Renewal of Maintenance Contract for the Public Safety Radio System

Insert Report title (same title as on page 1)

Recommendations:
1)That a Contract Purchase Order be awarded issued to M/A-COM Private Radio Systems Corp. for 5-years the of maintenance ofn the network equipment of the City of Edmonton’s Public Safety Radio System.. The total value of the Purchase Order over a five-year term will be approximately $1.7 million (including GST).
1)2)That the Contract to M/A-ComOM Private Radio Systems Corp. be for a 5 -year term with an option to extend for an additional 5 years for an amount not to exceed $4 million over the 10 year period.

Report Summary

As per City Administration Bylaw 12005, any Purchase Order in excess of $250,000 to a sole source supplier requires Committee approval prior to the Purchase Order being issued.

Report

Report

  • In 1995 M/A-COM Private Radio Systems (formerlythen known as Ericsson Communications Canada) supplied and installed the City of Edmonton’s Public Safety Radio System. This is the radio system used by the Edmonton Police Service and the Emergency Response Department. (Note that in 2000, Ericsson changed their name to Com-Net Ericsson and in 2001 they were bought by, and adopted the name of, M/A-COM).
  • The radio system uses a proprietary technology called EDACS (Enhanced Digital Access Communication System) that was developed by M/A-COM Ericsson and is available solely from them.
  • In 1997, following expiration of the manufacturer’s warranty, a five5-year contract was signed with M/A-COMEricsson for continuing maintenance of the network equipment of the radio system. The total value of this original contract was approximately $1.6 million. That The first five5-year term expires on December 31, 2001.

It is proposed to enter into a new 5-year agreement, with substantially the same terms as the original contract. M/A-COM has agreed to a price reduction tothat removes 5 years worth of inflation, and has re-setting the base price to the 1997 level. In the year 2002 there will be a price reduction of approximately 8% or about $25,000.00 - over the 5 year5-year term it is estimated savings are estimated willto be approximately $125,000.00. rollback the rates to what the City paid in 1997. This represents a reduction of 7.79% (or approximately $25,000) in 2002 as compared to 2001. Over the course of the 5-year term this amounts to a total savings to the City of at least $125,000.

As per the terms of the original contract, the second through fifth years of this agreement will be subject to approval by the Budget Committee, Materials Management and the Edmonton Police Service.

  • Also as per the terms of the original contract, the pricing will be adjusted annually to reflect changes in the Consumer Price Index.

Budget / Financial Implications

Adequate oOperating funds have been requested for the 2002 budget and will be requested annually through the next five years to support the a continuation of this contract.

Legal Implications

According to sections 29(3) and 31(5) of the Police Act, the Police Commission is responsible for allocating the funds provided for under the budget. Council is responsible for establishing the total budget for the purposes of the Edmonton Police ServiceCCommittee ouncil is not permitted to allocate funds within the EPS budget. The amount of revenue or expenditure in this contract /change order exceeds the City Manager’s delegated authority and the City Manager requires Committee approval ouncil authority to proceed with the contract/change orderfor on behalf of the Edmonton Police Service. EPS.

Justification of Recommendation

  • The Administrators of the Public Safety Radio System have been completely satisfied with the performance of Ericsson/Com-Net Ericsson/M/A-COM since the system was installed in 1995. through the course of the first 5-year maintenance term.
  • As the sole manufacturer of the EDACS radio system equipment, M/A-COM remains uniquely qualified to provide the required support to this critical public safety infrastructure.

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