Xerox and HP Managed Print in the Wall Street Journal...

As MPS continues to expand in recognition, Ed Crowley gives is 0.020 worth in a recent WSJ article written by William M. Bulkeley.

The article is a simple piece - the content nothing new to any of us "in the industry." I guess if your niche gets mentioned in the WSJ, the niche is likely to start getting crowded.

A mention of a big deal in Michigan, Dow Chemical, was of particular interest. I believe the case is studied in one of Photizo's first newsletters.

From the WSJ article:

"...Tom Codd, H-P's director of marketing for enterprise services, says H-P's managed print services business has been growing at a 38% annual rate since 2004.

"H-P comes from a very strong position because we invented network printing, and historically IT guys bought the printers," Mr. Codd says.

Dow Chemical Co. in Midland, Mich., which hired Xerox, says under the managed service it cut the number of printers, copiers and fax machines in its offices to 6,600 from 15,000..."

One other interesting point from Stephen Cronin, president of Xerox's global-services business,

"...Xerox doesn't force customers to switch to Xerox hardware,

noting more than half of the 1.5 million devices the company currently manages are from other vendors. But he says consolidating on a single brand helps cut costs. "Total spending goes down, but my proportion goes up," Mr. Cronin says. Last year, services, including maintenance as well as managed print, contributed $3.5 billion of Xerox's $17.6 billion in revenue."

Check the rest out, here.

MFP's: Security Leak?

I want to pass this along.

A security article around MFPs.

Nothing new really, security is an issue with every network connected device.

MFP's have always had issues (small) with possible security breaches. These potential leaks can usually be addressed with "check in a box"configuration, closing the open channels.

But, just like everything else around the print fleet, these issues have been overlooked. A printer or copier or MFP just isn't as sexxxy as a Blade, or Citrix, or VMWare, is it?

Enjoy...

MFP security--or how the IT guy is becoming the security guy
Wednesday, 11 February 2009 12:15 Vince Jannelli, Sharp Information and Imaging Company of America

NetworkingI recently read an interesting article in the Wall Street Journal (October 16, 2008, “New Data Privacy Laws Set for Firms”) that outlines new state-by-state regulations for data security. The article contains a great quote that I think sums up the major concerns for IT managers right now, but it doesn’t come from IBM or Cisco or even Sharp. It comes from the network manager for the Northeast-based pizza chain, Papa Ginos, who says, “Anybody in IT has to become the security guy.” I truly believe this quote illustrates how IT managers in companies of all sizes are quickly realizing the importance of data security and are learning more about what steps need to be taken to ensure that the network, and ultimately the company, are safeguarded against data theft.

Technology makes an ever-increasing contribution to profitability in today’s highly competitive business landscape. However, the same technology that enables high productivity in the workplace can easily be compromised if not sufficiently secured. The consequences of inadequate protection could be financial loss, identity theft, risk to intellectual property, or even the ruination of an upstanding business due to identity theft.

Organizations spend significant capital to protect digital assets from threats, yet frequently overlook one of the most used network devices today -- the office multi-function peripheral (MFP). As these devices become more advanced and integrated, they offer companies a myriad of new benefits. However, because they are a document’s entry and exit point on your network, they also pose a number of threats that cannot be overlooked. For a comprehensive security strategy to be effective, it is imperative for organizations to demand a greater level of protection from MFP vulnerabilities.

MFP: The Overlooked Security Risk

An MFP is a powerful asset in your office’s environment. Left unsecured however, an MFP can pose one of the greatest threats to your organization. Just consider the types of documents that are copied, printed, faxed or scanned on a daily basis -- personal information, financial statements, confidential reports, e-mails, memos, customer data and employee information. Much like a computer, this data remains on the unit’s hard drive indefinitely.

The Risks to Office Multifunction Peripherals

Internal Threats

Important information can be at risk at the internal level, from threats within your organization. At the device level, confidential information can be accidentally or even purposefully copied from stored documents on the unit’s hard drive, taken from the output tray or faxed without authorization. Any information stored on a local desktop computer or accessible through the Local Area Network ( LAN) can be printed without authorization. And since many of today’s offices MFPs are running over a network, this provides employees with another entry point to the network that could be used to bypass user restrictions and access information on other computers on the same network.

External Threats

Data is also at risk via external threats, outside the company’s realm. From across a Wide-Area Network (WAN), the Internet or a Virtual Private Network (VPN), information such as stored documents, scanned data or print data can be intercepted. In the worst case, a user from the outside can obtain confidential information, unleash a Denial of Service (DOS) attack, or even place a virus on the device via the network or a phone line. Through a FAX line, or corporate LAN, communications could be intercepted or sent without permission anywhere in the world. Data stored on the copier’s hard disk drive or in memory could also be compromised or even taken off-site and stolen if not protected.

IT mangers need to also consider what happens to office equipment once they have reached their end of life. If copiers or MFPs are being leased, there is always a chance that these units can fall in to the hands of hackers who can unlock data stored on the hard drive.

The Solution: Multi-Tiered Security

In any situation, protecting your MFP from just one threat is not adequate. A solid security suite will offer a multi-layered approach to protection -- providing better control over the users, devices, ports, protocols and applications on your MFP(s). A comprehensive approach to security will account for protection at every step in the document lifecycle, from the initial scan or print to final output and distribution.

Solutions for Internal Threats

The first step is to secure data that is stored right on the MFP that users can access locally. Manufacturers have introduced Common Criteria security solutions to offer encryption and data overwrite features for various levels of use. Ensure that your MFP meets the highest commercial level of Common Criteria Validation.

Data Security

A powerful security suite or security kit protects and controls the major MFP systems, subsystems (print, copy, scan, fax jobs, network settings, operating system, memory components, local user interface, engine and job controller) and all data before it is written to RAM or Flash memory and the disk. Be sure to enable overwriting routines for deleted data so that all information is virtually irretrievable by unauthorized users.

Access Control Security

To limit unauthorized access to each device, specify account codes, user/group profiles, passwords, or external user accounts contained in an LDAP or Active Directory server. And to mitigate the risk of interception, user credentials should be transferred using a proven combination of encryption standards, such as, Kerberos, SSL or Digest-MD5.

An MFP security suite should also enable you to customize your solution to meet your unique requirements and ensure data confidentiality and integrity. For instance, government agencies should seek out a security suite or development platform that can be customized for use with MFD or CAT card readers. Without a CAT card reader, the MFP is not compliant with HSPD-12 (homeland security presidential directive 12) and renders the network functionality of your built-in fax or copier unsafe.

Audit Trail Security

A modern MFP will provide an internal audit trail, and/or third party application software such as Equitrac Office, for comprehensive auditing of all user activity. Certain federal regulations parameters, such as 'to', 'from', 'when' and 'file name' can be logged, reviewed and archived for conformance. Be sure that your MFP is customizable so that, if audit trail software is not embedded, you can easily request or download the appropriate software.

Solutions for External Threats

Unlocking the true potential of your MFP means having it fully integrated with your network, so employees can scan to email, or browse and preview data from the server right on the MFP. Of course, adding another entry point to the network present another possible threat to a company’s data. A security suite should provide you with the proper safeguarding against external threats too, allowing you to scale up as needed, but adequately safeguarding the network infrastructure and MFP installed base, without affecting network traffic or workgroup productivity.

Network Security

A multi-tiered security suite will feature an intelligent network interface that can limit access to specific computers on a network by IP or MAC address, and selectively enable or disable any protocol or service port on each device. All communications to and from the MFP will utilize Secure Socket Layer ( SSL) for secure transmission over the network, and most devices also support SMB, IPv6*, IPSec* and SNMPv3.

