Agenda Item
i. State of Georgia Contract 99999-SPD00001370005 Lease Purchase of Digital Printing Equipment for DCSD Copy Center Contract Ratification and Approval (Canon Solutions America (Not to exceed $170,000) This recommendation is for the initial term and first renewal term of of a 5-year Lease Agreement ~ Updated 1.30.2025
Summary: Presented by: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations
Request: It is requested that the Board of Education approve the contract for the State of Georgia Contract 99999-SPD0000137-0005 for the lease purchase of digital equipment for the DCSD Copy Center to Canon Solutions America in the amount not to exceed $170,000.00 for all maintenance and supplies excluding paper. This recommendation is for the initial term and first renewal term of a 5-year Lease Agreement. The initial term will be from May 1, 2024, through June 30, 2024, for an amount not to exceed $23,000. The first renewal will be from July 1, 2024, through June 30, 2025, for an amount not to exceed $147,000.
Why: This request is a contract for Canon Solutions America for the lease purchase cost of the equipment.
Details: Canon Solutions America is the most responsive and responsible bidder to provide a lease purchase option for the DCSD Copy Center's up-to-date digital equipment and a full-service comprehensive maintenance program. This contract is for 1 year with (4) one year (1) year renewals. Canon Solutions America is located at 5625 Oakbrook Pkwy, Norcross, GA 30093
Financial impact: The total budget for these services is allocated from the cost code 100.2800.561000.00011.7620.9990.8010.040.0000 under the Operations Division General Fund Budget in the amount not-to-exceed $170,000.
Contact: Mr. Erick Hofstetter, Chief Operating Officer, Division of Operations, 678.676.1475
Mr. Keith Singleton, Director of Business Services, Division of Operations, 678.676.1423
Effective: Upon Board Approval
Status: Approved by General Counsel
State of Georgia Contract Profile
GENERAL INFORMATION
AWARD PARAMETERS SPECIFICATIONS
Contract Model Hybrid 1.0 (Purchase w/ CUSA - Lease w/ CFS)
Contract Title State of Georgia - Single-Use Printers, MFPs & Related Technologies
Contract Number 99999-SPD0000137-0005
Mandatory Use for State Agencies
- Light-Use Printers & MFPs ('Desktop Printers' were moved to Optional)
- Moderate-Use Printers & MFPSs
- High-Use Production Printers & MFPs
Scope
Optional Use for State Agencies
- Related / Emerging Print Technologies (LFP / Scanners / High End Production / Software)
- Devices that can be classified as 'Desktop Printers'
Effective Period 4/1/2018 - 6/30/2020
Number of Renewal Options Four (4) one (1) year option(s) to renew - [1 used - 6/20/23 final option]
Mandatory for State offices, agencies, departments, boards, bureaus, commissions,
institutions and colleges and universities (sometimes referred to as "User Agencies") unless
DOAS grants a waiver. Contract is mandatory specifically for Printer & MFP categories only.
Not Related/Emerging Technologies or devices classified as 'Desktop Printers'.
Eligible Users
Convenience basis to other Governmental entities such as State authorities, local
government, municipalities, cities, townships, counties and other political subdivisions of the
State of Georgia.
Cooperative Purchase / "Piggyback" N/A
Agreement Type (i.e. Single Source, Multiple
Multiple
Award, Mandatory, Non-Mandatory)
Other Contract Holders Ricoh / Sharp / Toshiba / Xerox
PRODUCT REQUIREMENTS, RESTRICTIONS AND EXCEPTIONS
B/W and Color imageRUNNER / imageCLASS / imagePRESS / imageFORMULA /
Products
imagePROGRAF / VarioPrint / Oce Plotwave / Oce Colorwave / Software
Software/Third Party Solutions All associated software that goes with the product listed above. See Price Sheet.
Without a maintenance plan - Standard product warranty applies
Warranty
With a maintenance plan - Maintenance starts day 1 and runs parallel to warranty
Products will be added/removed over the course of the contract with the State's approval.
Should a device become discontinued or inventory depleted, etc. substitution products may
Product Substitutions/Discontinuations
be offered on a case-by-case basis pending State approval. Please reach out to the Canon
contract manager for assistance.
Dealer will facilitate the electronic wiping of Customer hard drives at the end of term at no
additional cost.
Hard Drive (Erase, Remove, Certification)
Additional security options such as HDD Replacement service may be offered at a cost that
does not exceed the Contractor’s published price.
