TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 20, 2013
COMMITTEE ON Procurement
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order and amend agreement with Ricoh USA for services to provide maintenance, service, repairs and supplies for 15 Ricoh copiers in an amount of $10,571.20 from an amount of $8,123.71, to an amount not to exceed $18,694.91, Account 101-27000-612810, Purchase Order 8007248
Body
Dear Sir:
On June 11, 2012, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order and enter into an agreement with Ricoh USA for services to provide maintenance, service, repairs and supplies for 15 Ricoh copiers, in an amount not to exceed $4,800. The agreement expired on January 31, 2013.
During the negotiation process for maintenance, it was agreed upon by the vendor and the District that each multi-functional photocopier device would undergo inspection by Ricoh USA and would be brought to manufacturer's specifications through the purchase of parts and service repairs as a precondition to providing maintenance on aged machinery. The cost of repair parts resulted in an increase of $3,323.71 to the purchase order value.
As of May 1, 2013, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $3,323.71 from the original amount awarded of $4,800.00. The current contract value is $8,123.71. The prior approved change orders reflect a 69.2% increase to the original contract value.
The 15 multifunctional photocopier devices were purchased by the District in March 2006. The original contract included procurement of the 15 multifunctional photocopier devices and 4 years of maintenance, service and supplies. The organization's strategy was to purchase a predetermined number of multifunctional photocopier devices and 4 years of repair service and maintenance. At contract termination, a new agreement would be prepared and the devices purchased under the previous contract would be utilized as trade-in equipment for the purchase of new multifunctional devices. In 2011, that strategy ceased to exist. The Information Technology Department received direction to discontinue the practice of procuring new multifunctional photocopier devices every 4 years and to purchase maintenance only for existing multifunctional photocopier devices.
The Information Technology Department is currently developing an organizational strategy for multifunctional photocopier and print devices. Beginning in 2013, consistent with the District's Green Initiative, the Information Technology Department anticipates a redistribution of multifunctional photocopier and print devices and an overall reduction of devices throughout the agency. Until such strategy is developed and implemented, the Information Technology Department is required to maintain service on existing machinery to ensure the proper functioning of current multifunctional photocopier devices. The requested extension will expire December 31, 2013.
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 and amend the agreement in an amount of $10,571.20 (130.13% of the current contract value), from an amount of $8,123.71, to an amount not to exceed $18,694.91.
Funds are available in Account 101-27000-612810.
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 June 20, 2013
Attachment