Fax Security

Often times attackers can gain access to the internal systems of the MFP or the local network via fax lines. The MFP should provide a logical separation between the fax telephone line and LAN.

Platform Virus Security

Be sure that the MFP operating platform is secure. A proprietary platform is ideal, since it won’t be susceptible to viruses designed to attack more popular operating systems available on personal computers.

Taking the time to talk to your dealer about these features is vital. The time spent will be minimal but the cost savings, both tangible and intangible, will be enormous. Regardless, do not settle for a cookie-cutter, one-size-fits-all security package. Threats to private information and data will always be present and are always evolving. Make sure you are ahead of the game when it comes to security and that your MFP security suite is evolving fast enough to stay ahead of these threats.

Vince Jannelli is the associate director, Applications and Partners, for Sharp Information and Imaging Company of America.

Here is original.

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Death Of The Copier a Year Later: When does a Blog stop being a Blog?

I had to go back and see what the official date was of my first post. I knew it was close to March, but to my surprise, it was a year ago, yesterday (Feb 20).

So I guess it is fitting that I put down some thoughts a year later.

One of the techniques I have learned to drive traffic to a site, is to use easily searchable words in the title of the post, like "copier", "HP", "Xerox", etc. - this post will not show up on many Google results and that is fine with me.

It's fine because I really write to read what I write - that's how this started, and today it's still true.

I started this little endeavor without really knowing what a "Blog" was - all I wanted to do was put some information "out there", within reach of potential clients. Information strictly around the HP Edgeline. At the time a revolutionary new technology, a "copier Killer" technology.

Well, I never really wanted to talk about what I ate for lunch or how many people came over for Thanksgiving dinner.

Back in the beginning, "driving traffic" to the site meant me telling my family and close friends about my blog and how they should "go check it out". One month, 12 of my friends viewed one page and spent an average of 30 seconds on the site. Today, I have a months with 16,000 and an average time on the site between 2.5 and 3.2 minutes.

Back then a "Blog", the combination of the two words web and log, was considered a diary created by individuals and stored on the internet.

I looked at the Drudge Report as a functional model. Scanning the internet for information regarding my industry and posting.

Pretty simple.

This idea grew into finding more information, again interesting to me, and writing some commentary or reflection. And ultimately, writing pure content based on topical issues.

As time progressed, I started to refer to the blog as "my site" - because it really isn't a blog, it's not a journal or diary. One of the many things I have learned, most successful, business blogs really aren't diaries. Neither is mine - but I must admit I do like to go back and read older posts.

Sometimes I cringe, sometimes I laugh out loud, most of the time I am just as amused as the day I wrote it.

They say any good experience is one you learn something from. This is the greatest learning experience, ever.

Over the past 12 months, together, we have been witness to the beginning of the largest merger in the history of our industry .

We've seen $5.00/gallon gasoline prices grind the economy to a stand still and have witnessed the biggest transfer of private business to government ownership in the history of mankind - this has not been a "ho-hum" year.

I have learned more about smart paper, carbon credits, publishing, killer laser toner, nano-printing, copier leases, copier crimes in Cleveland, winery tours, and recycling centers, soy based toner, Hybrid Dealers, Galactic-Hybrid Dealers, drunk email, umbrellas of silence, Pearl Harbor, and Google Data Barges.

Some of the other things I have learned involve plagiarism, "feeds" vs content, verifying sources and that writing should not be easy, if it is, then it is not writing.

I have also tried to title my posts with a bit more thought - well, I must admit, I do like "The Death of..."

The Death of Xerography
The Death of the Sale
The Death of the Copier Person
The Death of Print
The Death of Kaaaaaahhhhhhhhhhhhhhhhhhhhnnnnnnn!
The Death of Socrates
The Death of Windows 3.0
The Death of the "Close"
The Death of the Typewriter
The Death of the Copier Dealer
The Death of Edgeline

I still chuckle, and reflect, when reading "The Death of Kaaaaaaaahhhhhnnnnnn!" I am sure there will be more.

