MAS - Lexmark International, Inc. - 47QSMA21D08RF

General Services Administration Federal Acquisition Service Multiple Award Schedule

AUTHORIZED FEDERAL SUPPLY SCHEDULE FSS PRICE LIST

On-line access to contract ordering information, terms and conditions, up-to-date pricing, and the option to create an electronic delivery order are available through GSA Advantage!®, a menu-driven database system. The INTERNET address GSA Advantage!® is: GSAAdvantage.gov.

Contract No. 47QSMA21D08RF

Price list current as of Modification # PA-0026 effective September 24, 2025

Contract Number: 47QSMA21D08RF Contract Period: 9/29/2021 – 9/29/2026 Business Size: Large

CONTRACTUAL POINT OF CONTACT:

Ross Kezelman Sr. Government Contracts Manager Ross.Kezelman@lexmark.com

Lexmark International, Inc.

740 West New Circle Road Lexington, KY 40511-1806

(800) 258-8575 https://www.lexmark.com/en_us/solutions/government.html

For more information on ordering go to the following website: https://www.gsa.gov/schedules

Prices Shown herein are net (discount deducted)

Lexmark International, Inc.

GS-25F-0059M

CUSTOMER INFORMATION

1a Table of Awarded Special Item Numbers

OLMSTLOC

Order Level Materials

1b. Lowest Priced Model Number: See GSA Advantage!

1c. Hourly Rates: See Section E, Terms Applicable to Needs Assessment and Analysis Services (NAAS), SIN 541611O;

2. Maximum Order Amount:

The Maximum Order value for the following Special Item Numbers (SINs) is $350,000 per order:

SIN 532420LC………………...Operating Lease Plan for Copiers SIN 333316C Copiers

The Maximum Order value for the following Special Item Number (SIN) is $1,000,000 per order.

The Maximum Order value for the following Special Item Number (SIN) is $250,000 per order.

SIN OLM Order Level Materials

3. Minimum Order Amount:

The Minimum Order Amount is $100.

4. Geographic Coverage: Domestic and Overseas

5. Points of Production: See GSA Advantage!

6. Discounts from List Price:

Government Net Prices (discounts deducted)

7. Quantity Discounts: None

8. Prompt Payment Terms: Net 30 Days

Information for Ordering Offices: Prompt payment terms cannot be negotiated out of the contractual agreement in exchange for other concessions.

9. Foreign Items: See GSA Advantage!

10. Time of Delivery:

10a. Time of Delivery: Delivery will be made within 30 days or as agreed to between Lexmark and Ordering Agency.

10b. Expedited Delivery: Contact Lexmark

10c. Overnight and 2-Day Delivery: Contact Lexmark

10d. Urgent Requirements: Contact Lexmark

11. F.O.B. Point(s):

All items are F.O.B. Destination within geographic scope.

12a. Ordering Address:

Lexmark International, Inc.

740 West New Circle Road, Bldg. 1/E23503 Lexington, KY 40550

OR

Lexmark International, Inc.

c/o Authorized Government Reseller (See Attachment I)

12b. Ordering Procedures: See Federal Acquisition Regulation (FAR) 8.405-3.

13. Payment Address:

a. Lexmark International, Inc.

c/o Bank of America PO Box 96612 Collection Center Drive Chicago, IL 60693

OR

Lexmark International, Inc.

c/o Authorized Government Reseller (See Attachment I)

14. Warranty Provisions:

Standard Commercial Warranty Terms

15. Export Packing Charges:

Not applicable

16. Terms and Conditions of rental, maintenance, and repair:

Not applicable

17. Terms and Conditions of Installation Not applicable

18a. Terms and Conditions of Repair Parts:

Not applicable under the scope of this contract.

18b. Terms and Conditions for Other Services:

Not applicable under the scope of this contract.

19. List of Service and Distribution Points:

Not applicable under the scope of this contract.

20. List of Participating Dealers:

See Authorized Government Resellers listed in Attachment I

21. Preventive Maintenance:

All Multifunctional Devices (Copiers) installed by Lexmark (Contractor) or its authorized reseller and covered by a Maintenance Service Agreement plan will have preventive maintenance performed regularly in accordance with Lexmark’s maintenance service standards when the Multifunctional Device reaches the prescribed preventive maintenance copy volume level. Please refer to Section A for specific details of our maintenance service.

