Multi-function device FAQs

Standard Products





 

Multi-function device - Frequently asked questions

QUESTION 1:
Our agency has several devices with one manufacturer and need to take the time to do a thorough print assessment which will include reviewing other manufacturers. How can I do this since some of the devices currently rented are expired?

ANSWER 1:
Entities are encouraged to take time in fully analyzing current print behaviors. Entities are able to continue to rent monthly from the previous contract vendor until a firm decision is made. If it is determined to switch to a new manufacturer, it is best to professionally coordinate a transition agreeable to both parties. A 30 day notice would be sufficient. Clear documentation is important to ensure all parties agree to when the transition will take place so the entity is not billed past the agreed to date. In that documentation ensure that you have secured the hard drive security before equipment is removed.

QUESTION 2:
I am currently in the middle of the initial three year rental period. Can I switch to a different device?

ANSWER 2:
There is a penalty to pull out during the initial three year rental period.

QUESTION 3:
I am currently in the middle of the initial three year rental period. A competing manufacturer has offered to buyout the remainder of that agreement and wrap the buyout into a new rental payment to them. Can I do this?

ANSWER 3:
No.

QUESTION 4:
We owned our old copier. The new vendor removed the hard drive and left it with us. What do we do with it?

ANSWER 4:
All State agencies are required to secure information that could be stored on the multi-function device hard drive. Contact your Agencies IT department to determine what your agency rules are in regard to disposing of hard drives.

QUESTION 5:
We rented our old copier. We understand we need to ensure the hard drive information has been erased before it is removed. How do we do this?

ANSWER 5:
All State agencies are required to secure information that is stored on the multi-function device hard drive. The vendor who is removing it must prior to leaving the equipment leaving the premise: 1) provide documentation that the hard drive has been erased/sanitized. 2) remove the hard drive for the agency to dispose.

The vendor is may charge a fee for this service if the device being removed is not being replaced with a new device. The vendor CANNOT charge a fee for devices placed within the terms and conditions of this contract. Contact your Agencies IT department to determine what your agency rules are in regard to disposing of hard drives.

The terms of the contract state: The Contract Vendor is required to pick-up and dispose of State owned old equipment whether or not the equipment is their own brand. This will be at no charge upon placement of a new machine.

Vendor must provide a written verification the hard drive has been cleansed prior to removal of old equipment from the customer’s premises at no charge. If the new vendor is removing and disposing old equipment, the new vendor is responsible for the hard drive’s security. If the incumbent vendor removes and disposes the equipment, the State Agency will be responsible to work with the incumbent vendor to secure the hard drive.
The Vendor must comply with OET Security Specifications. If the vendor is unable to provide this service duet the technological restraints of the equipment or if the Agency prefers to destroy their own hard drive, the hard drive may be removed by the vendor and left with the agency for secure disposal. There will be no fee associated with this service. It is prohibited for a vendor to sell a new hard drive to replace the old.

QUESTION 6:
We are interested buying a standard multi-function device (MFD), but don't need a network card or one of the other core components. Can we save money by removing these components?

ANSWER 6:
Yes and no. Minnesota standards are designed to provide best value and pricing is based on the product "bundle." If you remove a core component for a savings the product is a "non-standard" produce and for state agencies becomes subject to an approval process.

QUESTION 7:
Since a 90 day warranty is included with any purchase or rental, when do we need to start paying maintenance?

ANSWER 7:
Rentals – Maintenance is paid starting day 1 of the rental.

Purchases – Maintenance is paid beginning day 91 of the rental. Any additional supplies needed during that time would need to be purchased. Xerox currently also provides supplies needed during the first 90 days.

QUESTION 8:
What is the procedure for becoming a multi-function device value added reseller?

ANSWER 8:
Contact your manufacturer for details. As part of an RFP that concluded in December 2008 the State of Minnesota has a contract with four multi-function device manufacturers. Manufacturers are responsible for managing their participating vendor list and all changes are subject to review and approval by the State's contract manager.

QUESTION 9:
We need to acquire a non-standard device. What do I do?

ANSWER 9:
Obtain a quote from the Contract Vendor which includes: 1) Better Buys or BLI sheet listing the machine as a multifunction copier and noting the list price. 2) Quote clearly detailing the segment discounts from the contract, rental calculation and maintenance pricing. See example. If you need assistance in verifying the pricing against the contract discounts contact Sue Kahle in Administration.

State Agencies must also contact Sue Kahle at the Department of Administration for an exception to a non-standard product under $50,000. For non-standard products over $50,000 see the OET Review Process.

A quote from the vendor verifying the pricing as detailed above must be attached to the request. Most State Agency IT areas are familiar with this site and can walk you through the process if needed. The State will only approve non-standard purchases with the above documentation.

If you need assistance to verify pricing against contract discounts please contact Acquisition Management Specialist (AMS*).

QUESTION 10:
The Service Provider I have worked with for years is not listed as reseller for the manufacturer we want to use. Can they apply to be a reseller?

ANSWER 10:
If an entity wants to submit a reseller for consideration, they should send an email to the AMS* to request. Outline why you believe they should be a reseller. The reseller will need to contact the manufacturer who will need to submit a change request to the Department of Administration which will include a reseller statement and Immigration Certification forms.

QUESTION 11:
We currently own our multi-function device and the vendor has offered a trade-in price for it. Is this okay?

ANSWER 11:
Agencies may trade-in existing Multi Function Devices they own at a price the agency and the Contract Vendor mutually agree on. The trade-in amount will be given in the form of a credit and subtracted from the invoice. Equipment must be disposed according to the Disposal Terms of the Contract.

QUESTION 12:
When should maintenance charges begin?

ANSWER 12:
If a device is purchased, maintenance may not be charged until day 91. If the device is rented maintenance charges may begin on day 1.

QUESTION 13:
Do non-standard Multi-function devices need to be purchased or rented with hard drive security?

ANSWER 13:
Yes. All multi-function devices purchased through the State contract must include hard drive security. This requirement is part a risk mitigation strategy designed to minimize the opportunity for theft or improper use of non-public sensitive data.

QUESTION 14:
We have multiple devices and the dealer is offering us a better price than what is listed on the contract. Does the contract allow this?

ANSWER 14:
Agencies can negotiate directly with dealers based on their unique situations. Ask several vendors for proposals and make comparisons to get the best pricing. Agencies can ALWAYS accept a better rate than the contract rate and should always strive to ask for better pricing if they have multiple devices. Agencies can NEVER accept a higher rate.

Dealers can offer better pricing than the contract and creatively structure maintenance programs and offer product pricing which are to the State’s advantage. Below are several examples:

EXAMPLE 1: Dealer offers a different maintenance plan based on the number of copies an agency uses.
EXAMPLE 2: Dealer offers the lowest click charge of a pool and applies it to all devices.
EXAMPLE 3: Dealer offers the low overage charge as the click charge for low volume devices once the base minimum for all other devices is met.
EXAMPLE 4: Dealer offers to adjust the install date to synch all device dates to one date.

QUESTION 15:
Our city needs to purchase additional paper trays on a device. This means the cabinet option that is included in the standards package price is no longer needed and we don’t want to pay for it. What do we do?

ANSWER 15:
The vendor must deduct the price of the cabinet from your quote. Have the vendor quote the new paper trays including a list price and ensure you are getting the correct discount per the contract. Make sure the vendor deducts the cabinet price from the total. If you need assistance to determine the price is correct, contact the AMS*.

QUESTION 16:
The Contract Vendor gave me additional paperwork that they are requiring I sign before they will sell or rent our agency equipment. Should I sign it.

ANSWER 16:
No. The original proposal and contract award define the Terms and Conditions. No additional paperwork is needed besides a purchase order. It is important to list the installation, maintenance and rental plan agreed to on the Purchase Order.

QUESTION 17:
I am a CPV member and want to negotiate additional Terms & Conditions. Can I negotiate directly with the Contract Vendor on these?

ANSWER 17:
No. Call the AMS* assigned to this contract to discuss concerns with the Terms & Conditions. Only the State can negotiate the Terms & Conditions of the contract.

QUESTION 18:
Am I taxed on maintenance?

ANSWER18:
No. The Contract vendor must bill maintenance as a separate line on the invoice separately from the purchase or the rental. Per Minnesota Sales Tax Fact Sheet #109 the service provider must pay sales or use tax on the cost of all parts and materials used under the maintenance contract.

QUESTION 19:
Do I need to pay for supplies?

ANSWER 19:
The only time you’ll need to pay for supplies is if you run out during the first ninety days when purchasing a device. The manufacturer must deliver the device with two sets of toner. One to go into the device immediately and one to have on hand. Depending on your usage, this may be enough toner to last ninety days.

QUESTION 20:
Is the rental taxable?

ANSWER 20:
Yes. Rental is taxable. However, maintenance with supplies included is NOT taxable. Rental and Maintenance must be invoiced separately.

QUESTION 21:
How can I verify that either hard drive security and/or encryption has been installed on my multifunction device?

ANSWER 21:
Security features vary by manufacturer. Upon installation, ensure the service technician provides an installation report verifying security features are enabled. If your device is already installed, call for maintenance. The service provider must  either come to your location to verify/enable or send you instructions to verify/enable the features

* The Acquisition Management Specialist (AMS) can be reached by phoning the Department of Administration Materials Management Division at (651) 296-2600. Ask for the acquisition management specialist assigned to Multi-function devices.