Ah...the people...

This site as introduced me to so many different people. People I would never have met without the DOTC. Great peeps - you know who you are. Collaborators, mentors, contributors, critics - peers. To you, I say thanks.

And the connections...

I have now been published in a new and highly regarded MPS Journal, I have been interviewed by dozens of pundits, industry analysts and peers. I am currently working on articles for a number of industry publications.

I attended the Lyra Symposium and will be attending the Photizo conference in April. I am part of a collection of MPS people focused on helping others make it in this field.

All of this is very flattering and a bit unbelievable. The attention is grand.

And yet, the most rewarding aspect has been receiving emails from folks who read the site everyday - who have made it part of their routine.

The regular, normal, everyday Selling Professional. The people that make EVERYTHING happen. Sometimes it's just a phrase or two and sometimes I receive a nice long letter - and to be honest I haven't received all that many. But a law of marketing says for every "one" response, there are 5.3 people who feel the same.(not sure on the actual figure)

The blog stopped being a blog, the day I received my first "good job" email, back in August of 2008 - since then, its been a odyssey.

And as this writing expedition, this journey into "self" continues to evolve, I am even more honored to have you here along with me.

Thank you, and keep coming back.

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Excellent Discussion over on LinkedIn - "Just What is Managed Print Services?"

2/22/2009

The topic was posted by Michael O'Leary, Director- Document Outsourcing at Info Trends.

A sampling of the responses:

"...I hope I did make this point in my explanation--print management is a services-led sales strategy. You will sell equipment but frequently that revenue stream becomes a fulfillment of the print management engagement rather than the entry point..."

- Tom Callinan

"...One of the biggest problems I find in discussing MPS, or PM or any other name that is developed, is that no one is working from the same definition..."

- Shawn Robison

"...I don’t view print management or MPS as new; they are evolving, but what doesn’t? I sold “fleet management” agreements inside of facilities management (FM) agreements for the last 10+ years (A services-led sales approach). Admittedly, we didn’t look at the cost to print at the individual asset level other than trying to move prints to copier-based products or the production center (a mistake)..."

- Tom Callinan

"... in our definition Print Management is two components: Printing Management and Printer Management.

Printer Management is also mostly known out there as MPS. It has everything to do with the device; meter reads, supplies reporting, supplies fulfillment, break-fix information, and various alerts as to what is happening on the machine..." 

- John MacInnes, President & CEO Print Audit

"...one company I recently interviewed (one of the largest managed print services installations in Europe) had a very good perspective on this. They said (and I paraphrase a bit here): "Most vendors are approaching Managed Print Services as 'wrapping' services around hardware in order to sell more hardware."

"What we want, and where the market is moving to, is for a vendor to offer me all of the services required to manage my fleet and hardcopy strategy just like I manage any other IT technology. And oh, by the way, if they provide the hardware also, that's a bonus." 

- Ed Crowley, Industry Pundit - Managed Print Services

### Update ###

This great discussion is done brewing, having been removed from the group.  It was good while it lasted.


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2/22/09

Do You Sell? You Are a Capitalist, and that's OK.

A long time ago, a few Americans, at great risk to themselves and family, disguised themselves as Indians, and dumped tea into the Boston Harbor - over a 4% tax hike.

Today, the California state budget(for last year) was passed. My taxes are going up - a great deal more than 4%.

One radio personality said on-air last night, "...I know how to change this, but there is an 11 day waiting period in California..."

This is not good.

Since September, regular people, business owners, and employees alike - Capitalists - have been scared. Not scared of competition from overseas, or down the block. They are not scared of losing customers or enhancing their customer experience.

The Russians, or the Taliban, or even Bin Laden don't give these people pause.

Today, millions of us are afraid of our own government.

Worse, some, as they witness failure and bad choices being rewarded - "mortgage bailouts" - are starting to fear success.

