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Recommendation:
That Purchase Order # D8727731C (for maintenance of user equipment of the Public Safety Radio System), be extended for the fourth year of the five-year agreement, by an amount of approximately $311,000 (including GST). The revised total value of the Purchase Order (to the end of the fourth year) will be approximately $1,225,000 (including GST).

Report Summary

  • As per City Administration Bylaw 12005, all Change Orders in excess of $50,000, where the resulting contracts are in excess of $1,000,000, shall be reported in an information report, prior to the Change Order being issued.

Report

  • A five-year contract for maintenance of the user equipment (e.g. portable and mobile radios) used by the EPS and the Emergency Response Department as part of the City of Edmonton’s Public Safety Radio System was signed with WCI Whyte Communications Inc. in 1997. The total value of the original contract was $1,371,247.80, including GST.
  • As per the terms of the contract, the second through fifth years of the agreement are subject to approval by the Budget Committee, Materials Management and the Edmonton Police Service.
  • As per the terms of the contract, the pricing is adjusted annually to account for inflation, as indicated by changes in the Consumer Price Index. The Change Order that is generated to accommodate inflation also captures price variation due to any changes in the quantities of radios covered under the contract.
  • The contract was renewed and modified, in both the second and third years. To the end of the third year (ending March 31, 2000) the total amount allocated to the purchase order was $913,643 (including GST).
  • To extend the contract into its fourth year (from April 1, 2000 to March 31, 2001) an additional $310,874.52 must be added to the Purchase Order. This will bring the total dollar amount of this Purchase Order to $1,224,517.74 (including GST).

Budget / Financial Implications

  • Adequate operating funds are allocated for 2000 and requested for 2001 to support a continuation of this contract.

Justification of Recommendation

  • The Administrators of the Public Safety Radio System are completely satisfied with the performance of WCI Whyte Communications. No alternate maintainer of this equipment is required nor sought.

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