The Department of Finance and Deregulation (Finance) has revealed the membership of the Major Office Machines Whole of Government Managed Print Services (MPS) Panel.
Although not yet published on AusTender, the Finance website lists the successful suppliers as:
- CSG Enterprise Print Services;
- Canon Australia;
- Konica Minolta Business Solutions Australia; and
- Ricoh Australia.
It is not clear from the limited information on the Finance site as to whether additional suppliers will be added to this list as contract negotiations progressively are completed.
However, if this does represent a final list, then the omissions of Fuji Xerox and Hewlett Packard are surprising due to the significant installed base of their print devices across the Federal public sector.
As Intermedium reported last week, the MPS Panel has been keenly anticipated by the print industry, even more so that the previously announced Major Office Machines (MOM) Equipment and Support Panel (E&SP).
As competition drives down margins on equipment such as printers and multi-function devices (MFDs), many vendors are increasingly looking towards managed print services for contracts that allow them to compete on value-adding differentiators beyond device price.
The MPS Panel will cover the deployment and maintenance of large office equipment already owned by the client agency, the procurement of which will be covered by the Equipment and Support Panel. The services will be provided on a “per impression” basis to meet the agency’s needs.
Only Konica Minolta and Ricoh are positioned on both the MOM E&SP and the MPS at this stage.
Hewlett Packard and Toshiba have not been listed on either panel.
In 2009-10 Konica Minolta sold $2.5 million worth of print equipment and services into Federal Government, and another $1.4 million to date in 2010-11.
Ricoh has had the most recent success within the Federal Government market of the suppliers included on the MPS panel. In 2009-10 the company entered into contracts with a total value of $5.7 million and to date in 2010-11 they have surpassed this with a contract total of $6.3 million.
Whether the success of being positioned on both panels gives these two companies a competitive edge will only become evident with the passage of time.
CSG was awarded Federal government ICT contracts with a total value of$6.3 million in 2009-10 and $5 million to date in 2010-11. CSG has been engaged by Finance to supply ‘Desktop Services’ at a cost of over $4 million to the agency in both financial years.
Canon entered into contracts with a total value of $2.1 million in 2009-10 and has won another $1.1 million to date in 2010-11. In contrast to CSG, its supply has consisted almost exclusively of office machines and associated services.
The announcement of the whole-of-government panel’s establishment follows that of the Telecommunications Management Panel, which was revealed via the AGIMO Blog on 14 June.
Another two whole-of-government panels, one for greenfields data centres and the other for Internet Based Network Connections (INBC) are also nearing their final stages of development and may emerge soon.
All figures quoted have been drawn from Intermedium’sAnalyse IT contract analysis tool.