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Agenda Item # 13

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to award a contract to Stringer Business Systems for the lease of walk-up photocopiers, for a three-year period in the amount of $502,110 and for two additional one-year options in the amount of $137,537 per year for a total of   $777,185.

BACKGROUND: 

The Valley Transportation Authority (VTA) has leased up to 67 walk-up copiers located in various departments and at construction field offices.   The units in VTA departments produce up to 440,000 copies monthly, while copy production at capital project field offices varies substantially depending upon project activities.  To date, all monthly copier leases have been invoiced individually and a per image charge is added.  In fiscal year 2003, administrative and budget responsibility for all walk-up copier leases was transferred to the Records Management Unit.  The purpose of this transfer was to reduce costs by bidding all departmental walk-up copiers.  In the bid solicitation, departmental copier leases were distinguished from copier leases charged directly to capital projects.  This separation allows capital projects to add and delete walk-up units based on changing administrative needs without affecting VTA departmental copier costs.

A review of walk-up copier usage, including the number and location of machines and the cost of the services was performed.   Based on the results of this review, it was determined that focusing volume production within the Copy Center could reduce the number of departmental walk-up copiers required.  Further, by obtaining bids for a set number of monthly company-wide departmental images, more cost effective pricing could be obtained. 

DISCUSSION:

The initial specification for the lease of walk-up copiers was advertised on October 29, 2003.   Bids were opened on December 29, 2003.  A Notice of Recommended Award was issued on February 6, 2004.  Two unsuccessful bidders filed a protest of the recommended award and upon review of that protest and the next low bid, it was determined that all bids should be rejected and the project rebid.  The new specification was advertised on March 26, 2004.  Bids were opened on April 30, 2004 with the following results:  (Note although six firms submitted completed bids, some proposed different options and therefore there are eleven individual bids listed below.)   

The Independent Cost Estimate for the VTA departmental copiers was $561,312, excluding all project located copiers, and compares favorably with the low bid costs of $502,110.                                            

After a detailed evaluation of the bids, Stringer Business Systems was determined to be the lowest responsive bidder.   As specified in the Bid Document, Stringer Business Systems will supply copiers that utilize up-to-date digital imaging technology.  Also, the enhanced functionality of high speed digital printing and scanning to file are available at a cost of $56 per unit.  VTA may choose to enable these functions on select units to facilitate greater employee productivity.    

It is anticipated that VTA will realize an annual savings of $90,971 when this contract is awarded.  The savings is a product of a reduced per-copy cost (from $.008 to $.0065), a small reduction in the number of walk-up copiers used and economy of scale gained from grouped pricing. 

ALTERNATIVES:

VTA could purchase photocopiers and contract separately for maintenance services.    That alternative is not recommended, as it would be more costly over the life of the agreement. 

FISCAL IMPACT: 

Sufficient funds are available in the FYs 2003-2004 and 2004-2005 Adopted Budget.   Funding for additional years of this contract will be included in future operating budget proposals.

SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION:

Based on the limited scope of work and no subcontracting opportunities, no specific goal has been established for this contract.   The contractor is encouraged to make reasonable efforts to utilize SBEs in its procurement of ancillary services and products associated with the performance of this contract.

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