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On September 11, 2001, the Board of Education approved a five year cost per copy contract with IKON Office Solutions, Inc. to manage the Guilford County Schools’ cost per copy program at a cost of $.0093 per copy. This contract expired on June 30, 2006. On February 21, 2006, the Board approved a six month extension to the contract. This extension expires on December 31, 2006.
After careful review of our current copier program and assessing the needs of our schools, Purchasing Staff held individual conferences with twelve copier vendors to solicit information regarding current trends in printing/copier methods in the industry and the possible application of such trends for Guilford County Schools. Networking of printers and copiers and enterprise print solutions was the theme that was conveyed to Purchasing Staff from all twelve vendors. Based on this information, we developed our specifications that incorporated these recommendations.
Using the electronic reverse auction method, we received bids on July 27, 2006. Attached is a bid tabulation of the four bids received. The bids were significantly higher than our current cost per copy of $.0093 that equates to $l,371,421.44 annually based on our current volume of 147,464,671 copies. Using the current copy numbers, the low bid of $.0122 submitted by Toshiba Business Solutions, Inc. the annual contract cost would be $l,799,068.99. This bid exceeds our budget of $1,392,000.
We re-advertised and accepted bids on September 21, 2006 using the standard bid process. Attached is a copy of the bids. The low bidder, Lanier Worldwide, Inc., qualified their bid by requiring guaranteed historical copy volumes and also using some reconditioned equipment. The specifications allowed for new equipment only. The second low bidder, Toshiba Business Solutions, Inc., submitted a bid of $.0098 per copy. Using our current annual copy volume of 147,464,671 the annual contract cost would be $l,445,153.78, again, exceeding our budget.
We re-advertised for the third time and accepted proposals based on managing the GCS copier program for approximately $l,000,000. Attached is a tabulation of the proposals. Vendors were asked to be creative with their proposals while including multi-functional equipment and assisting with the reduction of our overall copy numbers. IKON Office Solutions, Inc. submitted the best proposals taking into consideration pricing, equipment, service training and ability to provide a copier management program that best meets GCS needs. IKON submitted two proposals. After evaluating both proposals it was determined that the following proposal is in the best interest of GCS:
$26,375.00 X 12 months = $ 316,500.00
Current copy volume 147,464,671 x $.0062 = 914,280.96
m $l,230,780.96
Current Budget $l,392,000.00
Projected Annual Savings $ 161,219.04
Given that it will be January of 2007 before we make the transition to the recommended IKON proposal, we estimate the 2006-07 savings to be approximately $80,610 (or half of the projected annual savings figure cited above) for the 6-month timeframe of January through June of 2007. We anticipate realizing the full projected annual savings amount cited above effective with fiscal year 2007-08 as the program will be in place for 12 months versus 6 months. We intend to use the savings on a recurring basis to fund the leadership development training program for school administrators included in the Superintendent’s goals for 2006-07.
RECOMMENDATION: The Administration recommends rejecting Toshiba Business Solution, Inc.’s bid submitted on July 27, 2006 and Toshiba Business Solutions, Inc.’s bid submitted on September 2l, 2006 due to both bids being over budget. The Administration recommends entering into a contract with IKON Office Solutions, Inc. beginning January 1, 2007 and ending December 31, 2012 for copier services.
Attachment #1 - Bid Tab I (Cost Per Copy Bid)
Attachment #2 - Bid Tab II ( Dean's Office Machines)
Attachment #3 - Event Summary
Attachment #4 - Bid Tab (September)
Attachment #5 - Bid Tab (October)
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