Revised Contracts Procedure for Photocopiers
and Telephone Systems

Attached as Annex A, is a revised contract procedure for photocopiers and telephone systems to support schools to ensure contractual arrangements comply with good financial and procurement practice.

The procedure has been revised in recognition of the fact that a significant number of non-approved contracts have been subject to investigation by Children's Services and Legal Services. These investigations have been carried out on behalf of schools over the last 12 months. These contracts have caused the schools problems due to unexpected costs and failure by the supplier to maintain the equipment. Annex B illustrates some of the case studies.

ESPO have approved contracts for photocopiers and telephone systems for schools which are recommended to be used to achieve best value for the following reasons:

	ESPO's approved suppliers have participated in a competitive tendering process that is fair, transparent and designed to meet the needs of schools.
	ESPO contractual arrangements provide a significant measure of protection and peace of mind for schools by eliminating the risk of poor terms and conditions as well as inadequate maintenance agreements.
	Contracts are let on a best value basis and can save money over the period of a rental contract for either a photocopier or telephone system.
	There are no hidden or additional costs - all toners, maintenance and service are included within the contract. Prices are fixed for the period of the contract.

The suppliers listed below have all been checked by ESPO and Norfolk County Council. Their prices and services have been approved to ensure they offer cost effective solutions.

ESPO suppliers for photocopiers are:
ESPO Contract 272D	Konica Minolta East Ricoh UK Canon UK
This also includes duplicators.
ESPO suppliers for telephone systems are:
ESPO Contract 393A	Daly Systems Network Connect 1st Callcom

Full details of these arrangements are featured in the ESPO Dealing Direct Catalogue.

ESPO and ICT Solutions can help and advise with providing price comparisons for these companies. This advice helps schools to comply with financial and contractual procedures and saves money by ensuring that equipment purchases are cost effective and have no hidden extras, costs or clauses. The above suppliers do not use a dealer network to supply or maintain the equipment.

Non-Approved Suppliers
There are many non-approved suppliers for photocopiers and telephone systems who use various methods to persuade prospective customers that their products and services are cheaper and better than their competitors.

Some non-approved suppliers give schools the impression that they are part of an ESPO approved supplier or on a waiting list. There is not a waiting list and a company cannot be part of an ESPO approved supplier.

The prices from a non-approved supplier will inevitably be more expensive and the contracts could be for a longer period of time.

Reasons to Avoid Using Non-Approved Suppliers:

Photocopiers - Common Practice Includes:

	Additional supplies are charged for eg toner and spare parts if volumes exceed a set volume of copies in the contract.
	Copy/print costs and rental charges can be increased within the period of contract.
	Maintenance and service are charged for as an extra.
	Some suppliers offer a rebate for signing a contract or to buy out existing agreements, however this will be incorporated into the new contract pricing even if it is not visible in the agreement.

Telephone Systems - Common Practice Includes:

	Schools are asked to sign 2 different contracts for the system and maintenance which inflates quarterly costs for the telephone system.
	New parts are charged which should be included in the contract free of charge.
	Purchasing additional handsets has in some cases resulted in hidden signing of a contract extension.

Non-approved suppliers may under or over specify photocopiers or telephone systems to the school's requirements and upgrade contracts very early within the contract period which lead to consolidated interest which means increased payments.

Using a non-approved supplier may not be the most cost effective solution for the school.

Annex B illustrates case studies of Norfolk schools that have signed contracts with non-approved photocopier and telephone system suppliers, showing the significant differences in costs between approved and non-approved contracts.

Contracts should never be signed on the same day a supplier visits the school. You should be given time to read the terms and conditions carefully and to make sure the costs and information that have been provided on the forms is correct.

If you do receive a quote directly from a supplier, before agreeing and signing the document the quote and contract must be sent to ICT Solutions' Contracts Team for scrutiny and approval to protect you from hidden clauses and ensure you are achieving best value.

Alternatively you can contact the Contracts team direct who will supply a quote for the school. The information and costs are checked with the school to ensure that they are correct and that this is the best value photocopier or telephone system for the school.

For more information please refer to Annex C of Norfolk's Scheme for Financing Schools

If you require help, advice or would like a new photocopier or telephone system, please contact ICT Solutions' Contracts team on 0845 303 3003.

The Contracts team will complete a quote on the best value and appropriate solution for the school. To send quotes and contracts please post to:

Contracts Team ICT Solutions Norfolk County Council Martineau Lane Norwich NR1 2DL

Lynn Parvin
Operations Manager