The new, three-year contract, reached through the California Strategic Sourcing Initiative, is expected to save the state more than $25 million, or about 40 percent of what it previously paid for comparable equipment. It includes standards for timely service and copier performance, along with a five-year warranty measures designed to obtain the lowest total cost of ownership.
Fred Aguiar, secretary of the State and Consumer Services Agency, which oversees DGS, said the contract represents the latest success in efforts to drive down the cost of government, replacing scores of different contracts with different vendors. By combining purchases the state can increase efficiency and get lower prices.
The state sought bids for three different regions. Sharp was the highest-scoring bidder in all three regions, so the state has awarded a single statewide contract. The three-year contract includes two optional one-year extensions and covers digital black-and-white copiers, the type most commonly used in state government.
The contract will be used by all Executive Branch departments. Other branches of government, constitutional officers, state universities and local governments can also take advantage of the contract.
The contract calls for pricing to remain constant as existing copier models are replaced with newer versions. This will allow the state to get the benefit of new technologies as they reach the market while continuing to enjoy the tremendous discounts it has obtained.
DGS Director Ron Joseph said that photocopiers were an ideal category for strategic sourcing, with many vendors offering competitive products and services.