Agenda item - Approval for Procurement and Contracting of Multi-functional Devices (Printers)

Agenda item

Approval for Procurement and Contracting of Multi-functional Devices (Printers)

Report of the Portfolio Holder for Leisure, Culture and IT

Minutes:

Steve Oakley, Head of Contracting and Procurement, introduced the report concerning Nottingham City Council’s fleet of Multi-functional Devices (MFDs) which enable colleagues to complete day to day work and provide services to citizens. The current contract with Konica Minolta will expire on 9 June 2020.

 

The following points were made during discussion:

 

(a)  local businesses have been approached regarding the contract but there has been no appetite to take on a contract of this size locally;

(b)  reductions in printing, particularly colour printing, will reduce costs and be better for the environment, helping with the Council’s pledge to be carbon neutral by 2028;

(c)  a communications strategy is planned for colleagues across the Council, to make them mindful of the costs of printing. Guidance on good practice should be shared with Council-owned companies.

 

Resolved to

 

(1)  approve spend of up to £1,140,000 over 5 years in a new contract for the supple of Multi-functional Devices/Printers (MFDs);

(2)  approve to conduct a compliant procurement process in line with Nottingham City Council’s financial regulations and contract procedure rules, or to source a provider to supply and maintain MFDs;

(3)  delegate authority to the Head of Contracting and Procurement to award and sign the contract following the procurement process.

 

Reasons for decision:

 

·  Nottingham City Council (NCC) requires a fleet of MFDs to enable colleagues to complete day to day work and provide services to citizens. The contract covers the costs of leasing and maintenance of all devices used in NCC premises.

·  The current contract for MFDs with Konica Minolta will expire on 9 June 2020. Under the current contract each MFD has an individual lease agreement, the first of which goes out of contract on 20 June 2020.

·  NCC wish to conduct a compliant procurement process to source an alternative provider to deliver a similar service and to establish a new contract from 10 June 2020. The new contract will also be for the maintenance and the lease of the devices. The new contract will enable NCC to replace the existing city-wide fleet of MFDs, maintenance contract and achieve savings.

·  The preferred procurement route is a mini competition via a call off from an established framework agreement such as the Crown Commercial Services framework. The mini competition process is quicker and incurs less officer time and costs than an open tender. All of the existing suppliers on the CCS framework will have already been assessed on quality.

·  There are two elements to the pricing for this service, one being the fixed rental cost, and the second being the cost for printed pages which includes device maintenance. Whilst this “copy” cost is fixed, the price will vary depending on the volume of copies printed.

·  The Council will identify the best value supplier by following a compliant procurement process. This will also encourage colleagues to make one off purchases (as well as leasing) MFDs as the framework agreement or a contract developed by NCC would have the flexibility to allow NCC to do so if required.

·  In addition to securing lower rates via this new procurement, NCC intend to achieve further savings in the following ways:

·  The prices will be fixed for the first two years of the new contract;

·  Reduction in the number of devices across NCC. A review to identify where the current fleet can be reduced with limited impact to department activity is currently underway;

·  Lease of mono (black and white) only machines where practicable saving not only on rental but also on printing cost;

·  There is ongoing work from the corporate contracts team to reduce the volume of printing across the Council.

·  It is anticipated that in line with the above NCC will be able to achieve a minimum of £60,000 savings over the next 5 years (a minimum saving of £12,000 per year).

 

Other options considered:

 

·  Do nothing – having an MFD printer contract in place enables NCC to track spend and printing behaviour, includes machines’ maintenance, as well as ensuring best value is obtained. Having no arrangement in place would expose the Council to a risk of higher costs and for this reason this option was rejected.

·  Directly award another contract to Konica – this option was rejected because the market needs to be tested to ensure that the Local Authority achieves best value for money through a competitive process.

Supporting documents: