xerox ©) Xercomaton April 24, 2017 wrens rannest Pennsylvania House of Representatives teen Main Capitol Building Harrisburg, PA 17120 Dear Member: For the past 20 years, Xerox Corporation has been serving the document ‘management needs of the Pennsylvania House of Representatives in a consistent ‘manner, providing you and your staff with high-quality equipment, sofware, and ‘people fo support your daly needs. We are wing o you because we have been notified that our 20-year relationship with the House is being brought to an end effective June 1, 2017 prir to culmination of our current contract, even though we have received excellent ratings on yearly customer service surveys, passed every House auclt with fying colors, saved the House ‘approximately $1 millon since October 2013 and held $2 milion in involees during the budget criss On Apri §, 2017, Xerox received notice that the House wil be terminating our contract at ‘order to replace Xerox with another Vendor. These termination charges represent approximately one third of the cost of the entire S-year agreement. We understand the House's desire to save money, 30 t0 that end, Xerox repeatedly provided the Clerk's offce with a refinancing proposal with cost savings of $70,000 per month over the next fa years for a total savings of ‘$4,200,000. Additionally, we suggested that resizing some production equipment Could save the House $20,000 per month or $5,400,000 over the next 5 years Despite thee cst savings, Xerox hasbeen informed tha the House intend to uize ‘another vendor. In making that determination, st customary for lrg pubic sector ac co of existing services: ws tobe performed, but Xerox has seen no evidence of an aut. Information obtained through the Commonwealth of Penneyivania Right To Know process suggests tha ting ‘compared to 12 next 60 months. of this proposed new contract wil add a minimum ef approximately ‘$41,000 per month to your operating costs in addition te the confusion ana distuation that is likely to ensue. This does not even include the approximately $1,000,000 In{citional cost due to the incompatbilty of the proposed competitive equipment with the legacy Democratic Caucus fax server. Therefore, we are asking you to request the Clerks’ office to conduct an open, \tansparent, compettve procurement fo ensure thet the members of the House ord the taxpayers of Pennsyivania receive the best price and best value to meet the requirements of you and your constituents. This would be consistent withthe manor in which the House has operated in the past and itis consistent with how all material Procurements are handled in the Commonwealth aswell as in publi ‘enttlos throughout the entre United States. We ‘respectfully request that you consider Xer recommendation. Xerox is proud of our Representative '8 proposal _and subsequent 0rd of service to the Pennsylvania House of Mike Feldman President, North America Operations