ACQUISITION PLANS AND PRICING PARAMETERS
Purchase, Maintenance
Acquisition Plans
Lease: 24 / 36 / 48 / 60 Months (FMV & LTOP)
Not to Exceed Pricing
Pricing Model
Discounts on outright purchases are subject to Canon approval as these devices come from
Canon's inventory.
-No base CPC
Maintenance Plan(s)
-Custom plans with copies included based on Contract CPC
Supplies- Toner/ Staples/ Paper Maintenance is inclusive of toner and all supplies other than paper or staples
Canon pays a 1.5% admin fee to the State on all contract sales each quarter. Canon reserves
Contract Fee / Frequency
the right to charge back dealers based on their reported sales & service.
ORDER MANAGEMENT/ COMPLIANCE
-All POs are to be made out directly to Canon U.S.A., Inc. Never to the Dealer.
-All POs should properly reference the State contract # 99999-SPD0000137-0005
-All lease POs should also be accompanied by the 'User Agency Lease Agreement'
The Vendor block should appear as follows:
Purchase Order Requirements
Canon U.S.A., Inc.
4100 N. Fairfax Drive, Suite 200
Arlington, VA, 22203
fgsd_government_orders@cusa.canon.com
Open Market Items May be allowed on a case by case basis. Please reach out to the Contracts team for approval.
Purchase Methods Accepted (PO, Credit Card,
State of Georgia Purchasing Card, PO
Electronic)
All invoicing will be done either directly through Canon U.S.A., Inc. or Canon Financial
Services, Inc. depending on products / services being provided. Remit Addresses will read as
follows:
Purchase w/ Maintenance & Maintenance Only
Canon U.S.A., Inc.
Invoice/Billing Requirements PO Box 841023
Dallas, TX 75284
Lease w/ Maintenance
Canon Financial Services, Inc.
14904 Collections Center Dr.
Chicago, IL 60693
Payment Net 30
At this time, Dealers are not required to provide any monthly sales reporting as all invoicing is
Sales Reports
through CUSA / CFS. Service logs and additional information may be requested however.
FINANCING
Authorized Leasing Partner CFS Only
Georgia's User Agency Lease Agreement is governed by the following:
- Termination for breach / default
- Termination for non-appropriation
- Termination for convenience (remaining fiscal year is owed)
Cancellation Terms / Penalties In addition, the GA Lease Agreement has additional terms regarding insolvency, Contractor
suspension/debarment and protection against fraud. Please see the lease agreement for
specifics.
User Agency Lease & Maintenance Agreements shall survive termination of the Statewide
Contract.
- Equipment Return
End of Term Options - Equipment Purchase
- Lease Renewal
Upgrade/Downgrade Terms N/A
Customer Purchase within Term Yes
Customer Purchase at the end of Lease Yes
Lease Renewal after lease term Yes
Reduced Price for Renewal No
Lease Renewal after contract term Open Market
Included in CFS Rate. CFS to arrange for return.
Equipment Return at EOL
Dealer to coordinate removal and assist with any de-install.
Risk of Loss CUSA until equipment is accepted by the User Agency.
SERVICE PERFORMANCE REQUIREMENTS
- F.O.B. Destination.
- Pricing includes Basic Delivery, Installation & Initial Training.
Delivery, Install & Training
- Excess rigging and/or unique delivery requirements may be an additional charge.
- Additional / Advanced training may be an additional charge.
Dealer must submit meter readings to either CUSA (purchased equipment) or CFS (leased
Meter Collection
equipment) depending on who is invoicing the customer.
Response Time 4 Hours
Service Performance (Uptime/Downtime) 95%
Dealer will replace the equipment with a new or used device, if equipment incurs re-
Device Failure & Replacement occurring failure, while under a continuous service agreement. Canon, will determine
whether to replace the unit with a new unit or a “like for like” unit.
Demos - Demo models may be provided if requested
Loaners - If Dealer has not corrected the problem so that the equipment is in normal
operation satisfactory to the Authorized User by 48 hours after the time the Authorized User
Demos/Loaners
Agency first placed the request for service to Dealer, Dealer will, at no additional charge to
the Authorized User, deliver and provide a loaner Printer or MFP with at least the capacity
and functionality of the equipment being serviced until Dealer has repaired the subject
equipment to normal working condition and operation satisfactory to the Authorized User.
Relocation of Equipment May be provided if requested. Pricing to be quoted and agreed to prior to relocation.
Dealer will maintain a Maintenance and Service log for each Printer & MFP and will provide
copies of the Maintenance & Service log to Canon, Authorized User Agencies and to DOAS
upon request.
Service / Usage Reports These are separate from the Sales Reports required above.