The Department of Finance and Deregulation has revealed the membership of the whole-of-government Major Office Machines panel, which will cover printers, multi-function devices and scanners, as well as associated maintenance, support and consumables.
Few will be surprised by the list, which includes:
- Fuji Xerox Australia Pty Ltd (All categories)
- Konica Minolta Business Solutions Australia Pty Ltd (Printer and MFD)
- Kyocera Mita Australia Pty Ltd (Printer and MFD)
- Ricoh Australia Pty Ltd (Printer and MFD)
- Lexmark International (Australia) Pty Limited (Printer only)
- Sharp Corporation of Australia Pty Limited (MFD only)
Absent from the panel are Toshiba and Canon, who have been significant suppliers in this category of the Federal Government market in the past. However experience shows that late additions to these whole-of-government panels are always a possibility.
Panellists will provide equipment and support across the following categories:
- Network Printers – 4 classes (3 monochrome, 1 colour)
- Multi-Function Devices – 6 classes (3 monochrome, 3 colour)
- Scanners – 3 classes (A4 high resolution, A4 and A3 high speed)
Use of the panel is mandatory for all FMA Act agencies and optional for CAC Act agencies, which should mean that the arrangement will become the dominant force in Federal Government market for office machinery.
Intermedium’s research indicates that the market for printers and multifunction devices was $117 million for the three years 2007-08 to 2009-10, with a further $24 million already contracted in 2010-11.
Scanners form a much smaller component of the market at $17 million for the past three years and a further $4.6 million contracted year to date.
The suppliers appointed to the panel are traditional suppliers of major office machines. Between them the six panel members accounted for two thirds of the total printer and MFD market over the past three-and-a-half years.
Konica Minolta is the market leader by value claiming $39.5 million (36% of the market) since 2007-08 due mainly to two large multi-year contracts with the Department of Defence for the supply and support of multifunction devices.
Fuji Xerox has the next highest contract value for the past three-and-a-half years at $24 million (22% of the market), and by far the highest value of contracting for 2010-11 with $9.4 million (50% of the market) for the year to date.
It is the only vendor who has been selected to supply across all three categories of the panel and also the only vendor selected to supply in the scanner category.
Lexmark ranked third with $21.7 million over the same period (20% of the market).
Agencies will be expected to transition their procurement arrangements over to the panel when they reach the expiry of an existing contract or commence new purchases, and will be able to transfer existing contracts with any of the panel members over to the panel arrangement.
Through the coordinated procurement arrangement, Finance hopes to generate savings as well as improve the collection of data on procurement behaviour.
“This arrangement will mean better value for money from the negotiated pricing for equipment and support. Further savings will be available for agencies by not having to go to market individually, and data quality will be improved through better reporting,” says the fact sheet for the panel.
The tender for the panel went out on 16 July 2010, and also acted as an approach to market to establish a second panel, this one for Managed Print Services.
Successful suppliers for the second panel are due to be named in the coming weeks.
Update 3 May 2011:
Since the publication of this article, industry sources have confirmed that Canon, Toshiba and Hewlett Packard have in fact missed out on places on the panel, contrary to speculation above that they may be added at a later date.