Annex D: Definition and Calculation of Value Factor

National Master Standing Offer
EZ107-060001/001/VAN to EZ107-060001/006/VAN
Desktop and Network Printers   including Accessories, Supplies and Services

Annex D: Definition and Calculation of Value Factor

1. Definition of "Value Factor"

"Value Factor" is the term used in this Standing Offer for determining the Products offering the best value to the Government of Canada, based on the evaluated price and the benchmark score for that Product. The best Value Factor is the Product with the highest score for Value Factor in accordance with this Annex.

The Value Factor will be determined in order to select Offerors for issuance of resulting Standing Offers, to determine the applicable Call-up Limitation, and to determine the "Active Offerors" during each monthly period following a downward price revision.

The Value Factor for each printer will be calculated based on two elements:

(1) the Evaluated Price (calculated as set out below); and
(2) the total Benchmark Score.

2. Step 1 - Calculation of "Evaluated Price"

Within each Sub-Category of printers the "Evaluated Price" per unit will be the sum of the following:

(a) The weighted average of the unit prices (each unit price must be equal to or lower than that of the preceeding order size tier) submitted for the five pricing tiers for the printer (including all equipment required for the printer to meet the minimum specifications for the Sub-Category - for purposes of the financial and technical evaluation, all printers offered in network Sub-Categories must be configured and priced with an Ethernet 10/100 Base T or 100 Base T Network Interface Card), including one full set of initial consumables, user manuals, configuration, delivery, and the provision of one-year of Warranty Service (on-site where applicable, as described in the Resulting Contract clauses and Hot Swap Warranty Service for all other locations), inclusive of travel, labour and parts replacement.

(b) The weighted average of the unit prices (each unit price must be equal to or lower than that of the preceeding order size tier) submitted for the five identified tiers for the installation of the printer at final destination. The average installation price will be used to calculate the Evaluated Price for each unit offered, even though installation will not necessarily be requested by all Authorized Users.

(c) The weighted average of the unit prices (each unit price must be equal to or lower than that of the preceeding order size tier) submitted for the five identified tiers for the upgrade of the Warranty Services from one year to four years, on-site where applicable, inclusive of all travel, labour and parts replacement.

(d) The Imaging Consumables Cost Factor (the total cost of imaging consumables, other than paper, to produce a specified number of prints at a specified page coverage, which will be calculated using Tier 1 pricing only).

The weights which will be used for the purposes of calculating the weighted average unit prices (a, b, and c) above, will be as follows for both Group 1 and Group 2:

The following is an example of the calculation of the Value Factor:

2. Step 2 - Benchmark Score

The Benchmark Score will be determined by NSTL. The maximum Benchmark Score for each printer is 10.

3. Step 3 - Calculation of "Value Factor"

The elements will be combined at a ratio of 70% for Total Weighted Average of Cost Factor to 30% for benchmark points. The lowest Total Weighted Average of Cost Factor will achieve 70 points and all other Offerors' Total Weighted Average of Cost Factors will be pro-rated accordingly. The Offeror achieving the highest total benchmark points will achieve 30 points and all the other Offerors' total points will be pro-rated accordingly. The Value Factor will be the sum of the each of the two elements after they are prorated.

Example: