Six new printer suppliers have been awarded a place on an expanded NSW Imaging Devices State Contract.
Lanier, Ricoh, Sharp, Fuji Xerox, Konica Minolta and Proscan have joined the whole-of-government panel which came into effect last month. None of the incumbent hardware suppliers have been removed, meaning that membership has increased to 11 including:
- Fuji Xerox
- Konica Minolta
The Panel covers the procurement of multi-function devices, printers, scanners, faxes and since the panel refresh it also includes device rental for a maximum period of 12 months.
Ink, toner and other consumables, however, will no longer fall under the scope of the new panel, according tender documents released in October. As a result the old panel’s cartridge (non-hardware) suppliers - ASI Solutions, Boomerang Matrix, Laser Cartridge Wholesale, OfficeMax and Toner Express – have not been included on the new arrangement.
OfficeMax, Boomerang Matrix, Laser Cartridge Wholesale and Toner Express are still able to sell these products into Government via State Contract 1006 for workplace supplies. ASI Solutions will have to wait at least until February 2013, when Contract 1006 reaches its first expiry, to re-tender for access to the NSW Government market.
The same documents calculate that the annual value of the print consumables transferred out of the Imaging Devices panel is roughly $36 million, from a total $73 million spend on printer, photocopier and MFD across the State’s public sector each year.
This week NSW Minister for Finance and Services Greg Pearce said that Government spent around $40 million on the devices and services that will be procured from the new panel in the last 12 months. The reduced estimate is likely to reflect the changes to ink and toner procurement.
The refreshed Imaging Devices panel is the first State Contract to be established since supplier management fees were abolished for all new whole-of-government arrangements starting from 1 July 2012, meaning panellists will not incur a percentage fee when they win business from agencies.
The move is estimated to save government suppliers up to $15 million each year.
The panel agreement has been signed for an initial period of three years, to 30 June 2015, with two options to extend by one year.
The timing of the panel’s establishment means that it should be immune to any reforms to the State Contracts model that the Government might implement, at least until 2015. Pearce has already announced that State Contract 2020 for IT services will be opened up to a perpetually open pre-qualification process before the end of the year, replacing lengthy tender processes as the primary vehicle for deciding membership.
According ICT Benchmarking conducted by the NSW Treasury for 2009-10, the NSW Government operates approximately 40,922 printers, or one printer to every 7.8 full-time equivalent employees and one printer to every 3.2 office based full time equivalent employees.
Operational expenditure attached to the maintenance of this fleet is estimated at an average $541 per device per year. At an agency level, operational costs per printer vary between $1,000 and $118 per year, and the number of office-based employees per printer varies between 1 and 12.