DATE: February 20, 2018
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Amendment to Agreement with California Business Machines
RECOMMENDED ACTION(S):
TITLE
Approve and authorize Chairman to execute First Amendment to Agreement No. 13-117, a countywide agreement with California Business Machines to extend the Agreement for one additional one-year period effective upon execution, for a maximum potential six-year cost not to exceed $2,200,000.
REPORT
The current agreement for countywide copier purchase, rental, and maintenance will expire on March 11, 2018. The Internal Services Department, with the concurrence of the Purchasing Division, have determined a need to research the benefits of utilizing a leasing model option or to continue with the current model of purchase and rental. The recommended action will allow the County to continue to receive maintenance services of currently owned copiers.
ALTERNATIVE ACTION(S):
Your Board could choose not to approve the agreement and the County will not have an agreement in place for maintenance of the currently owned copiers. The County would be subject to non-contracted pricing for the purchase and maintenance of copiers, until a new agreement could be put into place.
FISCAL IMPACT:
There is no increase in Net County Cost. The recommended action extends the current agreement for one additional one-year period without increasing the contract maximum. Costs related to these services are billed directly to user departments.
DISCUSSION:
On March 12, 2013, your Board authorized the execution of a countywide agreement with California Business Machines for the purchase, rental, and maintenance of copiers for a five-year agreement with a cost not to exceed $2,200,000.
The County has purchased the majority of its current copier fleet. While purchasing a copier has a lower long term cost to the County for the hardware, costs for maintenance begin to increase after five years and can quickly outweigh the savings made by purchasing the copier. Technology continues to advance rapidly, making copiers depreciating assets. With a leasing model, departments will have lower upfront costs, consistent maintenance costs, and better options to stay current with new technology.
The recommended action will allow the County to continue to receive maintenance services of currently owned copiers, while allowing staff to determine if moving to a leasing model will be more advantageous to the County.
REFERENCE MATERIAL:
BAI #37, March 12, 2013
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment to Agreement
CAO ANALYST:
John Hays