A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER TO AWARD AN AGREEMENT, PURSUANT TO INVITATION TO NEGOTIATE (ITN) NO. 2017-015-JC FOR MANAGED PRINT SERVICES; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH CANON SOLUTIONS AMERICA, THE TOP-RANKED PROPOSER; FURTHER, IF THE ADMINISTRATION IS NOT SUCCESSFUL IN NEGOTIATING AN AGREEMENT WITH CANON SOLUTIONS AMERICA, AUTHORIZING THE- ADMINISTRATION- TO ENTER INTO NEGOTIATIONS WITH SHARP ELECTRONICS CORPORATION, THE SECOND-RANKED PROPOSER; FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION; AND FURTHER, AUTHORIZING THE CITY MANAGER TO EXTEND THE EXISTING AGREEMENT WITH SHARP ELECTRONICS CORPORATION, ON A MONTH-TO-MONTH BASIS, UNTIL SUCH TIME AS THE NEW AGREEMENT CAN BE EXECUTED AND SERVICES IMPLEMENTED.

Adopt the resolution accepting the recommendation of the City Manager to award an agreement, pursuant to Invitation to Negotiate (ITN) 2017-015-JC for managed print services.

The City currently has a contract with Sharp Business Systems for multi-function equipment (copiers & scanners) utilized by all City departments, which expires on August 31, 2019. Anticipating the expiration of the current contract, the City’s Information Technology Department, is seeking proposals for a replacement contract for the required multi-function equipment, as well as add network printers and a document management solution to the replacement contract. The goal for the new contract, through the document management solution, is to reduce the City’s use of paper and other items (e.g., toner) that are costly and are not environmentally preferable solutions.

To seek proposals for a replacement contract, Invitation to Negotiate (ITN) was issued. The ITN sought proposals from qualified firm(s) to provide City departments with a new fleet of Multi-Function Devices (MFD) and implementation of Managed Print Services (MPS) solutions, to assist the City in gaining control over printing output and costs, reducing paper, and converting paper-based processes (e.g., routing approvals) into automated, digital processes that streamline workflow and improve productivity. The services required pursuant to the ITN may include (but not be limited to):

• provide multi-function network devices (copiers, scanners, fax machines) and network printers to meet the needs of departments;
• equip all equipment with rules-based software that allows users to monitor, manage and optimize print output and reduce costs;
• provide for electronic routing and associated workflow for form creation and document approvals;
• provide exceptional help desk support, technical service, maintenance, toner supply replacement and other consumables (excluding paper);
• manage all network printers in the same/similar manner;
• conduct a thorough assessment to determine appropriate equipment for each functional area of the City;
• design a roadmap to reduce printing costs while meeting the operational need;
• proactively identify and address potential printing problems and replenish supplies before stakeholders are negatively affected;
• assist the City in reducing environmental footprint through printing less paper, consuming less energy, generating fewer greenhouse gases and keeping waste out of landfills; and
• assign dedicated account representatives as mutually agreed upon by the City and the contractor.

The overall objective for this engagement is to create efficiencies that will simultaneously yield both a print and copier management solution which meets all of the City’s current needs, as well as providing a layer of intelligence that will align with the City’s “Green” initiatives for environmental sustainability, while also lowering the total cost of ownership (TCO), carbon footprint and peripheral waste to the City of Miami Beach.

ITN PROCESS-PHASE I

On July 26, 2017, the City Commission approved the issuance of Invitation to Negotiate (ITN) No. 2017-015-JC Managed Print Services. On July 27, 2017, the ITN was issued. A voluntary pre-proposal conference to provide information to the proposers submitting a response was held on August 14, 2017.

The ITN stated that Proposals received pursuant to this ITN will be evaluated in a two-phased process (Phase I and Phase II):

1. Phase I will consider proposer qualifications only. Best qualified proposers may be authorized to continue onto Phase II. Following Phase I evaluation, the City Manager may authorize all firms to be eligible for Phase II or may submit a recommendation to the City Commission to short-list a number of best qualified firms. Following an authorization from the City to continue onto Phase II.
2. Phase II will consider technical proposals (equipment/software, approach and methodology, maintenance and operations plan) and cost proposal.

