The trend towards an as-a-service approach to ICT is especially pronounced in the printer hardware market, with whole-of-government managed print services panels and agency contracts emerging in a number of jurisdictions.
The Department of Finance established a mandatory whole-of-government managed print services panel in June 2011. Under the arrangement, printer hardware is owned and maintained by the supplier, and services are provided to agencies on a “per impression” fee basis.
Eligible managed print services providers to the Federal Government under the panel are:
- Konica Minolta; and
Only three agencies have signed contracts that are clearly identifiable as managed print services since the establishment of the panel, including:
- The Australian Securities and Investments Commission, in a $4.2 million contract with Canon, due to expire in May 2016;
- The Department of Treasury, in two contracts worth a total of $3.6 million with CSG, due to expire in May 2015 and May 2016;
- The Department of Defence, in a one-year $151,000 contract with Konica Minolta, due to expire in June 2014; and
- CSIRO, in a $7.8 million deal signed outside the panel with Sharp, due to initially expire in June 2014.
In October 2013, the Western Australian Government centralised procurement for managed print services through the establishment of a whole-of-government Common Use Arrangement (CUA) for Printing and Copying Machines Solutions, which has an estimated value of between $80 million and $100 million over its initial three-year term.
The CUA replaces the outgoing arrangement for Business Machines and Business Machine Consumables, and introduces a new panel category for managed print services in addition to four other hardware categories.
New South Wales
Procurement of printers as a managed service is available under the NSW Government’s continuously open ICT Services Scheme.
Public sector shared services provider ServiceFirst approached the market for managed print services in December 2012, however a contract is yet to be published. ServiceFirst has around 40 agency clients, including the Department of Finance and Services, the Department of Premier and Cabinet and NSW Treasury.
Transport for NSW issued a Request for Proposals for an expanded transport cluster-wide managed print services arrangement to replace the Roads and Maritime Services’ $11.1 million deal with Fuji Xerox. The seven-year Fuji Xerox deal expired in December 2013 and covers around 1,000 printer devices.
In April 2011, the Department of Health sought industry information on managed print services covering “all office print, copy, scan and fax services and functionality” for two departmental sites.
TransGrid issued a Request for Tender (RFT) in January 2014 for the provision of managed print services. The State owned operator of NSW’s high voltage electricity transmission network is looking for a vendor to manage its printer fleet in a bid to reduce its print volume per month which currently stands at 409,000. The RFT closes on 31 January 2014 with the contract expected to begin by May 2014.
The Queensland Government has taken a different approach under its whole-of-government print management services deal with Ergo Asia. Rather than sourcing traditional printer hardware and associated services on a per-sheet or per-use basis, the arrangement allows agencies to order printed products through a “print buying system”.
A number of departments have already established or indicated interest in establishing their own managed print services arrangements:
- Queensland Urban Utilities signed a $2.6 million contract with Fuji Xerox for managed print services in June 2013. The contract is initially due to expire in May 2016, with a final expiration date in May 2018. The deal covers the organisation’s 1,300 staff;
- The Department of Education, Training and Employment signed a $1.2 million deal with CSG for managed print services. The contract period is from December 2012 to 2015, with a final expiry in December 2017;
- The Queensland Police Service approached the market in November 2013 for expressions of interest for the supply of managed print services. The Department’s current printer fleet includes nearly 3,400 devices across 14,500 full-time equivalent staff.
In August 2013, The Queensland Government released a print services guideline which encouraged agencies to consider “whether outsourcing print service management is a viable option”.
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