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The IRS Selects Kyocera as Printing Solutions Provider Based on Industry Low Total Cost of Ownership

Tuesday, June 21, 2005

Press release from the issuing company

FAIRFIELD, N.J--June 20, 2005-- Kyocera Mita America, one of the world's leading document imaging companies, today announced that the Internal Revenue Service (IRS), a branch of the Department of Treasury, has awarded Kyocera a contract to provide 3,400 printers to IRS offices throughout the U.S. based on their industry low total cost of ownership. Through this partnership the IRS is forecasting to save millions of dollars over the life of these devices. The IRS chose Kyocera as their vendor of choice after thorough evaluation of the costs associated with the printers currently installed in IRS offices throughout the U.S. As with many large organizations, the IRS was using a fragmented approach to printer and MFP purchases, using an IT budget for the initial purchases and a separate budget to cover the cost of consumables. What the agency discovered was that it was crucial for them to examine the long-term operational costs of running printers rather than basing purchase decisions solely on the lowest-priced hardware. "We recognized that the IRS had a significant opportunity to save money and make more informed printer purchasing decisions," said Russell Critterton, contracting officer for the IRS. "In July of 2004 the IRS issued a bid to all IRS Treasury Commercial Vehicle (TCV) contract holders. In addition to pricing, the IRS tested all equipment to ensure overall quality and compatibility. The deciding factor, however, was the total cost of ownership of the devices. Once we saw how well Kyocera's printers held up in our tests and the cost savings over the life cycle of each model the decision was easy." The IRS evaluation team awarded the bid to LGB Information Technology Systems & Services with Kyocera being the printer supplier. With the support of Kyocera's nationwide network of dealers, they were able to support the installation of over 3,000 FS-3820N's, FS-3830N's, FS-9120DN's and FS-9520DN's -- ranging from 29 pagers per minute (ppm) to 51 ppm respectively, in a span of several weeks. "Government agencies should consider working with manufacturers and channel distribution partners to analyze print costs," said Kevin Flood, vice president of national and government accounts for Kyocera Mita America. "Industry observers estimate that organizations can expect substantial savings (up to 20 percent or more) on all combined document activity -- including input, output and management -- once they understand the true costs involved over the life of printers and MFPs." Kyocera printers yield a TCO that is up to 50 percent lower than comparable products, as validated by Current Analysis, a competitive market intelligence analysis company. Customers can view the comparisons for themselves by using the Kyocera "TCO Tracker," a free, Web-based application that incorporates third-party analyst research to help CFOs track spending, and show how their companies can significantly reduce costs over time. The TCO Tracker can be found at http://www.kyoceramita.com/us.




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