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APPROVE A MOTION TO ENTER INTO A COOPERATIVE AGREEMENT TO PURCHASE SHARP MULTI-FUNCTIONAL COPIER EQUIPMENT, RELATED SUPPLIES, AND MAINTENANCE SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve entering into a cooperative agreement (Attachment A) utilizing the Sourcewell Contract Number 112124 to acquire multi-functional copier equipment, related supplies, and maintenance services with Sharp Electronics Corporation and its authorized dealer for Stockton, CA, Smile Business Products for three years through January 10, 2029, with three (3) additional one-year extension through January 10, 2032, for a total estimated amount of $2,066,058.42.
2. Approve findings which support and justify an exception to the competitive bid process; and
3. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
The proposed cooperative agreement with Sharp Electronics Corporation and its authorized dealer, Smile Business Products, Inc., is for the maintenance and repair services, supplies, and anticipated purchase of 87 replacement copiers over the next five years. The new copiers will replace aged equipment, where needed.
Utilizing this Sourcewell cooperative agreement will allow the City to continue to support operational activities at competitive prices for scanning and copying of printed material. The proposed contract term is through January 10, 2029, with the option to extend, if renewed by Sourcewell, through January 10, 2032, for a total estimated amount of $2,066,058.42.
DISCUSSION
Background
City-owned multi-functional copiers and printers are coordinated citywide and managed by the Information Technology (IT) Department. The IT Department manages the purchase of equipment and annual maintenance services. Each department is responsible for the effective use of the copiers, monitoring usage, and ordering ancillary supplies.
In 2016, a review of the City’s installed fleet of copiers, facsimiles, and multi-function printers was completed by staff. The team reviewed several master agreements to determine the best value for continued print services. City staff reviewed various cooperative agencies for digital copiers and multi-function devices, along with related supplies and maintenance services. Below are factors considered for the selection of a provider for this type of equipment:
• Equipment quality and reliability
• Price for equipment configured to meet department needs
• Local dealer availability and support capabilities
• Master agreement longevity
Staff reviewed multiple manufacturers: Canon, Konica-Minolta, Ricoh, Sharp Electronics, and Xerox Corporation. Sharp Electronics ranked as best qualified to meet the City’s multi-functional copier requirements based on the following factors, which established the current City standard for copier equipment used throughout the City:
• Equipment quality
• Equipment speed (copies per minute and first-copy speeds)
• Local service availability
• Low cost-per-copy in both Black & White and Color modes
• Continued service support from the dealership, which supports much of City’s current fleet
Staff and Sharp Electronics’ authorized vendor partner, Smile Business Products, utilized the Sourcewell cooperative agreement for competitive pricing. The selection criteria for the equipment remain valid, and the Sourcewell cooperative agreement provides the City with discounted pricing for equipment and maintenance services.
Present Situation
The City owns a fleet of 87 Sharp Electronics multifunction copiers, with a five-year life cycle for each. As our fleet ages, the IT Department purchases replacement machines. Currently, we utilize Sourcewell Contract Number 030321-SEC, which expires on April 19, 2026, and is being replaced by Sourcewell Master Agreement Number 112124 for purchases, maintenance, and supplies (Table 1).
The Sourcewell cooperative agreement with Sharp Electronics Corporation and its authorized Stockton, CA, dealer, Smile Business Products, will continue to provide the City with competitive pricing for multifunction copier equipment, related supplies, and maintenance services, totaling an estimated $2,066,058.42 (Table 2). Discounts under the Sourcewell agreement range from 48% to 70% off the Manufacturer Suggested Retail Price (MSRP) for multifunction copiers, and from 10% to 31% off the monthly full-service maintenance per-copy fee. Maintenance costs have decreased with the replacement of older machines.
Table 1 - Prior-Year Expenditures for Smile Business Products
Table 2 - Estimated Future Costs
* See Attachment A - Purchase Agreement with Sharp Electronics and Smile Business Products
** Additional estimated costs for supplies not included in the annual maintenance pricing (e.g. toner waste boxes)
*** Replacement costs budgeted at $11,600 per unit
Staff recommends entering into a cooperative agreement (Attachment A) to utilize the Sourcewell Master Agreement #112124 and award a contract with Sharp Electronics Corporation and its authorized dealer for Stockton, CA, Smile Business Products for three years with the option to extend, if renewed by Sourcewell, through January 10, 2032, for a total estimated amount of $2,066,058.42.
Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides an exception to the competitive bidding process where the City accesses the terms of a competitively bid and negotiated cooperative purchasing agreement and where the City Council has approved findings that support and justify the exception. The findings are as follows:
1. The process that was used to establish the Sourcewell cooperative agreement was awarded through a competitive process.
2. Participation in the Sourcewell agreement with Sharp Electronics and its authorized dealer, Smile Business Products, will provide the City with significant cost benefits on prices.
3. The use of an existing cooperative agreement will reduce the administrative burden and time required to conduct a separate competitive procurement.
FINANCIAL SUMMARY
The cooperative agreement with Sharp Electronics Corporation and its authorized dealer, Smile Business Products, Inc., is for the acquisition of multi-functional copier equipment, related supplies, and maintenance services. Total expenditures are estimated at $2,066,058.42 for services beginning April 20, 2026, through January 10, 2032, which includes an additional three (3) one-year optional extension. Budget for the Fiscal Year 2025-26 cost is appropriated in the 510 Technology Fund, Project accounts, and Department accounts. Future annual estimated costs will be included in the annual budget appropriation process.
Attachment A - Purchase Agreement with Sharp Electronics and Smile Business Products