Managed Print Services Lead State New Mexico State Purchasing Division General Services Department Hi, my name is Teri Arevalo and today we will be going over the Managed Print Services (MPS) procurement, which New Mexico, General Services Department, State Purchasing Division lead. This is New Mexico’s second time leading this specific procurement.

Sourcing Team Alaska Nevada Linda Polk Shannon Berry New Mexico Washington Debra Saiz Neva Peckham Teri Arevalo Breann Aggers Tim Hay, NASPO ValuePoint The sourcing team included: Linda Polk representing the State of Alaska, Shannon Berry (during this procurement process she represented the State of Nevada) and most of you probably already know Shannon has joined the NASPO ValuePoint team. Neva Peckham and Breann Aggers representing the State of Washington and Debra Saiz and myself Teri Arevalo representing the State of New Mexico. Our NASPO ValuePoint coordinator, Tim Hay.

Purpose Manage printing equipment, supplies, services and the overall management of the printer fleet; Multi-vendor support and maintenance; and Equipment may be placed by contractor but must be removed at the end of the individual MPS engagement. Exclusions: Leasing, renting or purchasing of equipment is not allowed from the contractors throughout the term of this contract. The purpose of the Managed Print Services is to manage printing equipment, supplies, services and overall management of the printer fleet and provide multi-vendor support and maintenance. Placement of equipment may occur during the term of this contract however the contractor shall not charge for the cost of equipment, only the cost for MPS are allowed. The contractor is responsible for removal of placed equipment at the end of the individual MPS engagement. The information regarding placement of equipment can be found in the Master Agreement and in Amendment #3 of the RFP. There are exclusions in this procurement and are listed in awarded Master Agreements. Those exclusions are as follows: leasing, renting or purchasing of equipment is not allowed from the contractors throughout the term of this contract.

MPS Base Service Components Scope of Services There are three components that make up the scope of services listed within the MPS Awards: MPS base service, click charges and value added services. All services included in the base components are not to exceed maximum monthly base rate; however, base rates may be negotiated at a lower rate based on MPS base components requested. MPS Base Service Components Consulting & Project Management Assessments Monitor and Manage Procuring Agency’s Fleet SLA, Reporting and Invoicing Software Device management software Discovery and design software Security Services Device hard drive security Implementation Training Change Management Plan Helpdesk/Customer Service There are three main components that make up the scope of services listed within the MPS Awards: MPS base service, click charges and valued added services. The value added services do not have to be procured. All services included in the base components are not to exceed maximum monthly base rate; however, base rates may be negotiated at a lower rate based on MPS base components requested. The base components are listed on this slide which I will highlight for your today but can be found in more detail in the Master Agreements and Amendment 3 of the RFP. Consulting and Project Management Consulting and project management services are considered services that help organizations improve their print performance, development of plans and schedules for improvement, change management, technology implementation, and strategy development.   Assessments – which includes an initial no cost assessment. An Initial Assessment does not guarantee the awarded contractors a procuring agency/entity contract. This no cost assessment may occur as a part of a contractor’s offer for Managed Print Services, or may occur after contract award. Monitor and Manage Procuring Agency’s Fleet This component includes : On-going Assessment: Contractors must provide a regular On-going Assessment to evaluate the procuring agency’s identified objectives outlined in the initial assessment. The On-going Assessment shall include but not limited to continuous process improvement, and business reviews such as; device utilization, fleet performance, cost saving opportunities, department/site usage, green spend, consumables monitoring report, remote management, service level agreement monitoring and etc. The frequency of the On-going Assessment will be either on a quarterly or semi-annual basis and will be identified in the Participating Addendums. Service level agreements, reporting and invoicing At a minimum, the following reports will be required: ensure SLA compliance and support; device performance; device inventory detail; helpdesk call-log detail; incident detail per device; meter volume metric; consumable spend and detail; line item billing detail; total output of each device Additional reporting maybe required and addressed at the Procuring Agency level. Software Device management software to monitor and manage the print devices in an environment on-site and remotely; Discovery and design software to analyze and plan for the change required in implementing MPS; Security Services such as; intrusion detection, devise security integration, and many others services. Implementation Typical implementation plan to include how analysis, assessment, and planning come together for delivery of recommended solution to meet the Procuring Agency’s goals. Training Targeted, web based, on-site, one-on-one, etc. for Initial and On-Going training. Change Management Plan Include Move/Add/Change to accurately monitor the managed environment. Remember MPS is not intended to be static so change will occur. Helpdesk/Customer Service Adequate service representatives will be available during the Procuring Agency’s regular business hours. Addressing and resolving customer problems, complaints, and issues, expected response time after initial contact to the help desk, timelines and escalation measures to resolution. Again, more detail can be found in the Master Agreements and Amendment 3 of the RFP.

