TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 20, 2013
COMMITTEE ON Procurement
Mr. David St. Pierre, Executive Director
Title
Authority to increase purchase order for Contract 06-418-11, Furnish and Deliver Thirty-Two (32) Multi-Functional Photocopier Devices and a Five Year Repair Service, Supplies and Maintenance Agreement at Various Locations, to Ricoh Americas Corporation, in an amount of $8,580.00, from an amount of $416,351.87, to an amount not to exceed $424,931.87 Account 101-27000-612810, Purchase Order 3041665
Body
Dear Sir:
On November 16, 2006, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue a purchase order for Contract 06-418-11, Furnish and Deliver Thirty-Two (32) Multi-Functional Photocopier Devices and a Five Year Repair Service, Supplies and Maintenance Agreement at Various Locations, to Lanier Worldwide Inc., in an amount not to exceed $337,287.84. The contract expired on December 31, 2011.
As of June 2, 2013, the attached list of change orders has been approved. The effect of these change orders resulted in an increase in an amount of $79,064.03 from the original amount awarded of $337,287.84, as well as an increase in multifunctional photocopier devices from a total of 32 to a total of 37. The current contract value is $416,351.87. The prior approved change orders reflect a 23.87% increase to the original contract value.
In 2001, Lanier Worldwide, Inc. merged with Ricoh Corporation but continued to operate as separate entities. Effective April 1, 2007, the companies combined to become one company, Ricoh Americas Corporation. In 2008, IKON became a Ricoh Company. Effective January, 2012, the two companies have aligned to a single brand under the umbrella of Ricoh USA. Effective April 1, 2012, all invoices and payments will be made to Ricoh USA.
The original terms of the contract allowed for a five-year service, supplies and maintenance agreement. The contract originally expired on December 31, 2011. Ricoh USA has an automatic rollover policy with regard to maintenance of the multifunctional devices. Such policy has facilitated in the continued maintenance of the devices with rates comparable to the rates obtained at contract initiation. The District's past strategy was to purchase a predetermined number of multifunctional photocopier devices and four and later five 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 four 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 for Contract 06-418-11 in an amount of $8,580.00 (2.0% of the current contract value), from an amount of $416,351.87, to an amount not to exceed $424,931.87.
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
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