Imaging Devices - Hardware Contract

Range of products and services

This contract is for the:

1. purchase of imaging devices and associated maintenance agreements to provide maintenance, service and parts and toner for imaging devices
2. short-term rental of imaging devices.

The imaging hardware that can be purchased or rented includes:

• multifunction devices (including standalone photocopiers)
• single function laser printers
• scanners
• facsimile machines
• large format printers.

Managed print services, or provision of imaged devices through a managed service, is not available through this contract.

Short-term rentals

To fulfill emergency and short term requirements a rental facility is available.

This is limited to 1 year as rental is a comparatively expensive method of provisioning imaging devices and any requirement over 1 year should be fulfilled by other methods.

Maintenance agreements

A maintenance agreement is a contract between the buyer and the supplier for a set term. Depending on the nature of the devices purchased the maintenance agreement may be put in place by default or alternatively be at the request of the buyer.

This maintenance agreement includes all repairs, servicing, toner and transportation costs and will be charged on a per impression (click rate) for every page printed. Colour and mono (black and white) have different click rates. The supplier may only provide toner through a maintenance agreement for hardware paid for through copy cost/click rate. Toner cannot be provided as a separately priced consumable or as an accessory to a device under this contract. For NSW Government, all toner purchased outside of maintenance agreements can be purchased through Office Supplies contracts established by the NSW Government.

Under any maintenance agreement, the supplier will provide all service, maintenance, parts and toner as required ensuring the devices are maintained to the manufacturer's recommended operational standards.

Travel charges are not incorporated in the click rate. Travel may not be charged to locations within 100km from a service centre and within the greater Sydney metropolitan area.

If the location is outside of that, there is a per kilometre rate which is calculated on a one way basis, not both out and back.

Multifunction devices

The maintenance agreement will automatically be put in place when a multifunction device is purchased. The period is for 5 years, with a fixed click rate to protect the buyer from unjustified rate increases. The buyer may opt out or amend with agreement of NSW Procurement. This is to ensure the buyer is fully aware of the consequences and risks.

Laser and large format printers

A maintenance agreement will be available to the buyer if required.

Availability of maintenance agreements

Warranty

All devices sold are to be covered by a minimum warranty period:

• multifunction devices: 5 years
• laser printers: 3 years
• scanners: 1 year
• facsimile: 1 year
• large format printers: 3 years

Optional extended warranties may also be purchased at an additional cost.

In the event of product failure the supplier shall replace or make good the defective items or parts thereof delivered to such a destination as directed by the customer, or at the option of the buyer, pay the buyer an amount equal to the cost of the goods, which have failed.

Within the warranty period, where it is demonstrated that a device is "out-of-service" consistently on a regular basis, thereby making hardware use unreliable, the supplier shall replace the machine at their cost with either the same model machine or a machine of similar capacity and features, which is new or at least has undertaken no more duty than the machine replaced.

Each supplier defines “out of service” on a regular basis differently. Please contact the NSW Procurement Service Centre or the supplier for further information. The buyer may also negotiate the definition upon forming a customer contract.

Agency savings opportunity

This contract has some inherent measures to provide savings:

• For MFDs the fixed copy cost for 5 years. That excludes the typical industry practice of ramping up copy costs over the lifetime of the product.
• For laser printer, strongly consider the availability of the maintenance agreement as a more cost effective way of purchasing toner. Yields stated on toner cartridges may be misleading, especially if usage patterns include high page coverage.

NSW Procurement recommends obtaining a series of quotes from suppliers on contract 2390. That is both to enable buyers to negotiate improved pricing, and to ensure that the machine purchased is configured appropriately.

Buyers may find that better prices can be negotiated with the contractor by utilising the RFQ process, especially if they are purchasing in volume. Principal agencies should be implementing sole supplier arrangements in return for significant discounts.

Buyers should undertake whole of life costing, considering not just the purchase price but the click rate. Buyers should take account of the likely volume of print that will be generated through the devices, and calculate the ongoing cost based on the click rates.

The most critical element with regard to savings is controlling colour copy costs. Colour print generally costs 10 times mono print, and it only takes one dot of colour on a page to be charged at the colour rate.

Seriously consider substituting a mono device for a colour device. Consider locking all but a few for access to colour print.

Consider high volume A4 devices in lieu of standard A3 devices. If you have 4 devices on a floor, perhaps only 1 needs to be colour and A3 capable.