Scope of Services continued Click Charges Prices quoted above must be Original Equipment Manufacturer (OEM) supplies. Procuring agency may choose to use compatible supplies at a lower cost. Click Charges Cost Form Device Type  Pages per minute 0 - 30 31 - 60 61 - 90 91 -120 121 - 150 151+ Single Function Mono $ Single Function Color Multi-Function Mono Multi-Function Color Scope of Services continue with the second component of MPS - Click charges. Click charges are set up by pages per minute and by device type. Prices quoted by the contractor are Original Equipment Manufacturer (OEM) supplies. Procuring agency may choose to use compatible supplies at a lower cost.

Scope of Services continued Value Added Services Are not required Vary among awarded contractors Limited to scope of services for MPS Value Added Services Are not required Vary among contractors Limited to scope of services for MPS

RFP Process Release date: August 7, 2015 Pre-proposal conference: August 24, 2015 RFP Amendments: Four Closing date: October 14, 2015 Proposals received: Nine Master Agreements: Three awarded* Contract Term: April 15, 2016 – April 14, 2017, three (3) additional one (1) year term, not to exceed four (4) years total. The RFP was released August 7, 2015 and a Pre-proposal conference was held August 24, 2015 RFP Amendments: Four (two amendments were required to add Participating States their terms and conditions) Closing date for the RFP was October 14, 2015 We received nine proposal responses Master Agreements: Three awarded* Contract Term: April 15, 2016 – April 14, 2017, three (3) additional one (1) year term, not to exceed four (4) years total. Three are currently awarded but NM is still negotiating with the forth recommended Offeror.

Evaluation Criteria Factors correspond to Section 6 and Attachment E Points Available Signed Campaign Contribution Disclosure Form (Attachment E.8) Pass/Fail Signed Letter of Transmittal (Attachment E.9) Offeror Profile (Section 6.7.1.) Factors correspond to Section 6.7 and 6.8 6.7 Business Requirements (20 possible total points) 6.7.2. Manage Services 10 6.7.3. Customer Service 5 6.7.4. Data Security 2 6.7.5. Financial Stability 3 6.8 Technical Requirements (50 possible total points) 6.8.1. Scope of Work 50 7.1 & Attachment C - Cost (30 possible total points) TOTAL 100 points The Evaluation Criteria New Mexico has two mandatory documents that are included in all RFPs: signed campaign contribution disclosure form and the letter of transmittal. These are pass/fail. The sourcing team created the third mandatory document, Offeror Profile which was Pass/Fail. The scoreable requirements has a totaled of100 possible points. The first - Business Requirements which included Manage Services, Customer Service, Data Security and Financial Stability. In total these were worth a total of 20 point. The slide shows the possible points for each sub-requirement under the Business Requirements. The second – Technical Requirements. This listed the Scope of work which was outlined earlier in this presentation and can be found in the Master Agreements and in Amendment #3 of the RFP. The possible points available for Technical Requirements were 50 points. NM highly recommends 30% for Cost. Cost of course being the third and final scoreable requirement. For more details regarding the Evaluation Criteria, please see the Original RFP, Section 5.4.

RFP Mandatory Specifications Evaluation Results RFP Evaluation Scoring Summary RFP Mandatory Specifications Points Available Konica Minolta Lexmark POA Ricoh   Manage Services 10 8.25 7.75 8.75 Customer Service 5 4.25 3.5 3.75 Data Security 2 1 Financial Stability 3 2.75 Scope of Work (50pts total) Consulting & Project Management 6 4.75 5.25 Assessments 4.5 4 Monitor and Manage Procuring Agency’s Fleet SLA, Reporting and Invoicing Software 8 7.5 6.25 6.75 Device management software Discovery and design software Security Services Device hard drive security Implementation 5.5 Training 2.5 1.5 Change Management Plan Helpdesk/Customer Service 3.25 Technical Total 70 60.75 53.25 53 52.5 Cost 30 0.19 0.07 1.25 0.13 Total Points 100 60.94 53.32 54.25 52.63 The Evaluation Results. Listed in this table is the Evaluation Scoring Summary for the recommended contractors. As stated before, three of the four recommended contractors have been awarded and since negotiations are still occurring, the fourth recommended contractor is blacked out.

