Report to Mayor and City Council
Tuesday, March 02, 2021
Consent
SUBJECT:
Title
CONSIDER AWARD OF CONTRACTS TO ADVANCED IMAGING STRATEGIES INC. FOR LEASE OF MULTIFUNCTIONAL PRINTERS (COPY, SCAN, PRINT, FAX) AND PROVISION OF MAINTENANCE/SUPPORT SERVICES (CITY COUNTY)
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I. SUMMARY
By issuance of a Request for Proposals (RFP), the City is seeking new multi-functional printers (MFPs) to replace the City’s current Xerox fleet that are at the end of their 5-year lease. Advanced Imaging Strategies Inc. (AIS) submitted a proposal in response to the RFP and received the highest rating by the City’s evaluation panel to provide the new MFPs and related maintenance and support services. This will require the City to enter into a lease agreement for the equipment and a separate contract for services. Staff anticipates that the new MFPs will be available for use by no later than April 2021.
II. RECOMMENDATION
Recommendation
TAKE the following action(s):
1. APPROVE the lease agreement with Advanced Imaging Strategies, Inc. for a total not to exceed contract sum of $305,646.70 for the 5-year term.
2. AUTHORIZE the Mayor to execute the lease agreement with Advanced Imaging Strategies, Inc. following approval as to form by the City Attorney.
3. APPROVE the Agreement for Contract Services with Advanced Imaging Strategies, Inc. for a total not to exceed contract sum of $284,574.60 for the 5-year term.
4. AUTHORIZE the Mayor to execute the Agreement for Contract Services with Advanced Imaging Strategies, Inc. following approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE another action deemed appropriate by the City Council.
IV. BACKGROUND
Multifunctional Printers (MFP) have been used at the City for more than 20 years and are used to provide workgroups with the ability to print, scan, fax, and copy on centralized shared machines (rather than buying printers for each person). The existing 28 MFPs at the City have been provided through a lease and maintenance contracts that are slated to soon expire and are utilized at various City locations as follows: City Hall, Yard, Community Center, and Sports Park. The City leases Xerox brand MFPs from Xerox Financial Services, LLC. Xerox Corporation and Q Document Solutions, Inc. provide maintenance services for the MFPs (support, maintenance, and repairs) while charging the City on a per page print basis. The City seeks to replace its aging fleet of MFPs because (1) the cost is no longer economical and (2) the copy quality and reliability of the MFPs have presented issues that staff seeks to rectify.
In June 2020, the City issued a Request for Proposals (RFP) with the objectives of procuring new MFPs (1) from a single vendor, (2) at lower cost-per-copy charges, and (3) to obtain more modern print devices that better meet the City’s current requirements and future needs.
City received 11 proposals in response to the RFP and initially selected 4 finalists after evaluating all proposals for online interviews. After interviewing the finalists, the evaluation panel has recommended the contract be awarded to Advanced Imaging Strategies, Inc. (AIS) as the vendor that best meets the objectives and specific City needs as stated in the RFP (see Final Interview Evaluations attached). The City and AIS would enter into a lease agreement for lease of 25 MFPs and a contract for maintenance and support services. The per print charge will vary depending on the type of MFP.
The general terms of the lease are below:
• lease 25 MFPs for a total of $305,646.70 over the 5-year lease term
• payments will be made quarterly
While the proposed form of lease is one that was provided by AIS, the City Attorney’s Office made the necessary revisions to the lease without any objections. Among other things, the City is permitted to terminate the lease if funds are not duly appropriated by the City Council and such termination will become effective upon the following fiscal year.
The maintenance and support contract will require City to pay per page print charges that vary depending the on MFP used. Staff has calculated estimated dollar amounts associated with each MFP based on historical usage and after adding a contingency of 20% to those numbers, staff now has an estimated future appropriation amount that has been factored into the total contract sum. The services require AIS to provide the following:
• remove the legacy Xerox MFPs
• deliver and install the new MFPs
• train City staff on the functionalities of the MFPs
• provide after hours and weekend service support
The total contract sum for the maintenance and support contract is $284,576.60 over the 5-year lease, and when this amount is added to the lease agreement, the total cost of the two contracts with AIS is $590,223.30 for the 5-year period.
V. FISCAL IMPACT
The cost associated with the 5 year contract with Advanced Imaging Strategies, Inc. is not to exceed the amount of $590,223.30. There is no fiscal impact to the Information Technology department as the $39,348.24 cost of the first four months of the contract are available in the adopted FY 2020-2021 budget. Information Technologies will budget in the following fiscal years the required funds to fulfill remaining contract amount.
VI. EXHIBITS
1. Final Interview Evaluations
2. Lease Agreement
3. AIS Contract
4. Equipment Schedule
Prepared by: Kevin Kennedy, Information Technology Manager