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HomeMy WebLinkAboutAgenda Statement 1986/05/06 Item 10 COUNCIL AGENDA STATEMENT Item 10 Meeting Date 5/6/86 ITEM TITLE: Resolution / 2)/41 ° Accepting bids and awarding contract for offset duplicating system SUBMITTED BY: Director of Finance REVIEWED BY: City Manager 7,, (4/5ths Vote: Yes No X ) At its meeting of October 15, 1985, the City Council deferred accepting bids and awarding a contract for an offset duplicating system in order to provide representatives of both bidders--AB Dick Company and Multigraphics Corporation --an opportunity to respond to staff' s report. More specifically, the bidders were to be provided an opportunity to address the cost-effectiveness of their offset duplicating system with regard to the cost of producing the masters, the double-sheet detection system, maintenance service agreement, and other issues raised in staff' s report. RECOMMENDATION: That the City Council approve the resolution awarding the contract to Multigraphics. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The City of Chula Vista currently has an offset duplicating system purchased as a rebuilt system in 1976. Replacement of this equipment was authorized in the FY 1985-86 budget. Bids for replacement of this equipment were received in September 1985 from two companies: AB Dick and Multigraphics. After the City Council deferred accepting these bids and awarding a contract for an offset duplicating system, the Finance Department took a number of steps to further evaluate the cost-effectiveness of these two different systems including the following: • Visiting other public agencies, which had already obtained these systems, to observe their equipment in operation and discuss the advantages and disadvantages of the equipment with the staff of these agencies. • Meeting three times each with representatives of AB Dick and Multigraphics. A number of findings were reached as a result of these steps as detailed below. (1 ) The offset duplicating system bid by AB Dick does not meet the specifications of the City. At the City Council meeting of October 15, 19e5, representatives A stated specifications developed e the Ci y oroffset duplicating system ere oriented towards the Multigraphics system. Page 2, Item 10 Meeting Date 5/6/86 The specifications did request certain features which are standard equipment on the Multigraphics system, but not available on the AB Dick system. These features--a dry toner process for production of masters and an electronic ink and moisture system to automatically monitor the balance of ink and moisture in the duplicator--had been requested to enhance the productivity of the Offset Duplicating Operator. The dry toner process requires less cleanup time than the liquid toner process bid by AB Dick. The electronic ink and moisture system--which automatically monitors the ink and moisture balance--requires less involvement by the Offset Duplicating Operator in the operation of the system than the "aquamatic" system bid by AB Dick--which requires the Operator to manually balance the ink and moisture. These features, required in the specifications, are not available on the AB Dick system; as a consequence, their system does not meet the specifications of the City. These two features--the dry toner process and the electronic ink and moisture system--as well as the number of other productivity-enhancing features are standard equipment on the Multigraphics and not available on the AB Dick. These other features are described in latter portions of the report. These features make the Multigraphics system a more productive investment, and are the basis for the recommendation of this system. (2) Both AB Dick Company and Multigraphics Corporation are well-established firms which have been in the business of manufacturing offset duplicating systems for a number of years. The Multigraphics Corporation was founded before the turn of the century, and is a supplier of offset printing systems. Multigraphics started manufacturing offset duplicating systems in the late 1960's, and has a number of these systems in use in the County of San Diego including, but not limited to, the following: . Department of Education, County of San Diego . Naval Training Center . Grossmont School District . Clerk of the Board, County of San Diego . Navy Publications and Printing, Main Plant The AB Dick Company was founded in 1884, and is a supplier of information and text processing systems, mimeographic systems, copiers, offset printing systems, and the like. AB Dick started manufacturing automated offset duplicating systems in the late 1960's, and has a number of these systems in use in the County of San Diego including, but not limited to, the following: . Cox Cable . PSA . Planning Department, City of San Diego . La Mesa Spring Valley School District . Grossmont Hospital