Phase I responses were due and received November 20, 2017. The City received proposals from the following eight (8) firms:

• Canon Solutions America, Inc.
• DEX Imaging, Inc.
• HP, Inc.
• Konica Minolta Business Solutions U.S.A., Inc.
• Print Operations Group (POG)
• Sharp Electronics Corporation
• Toshiba America Business Solutions, Inc.
• Tinlof Technologies/Xerox

The proposal received from Print Operations Group (POG) was deemed nonresponsive and received no further consideration.

The Evaluation Committee, appointed by the City Manager via LTC # 528-2017, convened on February 2, 2018 to consider the proposals received under Phase I. The Committee was comprised of Cheryl Gomez, Financial Analyst, Finance Department, City of Miami Beach; Elizabeth Miro, Administrative Services Manager, Property Management Division, City of Miami Beach; Alejandro Mouro, Project Manager, Police Department, City of Miami Beach; Fernando Pestana, Senior Management and Budget Analyst, Office of Budget and Performance Improvement, City of Miami Beach; Frank Quintana, Division Director, Information Technology Department, City of Miami Beach; Lupita Ramos, Senior Administrative Manager, City Attorney, City of Miami Beach.

The Committee was provided an overview of the project, information relative to the City’s Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided general information on the scope of services, references, and a copy of each proposal.  The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the ITN. The evaluation process resulted in the ranking of proposers as follows:

1^st        Konica Minolta Business Solutions U.S.A., Inc.

2^nd       Toshiba America Business Solutions, Inc.

3^rd        Canon Solutions America, Inc.

4^th        Sharp Electronics Corporation

5^th        Tinlof Technologies / Xerox

6^th        DEX Imaging, Inc.

7^th        HP, Inc.

Staff determined that all seven (7) responding firms were qualified to perform the work outlined in the ITN. Therefore, as stipulated in the ITN, the City Manager approved for all firms to proceed into Phase II of the solicitation process in which technical proposals and cost are to be considered.

ITN PROCESS – PHASE II

On April 6, 2018, the Procurement Department issued Phase II of the ITN process to the short-listed proposers. A pre-proposal conference to provide information to the short-listed proposers was held on April 18, 2018 and on August 29, 2018. On April 5, 2019, the City received proposals in response to Phase II of the ITN from the following short-listed proposers:

• Konica Minolta Business Solutions U.S.A., Inc.
• Toshiba America Business Solutions, Inc.
• Canon Solutions America, Inc.
• Sharp Electronics Corporation
• Tinlof Technologies / Xerox
• HP, Inc.

DEX Imaging, Inc. did not submit a proposal for Phase II of the Project.  The proposal received from HP, Inc. for failure to submit a signed cost proposal form as required by the ITN, and cannot be considered. The proposals received from Tinlof Technologies/Xerox and Konica Minolta were deemed nonresponsive for failure to meet the all-inclusive cost requirements of the ITN, and cannot be further considered.

The Evaluation Committee, appointed by the City Manager via LTC # 213-2019, convened on May 10, 2019 to consider the technical proposals received under Phase II. The Committee was comprised of Cheryl Gomez, Financial Analyst, Finance Department, City of Miami Beach; Elizabeth Miro, Administrative Services Manager, Property Management Division, City of Miami Beach; Alejandro Mouro, Project Manager, Police Department, City of Miami Beach; Fernando Pestana, Senior Management and Budget Analyst, Office of Budget and Performance Improvement, City of Miami Beach; Frank Quintana, Division Director, Information Technology Department, City of Miami Beach; Flavia Tonioli, Sustainability Manager, Environment and Sustainability Department, City of Miami Beach.

The Committee was provided an overview of the project, information relative to the City’s Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided general information on the scope of services, a copy of each proposal, and engaged in a question and answer session with each proposer.  The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the ITN for Phase II. The evaluation process resulted in the ranking of proposers in the following order:

1^st        Canon Solutions America

2^nd        Sharp Electronics Corporation

3^rd        Toshiba America Business Solutions, Inc.

A brief description of the top three (3) proposers, as provided in their response to the ITN, follows.

Canon Solutions America

Canon Solutions America, Inc. is the strategic partner with the resources, technology, and customer focus to help the City meet their needs and overall goals. We offer the expertise and experience that is required to manage a fleet such as the one being proposed in our response.

Canon understands that national, state, and local government agencies face diverse challenges, as they are regularly impacted by political, social, and economic changes. Often, reduced budgets drive agencies to improve their cost efficiencies, while simultaneously securing confidential information, maintaining Section 508 accessibility compliance, and working more environmentally responsibly.

Canon Solutions America, Inc. offers in our proposal hardware and software solutions to help the City overcome today’s challenges, allowing you to focus on providing high quality services to the community you serve. By implementing Canon’s solutions, the City can realize improved

efficiencies, prevent overuse of costly device functions, secure the working environment, and

comply with a variety of regulations.

Sharp Electronics Corporation

Sharp Business Systems a direct subsidiary of Sharp Electronics excels in Four Business to Business Pillars:

1. Document (Any Print on Paper Device, authenticated using Active-Directory)

2. Imaging ( Images Scanned and retrieved using existing or proposed Workflow Software)

3. Collaboration ( Visual Displays for Training, Conference & Digital Signage)

4. Managed Network Services ( Mobile device Management BYOD, Project Implementations)

Toshiba

As a globally-recognized leader in the areas of managed print services, security, environmental and document assessment, asset management and fleet optimization, Toshiba has one of the most developed, yet flexible programs in the industry. Its approach blends innovative solutions, quality products, expedient service, strong account management, and creative pricing solutions.

Today, Toshiba MFDs are used around the globe in more than 180 countries, with direct operations in 24 countries and are continuing to expand our sales and service offerings into other emerging markets. Toshiba’s products have long been the preferred choice in North America, Europe and Japan, and we boast the #1 market share in China for the past eleven years. Toshiba ranks 5th overall in the industry per Gartner, a leading industry research firm. Toshiba Corporation is ranked 169th on Fortune’s Global 500 list for 2016 higher than all of our other competitors.

After reviewing all the submissions and the results of the evaluation process, I concur with the Evaluation Committee in finding that Canon Solutions America provided the best overall combination of experience/qualifications, approach and methodology, and cost. Frankly, all of the respondents provided excellent equipment and service solutions with some small variances among each proposal. However, given the recent budget constraints, it is important to assure that the City is selecting the most cost-effective solution. In that regard, I find that Canon Solutions America, in addition to being ranked by the Evaluation Committee as the overall top ranked solution before considering pricing, also offered the lowest overall cost of all the proposals submitted.  This is the case even if one were to consider proposals from vendors that did not meet the City’s all-inclusive (equipment + service) single monthly rate requirement, but proffered an alternative solution based on a monthly equipment rate with an additional cost-per-copy charge for every copy made, alleging that such a solution would be more cost-effective than an all-inclusive rate. In fact, both of the vendors that proposed such an alternative solution would ultimately be less cost-effective than Canon’s all-inclusive cost proposal.

Therefore, based on having provided the best overall combination of experience/qualifications, equipment and cost, I recommend that the Mayor and City Commission approve the Resolution authorizing the Administration to enter into negotiations with Canon Solutions America, the top-ranked proposer; and, if the Administration is not successful in negotiating an agreement with Canon Solutions America, authorizing the Administration to enter into negotiations with Sharp Electronics Corporation, the second-ranked proposer; and, authorizing the Mayor and City Clerk to execute an agreement upon conclusion of successful negotiations by the Administration; further authorizing the City Manager to extend the existing agreement with Sharp Electronics Corporation, on a month-to-month basis, until such time as the new agreement can be executed and services implemented.

The costs of the related services are subject to funds availability approved through the City’s budgeting process.  It is not anticipated that grant funding will be utilized for this project.