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Defence buys itself time ahead of transition to MOM Panel

by Paris Cowan •
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The Department of Defence will not transition its procurement of multi-function devices (MFDs) to the Federal Government’s panel for Major Office Machines until July 2014 at the earliest, following an extension of its lease agreement with Konica Minolta.

Defence originally signed the MFD lease with Konica Minolta in July 2007 for five years, with a value of $23 million. The latest extension is worth $13.4 million and will take the agreement out to June 2014, bringing the total value of the lease past $36 million and making it the Department’s largest printer agreement by a significant margin.

The Department has obtained approval from the Department of Finance and Deregulation to bypass the whole-of-government panel for Major Office Machines (MOM) Equipment and Support for the contract extension.

 “The Department of Finance and Deregulation (as the owner of the Whole Of Government Major Office Machines panel) has approved this extension as it will provide Defence the time required to move its MFD fleet to the WOG MOM Panel,” a spokesperson for Defence said via email.

However Konica Minolta is fully pre-qualified to supply MFDs to the Federal Government under the MOM panel, meaning that a transition to the whole-of-government arrangement would not mean Defence would be forced to select a new supplier. Fuji Xerox, Kyocera Mita, Ricoh and Sharp, however, can also supply MFDs through the MOM panel.

In the past five financial years (1 Jul 2007 to 30 June 2012) the Department of Defence has signed nearly $93 million worth of printer contracts.

Konica is the dominant supplier to Defence in this sub-category, accounting for $44.6 million of this five year total.

Lexmark is its nearest competitor for the Department’s business, with a contract total for the five year term of $14.4 million, predominantly made up of small purchases.

Defence has also already established three subordinate Standing Offer Arrangements under the MOM Equipment and Support panel, with Ricoh, Lexmark and Kyocera Mita. However, only very small volumes of contracting have gone through these arrangements according to contracts published on AusTender.

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For more information, please contact the Editor (02) 9955 9896.

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