Operating Lease for MICR and Cut Sheet Printers

The State of Colorado Department of Personnel and Administration, Division of Central Services, issued Invitation for Bid (IFB1 AADA 2015000105) for an operating lease of MICR and cut sheet printers to support the Integrated Document Solutions (IDS) program serving Denver County and Denver City. The solicitation seeks toner-based printing equipment capable of producing both standard black and white and MICR-encoded check printing at 120 printed sides per minute, with expected annual volumes of 10 million black and white impressions and 3 million MICR impressions. The equipment must be compatible with Solimar Systems Inc. ADF software and Rochester Software Associates (RSA) solutions and will be installed at 1001 East 62nd Avenue, Denver, Colorado 80216. Bidders must demonstrate at least two similar installations in production capacity for over six months and provide comprehensive pricing that includes all software licenses, upgrades, maintenance, installation, training for up to six state employees, and consumables such as toner and photo receptor belts. The vendor must provide 24/7/365 maintenance support with a 30-minute callback window and three-hour on-site service response time using certified technicians providing local maintenance exclusively. Written inquiries were due December 5, 2014, with the original bid submission deadline of December 19, 2014 extended to December 23, 2014 at 3:00 p.m. MST/MDT. The contract will be awarded as a single award to the lowest responsive and responsible bidder for a 48-month lease term with pricing remaining firm for the entire period, and equipment must be delivered and installed within 90 calendar days of contract execution.

The solicitation does not indicate specific set-aside designations or restrictions on organization types eligible to respond. The current incumbent vendor is Xerox, which provides two Nuvera 120MX printers at $2,977.66 per month each and one Nuvera 144 printer at $8,336 per month, with maintenance costs of $515 per month per unit including 24x7x365 service, establishing a baseline for comparison of proposed solutions. Bidders may propose either new or refurbished equipment, and the State does not prefer third-party lease arrangements and may disqualify proposals utilizing such structures. The pricing schedule requires an amortization schedule based on a 30-day month and 360-day year, annual maintenance agreement costs calculated as a flat annual fee or using click charges per black and white and MICR impressions, monthly lease rates, lessor fees, document fees, standard sale price and residual value of all equipment at lease termination, and annual costs for consumables based on specified volumes. Based on the current incumbent pricing of approximately $11,290.32 monthly ($2,977.66 + $2,977.66 + $8,336), the total 48-month lease cost would approximate $542,235, though actual award values will depend on competitive bidding and proposed equipment configurations. All lease payments shall commence on the first day of the month following execution of the Delivery and Acceptance Certificate, with monthly invoices due by the 10th of each subsequent month itemized by printer.