W -- XEROX LEASE RENEWAL AGREEMENT

This is a notice of intent to issue a delivery order against a GSA Contract Number GS-25F-0062L to Xerox Corporation, 1301 K Street NW, Ste 300W, Washington, DC 20005 on a sole source basis under the authority of FAR 6.302-1, Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements, 10 U.S.C. 2304(c)(1). The proposed procurement is a renewal to an existing contract that will expire 31 Aug 2007 in which the Government is committed to a 5-year lease agreement renewable yearly. The Xerox DocuColor DC8000 print center is not meant for day-to-day administrative or office use, but rather required training equipment for the U.S. Marine Corps Lithography course being taught at Defense Information School (DINFOS). Students are required to learn to operate and maintain this particular printing system, and DINFOS Basic Lithography courses? lesson plan is built based upon it. The DC8000 is the main component of a standardized and fielded USMC print production system (TIPS). This system is in use throughout the Corps in deployed areas, and the fixed station print facilities have begun to modernize to this same product. Leasing equipment, rather than purchasing, allows DINFOS to more quickly react to changes in the field. Life cycle for these presses would have to be pushed out to approximately 8 years with a purchase (cost factors), whereas, with a lease, they can be cycled for new products at the 5-year point with little or no additional budget impact.