TO: Howard Crouse, Members of the Board of Education
FROM: Mike Pedersen
RE: Reprographics Department
CC: Jane Lawnicki
DATE: June 8, 2005
Based on the cost analysis that follows and other potential benefits discussed during their interview, Xerox presents District 204’s best option to
provide future reprographics services. Their proposal shows approximately $208,900 in yearly cost savings over current practice while bringing
teachers, administrators, and clerical staff greater support through increased efficiencies and capabilities.
I recommend District 204 enter negotiations with Xerox Corporation to formalize their proposal. Pending a satisfactory outcome, I expect to bring
a contract recommendation to the Board in August, with the intent to start services in September.
Analysis of Alternatives Regarding Reprographics
My last communication regarding Operations and Maintenance use of the Quincy rental space, and restructuring reprographics, presented the
- The Quincy two-year lease offer was very competitive for the current market.
- District 204 does not have enough discretionary space to bring Operations and Maintenance in-house.
- Outsourcing reprographics service workers, management and hardware using the 95th Street site, will improve efficiency and cost as
opposed to: 1.) retaining the current program; 2.) leasing new equipment and retaining/retraining our employees; and 3.) outsourcing
with an off-site vendor.
- The Xerox proposal appeared to best meet the District’s needs of efficiency, capacity and cost.
Following this discussion, the Board requested I solicit another similarly structured proposal to verify the Xerox plan. Thanks to
Bruce Rodman for the contact, I have met with representatives of Canon Business Solutions twice, once to review specifications and once to
receive their proposal.
The four 95th Street reprographics scenarios are summarized below.
- current reprographics program
- new Canon machines with Canon employees and management
- new Konica machines with Imagetec providing training and support for District 204 employees and management
- new Xerox machines with Xerox employees and management
Cost Matrix: Alternatives Regarding Reprographics
(Per Year Cost Shown for Five Year Commitment)
option current program Canon Konica (Imagetec) Xerox
Hardware: Lease, Purchase, Maintain 254,349 359,280 214,000 (C) 282,228
Hardware: Buy-Out n/a included 38,432 (D) included
Salaries, Benefits 125,000 (A) included (B) 125,000 (A) included (F)
36,000,000 Plain Copies included included included included
120,000 Color Copies included included included included
Printing Supplies 7,587 7,587 included 7,587
(100) 5.5” x 8”, 12 Page, 2 Staple Spine included included included included
(100) 8.5” x 11”, 50 Page, Tape Bound included included included included
(100) 8.5” x 11”, 1 Page, Tri-Fold Brochure included included included included
Current Outsourcing (Reminder Binders) 134,790 23,030 23,030 23,030
Total 521,726 389,897 400,462 (E) 312,845
(A) salaries and benefits for three District #204 employees
(B) Canon staff to include three positions, interviews and first consideration given to current District 204 employees
(C) 214,000/year for five year lease-to-own, after five years maintenance is 168,000/year
(D) to start August 1, one-time buy out of remaining months (August – October) for three Xerox machines, Kodak IS 110, Toshiba color
(E) 400,462 (if starting August 1) for first year; 362,030 (if starting November 1) for first year; 362,030 in years 2 – 5; 316,030 after year 5
(F) Xerox staff to include two split shift positions, shop open 12 hours/day, interviews and first consideration given to current District 204
employees, Aramark will offer an interview for the third District 204 employee