TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Managed Print Services Contract 2016-1358
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to exercise the second option year on Contract 2016-1358 for Managed Print Services (copiers/printers) with Ray Morgan Company.
Body
STRATEGIC IMPORTANCE:
Goal - Safe and Secure Operations
Initiative - Service Quality
Copiers and printers provide essential modes of written communication which allow all District functions to operate smoothly.
BUDGETARY/FISCAL IMPACT:
The fiscal impact of the contract extension is estimated at $219,717. The actual amount is dependent on the amount of printing and the percentage of color printing. Historically, expenses attributed to the Managed Print Service contract has averaged $180,000.
BACKGROUND/RATIONALE:
On May 11, 2016, the Board of Directors awarded a three year contract to Ray Morgan Company for managed print services. The contract also included provisions for the District to exercise two option years at its discretion. The contract supplies multi-function copy machines for all District facilities and provides maintenance and consumable supplies (such as toner) for both copiers and networked printers.
On May 22, 2019, the Board authorized the General Manager to exercise the first option year on the contract at an estimated cost of at $203,900. The actual cost is projected to be about $177,000. The District incurs no charges for scanning documents.
The cost schedule for the second option year is outlined in the cost proposal for Contract 2016-1358. The option year pricing is only slightly higher than the base year and still considered fair and reasonable according to the open procurement process that resulted in the contract award. Overall, vendor performance has been within acceptable parameters, as the vendor has been responsive to the District’s concerns and taken action to resolve issues.
Staff in the Department of Innovation and Technology and the Procurement Department are currently collaborating on a Request for Proposals.
ADVANTAGES/DISADVANTAGES:
The District relies on print, copy, and scanning services to conduct its business. Exercising the second option year on the current contract maintains access to these vital services.
ALTERNATIVES ANALYSIS:
There are no practical alternatives to the course of action outlined in this staff report.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 465 - Procurement Policy
Staff Report 15-222b - Managed Print Services Contract Award
Staff Report 15-222c - Managed Print Service 1st option year
ATTACHMENTS:
None
Prepared by:
Darrell Takara, Project Manager
In Collaboration with:
Jamell Woodard, Contracts Specialist
Cheryl Sudduth, Contracts Services Manager
Approved/Reviewed by:
Ahsan Baig, Chief Information Officer
Claudia L. Allen, Chief Financial Officer
Gene Clark, Director of Procurement and Materials
Jill A. Sprague, General Counsel