Evaluation Results Continued All Offerors were afforded the opportunity to clarify their cost response. Two (2) proposals were found non-responsive. All Offerors were afforded the opportunity to clarify their cost response. Two (2) proposals were found non-responsive. Of those two Offerors, one stated they could not provide an updated response without being afforded the opportunity to clarify their cost response. The second Offeror was deemed non-response because they could only provide the higher end devices in the value added services.

Contracts Awarded Master Agreements were awarded on April 15, 2016 to three of the four recommended Offerors. The last Master Agreement was awarded to the fourth recommended Offeror on May 20, 2016. Contract # Contractor Contact Address Phone Number 40-000-14-000123 AA Konica Minolta Business Solutions U.S.A., Inc. Kimberly B. Talbot talbotk@kmbs.konicaminolta.us 1595 Spring Hill Road, Suite 410 Vienna, VA 22182 (703) 460-3573 40-000-14-000110 AB Lexmark International, Inc. Zachary Jones zjones@lexmark.com 740 West New Circle Rd Lexington, KY 40550 (760) 453-3418 40-000-14-000116 AC Pacific Office Automation Jeffrey Simon jsimon@pacificoffice.com 14747 NW Greenbrier Pkwy Beaverton, Oregon 97006 (503) 526-0341 40-000-14-000116 AD Ricoh USA, Inc. Bart Lemmon Bart.Lemmon@ricoh-usa.com 70 Valley Stream Parkway Lalvern, PA 19355 (800) 778-1002 Master Agreements were awarded on April 15, 2016 to three of the four recommended Offerors. 40-000-14-000123 AA Konica Minolta Business Solutions U.S.A., Inc. Kimberly B. Talbot talbotk@kmbs.konicaminolta.us 1595 Spring Hill Road, Suite 410 Vienna, VA 22182 (703) 460-3573 40-000-14-000110 AB Lexmark International, Inc. Zachary Jones zjones@lexmark.com 740 West New Circle Rd Lexington, KY 40550 (760) 453-3418 40-000-14-000116 AC Pacific Office Automation Jeffrey Simon jsimon@pacificoffice.com 14747 NW Greenbrier Pkwy Beaverton, Oregon 97006 (503) 526-0341

Changes from Previous Contracts In the previous contracts there weren’t specific components for MPS The cost structure was cost per copy New Contract Identified common services in MPS for a monthly structured fee Cost per copy Value Added Services Previous Contract In the previous contracts there weren’t specific components for MPS The cost structure was cost per copy This structure made it difficult to determine what services where allowed to be procured. New Contract Identified common services in MPS for a monthly structured fee Cost per copy Value added services vary and con be found in each contractors Master Agreements.

Getting Started Select a Contractor. Complete Participating Addendum Process. Contractor will work with each state/procuring entity to establish the required MPS services and costs at or below the awarded costs. Contractor can not provide leasing, renting or purchasing equipment is not allowed throughout the term of this contract. All services included in the base components are not to exceed maximum monthly base rate; however, base rates may be negotiated at a lower rate based on MPS base components requested. Getting Started. Select a Contractor. Complete Participating Addendum Process. Contractor will work with each state/procuring entity to establish the required MPS services and costs at or below the awarded costs. All services included in the base components are not to exceed maximum monthly base rate; however, base rates may be negotiated at a lower rate based on MPS base components requested. Contractor can not provide leasing, renting or purchasing equipment is not allowed throughout the term of this contract. An initial no cost assessment.

Getting Started Continued Become familiar with the definitions, i.e. click charges, maintenance and support, owned equipment, placed equipment, etc. (Amendment 4.) Contractor may place equipment and will cover their cost of the equipment through the monthly click charge and the MPS service through the MPS Base Monthly Charge. The Participating Entity will be able to use the equipment during the MPS engagement but will not own, lease or rent the equipment. The contractor will remove the placed equipment at the end of the MPS engagement. An initial no cost assessment. Become familiar with the definitions, i.e. click charges, maintenance and support, owned equipment, placed equipment, etc. (Amendment 4.) We tried to assist and guide the procuring entities the best we could with the definitions and what is allowed within them. Such as: Contractor may place equipment and will cover their cost of the equipment through the monthly click charge and the MPS service through the MPS Base Monthly Charge. The Participating Entity will be able to use the equipment during the MPS engagement but will not own, lease or rent the equipment. The contractor will remove the placed equipment at the end of the MPS engagement. An initial no cost assessment.

