Transamerica Insurance Corporation Purchasing Department Mail Stop T1103, Los Angles, CA 90015-2279

W -- LEASE OR RENTAL OF EQUIPMENT POC Diana Huth, Fax (213) 742-4468. Transamerica Occidental Life Insurance Company (TOLIC) which currently is under contract with Health Care Financing Administration for Medicare Part B claims processing is requesting quotations to lease or rent an Intelligent Mail Inserting/Finishing System. The mail system must include an accounting system to keep track of machine performance by job ID with inline weighing capabilities. The contractor shall provide two systems that meet the following minimum specifications: (a) The system must have a means of feeding cut sheet 8.5 x 11. At minimum the feeder must accommodate both 20lb and 24lb paperweights. (b) The system must offer a matching feeder. (c) In read mode the system must have a means of reading OMR barcodes printed on each sheet. The system must use a barcode that is 100% compatible with existing Pitney Bowes 8300 Inserters. The decoded barcode value must be transmitted to system controller for action. The controller software will use the barcode information to assemble the package, verify the package integrity, and insert as necessary. The software must include any error codes associated with the assembly of each package. The system hardware/software must provide a means of producing error free packages 100% of the time. (d) The software must provide a non-read mode as well, in which the main feeder processes a preset number of sheets per machine cycle. The software must also provide an "insert only" mode in which the main feeder and folder are not used. The entire content of the package will come from the supplemental feeder. (e) The system must have a means of accumulating the sheets into sets prior to folding. (f) The system must have means of folding the sheets into Z folds or C folds. The folder must be able to fold from one to eight sheets. It must do this without requiring adjustments to accommodate the varying paper thickness. (g) The system must have a means of adding up to two supplemental inserts into each envelope. The supplemental inserts must be capable of handling pieces ranging in size from 6 x 8 to 11 x 8.5 inches and in thickness from .006 to .25 inches. Each insert must have a way of detecting miss feeds and double feeds. Stations must be capable of functioning at system's full rate speed. (h) The system must have a means of feeding the outside envelope ranging in size from 9-1/2 x 4-1/2 and 9-1/2 x 4-1/8 inches. The flap range in size from 1-1/2 to 1-3/4 inch. (i) The system must have a means of sealing the envelope. (j) The system must have a means of identifying zip code breaks by marking top of envelopes. (k) The system must have (2) divert bins. (l) The system must have a means of counting the assembled envelopes. The counter must be easy for operator to assemble. (m) The system must have a means of conveying or stacking the assembled envelopes. (n) System must have a minimum speed of assembling 8,000 envelopes per hour while reading OMR barcodes information on each piece and adding simple inserts. (o) System must have capability for presetting up to 25 jobs and monitoring machine performance. (p) System must provide a means of alerting operators to malfunctions, mechanical, software conflicts and other errors. (q) The electrical requirements for the system shall not exceed 220 VAC, single phase, and 30 amps. (r) The system shall operate effectively in temperatures ranging from 62 degrees F. to 70 degrees F. and with a relative humidity of 35% to 65%. (s) All equipment and supplies must meet OSHA noise and safety requirements and EPA environmental requirements. (t) The awardee shall provide all manuals required for repair and operation of the complete system. This should include, but not to be limited to service, parts, and operations manuals. (u) The awardee shall provide on-site training for up to four employees. Additional options features should include (a) capabilities of reading 3 of 9 barcodes or 2-dimensional codes. (b) Audit trail -- that assures documents are complete and error free (c) Manifesting (d) ink-jet inline envelope printing. OTHER REQUIREMENT: (1) Contractor's cost information needs to be broken down separately and should include the following: 3 years lease, purchase price maintenance, key operator training, and equipment installation. (2) Equipment Maintenance must be available Monday through Friday 8 a.m. to 5 p.m. with a response time of 2:00 hours. (3) Contractor needs to include five client references and information on previous experience. (4) Include qualification statement in reference to (Small and Disadvantaged Business-Minority/Woman Owned Business Enterprise SADBUS/MBE). Vendor's quotations will be evaluated based on 70% cost and 30% on providing and meeting the requested information in technical and other requirements, in I and II above. Interested parties should submit their quotations in writing to the Purchasing buyer at the address specified above by November 22, 1999. This does not constitute a commitment by Transamerica Occidental Life Insurance Company, or Transamerica Insurance Corporation to acquire the products and/or related services. There will be a formal reply to responsive parties. Posted 10/26/99 (M-SN394989). (0299)

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