I have seen the enemy, and the enemy is us.




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More Green - Canon Makes Calculators Out of Old Copiers - Huh?

“Although the cost of manufacturing products using recyclable products is higher than buying new raw materials off the shelf, we believe in doing something to preserve the environment,” says Canon Marketing (M) Sdn Bhd president and chief executive officer Liew Sip Chon.


"As the first office equipment manufacturer to implement a cartridge recycling program in 1990, Canon has long been committed to reducing our environmental impact," said Hendrik Verbrugghe, Marketing Manager, Canon Middle East.

"The launch of this calculator range is a small step towards a truly sustainable manufacturing program. Through continued improvements in resource efficiency, we hope to show that it is possible for all players in the industry to achieve a balance between environmental and business interests."

HP: Pay Cuts and no 401k - and still the State of California gets Away with Stealing

In a communique dispatched via email, Hurd explains how cutting the base pay for all its employees will soften his conversation with "analysts and investors..." Hurd will take a 20 percent pay cut to his base pay.

Here is the text:

Today, HP announced first quarter results amid one of most difficult economic downturns that any of us has ever faced. I am proud to say that we continue to execute well in this very challenging environment.

We grew revenue 1 percent year-over-year, or 4 percent in local currency, and you need to look at these numbers a little differently this quarter. For the first time in a long time, the dollar was strengthening, so the currency conversion was actually a headwind for us. We also continued to show strong operating leverage with non-GAAP operating profit up 10 percent year-over-year. This was a solid performance, and I thank all of you for your efforts.

But really, Q1 was like a tale of two companies.

HP Services — as a result of EDS and TS — had a strong quarter, delivering virtually all of the local currency revenue growth and more operating profit than any other business. It’s gratifying, because this performance was possible because of the hard work we’ve been doing to restructure those businesses.

When you take HP services out of the mix, it’s a very different picture. PSG had revenue down 19%. ESS had revenue down 18%. IPG had revenue down 19%. In fairness, across IT and even other industries, product businesses are struggling in this economic climate. And we did gain share in key market segments. PSG and ESS gained roughly 1 and 3 points of share, respectively. In IPG, quite frankly, we still have work to do across a number of dimensions like inventory, both owned and channel inventory.

In an environment like this, there’s no margin for error and no tolerance for inaction. To give you a little insight into my world, after we report our earnings, we engage in a dialogue with analysts and investors. They’re going to ask what we’re doing in light of the current environment to right-size these businesses.

The math is pretty straight forward. From a productivity standpoint, you’re supposed to reduce headcount on par with declining revenue. If you believe the environment isn’t going to improve, you should take a bigger cut to get in front of the problems. You can do the calculation, as easy as I can. We have about 100,000 people in our product businesses, with revenue down roughly 20%, and an environment that may not get any better in 2009.

I’ll be asked by investors, “Where’s the job action, where are you taking out this roughly, 20,000 positions?” Well, I don’t want to do that. When I look at HP, I don’t see a structural problem of that magnitude. There are pockets where restructuring needs to happen, and areas where actions will be taken as part of our ongoing workforce optimization process. But at a company-wide level, I don’t believe a major workforce reduction is the best thing for HP at this time.

I think we are fundamentally sound, and when the economy picks up, I want HP to be strong, and to take share and to outgrow the market. I said it last quarter, my goal is to keep the muscle of this organization intact. But we do have to do something…because the numbers just don’t add up and we need to have the flexibility to make the right long-term investments for HP.

So we are going to take action. We have decided to further variablize our cost structure by reducing base pay and some benefits across HP. My base pay will be reduced by 20 percent. The base pay of Executive Council members will be reduced by 15 percent. The base pay of other executives will be reduced by 10 percent. The base pay of all other exempt employees will be reduced by 5 percent. For non-exempt employees, base pay will be reduced by two-and-a-half percent. Additional efficiencies, including changes to the US 401(K) plan and the share ownership plan, will also be implemented. Of course, the implementation of all of these actions is subject to compliance with local laws and regulations. Follow-up communications will detail the timing and the plans in your location.