Follow me print, or “pull printing” is a method commonly used to control costs. Piles of unused printout are familiar sights in offices. Follow me print ensures that only when the user walks to a machine and instigates the print is the job printed. It can be controlled by a PIN or card. A print can be made from any device on the network, rather than having to direct a print to a device.

Implementing follow me print means that mistaken print jobs can be cancelled more easily and certainly. It not only saves on toner and machine wear, but reduces paper usage. The security advantages are obvious. Reductions in volume of 30% have been claimed.

Extension options

One twelve-month extension option remains.

Approved suppliers

Maximum price contract

The pricing listed for the contract is a maximum price only, where the prices and rates listed for the contract represent a ceiling price that cannot be exceeded. Buyers are entitled to negotiate better prices than those listed under the contract.

Prices are established for purchase of devices and accessories to those devices. Where applicable, click rates are established for maintenance agreements.

Ordering and Procure IT

Contract 2390 incorporates the terms and conditions of Procure IT 3.0. Procure IT is the standard terms and conditions utilised by the NSW Government for information technology and telecommunications contracts. It has been drafted in consultation with the Australian Information Industry Association (the AIIA).

The head agreement template, customer contract document, template order forms and applicable modules can all be accessed from the standard contract template page.

The applicable Procure IT modules for contract 2390 are:

Module 1 – hardware acquisition and installation
Module 2 – hardware maintenance and support services
Module 3 – licensed software
Module 5 – software support services

NSW Procurement and the vendors are working on tailored versions of the order forms which will be better attuned to the needs of this contract, and reduce the paperwork for all parties.

Third party purchasing

Approved suppliers/original equipment manufacturers (OEMs) who deliver goods and services through an approved agent (third party/subcontractor/reseller)

Approved suppliers/OEMs under this agreement may offer goods and services using a network of approved agents (also known as subcontractors or resellers).

It is important to note that the binding contractual arrangement lies between the approved suppliers and the eligible buyer.

The approved supplier will capture any approved agent activity through their contractual obligations under the head agreement such as sales reports, price/product management and resolution of disputes.

How to access an approved agent listing from NSW Procurement

Contact the NSW Procurement Service Centre on 1800 679 289 or nswbuy@treasury.nsw.gov.au

Operating hours are 8.30am to 5pm, Monday to Friday.

How to engage an approved agent (third party/subcontractor/reseller)

Eligible buyers are required to place orders directly with the approved supplier who will then instruct the approved agent to supply goods and services on their behalf. The approved agent is required to abide by the terms and conditions of the head agreement, strictly utilising the required customer contract and order forms.

The eligible buyer is responsible for:

• ensuring details of the approved agent and their offer are included in their customer contract and order forms
• undertaking their own due diligence, risk assessments and approval processes prior to executing an arrangement with an approved agent
• taking ownership of their relationship with the approved agent.

Scenario / example

An agency located in rural NSW needs to procure a multi-function device printer and has been made a competitive offer from a local SME which claims to be a reseller of an approved suppliers products.

The agency then contacts the NSW Procurement Service Centre to log a call requesting confirmation as to whether that local SME is listed as an approved agent under the whole of government contract/scheme. NSW Procurement replies confirming that the local SME is an approved agent.

The agency then carries out internal processes which may include due diligence, risk assessments and approval processes.

A customer contract with the relevant order forms is executed between the agency and the approved supplier, specifying the details and offer/quote for the goods and services to be delivered.

For further information regarding approved agents, please contact the NSW Procurement Service Centre.

Delivery

All prices must be free into store (FIS) in New South Wales. This includes all geographical locations throughout NSW and the ACT. All spare parts and consumables to operate for the devices are to be to the OEM’s specification.

The contractor is required to install all products unless the buyer indicates that installation is not necessary. For all equipment where by its nature installation by a technician is routine (eg MFD), the installation charge is included in the price.

Where installation can be managed by a buyer (eg laser printer), no installation charge is included in the price.

Where for practical reasons, such as for remote sites, a device which would normally be installed by a technician is installed by a buyer with remote guidance from a technician, the customer must be provided a discount, with fair consideration for the cost savings to the supplier.

Delivery hardware/devices

The devices are required to be delivered within 7 working days of placing the order in greater Sydney metropolitan area, 10 working days in regional and remote areas. If a particular device/machine cannot be delivered within the scheduled time of placing the order, the supplier shall provide the device/machine of similar capacity and features or a better model available at their cost, within the scheduled delivery time of the device.

Delivery consumables

Toner, staple wire or other vendor provided consumables: