IT Governance Business Case
Copier
Replacement Program
Finance Department
Background
The Finance Department manages the copier/printer fleet across the City of Durham enterprise, comprising 117 machines. In 2018, 79 machines were replaced, with another 3 machines being replaced post-Covid due to their inability to be repaired.
The original plan was to have the remaining 38 machines replaced in 2018, however this initiative was delayed due to the implications of the Covid-19 pandemic.
The copier/printer fleet needs a fleet replacement plan to ensure the fleet is maintainable and up-to-date. The machines that are currently out-ofcompliance experience difficulties when needing to be repaired, negatively impacting the business unit.
Current Business Problem
There are currently 33 copier/printer machines in the fleet that are end-of-life (EOL) as of April 2023. This means that parts and supplies are no longer being manufactured for these models and either are or will soon be unrepairable. If these printers break, there is no guarantee that they will be able to be repaired.
A large majority of the fleet will soon be approaching EOL based on industry expectations, so a fleet replacement plan needs to be developed to ensure the City of Durham is provided with supported and repairable copier/printer machines.
Current Pain Points
•33 copier/printer machines are EOL and in need of immediate replacement
•There currently isn't an in-place copier/printer fleet replacement plan for when machines reach EOL
•Many of the printers/copiers in the fleet are currently only compatible with proximity card technology for ID card capable printing. The City of Durham is moving toward Smart Card technology
•The replacement plan of the printer/copier fleet has not been historically planned or maintained properly
Strategic Alignment
City of Durham's Strategic Plan Goal:
Goal 4: Innovative & High Performing Organization
TS Objective 3: Maintain and modernize all the City's assets to align to the evolving and emerging technologies in the marketplace for City business units
Future State Benefits
• Up-to-date, supported, and repairable copier/printer fleet
• Planned replacements to ensure the machines are supportable and maintainable
• Updated computers are compatible with Smart Card technology enabling utilization of ID card printing with updated smart card ID cards
• Realignment of multi-functional printers based on business unit needs
Analysis and Recommended Solution
Current Fleet Status
Model # Quantity in Fleet End-of-Life Date Replacement Cost MX2560N 28 April 2023 $4,762.00 MX3140N 5 April 2023 $4,762.00 MX3070N 1 November 2024 $4,762.00 MX3050V 61 May 2026 $4,762.00 MX4050V 2 May 2026 $5,884.00 MX3550V 13 May 2026 $5,547.00 MX3551 1 May 2026 $5,547.00 MX5050V 1 June 2026 $5,884.00 MX3070V 1 June 2026 $4,762.00 BP50C31 2 Undetermined Undetermined BP50C36 2 Undetermined Undetermined
Analysis of Fleet Replacement Options
• Replacing the remainder of the fleet by the EOL date would result in no less than $376,198 in capital expense in FY26, which may also increase in price
• Maintenance is based on printing and remains the same whether the fleet is purchased or leased. There is a separate maintenance agreement.
Replacement Plan Purchase Cost Leasing Cost 4 year term Leasing Cost 5 year term 33
100%
$162,210.00 $4,460.78/mo. $53,529.36 annual $214,117.44 Total $3,730.83/mo. $44,769.96 annual $223,849.80 Total
$574,683.00 $15,803.78/mo. $189,645.36 annual $758,581.44 Total $13,217.71/mo. $158,612.52 annual $793,062.60 Total
Analysis of Fleet Replacement Options Cont.
PURCHASING
Pros:
• Outright ownership of machines
• Lower operational expense
Cons:
• Logistics of storing and process of selling for surplus after replacement
• Large initial capital expense
• Large capital expense at replacement time
Pros:
LEASING
• Embedded replacement cycle
• No large capital expenses
• Storage and re-sale logistics a non-issue
Cons:
• Managing disposal of the equipment
• Higher operational expense According to Sharp, most municipalities lease as the support remains the same, a technology refresh cycle is embedded and the logistics of replacing printers is much easier
Recommended Solution:
Issue an RFP to
move all the printer/copier fleet to a leasing model
Description
Replacing the printer/coper fleet and switching to a leasing structure would make overall fleet management more reliable and efficient
Pros
• Supported and maintainable printer/copier technology
• Embedded technology refresh cycle with leasing structure
• Compatibility with smart card technology
• Realignment of multi-functional printers with business unit needs
• Future reduction of leasing costs by realignment of printing needs
Cons
• Higher operational expense
Security Review
The recommended solution meets the cyber security standards for the City of Durham. Any incoming endpoints will be assessed for security as well.
Architecture Review
The recommended solution meets the architectural standards for the City of Durham.
Recommended Solution - Project Financial Estimate
COST ESTIMATES FUNDING Description Implementation Costs (Hours) Post Implementation Run Costs (Hours)/ KTLO Departmental Funding Amount: $ 0.00 Labor $ (Hours) Internal TS Department: 815 hours Hours Funding Requested (Y/N): Y Business Analysis 15 Hours hours Internal Labor New FTE – Year 1 Costs $0.00 Post-Case Systems Analysis 300 hours hours Project One Time Costs (External) $158,612.52 PMO Implementation 400 hours hours *Total Project Funding Requested for Year 1 $158,612.52 TS Implementation Support 100 hours hours Finance 40 hours hours Recurring Costs Year 2, 3, 4, 5 $158,612.52 General Services 40 hours BMS 40 hours External Labor $: $0.00 Professional Services: $0.00 Non-Labor $ Software: $0.00 $0.00 Leased Assets: $158,612.52 158,612.52 * Total Project Funding Requested Year 1 includes New FTE Labor, External Labor and Non Labor
Risk Identification
Description of Risk Risk Impact (High/Medium/Low) Mitigated (Y/N) Contingency(Y/N) Vendor performance Low N N Cyber Security Low N N Project Team Turnover Low N N Poor Execution Low N N
Mitigation Risk (Costs)
• N/A
Contingency Risk (Costs)
• N/A
Our ask
We are asking the IT Governance Steering Committee to approve the business case to issue an RFP to move the printer/copier fleet to a leasing structure with realignment of City printing needs.