This does not change our pay-for-performance strategy at HP. If we outperform, and there is a chance we will, then we will increase the total amount of variable pay. In fact, the financial flexibility we’re gaining helps put us in a better position to compete and to win in the marketplace, and fund the bonus program this year based on pre-adjusted salaries. If the company performs well, if our individual businesses perform well and if you perform well, then you could potentially make up the difference with your bonus. I can’t promise you anything, but I tell you…there is a chance…if we get this right.

To be clear, these actions don’t make up for all of the decline in revenues. We’re also benefiting from the tough actions we’ve taken over the last few years. People always asked, “Why are we so focused on getting costs out in good times?” Now…is why that work was so important. We’ve been able to bank some of those savings, and we’re making a withdrawal, which along with the actions we’re taking today, I hope, will get us through this recession.

Again, there are no guarantees. If the environment gets worse, if the downturn lasts longer than we’re assuming, if our performance declines, we’ll have to reassess. But for now I believe this is the right thing for the strength of HP.

I know this is a tough time. But if we get this right, HP can be the kind of company that not only has led, but will extend its leadership. We can emerge from this recession in a powerful position to create value for our customers, our shareholders and our people for years to come.

Thank you.

Mark

Plastic Logic - Save Them Trees...

Mr. McGuire: I want to say one word to you. Just one word.

Benjamin: Yes, sir.

Mr. McGuire: Are you listening?

Benjamin: Yes, I am.

Mr. McGuire: Plastics.

Benjamin: Just how do you mean that, sir?

A year from now, we may all read our internet news and favorite blogs, not on paper or through glass, but on plastic -

A company I mentioned in a article on the last day of 2008, made a few announcements the same day Amazon announced it's Kindle 2.

That company, Plastic Logic, has made arrangements with the Financial Times and USA Today to provide content for its eReader, according to a company statement.

Contracts with content aggregators Ingram Digital, LibreDigital, and Zinio were also signed.

Plastic Logic’s target is claimed to be the large market of “business readers” of newspapers, magazines, PDF documents, blogs and emails.

And with it's 8.5x11" size it could be the Killer App the paperless world is waiting for...


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Jim Lyons Observations: HP (NYSE HPQ) confirms -- overall printing is down

I work with an HP VAR, SVIP, OPS Edgeline.

And I happen to think that HP is a great "little" company and makes good stuff.

Yesterday's HP conference revealed much, and there are many analytics.

Rob Sethre has some good words, here.

Jim Lyons was on the call and has really good insight.

Jim Lyons Observations: HP (NYSE HPQ) confirms -- overall printing is down

Print4Pay Hotel: HP Edgeline "What Went Wrong"

Art has a good little post regarding Edgeline and "what went wrong".

Of course, I had to comment.



Print4Pay Hotel: HP Edgeline "What Went Wrong"

Copier Selling to Schools- Let's Get Down and Dirty in the Mud!!!!

This is almost too delicious.

A longtime Xerox partner has to take on a newbie Xerox dealer.

The Newbie looses the bid. The Newbie plays the "he didn't play fair" card. Ends up representing all that is wrong in copier sales.

This article from the Westport News, written by Frank Luongo, explains it all better than I could.
-----
Rejected copier bidder protests contract choice
By Frank Luongo

In losing the bidding competition for the Westport school system's new contract for photocopier management services, CBS/Xerox (CBS) of Newington has described the outcome as fiscally flawed.
"It is without question that this is an irresponsible financial decision to the taxpayers of the Town of Westport, the Westport Board of Education (BOE), as well as the respective teachers, faculty and students," CBS President Wilson Vega expressed in a formal protest on Dec. 18 to Assistant Superintendent for Business Nancy Harris.

