Buying print technology and associated services

Learn about the All-of-Government (AoG) print technology and associated services (PTAS) contract, which covers printers, photocopiers, scanners and associated print services, such as consumables (cartridges) and software.

Level of complianceMain audienceOther

Recommended

  • Principals and Tumuaki
  • Staff responsible for buying on behalf of their school
  • Boards

AoG contracts are optional for schools to join. If not joining the AoG contract and entering into a commercial agreement with a print supplier instead, it is still recommended that a school considers the advice on this page.

Benefits of joining this AoG contract

Joining an All of Government contract is likely to save a school both time and money, while also reducing risk.

Learn more about All of Government contracts.

The AoG PTAS contract offers the following benefits to schools.

  • Print suppliers must offer the best rates for equipment (service and maintenance rates remain negotiable but are capped).
  • Pricing will not increase over the term of the contract (unlike commercial contracts, which often include an annual CPI or regular price increase).
  • Pricing options enable flexibility with how this contract is implemented in a school.
  • A3 printing is charged at the same price as A4.
  • There is no charge for scanning functionality.
  • There are no committed volumes (commercial contracts often have a minimum volume which means that schools may end up paying for printing that it doesn’t need).
  • Early termination costs must be disclosed and transparent pricing provided in an AoG contract Statement of Work (SoW) to ensure that schools can make fully informed decisions about the financial impact of ending a contract early.
  • The AoG Print team can provide schools with support when negotiating with suppliers.

The AoG Print team can also provide advice relating to commercial contracts outside of the AoG print contract.

How to join the PTAS contract

The process for joining the PTAS contract is similar to that for other AoG contracts.

StepAction
1

Before you begin

If your school hasn’t signed up to an AoG contract before, you will need to complete a non-disclosure agreement (NDA) available on the New Zealand Government Procurement (NZGPP) website(external link).

Learn more about NDAs.

You can contact school.buying@education.govt.nz to find out if your school has already completed an NDA.

 

2

Read about the contract and the memorandum of understanding (MoU)

Log in to the New Zealand Government Procurement website(external link) to access more information on the contract. You will need to be using your school-linked RealMe account, as you will gain access to commercially sensitive information.

Learn more about linking a RealMe account to a school.

Read the MoU for the PTAS contract in the ‘Contract documents’ section on the New Zealand Government Procurement webpage(external link). The MoU sets out the obligations of the schools participating in the contract.

Learn more about MoU.

 

3

Complete a Letter of Accession (LoA)

Request a Letter of Accession for the contract by emailing procurement@mbie.govt.nz.

Learn more about LoAs.

Completing the LoA confirms your school agrees to the terms set out in the Memorandum of Understanding (MoU).

Your completed LoA must then be emailed to procurement@mbie.govt.nz.

Once the LoA is processed, you will receive a confirmation email with the supplier contact details.

You can now begin engaging with suppliers.

Supplier contact details can also be found on the New Zealand Government Procurement webpage(external link) (when logged in with a school-linked RealMe account).

 

4

Determine your requirements

Think about your current print contract.

  • How does your school buy and use print services?
  • What’s working well and what’s not?
  • What’s important to your school when buying?

Also note:

  • the number and type of current devices, including multi-functional devices, printers, photocopiers and scanners.
  • your print volumes over the past 12 months for colour and black and white (mono) printing and estimated future volumes
  • the way devices are set up (e.g. how user’s access to the devices are controlled)
  • any improvements that you would like to see (e.g. reducing spend, productivity improvements, sustainability).

You might use the requirements template to capture the above details.

PTAS schools requirement and quote template [DOCX, 69 KB]

Your current print supplier can inform you of your current usage and device specifications.

At this time, you should consult with print users to understand their needs. If you have an IT services supplier, you may want to involve them in developing the requirements.

 

5

Engage with supplier(s) and request a proposal and pricing

You may engage one or more of the suppliers on the panel to request a quote.

If you have five or more devices, we recommend that you get multiple quotes.

It is preferable that you decide on a pricing model before requesting quotes, so that the price comparison across suppliers is simple. However, you can request that the supplier quotes multiple pricing options.

A quote might be obtained using the form included with the requirements template.

PTAS schools requirement and quote template [DOCX, 69 KB]

We encourage you to contact the AoG Print team at this time if you have any questions.

 

6

Select your preferred supplier

Compare each supplier’s offer and keep our ‘print contract buying advice’ in mind.

When selecting a preferred supplier, you must consider the supplier’s pricing as well as the solution offered. When comparing pricing, you should also take into account any early termination costs included.

Once you confirm a preferred supplier, they will then prepare a Statement of Work (SoW) that reflects your requirements. They will work with New Zealand Government Procurement to make sure that their terms meet the requirements of the AoG PTAS contract.

Once New Zealand Government Procurement reviews and confirms the SoW, it can be signed by your school and the supplier.

 

7

Delivery of print devices

The SoW will set out the start date of services.

Once the print devices are installed, your school is participating in the AoG PTAS contract.