Page 3, Item 10 Meeting Date 5/6/86 According to a study of the in-plant market (e.g. , City of Chula Vista, La Mesa Spring Valley School District, etc. ) conducted by Dynamic Strategies Incorporated in October 1984, 85% of the offset duplicating systems placed in this market are manufactured by Multigraphics. On the other hand, according to an article published in October 1984 in Quick Printing, 74% of the offset presses placed in quick printer businesses (e.g. , Sir Speedy, PIP, etc. ) are manufactured by AB Dick. As this data indicates, each corporation has "captured" a significant portion of the market for offset duplicating systems; Multigraphics dominates the in-plant market, while AB Dick dominates the quick printing market. More significantly, however, the quick print market consists primarily of stand-alone, offset presses, not offset duplicating systems. These stand-alone offset presses are not connected to a master maker nor a sorter, as in an offset duplicating system. The City of Chula Vista is purchasing an offset duplicating system, not an offset press. (3) The Cost of Acquisition for the Offset Duplicating System Bid by the AB Dick Company Would be $4,526 less than the System Bid by the Multigraphics Corporation. A total of $52,000 was authorized in FY 1985-86 for replacement of the City's existing system. The City requested bids for an automated offset duplicating system, consisting of a mastermaker, automated offset duplicator, and a sorter. Two bids were received as follows: AB DICK MULTIGRAPHICS Unit Price $46,720 $47,605 2,803 2,856 Sub-Total $49,523 $50,461 Less Trade-in Allowance (7,121 ) (4,000) Sub-Total $42,402 $46,461 Terms 1% Within 20 Days or $467 Net TOTAL $41 .935 $46.461 As the table indicates, the offset duplicating system bid by AB Dick Company would cost the City $4,526 less than the system bid by Multigraphics. Over the ten-year life of the system, this amends to a difference of $453 per year. (4) The Quality of the Printed Document Generated by both Offset Duplicating Systems are Comparable. Both firms claim that the quality of the printed product is better than that of their competitor. However, a review of some of the printed products generated by other public agencies which already have these systems indicates the quality of the products are comparable. Further, both meet the quality standards of this City. Page 4, Item 10 Meeting Date 5/6/86 (5) The offset duplicating system manufactured by the Multigraphics Corporation offers a greater number of features designed to enhance the productivity of the City's Offset Duplicating Operator than does the system manufactured by the AB Dick Company. Both systems have features designed to enhance the productivity of the operator. The system bid by Multigraphics, however, appears to offer features which best fit the needs of the City. These features, as well as those of the AB Dick system, are summarized on the exhibit following this page; a more detailed explanation is presented below. Master Conveyor. The master conveyor carries masters to the duplicator for printing. In designing their system, Multigraphics utilized an "open design"; the master conveyor is open for easy viewing to assure the quality of the masters and the proper page sequence for printing. If an error is detected, the Offset Duplicating Operator can remove the master from the conveyor to avoid an error. The master conveyor designed by AB Dick is covered for the most part by retaining bars which make it not only difficult to see the master, but difficult to remove if an error is detected. The current offset duplicating system utilized by the City of Chula Vista also has an open master conveyor; the Offset Duplicating Operator does utilize this feature to quality control the masters. Image Reduction Control . This feature on the AB Dick and Multigraphics differ. The image reduction control on the AB Dick can reduce the image to any extent between 1% to 36%. The control for Multigraphics, on the other hand, only offers three reduction settings: 4%, 25%, and 35%. The variable reduction control offered by AB Dick, however, is of limited utility for two reasons: - The primary reduction setting would be 4%; and this setting is offered by Multigraphics as well . This 4% reduction setting would be utilized to reduce images for original documents which have text running to the edge of the page so that when the master is printed from the original this text along the edge would not be lost. The City rarely needs to reduce more than 4%. - The reduction process utilized by Multigraphics will automatically center the image of the original on the master, when the automatic document feeder is being utilized. The reduction process utilized by AB Dick, on the other hand, does not automatically center the image when using the automatic weeder; it requires the Operator to manually center the image. The Offset Duplicating Operator uses the automatic feeder for each print job. Page 4a Features Offered on the Offset Duplicating Systems Bid by the AB Dick Company and the Multigraphics Corporation FEATURE DESCRIPTION OF FEATURE AB DICK MULTIGRAPHICS ter Conveyor Carries masters to the Covered for the most Open and uncovered by duplicator part by retainer bars retainer bars Ie Reduction Allows the master maker Allows a continuous Has only three settings trol to reduce the image of reduction for any for reduction: 4%, 25%, the original setting from 1% to 36% and 35% )matic Sheet Assures that only one Detects when a double Detects a double feed and ?ctor/Elimi- sheet of paper enters feed has occurred and automatically eliminates )r the duplicator at a shuts the machine off; the second sheet without time does not automatically shutting the machine off. eliminate the second sheet :tronic Jam Monitors paper as it Available, but will not Available and will ?ctor travels through the identify where the jam identify where the jam duplicator to detect occurred occurred jams. When jams occur, the machine automati- cally stops the feeding of additional paper into the duplicator to assure only one page is jammed. :tronic Ink Automatically monitors Not Available Standard Equipment Moisture the balance between tem ink and water in the duplicator to assure the printing of clean, sharp copies. ability to Adjustments to the Requires a few adjust- Requires more adjustments nt 11" x 17" printing head which ments than the AB Dick er would allow the duplicator to print different widths and lengths of paper ister Board "Jogs" the paper into Not Available Standard Equipment a precise position to assure each sheet of paper receives the printed image in exactly the same place. acity of Holds paper to be Accomodates 5,000 sheets Accommodate 4,000 sheets er feed table printed for feeding to the duplicator 1982E Page 5, Item 10 Meeting Date 5/6/86 Automatic Sheet Detector/Eliminator. The existing offset duplicating system has this feature. This feature enables the machine to automatically detect via an electronic sensor when two pieces of the paper are erroneously fed into the duplicator at the same time, eliminate the second sheet by diverting it into a drop bin, and continue to print without shutting the machine off. This same feature is standard equipment on the Multigraphics. The AB Dick system will also detect doubles, but the system does not have the capability to drop this double into a drop bin and continue printing. Rather, the system shuts the machine off, and the Operator has to search for and remove the double before printing can resume. This is a good example of a feature built into the Multigraphics system, which is designed to enhance productivity. The double is automatically eliminated without shutting the system off; the system continues to print. Electronic Jam Detector. This feature is designed to monitor paper as it travels through the duplicator, automatically detecting jams and stopping the feeding of additional paper into the duplicator. Both systems offer this feature, but the Multigraphics will also identify where the jam has occurred to enable the Offset Duplicating Operator to more quickly detect the location of the jam and correct the problem. This is also another example of a feature built into the Multigraphics system, which is designed to enhance productivity. The system identifies where the jam occurred so the Operator does not have to search for it. Electronic Ink and Moisture System. This feature, standard equipment only on the Multigraphics, automatically monitors the balance between ink and water in the duplicator to assure the printing of clean, sharp copies. This feature is considered a significant technological advance, which completely relieves the operator of this responsibility. Multigraphics received the 1980 "Inter Tech" Award from the Graphic Arts Technical Foundation for the development of this feature. The United States Air Force, in evaluating both the Multigraphics and AB Dick systems in August 1985, found that the Electronic Ink and Moisture System "means that operator involvement is substantially reduced by not having to constantly check and insure proper ink and moisture balance, which is so critical to the quality of the final product." AB Dick utilizes an "aquamatic" ink and moisture system, which requires the Operator to manually check the balance of ink and moisture. This means the Operator must be involved in this balancing process, which is not the case with Multigraphics. Page 6, Item 10 Meeting Date 5/6/86 Capability to print 11" x 17" paper. At the City Council meeting of October 15, 1985, representatives of AB Dick stated that positive features of the system bid by AB Dick were not mentioned in the staff report such as the fact that their system