TRANSMITTAL LETTER FOR BOARD MEETING OF SEPTEMBER 4, 2014
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order to Canon Solutions America, Inc. for the leasing of multifunctional photocopier devices in an amount of $1,322,924.00,from an amount of $161,978.80 to an amount not to exceed $1,484,902.80, Account 101-27000-612330, Purchase Order 3079801
Body
Dear Sir:
On November 7, 2013, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order to Canon Solutions America, Inc. for the leasing of multifunctional photocopier devices and related services under the City of Chicago contract 28364, in an amount not to exceed $157,182.00. This purchase order expires in November, 2019.
As of August 20, 2014, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $4,796.80 from the original amount awarded of $157,182.00. The current contract value is $161,978.80. The prior approved change orders reflect a 3% increase to the original contract value.
In May, 2014, the Information Technology Department implemented Phase I of MFD replacements. A pilot study was conducted with the lease of an initial seven multifunctional photocopier devices in the amount of $157,182.00. These devices were delivered and strategically placed throughout the District in high volume print areas to determine the functionality and durability of the Canon devices. Copy, network printing, scan and fax capabilities were tested on the devices. The stated functionality has met the requirements of the user departments, thereby completing Phase I of the process.
Phase II of MFD replacement entails the leasing of 47 black and white Canon devices and 6 color Canon devices. Due to the pending expiration of maintenance on the Xerox and Ricoh devices, Information Technology's goal is to remove and dispose of the aged multifunctional devices as expeditiously as possible and replace them with the newer technology provided in the Canon product. Information Technology requests to precede with the lease of an additional 53 Canon devices, while removing Xeroxes and Ricohs. The Canon devices will be strategically placed consistent with the directive to downsize and consolidate multifunctional devices.
Once the Canon devices are delivered and installed, Information Technology will evaluate the effectiveness of the downsizing of MFDs and make further recommendations based upon feedback from the agency's user departments.
This change order is in compliance with the Illinois Criminal Code since the change is due to circumstances not reasonably foreseeable at the time the contract was signed, and is in the best interest of the District.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the purchase order in an amount of $1,322,924.00, (816.7% of the current contract value), from an amount of $161,978.80 to an amount not to exceed $1,484,902.80.
Funds for the 2014 expenditure, in the amount of $100,366.69, are available in Account 101-27000-612330. The estimated expenditure for 2015 is $276,907.23, 2016 is $276,907.22, 2017 is $276,907.22, 2018 is $276,907.22, and 2019 is $276,907.22. Funds for the 2015, 2016, 2017, 2018 and 2019 expenditures are contingent on the Board of Commissioners' approval of the District's budget for those years.
Requested, Ellen Barry, Acting Director of Information Technology EB:CLG
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for September 4, 2014
Attachment