Managed Print Provider: Appointment of Danwood Jersey

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A decision made 26 September 2011 regarding:

Decision Reference: MD-TR-2011-0119
Decision Summary Title:	Appointment of a Managed Print Provider to the States of Jersey		Date of Decision Summary:	7 September 2011
Decision Summary Author:	Director of Strategic Procurement		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Managed Print Project		Date of Written Report:	7 September 2011
Written Report Author:	Finance Director – Corporate Group		Written Report : Public or Exempt?	Public
Subject: Managed Print project contract award.
Decision(s): The Minister accepted the recommendation to create a corporate contract for up to 7 years for the provision of a Managed Print service and decided to appoint Danwood Jersey as the Managed Print provider to the States of Jersey in accordance with Financial Direction 5.7, paragraph 5.4.
Reason(s) for Decision: Following a thorough procurement process the Corporate Management Board accepted the recommendation that the adoption of a ‘Managed Print’ strategy is in the best of interest of the States and the solution proposal and tender submitted by Danwood Jersey provides best value for money.
Resource Implications: There will be no increase to the total approved revenue expenditure for the provision of print services. As the ‘Managed Print’ solutions are agreed and implemented at individual States Departments the reduction in operating cost will be removed from Departmental budgets. It is anticipated that the contract will deliver savings of £240,000 per annum.
Action required: Director of Strategic Procurement to arrange for the Minister to sign the contract documents and ensure these are forwarded for countersigning and return by Danwood Jersey.
Signature:		Position: Assistant Minister Treasury and Resources J.M Refault
Date Signed:		Date of Decision:

Managed Print Provider: Appointment of Danwood Jersey

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Treasury and Resources

Ministerial Decision Report

managed Print project

Purpose of Report

To obtain approval from the Minister for Treasury and Resources for the creation of corporate contract for the provision of a Managed Print service and the appointment of Danwood Jersey as the Managed Print provider to the States of Jersey.

Background

The Print Equipment Project was initiated as a result of expenditure analysis (non-pay) conducted in accordance with the Corporate Savings Project, sponsored by the Corporate Management Board (CMB). Printing and print equipment were highlighted as a commodity where expenditure was excessive and uncontrolled and therefore influenceable, in terms of delivering cash savings.

The Print Equipment Review Group (PERG) identified and subsequently developed a strategy to adopt a Managed Print service. A project team embarked upon the procurement process, involving a full tender exercise (supported by the OGC framework).

3. Tender Process

Eight companies expressed an interest in the tender to provide a Managed print solution through the completion of a Pre Qualification Questionnaire. The Managed Print Work Group evaluated the responses and invited three companies to complete the full tender. All three companies formed strategic alliances with local providers to deliver their proposed solutions.

Two companies participated in trial installations at pilot sites and following a final assessment of the bidders Danwood Jersey were selected as SOJ preferred Managed Print provider based upon providing the most competitive, technically acceptable and cultural fit tender.

4. Corporate Contact - Managed Print

The corporate contract for Managed Print will address the fragmented departmental approach to purchasing printing equipment and deliver a printing model that will deliver operational and financial efficiencies.

Model	Savings
Single exclusive service provider responsible for machines, servicing and support	Savings achieved by :- Reduced print volume ( use duplex) Reduced colour (default b&w) Reduced consumables & power Improved terms – purchasing & maintenance
Procurement based upon actual output and needs – rather than ‘desire/wishes /likes’.
SOJ Print estate rationalised – size reduced by half (2600 to 1300 units )/ model range from +700 to 20/30	SOJ Print audit results – current print to paper costs modelled £1.6m pa.
SOJ wide Print policy implemented.
Print software used to capture usage /costs – providing us with accurate and detailed cost information.
Centralled controlled procurement and management.
Provided as a service to SOJ as a ‘cost per page’ outputted – making full costs transparent to individual user /FD/Dept.
Danwood will undertake a ‘Technology Refresh’ – to replace majority of our current but aged machines.	Danwood Jersey contract – minimum saving of 15% of modelled/verified actual current Department costs.
Contract – 1 year ‘Refresh’+5 year ‘Steady State’+1 year ‘Exit’. We pay only as Managed Print implementation ‘rolls out’ by site/Dept.	Est £240k savings per annum.

The Managed Print service will involve contracting with Danwood Jersey to provide a fully managed print equipment service maximising use of multifunctional devices (MFDs). The MFDs will eliminate the need for departments purchasing individual fax machines, photocopiers, scanners and desktop printers, as all of these functions can be combined in one unit. Additionally having a Managed Print provider will also reduce the time required for managing multiple contracts, with many suppliers and therefore contract performance monitoring will be easier to undertake. Dawnood will provide print management intelligence and software to enable print control functions such as printing in duplex and black/white text only (unless overridden) and ability to scan documentation.

Danwood Jersey will survey each SOJ department printing outputs to ensure that they are provided with a print solution that will suit their individual requirement. When a printing solution has been selected Danwood will asset manage the equipment, supply associated consumables (i.e. toner cartridges, drum units etc) and provide a maintenance / breakdown repair service. The basis of charge for this complete service will be a cost per page (mono or colour) allowing full transparency cost to SOJ of activity and users.

The Procurement Department will receive, monitor and pay the costs of the contract centrally and recharge Departments for usage. The Managed Print service will cover all print related equipment funded by States of Jersey departments. The contract will be for up to 7 years to include up to one year to roll-out the equipment, 5 year service delivery and one year for contract exit.

5. Recommendation

The Minister is recommended to approve the creation of a corporate contract for the provison of Managed Print service to the States of Jersey and to confirm the appointment of Danwood Jersey as the States of Jersey Managed Print provider by entering into contract for the provision for this service with Danwood Jersey.

6. Reason for Decision

A full and complete procurement exercise has been undertaken to establish the appropriate strategy for the delivery of print services to the States of Jersey leading to recommendation to CMB and the Minister to adopt a Managed Print service on an exclusive basis from a single service provider under a corporate contract. Dawnood Jersey provided the most competitive and technically confirming tender for the provision of a Managed Print Service.

Financial Directive 5.7 Section 5.4 provides a mandatory requirement upon departments to utilise corporate contracts where available for the purchase of nominated goods and services.

The Law Officers Department has confirmed that the contract signatory should be the Minister for Treasury and Resources.

7. Resource Implications

There will be no increase to the total approved revenue expenditure for the provision of print services. As the ‘Managed Print’ solution are agreed and implemented at individual States Departments the reduction in operating cost will be removed from Departmental budgets. It is anticipated that the contract will deliver savings of £240,000 per annum.

Report author : Managed Print Project Manager	Document date : 7/9/11
Quality Assurance / Review : Head of Decision Support	File name and path: C:\Documents and Settings\homeran\Local Settings\Temporary Internet Files\WR for Managed Print ~August 2011.doc
MD sponsor : Director – Strategic Procurement

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