From
Bryce Davis, Purchasing Manager
Title
Copier leases from Ricoh in the total estimated amount, over all lease years, not-to-exceed $1,000,000 through a national interlocal agreement with Department of Information Resources (DIR)
Presenter
Bryce Davis, Purchasing Manager
Recommended Action
Approve
Analysis
The City currently leases copier machines from Ricoh and have been doing so since 2014. City Staff are pleased with the current equipment & customer service from this vendor. With the growth of the City, additional units and upgrades to Ricoh units were added at the DIR contract lease prices. Because of this, the current machines installed across all City facilities today, have various lease implementation and expiration dates with the furthest date of February 22, 2023.
With the expiration of the former DIR-Ricoh contract(DIR-TSO-3041), any new leases, to include re-leasing and re-financing option on our current fleet of 59 machines, must be in accordance with the new DIR-Ricoh contract (DIR-CPO-4435) also having the benefit of saving the City approximately $28,147.58 when fully transitioned. City Staff would like to take this opportunity to strategically enter into various length leases to neatly tie all future lease expiration dates to the expiration date of the DIR-Ricoh contract. Additionally, the city pays a color copy charge and a black/white copy charge which average approximately $75,000 annually.
Fiscal Estimated annual expenditure Estimated annual expenditure Copy Total expenditure
Year through former DIR contract through current DIR contract Charges regardless of source
2018-19 $128,358.48 $0 $75,000 $203,358.48
2019-20 $113,504.48 $11,380 $75,000 $199,884.48
2020-21 $67,382.44 $56,076.80 $75,000 $198,459.24
2021-22 $56,605.72 $65,876.80 $75,000 $199,482.52
2022-23 $50,726.78 $71,557.90 $75,000 $197,284.68
2023-24 $0 $120,533.90 $75,000 $195,533.90
Grand Total of years 2019-2024: $988,644.82
This City Council item is to request approval to enter into new leases through the new DIR-Ricoh contract as detailed in this analysis and listed above for a fiscal amount not-to-exceed $1,000,000 over the course of all leases which will all be timed to expire along with the DIR contract on September 30, 2024. This amount includes a $11,355.18 contingency to accomandate any overages in years the copy charge exceeds our average.
Chapter 271.102 of the Local Government Code authorizes local governments may participate in a cooperative purchasing program with another local government or local cooperative organization. Each to perform governmental functions or services including administrative functions normally associated with the operation of government. The City of Grand Prairie does not need to competitively bid items purchased through such agreements as they have already been bid by the sponsoring entity or agency. The City of Grand Prairie has master inter-local cooperative agreements with various entities including the DIR.
The DIR provides statewide leadership and oversight for management of government information and communications technology. The DIR has served in a leadership role to facilitate the state’s economic competitiveness through its ability to deliver quality information resources commodities and services at the lowest prices and best value for state and local government as well as the K-12 public and higher education systems. There is a slight increase from prior year copier contracts, due to the added new features.
DIR-CPO-4435 was executed September 25, 2019 and will expire September 25, 2024. The City's leases with Ricoh will mirror these terms and expire September 30, 2024.
Financial Consideration
Funds are available in various departments operating budgets and will be charged accordingly on orders through the end of the fiscal year. Funding for future fiscal years will be paid from that year’s approved budgets.