minimum, security control systems like the bio-metric fingerprint system will need to be implemented at Winewood to restrict access to the dedicated DPC space. Again, these requirements would add cost to a Winewood facility implementation and could introduce delays increasing risk. Transition Impact. In addition to the new project tasks required to modify and upgrade the Winewood space to operate the DPC, the implementation would also require the transfer and set-up of our Tallahassee assets necessary to support production operations, including furniture, office equipment such as copiers, etc., mailroom equipment, scanners, inventory and supplies. These tasks add to the overall scope and complexity of implementation which extends the implementation timeline, introduces new risk, and adds implementation costs. Data Center and On-Site Technical Support. Our Tallahassee facility includes our data center and on-site technical support which provide distinct advantages to operating our DPC. Locating DPC production operations at Winewood would require establishing a communications line between Winewood and our data center to ensure immediate processing and release of data and images. Second, our on-site technical support staff is in a better position to provide support to our production team if they are co-located in the same facility. Single Purpose Facility. The definition of a single purpose facility is a facility that has one purpose and goal. All Image API facilities are single purpose facilities with the goal of 100% achievement to our customer s Key Performance Indicators (KPI). Our experience indicates that a single purpose facility aligns our team member s goals with those of our customers. This alignment is part of our TSP and helps us deliver on the high quality standards that DCF has placed on this project Xerox State & Local Solutions, Inc. -4

8 FL ACCESS Mailing/Scanning/Indexing Services for the State of Florida Department of Children and Families ITN Number: 01F12GC1 Appendix 2 Counter Proposal Details The Xerox Team researched DCF s actual per square cost to their landlord for the Winewood site. Those costs are as follows: 2013 $17.26 per sq. ft $18.31 per sq. ft $18.78 per sq. ft $ per sq. ft. (optional year) 2017 $ per sq. ft. (optional year) Assuming close to 3,000 square feet as the footprint for this project, the total annual lease cost for the first three (3) years of the contract is approximately $160,000, which is an annual average of $53, The Xerox Team is offering back to the department this amount via a reduction of our most recent pricing. We did not want to miss an opportunity to support DCF s effort to look for any possible approach to lower operating costs and we offer this additional reduction as a show of good will Xerox State & Local Solutions, Inc. -5

9 FL ACCESS Mailing / Scanning / Indexing Services ITN # 01F12GC1 Round 5 - Revised Pricing 9/28/ Year 1 Only Scenario 1 IRR Number 5: September 28, 2012 (Blended Pricing w/ 4 Hour SLA) Per Document Price - All Documents $ Volume 8,666,124 Total Cost - IRR 5 $3,742,032 Assumptions:

10 FL ACCESS Mailing / Scanning / Indexing Services ITN # 01F12GC1 Round 5 - Revised Pricing 9/28/2012 Mail / Fax / Scan / Image Optimization / Index Service Year 1 Year 2 Year 3 Optional Optional Optional Year 4 Year 5 Year 6 Volume Cost per Document Cost per Document Cost per Document Cost per Document Cost per Document Cost per Document 0 to 2 Million $ $ $ $ $ $ to 4 $ $ $ $ $ $ to 6 $ $ $ $ $ $ to 8 $ $ $ $ $ $ to 10 $ $ $ $ $ $ to 12 $ $ $ $ $ $ to 14 $ $ $ $ $ $ $ $ $ $ $ $ Assumptions: