| Xerox Copier Maintenance and Repair Services |
| Program Summary |
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| Description |
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Identification
| Reference Number: | 22015166 |
| Date First Offered | 06/13/2008 |
| Title: | Xerox Copier Maintenance and Repair Services |
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| Agency Reference Number: | 09-C-20 |
| Agency: | DES - Employment Security |
| Purchasing Agency: | DES - Employment Security |
| Purchasing Agency SPO: | Barry Isaacson |
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| Status: | Published |
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Overview
| Description and Specifications: |
| This is a Sole Economically Feasible procurement with Xerox Corporation to provide maintenance and repair services for 13 Xerox copier models 5100, DC230C2, DC265, PP1353, SYSTEM 1, DC470SDX, WCP90, DC490SL, and DC470ASX located in the Chicago Central Office and one in the Springfield 850 East Madison office. |
Key Information
| Notice Type: | Sole Economically Feasible Source |
| Published: | 05/28/2008 |
| Notice Expiration Date: | 06/11/2008 |
| Sole Source Only Justification: | IDES currently owns 13 copiers that were originally purchased from Xerox Corporation. The only alternative to unlimited maintenance and repair service on these machines is to purchase service on a time and materials basis. Historically, this option often results in greater cost than the cost of a maintenance contract. Moreover, time and materials calls are not handled on the same priority basis resulting in longer equipment downtime and loss of productivity.
Since the date of original purchases, Xerox Corporation has provided copier maintenance and repair services for this Agencys Xerox copiers. The earliest model of copiers currently under a maintenance and repair agreement was purchased in 1991 and the latest purchase was in 2004. Up to the present fiscal year, the method of Sole Source Procurement has been used to acquire maintenance and repair service contracts with Xerox Corporation.
It would not be cost-effective to entrust maintenance and repair services of Xerox equipment to a non-Xerox service entity. The Department of Employment Security would incur additional equipment maintenance expenses due to additional costs for: proprietary rights to software and diagnostic licenses already built into Xeroxs equipment; service appraisals on each machine; and the loss of applicable warranties. Since increased maintenance and repair costs are not what IDES is looking to incur, and no other entity is allowed to run diagnostics without purchasing licenses from Xerox, or cannot provide maintenance and repair services without performing equipment appraisals, or cannot honor the original manufacturers warranty, Xerox is the only economically feasible entity to provide maintenance and repair services for IDES photocopy equipment.
Xerox Corporation is the manufacturer, patent and copyrights holder, and the only entity that has the original proprietary software rights and diagnostic license installed in each Xerox copier supported by an original warranty.
Research was performed on the Illinois Procurement Bulletin to note the procurement methods used by other State agencies. Based on the procurement notices posted by other agencies, some agencies have used the IFB procurement method which resulted in one bid received from Xerox Corporation, only. Others have used the Sole Source procurement method which also has resulted in contractual services with Xerox Corporation.
Further market research was requested from BOSSAP-Knowledge Management to determine whether a sole source procurement of maintenance and repair services is justified. BOSSAPs submitted the following research results: John Cuciti of Xerox states, Xerox has not authorized any non-Xerox vendors to provide service for Xerox products; and yes there are dealers that can provide and service Xerox products. Contact John Cuciti at (585) 423-4964 for more information. Rich Latronica of Konica Minolta states, The only people that are able to work on Xerox machines are Xerox and independent dealers that can provide and service Xerox products. Contact Rich Latronica at (201) 236-4293 for more information.
Xerox Corporation pricing reflects only minimum increases that do not exceed the Consumer Price Index (CPI). Of the 13 remaining copiers, price rates remained the same for 8 copiers, increased for 3 copiers, and decreased for 2 copiers for FY2009 services. The estimated cost for FY2009 is $118,000 which is comparable to FY2008 price of $132,000. The cost difference reflects the exclusion of one DocuColor 40 copier from FY2009s maintenance agreement, and variations in copier usage.
If this Sole Economically Feasible Source procurement request is denied, IDES could possibly lose our full service maintenance agreement with Xerox which would void the original warranty coverage and Xeroxs guaranteed equipment replacement of identical products or products of equal or greater capabilities.
IDES would have to solicit competitive bids for proprietary equipment that is not likely to result in selection of a bidder other than Xerox. Selection of another vendor would result in additional costs for service service appraisals on each machine, and service reinstatement cost for renovation on each copier to bring back to Xerox standards if the required quality of service needed to maintain IDES copiers is not received from another entity.
Alternatively, IDES may elect to maintain the Xerox equipment on a time and materials basis which may result in higher costs and longer equipment downtime. |
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| Accordance with Admin Rule: | Compatibility of equipment, accessory, parts, or service is paramount consideration |
| Professional & Artistic: | No |
| Small Business Set-Aside: | No |
| Does this solicitation include a BEP Requirement | No |
| Relevant Category: | General Services |
| Total Amount of Award: | $472,000.00 (Total Dollar Value Only/Includes Any Renewal Options) |
| Estimated/Actual Value Description: | This is an estimated dollar value which includes estimated costs for the initial term @ $118,000.00; and estimated costs for 3 one-year renewals @ $118,000 per year. |
| Length of Initial Term: | 12 |
| Contract Begin Date: | 07/01/2008 |
| Contract End Date: | 06/30/2009 |
| Renewal Terms: | 07/01/2009 through 06/30/2012 |
Bidder(s)
| Number of Responding Bidders: | 0 |
| Number of Unsuccessful Responsive Bidders: | 0 |
| Total Number Awarded: | 1 |
| Listing of All Bidders/Offerors Considered But Not Selected:
N/A |
Vendor(s) Selected for Award
Notice Contact
| Name: | Marilyn Faulkner-Fisher |
| Street Address: | 33 South State Street |
| | 10th Floor |
| City: | Chicago |
| State: | IL |
| Zip Code: | 60603 |
| Phone: | 312-793-9639 |
| Fax Number: | 312-793-4875 |
| EMail Address: | Marilyn.Faulkner@illinois.gov |
Class Code
| Class Codes: | | S410 Office Machine Repair and Maintenance Services |
Attachments
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