has the capability to print 11 ' x 17" paper and the Multigraphics system does not. In fact, both the AB Dick and the Multigraphics system can print 11" x 17" paper. The AB Dick system, however, requires fewer adjustments to convert from a printing capacity of 8-1/2" x 11" to 11" x 17" than does the Multigraphics (see table below). Changeover Process for Converting Printing Capacity from 8-1/2" x 11" to 11 " x 17" AB Dick Multigraphics 1 . Adjust side guides 1 . Adjust side guides 2. Adjust backstop on 2. Adjust backstop on feeding tray feeding tray 3. Adjust the suction feet 3. Adjust suction feet 4. Remove 8-1/2" x 11 " master 4. Adjust register board roll stock and replace with (three adjustments) 11 " x 17" roll stock 5. Adjust backstop on paper 5. Adjust jogger guides on the receiving tray proof tray 6. Adjust backstop on paper receiving tray However, it is important to note that this feature would be needed by the City infrequently. Currently, only two print jobs require 11" x 17" paper. Resolutions and proclamations are "farmed out". Approximately 200 resolutions and proclamations are printed each year. The employee newsletter also is "farmed out". This job could be done "in-house" with either the AB Dick or the Multigraphics system. However, only 3600 copies of the newsletter are printed annually. This is the equivalent of one-tenth of one percent of the annual number of copies made by the City's print shop. Thus, this feature is not a significant advantage to the City. Register Board. This feature automatically "jogs" the paper into a precise position to assure each sheet of paper receives the printed copy in exactly the same place. This is an important feature in the printing of multi-part forms such as purchase requisitions or personnel evaluations in assuring that each line on each page of the form lines up with the previous page. Multi-part forms constitute approximately 15% of total printing workload of the City's print shop. This feature is standard equipment on the Multigraphics system, but is not available on the AB Dick. Page 7, Item 10 Meeting Date 5/6/86 Capacity of paper feed table. During meetings with representatives of AB Dick, the capacity of their paper feed table was cited as an advantage. The paper feed table on the AB Dick system will hold 5,000 sheets of paper, while the Multigraphics system will only hold 4,000 sheets. As a consequence, the paper tray has to be lowered and paper added less frequently with the AB Dick system. This would indeed be an advantage for an agency which usually has long run print jobs (e.g. , 7,000 copies) such as a quick print business. However, the City usually has print jobs with far fewer copies than that. And upon completion of one job, the paper is usually changed to a different color or different type depending on the nature of the job. As a consequence, the Offset Duplicating Operator rarely loads up the paper feed table to its capacity. Thus, this difference between the two systems is not significant. The lack of these features does not mean the AB Dick system is not capable of generating quality printing. It does mean, however, that it requires greater effort and skills on the part of the Offset Duplicating Operator to achieve this quality than the Multigraphics system. The Multigraphics system has built-in a number of features which serve to automatically quality control the printed product (e.g. Electronic Ink and Moisture System, Automatic Sheet Detector/Eliminator, etc. ) . These also serve as labor-saving features as the less time the Operator spends manually quality controlling the printed product, the more time the Operator can perform other tasks simultaneously such as binding. This is an important consideration as this City has only one position--an Offset Duplicating Operator--to perform all of the jobs assigned to the Print Shop. Furthermore, with the recent annexation, workload is increasing. This year-to-date, the workload is 15.5% higher per month than last fiscal year. Thus, the labor-saving features on the Multigraphics system are important to enable the Print Shop to absorb this workload without the need for additional staff. (6) The cost of producing a master on the AB Dick system is greater than that of Multigraphics. At the City Council meeting of October 15, 1985, AB Dick indicated that a typographical error contained within their bid resulted in much higher costs being attributed to their system than would actually occur. The specific error was an overestimate by AB Dick in their bid of the amount of toner and dispersant required. Page 8, Item 10 Meeting Date 5/6/86 The table below presents the amount of supplies required for production of a master for both the AB Dick and the Multigraphics system, revised to correct this error. AB DICK MULTIGRAPHICS Cost for Cost for Type of Supply Yield Cost Master Yield Cost Master