Vega said that the school system would be paying $137,168 more over the term of the contract than the CBS bid would have cost, based on what he said would be an annual higher cost of $34,292 in the ACT agreement.

ACT President Gregory Gondek said in a telephone interview Wednesday that the net cost of leasing replacement machines for a 60-month term, together with a run of 5,000,000 copies at a $.0090 cost-per-copy, would be $45,000 per quarter, after a credit to the school system of $3,208 each quarter for the machines replaced.

A review of the bid documents shows that CBS, which is owned by Xerox, had proposed quarterly payments over the course of a 48-month equipment lease, ranging from $39,074 to $39,873, depending on the option chosen, based on a quarterly volume of 5,008,251 copies at a $.0042 cost per copy.

In answering CBS's protest on Dec. 22, Harris did not respond to Vega's claim about the higher costs of ACT's services, but said that his letter "incorrectly" assumed that the "photocopy management services were awarded on the basis of which bidder bid the lowest price."

Rather, Harris said, the school system's request for proposals (RFP) for copier services had made it clear that the BOE at its "sole discretion" would make the award based on a range of considerations "in addition to price.

The BOE, in fact, did not "review or approve the bid responses," according to Marjorie Cion, the executive assistant to the superintendent, who confirmed by e-mail, after consultation with Superintendent of Schools Elliott Landon, that the school board did not take up the copier contract matter at a meeting in public or in executive session.

In a "certificate of fact" for the law firm that represents the school system, Shipman and Goodwin, Landon said that the copier-contract agreement had been "duly authorized and approved" by the action of the school board, authorizing him and Harris "to sign contracts on behalf of the Board of Education."

The certificate notes that there is "no action or other proceeding pending" that could impede the enforcement of the agreement except the CBS protest.

On the basis of Landon's certification and a meeting with CBS on Jan. 6, Shipman and Goodwin said in letter to CBS on Jan. 8 that "the board's decision to award the contract to Advanced Copy Technologies is final. The board deems this matter to be closed."

Cion said in an e-mail message that, according to Landon, Shipman and Goodwin's description of the board's role uses legal "terms of art" to convey the point that Landon and Harris had acted under a BOE authorization for them to sign contracts, not that the board had "decided to award" the contract.

The signing authorization, which eliminates the need for a direct BOE review and approval of contracts, was contested several years ago in a copier-contract dispute over the transfer of the school system's copier services also from a Xerox company to ACT, which has now had its services extended.

In the new contract dispute, Harris maintains that CBS did not satisfy the RFP requirement that the vendor supply only newly manufactured, "latest model" equipment with no "recycled, reconditioned, remanufactured or used parts."

Harris said in the Jan. 8 letter that CBS's response to the RFP "discloses" that the company's proposed equipment "contains recycled components."

CBS had tried to counter that contention, according to a letter from Vega on Dec. 30, by saying that its Xerox machines are new, but "as with most manufactured products today, there are some elements of recycling in order to meet government standards as well as to be environmentally responsible."

"All office product manufacturers have adopted the policy of using recycled parts as a way of reducing their carbon footprint," Vega said, including Lanier/Ricoh, which manufactures ACT's copier machines.

Gondek denied that the machines his company uses have recycled components. He said that he has visited Lanier/Ricoh plants and has seen only totally new copiers, although he acknowledged that the manufacturer does recycle toner cartridges and printer drums.

Harris said that CBS had also failed to prove that it has been a "factory authorized dealer for the products being proposed for a minimum of three years," as she wrote to CBS, pointing out that CBS has been owned by Xerox only since May of 2007, which, she said, fails to meet the school system's service-experience test in its RFP.

In answering that objection, Vega relied on the good reputation of the Xerox product, its standing as a Fortune 500 company and the fact that CBS is currently servicing Xerox products in the public schools of Greenwich, Darien, East Windsor, Guilford, Madison, Old Saybrook Ridgefield, Trumbull, Watertown, Weston and Wilton.

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