Agenda

Return

C. 38

To:	Board of Supervisors
From:	Julia R. Bueren, Public Works Director/Chief Engineer
Date:	March 10, 2015

Contra

Costa

County

Subject:

AUTHORIZE Contract with Sharp Business Systems and a Third-party Lease Agreement with IBM Global Finance.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 03/10/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor

ABSENT:

Federal D. Glover, District V Supervisor

Contact:

David Gould, 925-313-2151

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: March 10, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute, on behalf of the Employment and Human Services Department, a contract with Sharp Electronics Corporation (dba Sharp Business Systems) (Sharp), for managed print services (Project), in an amount not to exceed $960,000 for the period March 29, 2015 through March 28, 2018; and a purchase order with Sharp, and third-party lease-purchase agreement with IBM Credit, LLC, in an amount not to exceed $692,510, for the purchase and financing of Project-related equipment and software, for the period April 1, 2015 through November 1, 2017, as recommended by the Employment and Human Services and Public Works Directors.

FISCAL IMPACT:

$1,652,510: Administrative Overhead (20% County; 40% State; 40% Federal)

BACKGROUND:

In evaluating controllable Department expenditures, EHSD has identified document printing as one area where tremendous savings could be realized through system automation. EHSD desires to implement managed print services throughout the Department and Community Services Bureau (the “MPS Project”). Through the request for proposal process, Sharp Electronics Corporation (dba Sharp Business Systems) was selected to provide all MPS Project-related equipment and services to the Department.

The County will enter into a purchase order with Sharp, to acquire all MPS Project-related equipment (multi-function print and copy devices), and MPS Project-related software, the Drivve software. (The County is purchasing the Software from Sharp as a third-party reseller on behalf of Drivve IP LLC, and licensing the software from Drivve pursuant to the shrink-wrap license accompanying the Software.) The County’s purchase of the equipment and software will be financed under an existing Board-approved Master Lease/Purchase Agreement between the County and IBM Credit, LLC. The financing of the equipment and software through IBM Credit, LLC will be at a rate of 2.59%, or $23,410 during the term of April 1, 2015 through November 1, 2017. The cost of the equipment and software will be $692, 510, inclusive of all financing costs.

The County will purchase all MPS Project-related services under a standard form services contract with Sharp for the term of March 29, 2015 through March 28, 2018. Under the contract, Sharp will provide the Department all MPS Project-related services, including software installation, implementation of the project, software and hardware maintenance and service, end-user support, training, equipment installation and refreshment, providing all expendable suppliers other than paper, and other services. The Project will include all new equipment being purchased from Sharp, and existing Department printers and copiers.

Sharp will charge the County for services on a per-print basis, at the following rates: black prints from copiers at $0.0039 per page; color prints from copiers at $0.039 per page; black prints from printers at $0.008 per page; color prints from printers at $0.012 per page. The County’s total payments to Sharp during the term of the contract will not exceed the contract payment limit of $960,000. However, if the County’s printing needs would cause the payment limit to be exceeded, the parties could amend the contract to increase the payment limit, with no change to the rates charged by Sharp during the initial term of the contract.

CONSEQUENCE OF NEGATIVE ACTION:

Failure to maintain network systems may result in reduced capacity, system failure and interrupted business operations.

CHILDREN'S IMPACT STATEMENT:

Not applicable.