Special Notice / Hearing: None
Vote Required: Majority
To: Honorable Board of Supervisors
From: Rocio Kiryczun, Human Resources Director
Jas Sandhar, Procurement Manager
Subject: Agreement with Quadient for Mail Services Equipment
RECOMMENDATION:
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Adopt a resolution authorizing the execution of an agreement with Quadient, Inc. for maintenance and software support for mailing equipment, postage meter rental, postage funding account services, and postage, in an amount not to exceed $3,650,000 for a five-year term.
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BACKGROUND:
The County’s Mail Room, which is part of the Department of Human Resources, provides essential mail services to County departments, mailing documents such as tax and benefits forms to current employees and retirees, in addition to other and time-sensitive items for the Assessor’s Office, Tax Collector, Department of Public Works, and Parks Department, among other departments. In the last five years, the postage spending has averaged $702,000 per year.
On August 17, 2023 the State of California issued a formal notice announcing the United States Postal Services (“USPS”) new mailing technology requirements, specifically for Intelligent Mail Indicia (“IMI”), which offers better tracking and security features. Under the new requirements, all non-IMI equipment will become decertified on June 30, 2024 and must be withdrawn from service by December 31, 2024.
Currently, the Mail Room is utilizing mailing system and equipment that is not compliant with the USPS’s new IMI requirements. Moreover, the equipment is significantly outdated, leading to frequent breakdowns and maintenance issues that hinder productivity and cause operational inefficiencies. To ensure compliance with the new USPS requirements, County Procurement has separately procured new mail equipment and seeks to enter this agreement to provide related services, namely maintenance and software support for the equipment, postage meter rental, postage funding account services, and postage.
DISCUSSION:
To comply with County requirements for competitive procurement, the agreement is based on the OMNIA Partners cooperative contract (CTR058809). County Procurement
recommends that this Board authorize the execution of the agreement to ensure that mail services are continuously provided to County departments in a manner that is timely and compliant with the USPS IMI requirements.
The resolution contains the County’s standard provision allowing amendment of the County’s fiscal obligations by a maximum of $25,000 (in aggregate).
The agreement and resolution have been reviewed and approved by County Attorney as to form.
PERFORMANCE MEASURES:
|
Measure |
FY 2024-25 |
FY 2025-26 |
FY 2026-27 |
FY 2027-28 |
|
Percent of mail services provided to County departments. |
100% |
100% |
100% |
100% |
FISCAL IMPACT:
The term of the agreement with Quadient, Inc., is from May 7, 2024, through May 6, 2029 for an amount not-to-exceed $3,650,000. County departments will be invoiced by Human Resources based on usage and will pay from their budgets.