Submitted By
Steve Drazner, CFO
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
A Resolution Approving a Three-Year Lease and Maintenance Agreement with Canon Solutions America for Copier Equipment at a Cumulative Three-Year Not to Exceed Cost of $102,000 and Authorizing Execution of the Agreement
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Overview
Overview
The Village’s existing three-year lease agreement with Xerox Financial Services (XFS) and corresponding maintenance agreement with COTG is scheduled to expire the last week of May 2023. All seventeen copiers under this lease in our possession must be returned to XFS on or soon after this date.
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Recommendation
Recommendation
Adopt the Resolution.
Background
In anticipation of the approaching lease end date with Xerox Financial Services, a request for proposal was prepared for the replacement of existing leased copier equipment (seventeen in total) with comparable equipment. The RFP was directly distributed to qualified vendors as well as placed on the Village’s website and Demand Star. There was a strong interest in this RFP and a total of ten proposals were received from the following vendors:
Dealer/Vendor Brand Sold
1) Marco Technologies LLC Sharp
2) Toshiba America Business Solutions Toshiba
3) Canon Solutions America Canon
4) Xerox Business Solutions Xerox
5) Sharp Business Systems Sharp
6) Gordon Flesch Company Canon
7) DCS/Regal Business Machines Konica
8) ImageTec LP HP
9) Konica Minolta Business Solutions Konica
10) Ricoh USA Ricoh
Each proposal was thoroughly reviewed by staff and rated in such areas as cost, vendor responsiveness, brand reputation, references, and company size. Based on these variables, the evaluation team narrowed down the proposers to the following three finalists:
1) Xerox Business Solutions (incumbent)
2) Gordon Flesch (canon dealer)
3) Canon Solutions America
Please be aware that while cost was one of the more important variables being evaluated, it was not the only consideration. First and foremost, it was the primary objective of the selection committee (which included CFO Drazner, Deputy CFO Kramer, and Management Analyst Pedraza) to recommend a brand and/or dealer that is well-known in the Chicago area and also has a favorable reputation.
The total spread from the highest to the lowest proposed cost is $2,041 per month (fees range from $4,416/month to $2,375/month). The average monthly cost (including maintenance, usage, and lease payments) for all ten proposals equates to $3,381.
Staff is recommending Canon Solutions America for a three-year lease and copier maintenance agreement. The estimated annual cost, which includes both the lease and usage/maintenance, is estimated at $33,427, or approximately $2,786 per month. While this was not the lowest proposed fee, it is below the average cost of the ten respondents. The monthly lease component will be fixed at $2,050 per month while the maintenance cost will be based on the volume usage of the seventeen copiers, estimated at approximately $736 per month.
Canon is ranked number #1 in terms of market share and Canon copiers have an excellent reputation for quality and reliability. Canon Solutions provided an extremely competitive proposal, lower than seven of the ten respondents. While Canon is a global brand, they are locally based in Itasca and have a service call turnaround time of no more than five hours should any issues arise with the equipment during the lease term.
Additional information is attached to this agenda item, including the Village RFP, the proposal from Canon Solutions, and a draft of the agreement for execution by the Village Manager upon Board approval of staffs’ recommendation.
Fiscal Impact
Annual expense for seventeen copiers is estimated at $33,427 for both the lease and maintenance contract (the lease component is fixed while maintenance is variable based on copy volume). This expense has been appropriated in the Finance Department Equipment Rental account #1001.41300.101.560670.
DEI Impact
N/A
Alternatives
Select another vendor
Previous Board Action
RES 20-103 on 5/4/20
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A