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APPROVE MOTION TO EXECUTE AMENDMENT NO. 2 AND TWO ADDITIONAL ONE-YEAR EXTENSIONS TO THE ANNUAL SERVICE AGREEMENT WITH US DIGITAL DESIGNS, INC.
recommended action
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Authorize the City Manager to execute Amendment No. 2 to extend the Annual Service Agreement with US Digital Designs, Inc. for one additional year for an amount not to exceed $38,317.05; and
2. Authorize the City Manager to execute the remaining two (2) additional one-year extensions to the Annual Service Agreement with US Digital Designs, Inc. for an amount not to exceed $80,000.
3. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process; and
4. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
Stockton Fire Department (SFD) utilizes a fire station alerting system to automate dispatching processes and directly alert suppression personnel of an emergency call at each fire station. SFD entered into an Agreement with US Digital Designs to provide software maintenance and hardware repair services to the fire station alerting system. It is recommended that City Council approve a motion authorizing the City Manager to execute Amendment No. 2 and two (2) additional one-year extensions for a total contract amount not to exceed $192,026.09.
DISCUSSION
Background
SFD’s fire station alerting system is a comprehensive communication and notification solution designed specifically for fire departments to swiftly alert and dispatch firefighters to emergency incidents, significantly reducing response times. Integrated with the Emergency Dispatch Center, the fire station alerting system automates alerts, ensuring quick and efficient communication between dispatchers and responders. US Digital Designs (USDD) manufactures the Phoenix G2 alerting system utilized in each of SFD’s 13 fire stations.
USDD provides a service agreement with a range of essential support features designed to provide comprehensive assistance and ensure the reliability, security, and optimal performance of SFD’s G2 alerting system. By leveraging these support resources, SFD can effectively address technical challenges, maintain productivity during emergencies, and maximize the value of USDD's products and services.
USDD’s service agreement includes technical phone support and remote access assistance available Monday through Friday, emergency support for Mission Critical Failures accessible 24 hours per day, system software updates released by USDD, and repair services for defective or malfunctioning hardware. These features provide SFD with a comprehensive support framework designed to address a wide array of potential technical issues. Furthermore, the availability of emergency support 24 hours per day ensures uninterrupted assistance during critical situations, helping SFD mitigate potential disruptions to operations.
Moreover, the system software updates and hardware repair services provided in this support agreement ensures SFD’s system remains up-to-date, secure, and reliable. Regular updates to system software help protect against emerging security threats, enhance system performance, and introduce new features and functionalities that contribute to the overall efficiency of SFD’s operations. Additionally, prompt resolution of hardware issues minimizes downtime and extends the lifespan of SFD’s equipment, ultimately reducing the total cost of ownership.
Present Situation
On May 16, 2022, SFD entered into a one-year agreement with four (4) one-year options to renew with USDD to provide software maintenance and hardware repair services for SFD’s G2 system (Attachment A). On May 1, 2023, the first one-year renewal option was executed, utilizing the City Manager’s delegated administrative authority (Attachment B).
Currently, there are three (3) additional one-year renewal terms remaining. Staff recommends executing Amendment No. 2 to extend the support agreement for one additional year, from May 2024 through May 2025 (Attachment C). Additionally, Staff recommends authorizing the City Manager to execute two (2) additional one-year renewals (through May 2026 and May 2027), if needed, to continue support services. During the final one-year renewal option, SFD will complete a needs assessment of the G2 alerting system. In the event SFD needs to continue support services with USDD, a new multi-year agreement will be drafted and routed for Council approval.
Findings
Pursuant to Stockton Municipal Code section 3.68.070, Council may approve findings which support an exception to the competitive bidding process.
The proposed findings include:
1. SFD utilizes a G2 fire station alerting system for automated communications between the Emergency Dispatch Center and each of SFD’s 13 fire stations.
2. US Digital Designs manufactures the Phoenix G2 system and is the single available source for system support services.
3. US Digital Designs is qualified to provide support services to SFD’s G2 fire station alerting system.
FINANCIAL SUMMARY
Following is a cost summary of the 5-year service agreement. The two (2) remaining one-year renewals are estimated to cost the City $40,000 each, for a total contract amount of $192,026.09.
US Digital Designs Service Agreement Cost
Year 1 - Original Agreement (5/16/2022 to 5/15/2023) $35,653.93
Year 2 - Amendment No. 1 (5/16/2023 to 5/15/2024) $38,055.11
Year 3 - Amendment No. 2 (5/16/2024 to 5/15/2025) $38,317.05
Year 4 & 5 - Two One-Year Extensions (5/16/2025 to 5/15/2027) $80,000.00
Total $192,026.09
The Fire Department has sufficient annual budget allocation for the G2 annual maintenance service under Fire Suppression Equipment and Repairs Account 4020-000-630013-100-000-20-40-000-000-. Costs for the subsequent years will be budgeted in the same account and subject to City Council approval during the annual budget development process.
Attachment A - Agreement
Attachment B - Amendment No. 1
Attachment C - Amendment No. 2