 

Key PTAS considerations

Suppliers

There are three suppliers on the AoG panel.

  • FUJIFILM Business Innovation
  • Ricoh
  • Canon

Their contact details are visible on the NZGPP website (when logged in with a school-linked RealMe account).

Print technology and associated services providers | New Zealand Government Procurement and Property(external link)

Pricing models for devices

There are a range of different pricing options and they differ based on how the print device costs are paid.

In all models, the school pays for services and maintenance separately.

ModelDescription
Monthly lease A fixed monthly cost is paid to lease print devices of the school’s choice.
Outright purchase Print devices are paid for in full, up front.
Standard cost per-copy A fixed per-copy rate is paid for print devices of the school’s choice.
Managed cost per-copy A negotiated per-copy rate is paid for print devices selected by the supplier to suit the school’s needs.
Short term lease Print devices are leased for three months or less. This is only suitable for temporary requirements.

Service and maintenance rates

All of the above pricing options have capped service and maintenance rates. These are charged per-copy and include the maintenance of devices and provision of all consumables (e.g. printer cartridges).

Paper and any other stationery requirements not specifically for the device are not included in the scope of the contract. These might be purchased through the AoG Office Supplies contract.

Selecting devices and device ownership

Aside from under the managed cost per-copy pricing model, schools will need to select their print devices at the start of the contract. Under the managed cost per-copy pricing model, the supplier manages/optimises the fleet over the term of the contract to cater for the changing needs of a school.

The ownership of the devices stays with the supplier in all pricing models, aside from the outright purchase model. Therefore, the devices will be returned to the supplier at the end of the contract term.

General print contract buying advice

Selecting a pricing model

Most schools use a monthly lease pricing model, as this is the simplest model and does not require a school to forecast accurate print volumes. However, if a school can afford to pay up-front for the print devices, outright purchase may be a good option, as this would save on finance charges.

If a school has confidence in printing volumes, one of the cost-per-copy models may be used. However, it is important to note that if volumes turn out to be higher than estimated, the school may end up paying more. If the volumes turn out to be lower by more than 10%, the supplier is allowed under the terms of the contract to renegotiate rates.

 

Best timing to consider joining the AoG PTAS contract

A school whose existing contract is approaching expiry is in the best position to consider joining the AoG PTAS contract.

The school will not incur any early termination costs associated with an existing contract. Printers can be refreshed with no costs carried over from previous contracts and the school will have the best chance of being offered a competitive rate by all suppliers.

Schools should commence the planning and joining process 3-6 months ahead of contract expiry. Existing suppliers are also likely to make contact at this time to discuss renewal.

 

Terminating an existing contract

A school can terminate its existing contract to sign on to a new one. If doing this, the school should consider the cost impact of terminating a contract early.

While it often appears that savings will be achieved month by month, there is almost always a financial implication for schools when terminating a contract. This may make a change of contract more expensive than finishing an existing contract.

Schools may want to break a contract early and risk an early termination charge because of issues with old equipment. First, ensure that the supplier is meeting their responsibility to keep leased equipment functioning properly. If this is not satisfactory, then consider leaving the contract.

A contract should only be terminated by the school when fully informed about all of the associated costs.

If considering breaking a contract early, we encourage schools to speak to the AoG Print team for advice.

 

Sponsorship deals

Supplier proposals including some form of sponsorship is a common offering for schools. Sponsorship can look appealing, as it might include the business donating to a school by supporting events or sports teams.

Suppliers almost always charge the school the costs of their sponsorship by raising the price of the cost-per-copy or lease rates.

Although sponsorship can be provided under an AoG contract, it is not encouraged. If provided, the details of the arrangement need to be outlined in the SoW with costs disclosed so that the school can make a fully informed decision.

 

Contract duration

The AoG Print team recommends a five-year term as it works out to be the best balance between equipment life and costs paid.

Shorter term contracts provide schools with less time to pay the cost of the equipment, which makes monthly charges significantly higher.

Also, if a school pays the equipment off in three years, for example, the supplier will quickly receive the equipment back fully paid for and in good condition, which is in the supplier’s favour.

 

Impact to borrowing thresholds

Boards can only borrow within the limits set by section 155 of the Education and Training Act 2020 and the conditions specified in regulation 12 of the Crown Entities (Financial Powers) Regulations 2005. This limit is set at a maximum repayment of interest and principal of 10% of a school’s annual operating grants.

Monthly payments under AoG print contracts for equipment are treated as a finance leases resulting in a debt repayment.

The monthly repayments will be included in the borrowing limit calculation. It is recommended that a school’s financial services provider is consulted when entering new leasing arrangements.

 

Contacting regional dealers

Schools are encouraged to contact the AoG panel suppliers’ head offices directly using the details on the New Zealand Government Procurement website, rather than contacting regional dealers.

Print technology and associated services providers | New Zealand Government Procurement and Property(external link)

Contracts put in place by regional dealers may not include AoG benefits, pricing and contract terms.

Regional dealers will still provide services and maintenance and are the key contact during the contract period.

 

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