Questions? Contract Lead: Teri Arevalo State of New Mexico State Purchasing Division (505) 827-0266 teri.arevalo@state.nm.us Questions? If there are no further questions, I will turn it over to Tim.

Participating Addendum Process

PA Process All 50 states and The District of Columbia have executed the NASPO Cooperative MOA, allowing them to be eligible to use any NASPO ValuePoint cooperative Master Agreement 17

Opportunities for Participation Three Options for Participation State signs a Participating Addenda for entire state Every legally eligible entity in the state can participate State signs a Participating Addenda for non state entities Every legally eligible entity that is not a STATE agency can participate State does not sign a Participating Addenda Political subdivisions wishing to participate may contact the NASPO ValuePoint Cooperative Development Coordinator who will contact the STATE CHIEF PROCUREMENT OFFICIAL asking for approval for that entity to sign their own Participating Addendum. Entities may be given approval on an individual basis or State CPO may give approval to all entities within the state to execute their own Participating Addendums. 18

Participation Opportunity #1 Step by Step: Participating Addendum templates are available on each Master Agreement page on www.naspovaluepoint.org States may have submitted Intents to Participate during solicitation, this will provide the information for contractors to contact states interested in signing a Participating Addendum. States may also contact contractors directly to begin Participating Addendum process. State Chief Procurement Officials (or designated representative) will be the signatory on the Participating Addendum. They will also be the NASPO ValuePoint point of contact throughout the process. State completes the draft Participating Addendum for each contractor and then forwards the draft to the contractor. Negotiations will be handled directly between state and contractor. Upon agreement, the state sends a final copy of Participating Addendum to the contractor for signature. Contractor signs Participating Addendum and sends back to state for signature. State sends fully executed copy to both contractor and NASPO ValuePoint at PA@naspovaluepoint.org Executed Participating Addendum will be maintained in a repository.

Participation Opportunity #2 Step by Step: Same Process as Opportunity #1 Participating Addendum templates are available on each Master Agreement page on www.naspovaluepoint.org States may have submitted Intents to Participate during solicitation, this will provide the information for contractors to contact states interested in signing a Participating Addendum. States may also contact contractors directly to begin Participating Addendum process. State Chief Procurement Officials (or designated representative) will be the signatory on the Participating Addendum. They will also be the NASPO ValuePoint point of contact throughout the process. State completes the draft Participating Addendum for each contractor and then forwards the draft to the contractor. Negotiations will be handled directly between state and contractor. Upon agreement, the state sends a final copy of Participating Addendum to the contractor for signature. Contractor signs Participating Addendum and sends back to state for signature. State sends fully executed copy to both contractor and NASPO ValuePoint at PA@naspovaluepoint.org Executed Participating Addendum will be maintained in a repository.

Participation Opportunity #3 Step by Step: Participating Addendum templates are available on each Master Agreement page on www.naspovaluepoint.org An email request should be sent to PA@naspovaluepoint.org from entity (email may also be sent from contractor). The email needs to provide the following details: main point of contact from entity, full name of entity, phone number, email address and physical address. NASPO ValuePoint will email State Chief Procurement Officer requesting approval for the entity to execute a Participating Addendum. NASPO ValuePoint will email both contractor and entity with the permission from Chief Procurement Official to proceed to complete the Participating Addendum. Entity completes the draft Participating Addendum for contractor and then forwards the draft to the contractor. Negotiations will be handled directly between entity and contractor. Upon agreement, the entity sends a final copy of Participating Addendum to the contractor for signature. Contractor signs Participating Addendum and sends back to entity for signature . Entity sends fully executed copy to both contractor and NASPO ValuePoint at PA@naspovaluepoint.org Executed Participating Addendum will be maintained in a repository.

PA Process Flow Chart

Things to Remember Sample PA’s are located on the NASPO ValuePoint Website under each master agreement portfolio. Executed Participating Addendum will be maintained on www.naspovaluepoint.org and in a repository. Participating states and entities will be identified on the map of the USA on each Master Agreement page on www.naspovaluepoint.org The Lead State and NASPO ValuePoint do not get involved with negotiations. Only submit completed and negotiated PA’s with signatures from both parties. Submit completed PA’s in PDF Format 23

Thank You Please let NASPO ValuePoint know if we can be of any assistance: *Tim Hay, NASPO ValuePoint Cooperative Development Coordinator thay@naspovaluepoint.org (503) 428-5705 * NASPO ValuePoint Point of Contact for these Master Agreements. 24