HomeMy WebLinkAboutFCS-16-027 - T15-072 High Volume Print Shop Production Equipment
REPORT TO: Committee of the Whole
DATE OF MEETING: 2016-02-22
SUBMITTED BY: Michelle Palmer-Novakovic, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Ryan Scott, Buyer, 519-741-2200 ext. 7216
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2016-02-11
REPORT NO.: FCS-16-027
SUBJECT: T15-072 High Volume Print Shop Production Equipment
___________________________________________________________________________
RECOMMENDATION:
That Tender T15-072 High Volume Print Shop Production Equipment, be awarded
to Konica Minolta, Mississauga, Ontario, at their tendered price of $393,438.80,
plus H.S.T. of $51,147.04, for a total of $444,585.84 for a five (5) year term.
BACKGROUND:
The Print Shop provides on demand printing and bindery services and currently
operates three offset presses (used for black and white and colour printing), and eleven
pieces of bindery equipment ranging from saddle stitcher and folders to hole punching
machinery. The current equipment is outdated, costly to operate, and it is unable to
respond to the growing internal business partner demand for high quality, high speed
printing services.
REPORT:
Tenders were advertised publicly on the City of Kitchener website and the Internet
through the Ontario Public Buyers Electronic Tendering Information System. Documents
were downloaded by fourteen (14) interested parties, and by the closing date of
Thursday December 17, 2015, three (3) tenders had been received.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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The following tenders were received:
Lease Adjusted Optional
Bid Price Lease Purchase
Bid Price Bid Price
Konica Minolta Mississauga ON $ 429,804.76 $ 475,396.20 $444,585.84*
Xerox Kitchener ON $ 481,696.72 $487,512.40
Ricoh London ON $ 545,359.67 $507,566.90
This tender is for the supply, installation, and ongoing maintenance of two (2) high
speed, high volume, black and white digital production presses, and one (1) colour
digital production press for a five (5) year term. The tender was structured in a manner
to provide the City with both lease and purchase prices. Through review of the tender
submissions, purchasing the equipment outright had been determined as the most cost
effective.
The tender was reviewed by V. Raab, Director Corporate Communications & Marketing,
N. Amaral, Manager Digital Media and Creative Services, S. Hill, Print Shop
Coordinator, and R. Scott, Buyer, who concur with the above recommendation.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
The costs of this tender include both the purchase of equipment and a 5 year
maintenance contract. These costs are broken down as follows:
Equipment Purchase $279,605.84
5 Year Maintenance Contract 164,980.00
Total Cost $444,585.84
The 5 year maintenance contract will be funded through an existing operating budget
which is sufficient to cover these costs. The equipment purchase will be funded as
shown in the table below.
The net cost for this tender (A), is fair and reasonable for a purchase of this scope and
the upset limit is within the budget allowance (B) provided within the budget. The
estimated surplus (D) will be closed out after the purchase costs are funded.
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Financial Summary for Tender T15-072
High Volume Print Shop Production Equipment Purchase
Estimated Cost
Tender T15-072 costs, including HST $279,605.84
less: HST rebate on tender (27,812.11)
Net Cost Being Awarded 251,793.73 A
Costs Incurred to Date -
Projected Costs: Staff Time -
Estimated Cost $251,793.73 C
Budget
Capital contribution 444,000.00
Budget for this Purchase $444,000.00 B
Estimated Surplus/(Deficit) (B - C)
$192,206.27 D
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
Not applicable
ACKNOWLEDGED BY:
Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services
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