Master Sheet/Roll 500 masters/ $35/roll $0.0700 500 masters/ $21 .48/ $0.0430 roll roll roll Toner 3000 masters/ $42.55/ $0.0142 8000 masters/ $99.30/ $0.0124 case case case case Dispersant 3000 masters/ $13.35/ $0.0045 - - - Total Cost Per Master $0.0887 $0.0554 As the table indicates, the cost of producing a master for the AB Dick system is 8.87 cents, whereas the cost per master for Multigraphics is 5.54 cents or almost 40% less. Over a 12-month period, the City produces approximately 15,000 masters. Based on this volume, the City would save approximately $500 per year with the Multigraphics system versus the AB Dick system. Multigraphics, as the table indicates, does not require dispersant. This is a consequence of their use of a dry toner process to produce a master, whereas, AB Dick uses a liquid toner process. The costs in the table are based on the bids submitted by both AB Dick and Multigraphics, and reflect the actual costs the City would incur in producing a master. However, the amount of toner and dispersant required by the AB Dick system to produce a master (as reflected in the above table) has been halved in comparison to the bid submitted by AB Dick thereby reducing their costs to produce a master; this is based on discussions with an agency which operated an AB Dick offset duplicating system. (7) The cleaning time for the system manufactured by AB Dick is greater. At the City Council meeting of October 15, 1985, AB Dick indicated the statement within the staff report that their system requires more cleanup time than the Multigraphics system was false. AB Dick believed the cleanup time was similar, stating that the ink used by the Multigraphics was not radically different than the ink utilized by AB Dick. Page 9, Item 10 Meeting Date 5/6/86 Each system has disadvantages in either the setup at the beginning of the day or cleanup at the end. • The Multigraphics system requires a 10-minute warmup in the morning before it can be utilized. The AB Dick system, on the other hand, has an initial 15 second warmup from a cold start. • The AB Dick system does require more extensive cleanup on a daily basis. This is not due to the type of ink, but rather to the design of their offset duplicating system. The design of their system differs from the Multigraphics in two key areas: - The AB Dick system utilizes a liquid toner to produce a master, whereas the Multigraphics system utilizes a dry toner. - The AB Dick system mixes the ink and moisture directly on the ink rollers, which then applies this mixture to the master. As a consequence, the ink rollers must be cleaned on a daily basis to maintain the quality of the ink as it is applied to the printed copy. The Multigraphics system, on the other hand, does not mix the ink and moisture. Each has a separate set of rollers for application to the master. The longer cleaning time required for the AB Dick system more than offsets the 10-minute warmup time required for the Multigraphics system. This is based on actual repeated observations of the cleanup process for both systems. (8) The warranty of the Multigraphics system is both longer as well as more extensive. The table below compares the warranty offered by Multigraphics versus AB Dick. Extent of Warranty Coverage System Labor Parts Multigraphics 180 days All non-consumable parts for 12 months. AB Dick 30 days . Glass parts, electronic lamps, and starters: 30 days . Rubber rollers, rubber parts, and electrical and electronic parts: 90 days . All other non-consumable parts: 12 parts Page 10, Item 10 Meeting Date 5/6/86 As the table indicates, Multigraphics appears to stand behind their system for both a longer period of time as well as more extensively than does AB Dick. (9) Comparison of the costs of maintenance service is not possible due to variations in bidding between Multigraphics and AB Dick. At the City Council meeting of October 15, 1985, AB Dick indicated their system cost $4,010 less annually to maintain than the Multigraphics system. This statement is inaccurate, in that it compares apples-and-oranges." The service agreement bid by AB Dick was for labor only, while the service agreement for Multigraphics was for both labor and parts. In any case, the City would be seeking bids for maintenance of the offset duplicating system upon delivery of the system. The cost of the service agreement was sought as part of the bid process for the offset duplicating system as budgetary information only to determine the extent of the cost. Based on this analysis, it is recommended that the City purchase the Multigraphics offset duplicating system. The total purchase price, including sales tax, is $46,461 .40. FISCAL IMPACT budgeted cost of 98the the Multigraphics cs system of $46,461 .40 is within the amount b g GG:nr/ WPC 1981E r ail! 1 '.t�% r,. , City Council of • r .i1` ity Chula Vista, Culitornia - k ed