PROPOSAL:
Execute Lease Contracts for Mailing Equipment
SYNOPSIS:
On May 5, 2006, the Board approved release of an RFQ to solicit lease
proposals to replace the mailroom’s USPS-compliant mailing system and to
lease additional equipment for folding, inserting, and addressing mail.
This action is to execute five-year lease agreements with Pitney Bowes,
Inc., for this mailing equipment. The annual first-year cost of these
leases, including maintenance service, is estimated to be approximately
$19,470, and the annual cost for each of the remaining four years is
estimated to be $20,358.
COMMITTEE:
Administrative, September 15, 2006, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Executive Officer to execute five-year lease agreements
with Pitney Bowes, Inc., for mailing and shipping, folding and inserting,
and addressing equipment, at an estimated total annual lease and
maintenance cost of $19,470 for the first year, and $20,358 for each of
the subsequent four years.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
AQMD currently leases a high-volume USPS-compliant mailing and shipping
system for AQMD's mail center that processes all incoming and outgoing mail.
In 2005, the mail center processed 136,364 pieces of mail. The current
lease expires November 2006.
Mail/Subscription staff also coordinates various required mailings, such
as public hearing and public workshop notices, Title V permit notices, etc.
Currently, folding, inserting, and addressing are outsourced in FY 2005-06.
Increased public use of AQMD’s website to download publications has freed
mail center staff to do this work, at an anticipated savings of
approximately $23,500 per year.
In an effort to save costs and increase flexibility and productivity,
AQMD’s RFQ solicitation included replacement of the existing mailing and
shipping system and addition of folding and inserting and addressing
equipment. This action is to obtain new lease agreements for a
comprehensive mailing system.
Outreach
In accordance with AQMD’s Procurement Policy and Procedure, a public
notice advertising the RFQ and inviting bids was published in the Los
Angeles Times, the Orange County Register, the San Bernardino Sun, and
Riverside County Press Enterprise newspapers to leverage the most
cost-effective method of outreach to the entire South Coast Basin.
Additionally, potential bidders may have been notified utilizing AQMD’s
own electronic listing of certified minority vendors. Notice of the RFQ was
mailed to the Black and Latino Legislative Caucuses and various minority
chambers of commerce and business associations, the State of California
Contracts Register website, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov/
where it can be viewed by making menu selections “Inside AQMD”/“Employment
and Business Opportunities”/“Business Opportunities” or by going directly to
http://www.aqmd.gov/rfp/index.html). Information was also available on
AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.
Bid Evaluation
Twenty-four copies of the RFQ were mailed out and four proposals
responding to one or more of the three categories included in the RFQ were
received by close of bidding at 2:00 p.m., June 6, 2006. Of the four
responsive proposals, none was from a small business or disabled-veteran
business enterprise or low-emission vehicle business. Attachment A lists
responsive proposals and their ratings.
Panel Composition
The evaluation panel consisted of the president and owner of Direct
Connection Mailing & Marketing Program, a mailing services business, and two
AQMD staff—a Mail/Subscription Supervisor and a Principal Office Assistant.
Of the three panelists, one is African-American, one is Caucasian, and one
is Hispanic; one female, two male.
Proposal
This action is to execute five-year lease agreements with Pitney Bowes,
Inc., for all three categories of mailing equipment solicited in the RFQ:
high-production mailing and shipping, folding and inserting, and addressing.
Resource Impacts
The annual lease and maintenance cost for the high-production mailing and
shipping system is estimated at $7,206 for the first year ($8,118 for each
of the remaining four years), the folding and inserting system at $6,744,
and the addressing system at $5,524, for a total estimated annual first-year
cost of $19,474 ($20,386 for each of the four subsequent years). Sufficient
funds are available in the FY 2006-07 Budget for the estimated cost of
$12,982 for the remainder of this fiscal year. Funds will be requested in
subsequent budgets for the remaining four years of the lease.
Attachment
A - Proposal Evaluation
ATTACHMENT A
Proposal Evaluation
RFQ #2006-07
| Vendor |
Score |
60-Month Total |
| Pitney Bowes |
95.92 |
$39,674.40 |
| Neopost |
92.97 |
$39,183.60 |
| DWC Mailing Systems |
76.77 |
$55,172.40 |
| Category II - Folding and
Inserting Equipment |
| Vendor |
Score |
60-Month Total |
| Pitney Bowes |
96.42 |
$33,720.00 |
| Neopost |
86.47 |
$38,546.40 |
| DWC Mailing Systems |
69.43 |
$59,394.00 |
| Bowe Bell + Howell Opt. 1 |
43.57 |
$304,740.00 |
| Bowe Bell + Howell Opt. 2 |
43.57 |
$288,420.00 |
| Category III - Addressing
Equipment |
| Vendor |
Score |
60-Month Total |
| Pitney Bowes |
96.42 |
$27,619.80 |
| Neopost |
92.47 |
$27,949.80 |
| DWC Mailing Systems |
86.93 |
$30,104.40 |
|
