MEETING DATE
2/19/2015 |
BUREAU SUBMITTING THIS REPORT
Training Program Services Bureau |
RESEARCHED BY (PRINT NAME)
Steven H. