Ricoh, Fuji Xerox and Lexmark are emerging as the early winners off of the Federal Government’s two new whole-of-government panels for Major Office Machines (MOMs).
The two aligned panels – one for equipment and support and the other for managed print services – were part of a single approach to market undertaken by the Department of Finance and Deregulation in July 2010.
The Department of Finance and Deregulation forecast that “based on current expenditures, the potential value of these arrangements is expected to exceed $50 million per annum,” in a presentation linked to the tenders.
Intermedium valued the 2010-11 Federal Government printer market at $43.6 million, with Fuji Xerox the dominant participant with an annual contract total of $17.5 million. Ricoh signed $8 million in printer contracts in this period and Lexmark signed another $4.8 million.
Seven contracts and seven standing offer notices have been published on Austender in the few months since the establishment of the two panels. It is likely that more contracts have been entered into, but are yet to be published online.
The largest deal Intermedium has seen go through this arrangement is a $1.5 million contract for the provision of computer printer maintenance over three years, signed between Lexmark and the Department of Finance and Deregulation.
Panel membership has also paid off for Konica-Minolta, with a $1.3 million contract for the provision of printing and publishing equipment signed with the Office of the Director of Public Prosecutions. The contract will continue through to August 2014.
After procuring a tranche of equipment through the MOM Equipment and Support Panel, agencies have the option of establishing their own Standing Offer Arrangement with the equipment vendor to allow the agency to source ongoing maintenance and support for the equipment. Such maintenance arrangements are important ongoing sources of revenue for the equipment suppliers.
Many of these ‘subordinate’ panels, set up under the collective MOM Head Agreements signed with Finance, continue through to 2015 and 2016.
There are currently seven Standing Offer Arrangements for the supply of maintenance services associated with equipment which has been supplied under the whole-of-government MOM equipment panel.
Ricoh has majority of these ongoing arrangements, with agreements for the maintenance of its equipment now in place with Geoscience Australia, the Australian Office of Financial Management, the Attorney General’s Department and the Department of Prime Minister and Cabinet.
Kyocera Mita has a Standing Offer with the Family Court of Australia.
Fuji Xerox has Standing Offers with the Department of Prime Minister and Cabinet and the Office of the Official Secretary to the Governor-General.