Fuji Xerox has surged to the top of the Federal Government’s Major Office Machines (MOM) market thanks to a $27.5 million contract signed with the Department of Human Services (DHS).
The recently published contract, which covers the lease of printer, photocopier and facsimile supplies, is not only the largest contract to be awarded under the mandatory MOM panels since their establishment, but also exceeds the combined value of all other published MOM panel contracts to date.
Excluding the DHS contract, the combined value of published contracts under the panels to date is $26.1 million, according to Intermedium’s research.
(Although the published contract lists a different standing offer notice, a spokesperson for the DHS has advised Intermedium that this is incorrect and that it has in fact been signed through the whole-of-government panel.)
The $27.5 million contract continues the long-running relationship between DHS and Fuji Xerox. The pair signed a seven year $52.6 million deal for the lease of printers, photocopiers, scanners and facsimile equipment back in May 2004. The earlier contract expired on 31 August 2011, and was replaced with the new agreement which commenced on 1 September 2011.
Fuji Xerox has also secured a $2 million contract with the Australian Electoral Commission under MOM arrangements.
Fuji Xerox was also the highest ranked supplier in the printer hardware market for 2010-11, before the establishment of the MOM panels, securing 37 per cent of the market with $17.3 million worth of contracts. From this figure, $14.6 million was part of the now expired $52.6 million DHS contract mentioned earlier.
Ricoh was the most successful supplier for the 2009-10 financial year, securing over $5.5 million worth of contracts out of a market valued at only $29.5 million. Fuji Xerox trailed in second place with a total contract value of $5 million for the same period.
Other MOM panellists have also fared well, with Lexmark winning a $5.1 million network printer contract with the Australian Federal Police (AFP) over a four year period. The AFP has also signed close to $2 million worth of smaller contracts with Ricoh.
Recently published MOM contracts have also opened a window of insight into pricing under the MOM panels.
The Australian Taxation Office purchased 100 A3 colour printers and three years additional warranty from Fuji Xerox for $798,798, or an average of approximately $8,000 per printer.
It also purchased 400 black and white printers with three years additional warranty from Lexmark for $830,676, or $2,076 per printer.
Prior to the publication of Fuji Xerox’s DHS deal, Sharp was ranked as the most successful supplier under the MOM panels, helped largely by a $3.8 million deal with the Department of Health and Ageing for MOM equipment and support that was signed back in November 2011.
The company secured $4.9 million worth of Federal Government contracts in 2011-12, a significant jump in business levels compared to previous years. Sharp signed a total of just $1.4 million Federal contracts between July 2009 and June 2011.
The MOM Whole-of-Government Panels, which consist of the Managed Print Services and Equipment and Support panels, were established by the Department of Finance and Deregulation in June and April 2011 respectively. These panels are mandatory for all FMA agencies to use.