Fair competition saves Guam Dept. of Education $4 million

Guam's Department of Education has finally put out a competitive bid for its copier needs. For the last decade and more GDOE acquired its copier needs non-competitively, in a process the Guam Public Auditor had found to be illegal. The illegal contract expired at the end of 2009.

Since the beginning of this year Xerox has continued to service GDOE in a series of monthly roll-overs of the illegal and expired contract, under dubious if any legal authority.

In May, GDOE issued an IFB for a portion of the copier needs, the bids were opened and the low bidder noted, but GDOE has failed to issue any award under that bid. Island Business Systems & Supplies provided the low bid, against Xerox Corporation's bid.

Subsequently GDOE issued a new bid for all of its copier needs, which was opened this week.

IBSS is protesting the failure to award a contract under the May IFB, which may affect a portion of the machines solicited in this recent bid. IBSS does not believe Xerox should be given a second shot at the same machines after IBSS disclosed its pricing in the May bid.

The incumbent provider of the copier services all this time has been Xerox Corporation. It has been providing copiers at a base price cost of $133,000 per month.

Under the new competitively bid IFB, Xerox cut its price almost in half, to about $68,000 per month, base price. The award has not yet been made, pending formal review of documentation.

At a savings of roughly $65,000 per month under its old monthly price, over the course of the upcoming 5 year contract, GDOE will save about $4,000,000.

Competitive procedures and competitive specifications are certainly worth the effort.