BOARD MEETING DATE: October 6, 2006
AGENDA NO. 9

Execute Lease Contracts for Mailing Equipment

SYNOPSIS:

On May 5, 2006, the Board approved release of an RFQ to solicit lease proposals to replace the mailroom’s USPS-compliant mailing system and to lease additional equipment for folding, inserting, and addressing mail.  This action is to execute five-year lease agreements with Pitney Bowes, Inc., for this mailing equipment.  The annual first-year cost of these leases, including maintenance service, is estimated to be approximately $19,470, and the annual cost for each of the remaining four years is estimated to be $20,358.

COMMITTEE:

Administrative, September 15, 2006, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to execute five-year lease agreements with Pitney Bowes, Inc., for mailing and shipping, folding and inserting, and addressing equipment, at an estimated total annual lease and maintenance cost of $19,470 for the first year, and $20,358 for each of the subsequent four years.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD currently leases a high-volume USPS-compliant mailing and shipping system for AQMD's mail center that processes all incoming and outgoing mail. In 2005, the mail center processed 136,364 pieces of mail.  The current lease expires November 2006.

Mail/Subscription staff also coordinates various required mailings, such as public hearing and public workshop notices, Title V permit notices, etc.  Currently, folding, inserting, and addressing are outsourced in FY 2005-06.  Increased public use of AQMD’s website to download publications has freed mail center staff to do this work, at an anticipated savings of approximately $23,500 per year.

In an effort to save costs and increase flexibility and productivity, AQMD’s RFQ solicitation included replacement of the existing mailing and shipping system and addition of folding and inserting and addressing equipment.  This action is to obtain new lease agreements for a comprehensive mailing system.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFQ and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors.  Notice of the RFQ was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, the State of California Contracts Register website, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov/ where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html).  Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Twenty-four copies of the RFQ were mailed out and four proposals responding to one or more of the three categories included in the RFQ were received by close of bidding at 2:00 p.m., June 6, 2006.  Of the four responsive proposals, none was from a small business or disabled-veteran business enterprise or low-emission vehicle business.  Attachment A lists responsive proposals and their ratings.

Panel Composition

The evaluation panel consisted of the president and owner of Direct Connection Mailing & Marketing Program, a mailing services business, and two AQMD staff—a Mail/Subscription Supervisor and a Principal Office Assistant.  Of the three panelists, one is African-American, one is Caucasian, and one is Hispanic; one female, two male.

Proposal

This action is to execute five-year lease agreements with Pitney Bowes, Inc., for all three categories of mailing equipment solicited in the RFQ: high-production mailing and shipping, folding and inserting, and addressing.

Resource Impacts

The annual lease and maintenance cost for the high-production mailing and shipping system is estimated at $7,206 for the first year ($8,118 for each of the remaining four years), the folding and inserting system at $6,744, and the addressing system at $5,524, for a total estimated annual first-year cost of $19,474 ($20,386 for each of the four subsequent years).  Sufficient funds are available in the FY 2006-07 Budget for the estimated cost of $12,982 for the remainder of this fiscal year.  Funds will be requested in subsequent budgets for the remaining four years of the lease.

Attachment

A - Proposal Evaluation

ATTACHMENT A
Proposal Evaluation
RFQ #2006-07