22a. Special Attributes, such as Environmental Attributes (e.g., recycled content, energy efficiency, and/or reduced pollutants):

a. Information on Lexmark Recycled Printers and Toner Cartridges Programs go to:

https://www.lexmark.com/en_us/products/supplies-and-accessories/reuse-and-recycling-program.html

b. All offered Lexmark products are Enery Star Compliant

22b. For information on Section 508 Compliance go to:

http://www1.lexmark.com/content/en_us/solutions/industry_solutions/federal/section_508_compliance.shtml

24. Notification Regarding Registration in System for Award Management (SAM) Database:

Contractor has registered with SAM Database.

25. Lexmark Consumable Supply Returns:

Lexmark will accept for exchange or credit any Lexmark product purchased directly from Lexmark based upon the reason for supply return and/or the time elapsed from date of supply invoice as outlined below. Lexmark products purchased from an authorized reseller should contact their reseller for further instructions. For all approved returns, Lexmark will be responsible for return arrangements, pickup and freight charges for all types of supply returns.

A. Terms Applicable to Maintenance Service Agreements (Maintenance) for Government Owned and Leased Multifunctional Devices or Accessories Acquired under the Maintenance Service Agreements

1. Scope for SINS 811212SA

a. Lexmark shall provide maintenance for Multifunctional Devices listed herein, as requested by the federal government entity (Ordering Activity) during the contract term under a Maintenance Service Agreement plan.

b. Maintenance for Multifunctional Devices is provided during normal business hours (Monday through Friday 9AM – 9PM EST) except holidays. All parts and labor necessary to restore the Multifunctional Device(s) to normal operating condition are included. The Ordering Activity will contact the Help Desk at 1-800-Lexmark.

2. Response Time:

a. The Contractor will respond to a service call on average within nine (9) working hours after written or oral notification.

b. The Contractor shall provide preventive maintenance if required, which includes periodic service calls necessary to maintain the device in first class operating condition (e.g., inspect, test, clean; lubricate, adjust and replace parts when needed) that are designed to reduce device failure and extend useful life. preventive maintenance visits can be scheduled with remedial visits.

c. A Purchase Order or Statement of Work (SOW) shall define specific performance scope (i.e. allowable pages), pricing (monthly charges), and point of contact information, the serial numbers and the UL listings numbers of the Multifunctional Devices at each location.

d. Replacement parts will be furnished on an exchange basis and will be new or same as new in performance. All parts removed due to replacement become the property of the Contractor. The rates include the furnishing and installation of photoconductors (belts, drums), maintenance kits or brushes where applicable. Maintenance Service Agreement requires usage of Contractor supplies for all Maintenance Service Agreement options.

3. Exclusions:

a. Maintenance Service Agreement for Multifunctional Devices does not include relocation of the device, adding or removing of accessories, attachments to other devices, exterior painting, or refinishing the unit, repair of damage in service time resulting from operator neglect or application for which the device was not designed or repair of damage resulting from accident, transportation, neglect, misuse, failure of electrical power, failure of A/C, failure of humidity controls or any cause other than ordinary use, replacements of Multifunctional Devices parts not furnished by the Contractor, electrical work external to the Multifunctional Device, maintenance work on Multifunctional Device accessories, attachments or other devices not furnished by the Contractor. Maintenance is not available in unsafe or hazardous environments (as determined by the Contractor.

b. When an accessory is purchased from the Contractor for which Maintenance Service Agreement pricing is available herein, the accessory will be placed on the Multifunctional Device which is under the Maintenance Service Agreement, that accessory will then be included in the Maintenance Service Agreement effective upon the expiration of the purchase warranty of the accessory. The period of availability of the Maintenance Service Agreement for the accessory will then run concurrent with the Multifunctional Device.

4. Eligibility for SINS 811212SA Maintenance Service Agreements:

a. Multifunctional Devices not under Contractors Warranty or Maintenance Service Agreement.

ii. Multifunctional Devices purchased from Contractor which have been installed for less than five years from the Multifunctional Device installation date are eligible for Maintenance subject to inspection of the Multifunctional Device and repairs and parts replacement necessary to bring the Multifunctional Device to Contractor standards. The Ordering Activity shall pay a charge for inspection and repair based on Contractor’s hourly rate and the Contractor parts price list, outside the scope of the contract. Parts replacement shall include replacement of the photoconductor if required to meet Contractor standards. In the event the Multifunctional Device is not placed on Maintenance Service Agreement after an inspection requested by the Government, all charges attributed to such inspection shall be paid by the Ordering Activity.

iii. Multifunctional Devices will not be accepted if five years have elapsed from the installation date or if the Multifunctional Device cannot be brought to Contractor standards.

b. Multifunctional Devices that have been under ContractorWarranty or a Maintenance Service Agreement continuously since purchase will be honored at rates in effect at the time the service is provided.

c. Extended Period of Maintenance: Upon expiration of the initial period of the Maintenance, and at the beginning of each subsequent fiscal year, the Contractor, subject to its evaluation and/or inspection of the Multifunctional Device, may accept or reject the renewal of Maintenance.

d. Maintenance is only available for Multifunctional Devices having a valid Contractor serial number and UL listing.

e. An Ordering Activity must place a minimum of fifteen (15) Multifunctional Devices (either owned or leased) on the Maintenance Plan.

f. A Government site is defined as follows: A single agency in a single building or group of buildings (such as a military installation, hospital complex, or group of adjacent single agency buildings). A host Ordering Activity may qualify as a site by acting as the common procurement facility for other Ordering Activities at the site. The Ordering Activity must provide the Contractor with a listing of the eligible models and serial numbers installed within the Ordering Activities for which the host Ordering Activity will place maintenance purchase orders.

g. Multiple Ordering Activities participating within the scope of a Cooperative Administrative Support Unit (CASU), which is located within a specific metropolitan area, may qualify for participation in the use of the Maintenance Service Agreement when the aggregate qualifying Multifunctional Device installations of that CASU meet the 15+unit per site qualifying criteria.

5. Responsibilities of the Contractor:

a. The Monthly Effectiveness Level (“MEL”) percentages shall be calculated as follows: MEL percent = ((total monthly production period in hours) minus (total number of Multifunctional Device downtime hours over the monthly production period) divided by (total monthly production period in hours) times 100. The total monthly production period in hours shall be calculated by multiplying 8 hours per day times the number of working days in the month (weekend and Federal holidays excluded). The total number of Multifunctional Device downtime hours over the monthly production period shall be calculated as the number of minutes the Multifunctional Device was down (unable to perform one or more of its specified functions) during the monthly production period, divided by 60. Failure of any Multifunctional Device to achieve a MEL of 90 percent or higher shall entitle the Ordering Activity to unilaterally take credit against the monthly maintenance billing for that particular Multifunctional Device. The credit shall be calculated as the difference between 100 percent and the achieved MEL percent times the maximum monthly charge.

b. Following is an example calculation of MEL:

Total monthly productions hours: 21 days times 8 hours = 168 total monthly production hours

Total number of Multifunctional Device downtime hours over the monthly production period:

1200 minutes divided by 60 = 20 hours

MEL percent: (168 minus 20, divided by 168) times 100 = 88.095 percent

Credit percentage taken: 100 percent minus 88.095 percent = 11.005 percent of monthly charge: Assume monthly charge is $79.50 for one Output Device.

Ordering Activity credit: 11.005 percent of $79.50 = $8.75

c. Exclusions from Downtime Calculation:

a. Noncompliance with operator manual, use of unsuitable operating supplies, devices operated at any time other than 8:00 am to 5:00 pm local time are not allowable in computing down-time.

6. Responsibilities of the Ordering Activity:

The Contractor requires the usage of Lexmark branded consumable supplies in Contractor’s Multifunctional Devices. Consumable supplies are defined as toner, maintenance kits and staple cartridges.

a. Meter Readings:

i. Contractor may install automated data collection tools to obtain periodic meter readings from the device of the actual page volumes produced. If the Contractor is unable to obtain automated meter reads or agreement is made to obtain the data manually then meter readings will be faxed or emailed to the Contractor by the Ordering Activity on forms provided by the Contractor on a monthly basis on the last day of each month.

ii. If the Ordering Activity does not submit a meter reading, the Contractor may estimate the billing based on previous usage. If insufficient data is available for estimating usage, the Contractor will bill only the minimum charge and the charge for accessories, if any.

iii. When a meter reading is received for the lapsed period, the Contractor will bill for the total period since the last meter reading (or estimated reading) less a credit for any minimum or accessory charges previously billed.

b. Renewals:

i. The required period of a Maintenance Service Agreement herein is for the entire federal fiscal year from October 1st (or for new device, the installation initiation date if later) through September 30th. A Maintenance Service Agreement issued by the Ordering Activity on a monthly basis is not acceptable. The Maintenance Service Agreement renewal must remain in effect throughout the twelve month period unless a thirty (30) day written notice.

ii. Prior written notice is required if the Ordering Activity elects not to renew the Maintenance Service Agreement for the upcoming fiscal year.

7. Invoices and Payments:

a. Invoices under the Maintenance Service Agreement shall be submitted by the Contractor on a monthly basis, after the completion of such period. Maintenance charges must be paid in arrears.

b. Where an ordering activity’s specific appropriation authority provides for funds in excess of a 12 month fiscal year period, the ordering activity may place an order under this schedule contract for a period up to the expiration of the contract period, notwithstanding the intervening fiscal years.

8. Use of Subcontractors:

The Contractor may employ the use of Authorized Government Resellers as subcontractors in the performance of a Maintenance Service Agreement.

9. Relocation of Multifunctional Devices:

Relocation of Multifunctional Devices should be made by Contractor to prevent device damage except for relocations which the Contractor determines prior to the move do not require trained moving or technical personnel. If the relocation is made without the Contractor and damage to the Multifunctional Device occurs, the Government will bear the repair expense outside the scope of the contract. When relocation (either internal or external) is necessary, the Government will request a price quotation from the local Contractor office. The Contractor will submit a quotation of an amount which will not be exceeded, and the Government will issue a purchase order in that amount. If after the move the actual charges are less, the Contractor will invoice the lesser amount. The cost of a move will vary depending on device type, distance, etc. The Contractor quotation will include the costs of transportation (if any), rigging (if any) plus the hourly labor rate charges for the necessary Contractor Technical Representative at the old and new site. All charges will be outside the scope of the contract.

10. Cancellation Prior written notice is required if the Ordering Activity elects not to renew Maintenance for the upcoming fiscal year. Time and materials invoice(s) outside the scope of the contract will be submitted to the Government if the Ordering Activity has chosen not to provide renewal notification under the Maintenance Service Agreement per the following circumstances: (a) When service is requested by the Ordering Activity and performed by the Contractor prior to receipt of Ordering Activity's fiscal year renewal document: or (b) service is performed by the Contractor at the Ordering Activity’s request after the Ordering Activity submits the 30 day written notice of cancellation. Upon receipt of the required 12 month renewal purchase order, the Contractor shall credit out any previously submitted Time and Materials invoices.

11. Obligation of Funds:

The Contractor is not obligated to monitor the use of machines to ensure that billings do not exceed amounts shown on purchase orders. The Ordering Activity will be responsible for ensuring that adequate funds have been allocated for excess meter usage. Consequently, the amount of funding shown on any purchase order shall not be binding on the Contractor.

B. Terms Applicable to Purchase of Devices, Accessories & Options, SIN 333316C

1. Purchase Price:

Purchase price includes the device, delivery, operation manuals and starter toner cartridge.

2. Delivery Terms:

Any inside delivery or removal from or to the point of installation where adequate access (elevators) is not available, requiring movement of device up stairways, through windows, relocate to other buildings or floors, etc. will be quoted and billed by Lexmark or its Authorized Government Reseller as an Open Market Item (commercially procured item).

3. Installation:

Installation will be quoted and billed by Lexmark as an Open Market Item.

4. Device/Consumable and Repair Parts Warranty:

a. Please refer to Lexmark’s Warranty Information Website for the most up-to-date information:

https://support.lexmark.com/en_us/warranty-service.html or

b. For further explanation of warranty alternatives and the nearest Lexmark authorized service provider contact Lexmark at (800)539-6275.

C. Terms Applicable to Leasing of General Purpose Commercial Devices Acquired Under SINs 532420LTOP – Lease-to-Ownership Plan (LTOP) – Copiers and 532420LC – Operating Lease Plan (LWOP) – Copiers Only

Scope for SINS 532420LTOP and 532420LC

1. Statement of Government Intent:

For the purpose of this solicitation, Lease Term is defined as the duration of the lease in months (not to exceed 60 months) as shown on the Ordering Agency’s initial delivery order. It is understood by all parties to this contract that this is a leasing arrangement. In that regard, the Government anticipates fulfilling the leasing agreement subject to the availability of appropriated funds and the continued needs of the Ordering Agency. The Ordering Agency, upon issuance of any delivery order pursuant to Special Item Numbers (SIN’s) 532420LTOP or 532420LC, intends to use the device for the lease term specified in the initial delivery order so long as the needs of the Ordering Agency for the device or functionally similar device continues to exist and adequate funds are appropriated. Each lease hereunder shall be initiated by a delivery order which shall, either through a Statement of Work or other attachment specify the device being leased, and the terms of the transaction as required in other sections of SIN’s 532420LTOP or 532420LC. The lease commencement is the date of acceptance as defined by FAR Subpart 12.4

The first period or initial term of the leasing agreement will be through September 30th of the fiscal year in which the order is placed, or as extended by act of Congress, unless the ordering office has multi-year funding.

Ordering Agencies are advised to follow the guidance provided in Federal Acquisition Regulation (FAR) Subpart 7.4 Device Lease or Purchase, and to review the lease terms and conditions prior to ordering and obligating funding for a lease. Ordering Agencies are responsible for the obligation of the funding consistent with fiscal year law when entering into any lease arrangement.

2. Ordering Procedures:

a. Ordering Agencies are strongly encouraged to conduct a needs assessment prior to the procurement of copiers.

iii. The estimated cost, if any, of applicable State or local taxes.

iv. A confirmation of the availability of the device on the required delivery date.

v. Extent of warranty coverage, if any, of the leased products.

vi. Cite the cost of any mandatory maintenance as applicable.

vii. The Cancellation Ceiling Charges, as applicable. (See Subsection 12), (Early Termination Charges).

d. The ordering agency and contractor shall agree upon the Cancellation Ceiling Charge which is established in accordance with the appropriate formula in Subsection 12 of this Section C, Early Termination Charges (See FAR Subpart 17.1)

e. The Contracting Officer shall insert the agreed upon Cancellation Ceiling Charge for the first year in the purchase order and modify it for successive years upon availability of funds.

3. Order and Period of Leasing Arrangements:

a. Minimum Order: Fifteen (15) Copiers.

b. Lease Options: At a minimum, Ordering Agencies placing orders for devices under a leasing arrangement must specify on the delivery order the applicable leasing SIN under which the device is being leased.

532420LTOP Lease to Ownership Plan (LTOP) (Lease/Purchase) (Copier) 532420LC Lease with Option to Own (Operating Lease) (Copier)

4. Maintenance and Installation:

5. Monthly Payments:

a. Prior to the placement of an order under this SIN, the Ordering Agency and the contractor must agree on a “base value” for the products to be leased. The base value will be the contract purchase price (less any discounts). For operating leases, the residual value is independent of the purchase option price. The residual value will be used in the calculation of the original lease payment.

b. To determine the initial lease term payment, the contractor agrees to apply the negotiated lease factor to the agreed upon base value.

Lease factors are based on the yield of the Treasury constant maturity bond that matches the lease term together with a margin of 725 basis points. Contractor will interpolate lease factors for lease terms that do not match constant maturity bonds. Lease factors are adjusted quarterly based on the Federal Reserve Board’s publication, Selected Interest Rates (Daily) – H.15, and are available from Contractor upon request.

The purchase option price will be based upon the unamortized principle of the product. The payment will be based upon the unamortized principle, as shown on the payment schedule as of the last payment prior to date of transfer of ownership. In the event the Government desires, at any time, to acquire title to device leased hereunder, the Government may make a one‑time lump sum payment.

6. Expiration of Lease Term:

a. Upon the expiration of the Lease Term, the Ordering Agency will upon 30 day written notice:

b. Obtain requirements in accordance with FAR 8.4 (Ordering Procedures) by issuing a new request for quote.

Note: Ordering Agency’s are advised to see subsections 15-17 of this Section D, for additional lease expiration provisions.

7. Additions:

These are defined as accessory features or other enhancements available for lease under this contract to an existing model (base unit) already installed. Additions shall not change the functionality of the installed device.

a. The ordering agency may require the contractor to modify existing leased device through order modifications, provided the modifications are customarily offered by the contractor for the device leased. The price of the modification will be mutually agreed upon by the ordering agency and the contractor. The ordering agency may pay for the modification at full price upon acceptance, or the modification price may be leased coterminous with the initial lease term. The contract lease interest rate in effect at the time of order of the modification will be used to calculate the monthly payment applicable to the modification. For Operating leases, a residual value should be negotiated for the modification.

b. The Ordering Agency may affix or install any accessory, addition or equipment on the device ("additions") provided that such additions:

e. Payment may be modified based on the schedule price adjusted to reflect the actual period until the end of the Lease Term.

f. Should the Ordering Agency elect to replace the device under the lease, a new FAR 8.4 competition is required. This does not preclude substitution for failure to perform. Ordering Agencies are advised that when making thedecision to conduct a new competition, consideration must be given to the early termination of existing device and/or the financial considerations involved with the rollover of the existing device should the current contractor prevail. Ordering Agencies are strongly advised to perform a cost benefit analysis in accordance with their agency procedures and policies with regard to rollovers.

8. Risk of Loss or Damage:

The Government is relieved from all risk of loss or damage to the device during periods of transportation, installation, and during the entire time the device is in possession of the Government, except when loss or damage is due to the fault or negligence of the Government. The Government shall assume risk of loss or damage to the device during relocation unless the Contractor shall undertake such relocation.

9. Warranty:

In accordance with GSAM Clause 552.246-77 under this contract, the contractor’s warranty, as stated in the contractor’s GSA Authorized Price List, is applicable to the lease.

10. Device Performance:

a. The device supplied must be in operational or repairable condition throughout the term of the lease.

i. Operational condition means the device is producing clear and clean pages, all mechanical accessories are operating as intended and in all respects the device is performing up to the standards in the manufacturer’s specifications.

ii. Repairable condition means that the device can be repaired by a qualified technician within the terms of the Maintenance Service Agreement. Additionally, all required replacement parts are available and the device down time does not exceed that specified in the Maintenance Service Agreement.

b. After a thirty (30) day notice and cure period, if the device continues to fail to be operational or repairable as defined above, the Ordering Agency may take those remedies available to it under either the contractor warranty provisions or default clause set forth in FAR 52.212-4(m). Such recourse will not be the basis for increasing the monthly payment or extending the term of the lease.

c. Maintenance and Support:

Preventive Maintenance: The contractor shall provide Preventive Maintenance at least equal to the commercial practice. Intervals between scheduled maintenance services shall be no greater than those provided to commercial customers for the same model of copier.

Response to Service Calls: At minimum, during normal working hours (as specified by the using activity), Monday through Friday (excluding holidays observed by the Government), the contractor shall respond to verbal or written requests for service calls. The contractor shall repair the copier within either nine (9) working hours after the verbal or written request for the service call. However, for copiers identified as critical, the contractor shall respond to verbal requests for service calls and shall repair the copier within four (4) working hours. Copiers designated critical will be identified by the ordering activity in the order and shall not exceed 5% of the total number of copiers on the order. The contractor’s response time on a service call starts, when authorized personnel of an ordering activity place a verbal request to the contractor for a service call or a written request is received by the contractor requesting a service call, whichever is earlier.

Contractors are required to submit a contingency plan to maintain full and proper operation of copiers and to avoid extended delays for repair or replacement of copiers.

Repair and Maintenance Service: Offerors shall submit and include in their pricelist, a list of names, addresses, and phone number(s) of authorized representatives, responsible to the contractor, who may be contacted by ordering activities for repair and maintenance of the device. Only those authorized representatives listed may render maintenance service, unless the list is subsequently modified by mutual agreement between the contractor and the Contracting Officer, to add or terminate authorized representatives.

11. Title:

During the Lease Term, the device shall always remain the property of the Contractor. The Government shall have no right or interest in the device except as provided in this leasing agreement and shall hold the device subject and subordinate to the rights of the Contractor.

12. Early Termination Charges:

Devices leased under this agreement may be terminated at any time during a Government fiscal year by the Ordering Agency’s Contracting Office responsible for the delivery order in accordance with FAR 52.212-4, paragraph (l) Termination for the Government’s convenience.

The Cancellation Ceiling Charge is a limit on the amount that a Contractor may claim from the Ordering Agency on the termination for convenience of a lease or failure to renew a lease prior to the end of the Lease Term for reasons other than those set forth in section 13, Termination for Non-Appropriation. Cancellation Ceiling Charges will apply for each year of the Lease Term (See FAR 17.1). The Ordering Agency and Contractor shall establish a Cancellation Ceiling amount. The Contracting Officer shall insert the Cancellation Ceiling Charge for amount of the first year in the order and modify it for successive years upon availability of funds.

No claim will be accepted for future costs: supplies, maintenance, usage charges or interest expense beyond the date of cancellation. In accordance with the bona fide needs rule, all termination charges must reasonably represent the value the Ordering Agency received for the work performed at cancellation based upon the shorter lease term. No termination cost will be associated with the expiration of the Lease Term.

Formula 1: FOR Lease to Own (LTOP) SIN 532420LTOP

Termination Fee = pmt (i, n, P) *n - sum of PMT - FMV

"P" = Schedule Price of device at time of order, inclusive of Ordering Agency negotiated price reductions should be considered.

"PMT" = Actual Monthly Payment paid on order to termination "i" = Monthly Interest Rate applicable to the order "n" = number of months from order to termination "pmt" = Monthly payment corrected to actual Lease Term" "FMV" = Fair Market Value of device if returned at termination. Unit price adjustments, residual or FMV values used to calculate operating leases, should not be considered.

Formula 2: For Operating leases SINs 532420LC and 532420LTOP

Termination Fee = PV (i, n,-PMT)

"PV"= Present Value "i" = Interest rate per month, equal to the interest rate applicable to the calculation of the payment on the delivery order "n"= Number of months remaining from termination date to the end of the 36/48/60 month lease term "PMT" = Current monthly payment amount of the original payments through end of the lease.

13. Termination for Non-Appropriation:

The Ordering Agency reasonably believes that the bona fide need will exist for the entire Lease Term and corresponding funds in an amount sufficient to make all payment for the lease term will be available to the Ordering Agency. Therefore, it is unlikely that leases entered into under the SINs 532420LTOP/Lease to Own (Copiers), 532420LC/Operating Lease (Copier), and 532420LTOP/all other devices will be terminated prior to the full lease term. Nevertheless, the Ordering Agency’s Contracting Officer may terminate or not renew leases at the end of any initial base period or renewal period under this paragraph if (a) it no longer has a bona fide need the device or functionally similar device; or (b) there is a continuing need, but adequate funds have not been appropriated to the ordering agency in an amount sufficient to continue to make the lease payments. If this occurs, the Ordering Agency will promptly notify the Contractor and the device lease will be cancelled at the end of the last fiscal year for which funds were appropriated. The determination of the availability of funds is made solely by the Government. It is understood that the Ordering Agency will not replace the leased device with functionality similar devices or services for the remainder of the Lease Term.

14. Lease Extensions:

Extension of the present lease term is not permitted. Future copier requirements shall be procured in accordance with FAR 7.4, covering FSS Ordering Procedures.

15. Lease Expirations -– SIN 532420LTOP/Lease to Own:

Title to the device installed under SIN 532420LTOP (Lease-to-Ownership Plan) automatically transfers to the Government upon conclusion of the lease term agreement.

16. Lease Expirations - SIN 532420LC/Operation Lease and All Other Devices:

Extension of the present lease term is not permitted. Future copier requirements shall be procured in accordance with FAR 8.4, covering FSS Ordering Procedures.

Unless notified by the Ordering Agency that the Government intends to exercise its option to purchase the device, the device, upon the expiration of the lease term, will be removed by the Contractor at the earliest practicable time. The Ordering Agency is responsible for removal charges. Unless specified under the schedule contract, removal charges will be administered outside the scope of the contract.

The device shall be in the same condition as when delivered, with the exception of ordinary wear and tear. The Contractor shall conduct a timely inspection of the returned products and within thirty (30) days of the return, assert a claim if the condition of the device exceeds normal wear and tear.

In the event the Ordering Agency desires, at any time, to acquire title to the device leased hereunder, the price will be mutually agreed upon by the parties.

17. Return of Device:

The Government will provide written instructions for the removal of the device. The Ordering Agency is required to provide serial numbers and exact location of device for pick up. Upon receipt of this notice the Contractor shall remove the device within thirty (30) days or a mutually agreed date and time. The Ordering Agency is responsible for removal charges. Unless specified under the schedule contract, removal charges will be administered outside the scope of the contract.

The device shall be in the same condition as when delivered, with the exception of ordinary wear and tear. The Contractor shall conduct a timely inspection of the returned products and within thirty (30) days of the return, assert a claim if the condition of the device exceeds normal wear and tear.

Device not removed by the Contractor within thirty (30) days of the date of notification by the Order Agency shall be considered as abandoned and subject to such disposal as the Government may deem appropriate.

D. Terms Specifically Applicable to Managed Print Services, SIN 541611MPS

1. Scope:

Lexmark’s Managed Print Services is a designed solution for those customers seeking to optimize their enterprise wide fleet of multifunctional devices and printers. Managed Print Services is a comprehensive offering for managing a fleet of multifunctional devices and printers that allows the customer to improve their output service while reducing output costs and improve end user/employee efficiency providing the needed skills to free up resources for other purposes. There are four major areas as follows:

a. Asset Lifecycle Management (ALI) consists of implementing the major infrastructure components to collect, monitor, manage and report the status and performance of a fleet of devices under contract. The combination of these components validates and organizes the information, and then gives you clear, concise reports via your own Lexmark Global Services Web portal that help you make informed decisions. Unlike many manufacturers, Lexmark owns its technology—and since we build every Lexmark device with asset management in mind, the information you receive gets better all the time.

b. Consumables Management Services provide a proactive approach in these key areas: Detecting Need, Submitting Order, Authorizing Order, Order Fulfillment, Toner Inventory, and Recycling. Output devices are constantly monitored enabling Just-in-Time replenishment and designating when and where consumable supply items are required. Information from the agency’s fleet is collected, compiled and business logic is applied that anticipates the need for supplies and then places the order. For example, the ALI components compare actual usage with expected usage then forecasting when the supplies will be required. When supplies do run low, the ALI components order them and they are shipped to the address specified. Lexmark leverages our existing relationships with some of the world’s largest supplies distributors to make sure the agencies get exactly what they need when they need it. We then notify the customer via the customer’s own Lexmark Web portal or by e-mail. Consumables Management Services drive out unnecessary supply-chain cost exposures and inefficiencies from the agency while enhancing end-user productivity. This unique ordering process gives you maximum control with minimum effort, and it protects the whole agency against waste and errors. If the customer requires integration with a new fulfillment vendor not currently integrated with Lexmark’s systems, it can be accomplished.

c. Lexmark’s Diamond Level Service provides worry free multifunctional device and printer care. Providing optimal printer uptime and productivity for your users. Lexmark’s Diamond Level Service provides you with the following enhancements to a standard warranty service agreement:

· Dedicated Service Specialist to provide service management maximum uptime through call monitoring and follow up through closure,

· In depth service reporting to ensure maximum printer performance,

· Rapid Entry to Technical Support via a unique ICR number that connects you to a specialist familiar with your account minimizing operator hold times,

· Quick resolution to printer malfunctions – technical specialists focused on diamond accounts (know your account),

· Maintenance Kit Installation.

It ensures fast and expert attention to technical problems. The real benefit to the agency is that Lexmark’s Diamond Level Services are proactive. Our approach is to monitor, detect, and diagnose problems from a central location. Most issues are resolved before the end user even notices them. Lexmark’s standard warranty offering is a next business day, on site arrival to repair devices. Availability Services is designed to enhance the standard service response offering to return the device to operation faster. This model also allows you to operate your environment based on the functions available to endusers versus purely managing device up time, which helps to improve productivity and true mission performance.

d. MPS Transitional Services are offered under Lexmark’s Managed Print Services program, for Government owned printers and MFPs. The program offers improved maintenance service and support by providing optimal printer uptime and productivity for its users. Through MPS Transitional Services, Lexmark will manage the maintenance of an existing group of Government owned printers and MFPs and transition these to an improved, efficient, cost savings state. The Agency may choose to acquire one or several of Lexmark’s Managed Print Service options offered under SIN 541611MPS. Lexmark and the Government Agency will work together on a plan that best fits the Government’s goals and objectives.

e. Optimization Services helps the agency achieve its output objectives. During implementation, baseline data is established and targets for improvement and key metrics are defined. Periodically, an analysis of historical data is performed to evaluate Key Performance Indicators (KPI). Optimization Services has two components; device optimization and business optimization. Device Optimization Services is a data-driven analysis using six-sigma and other traditional analysis techniques.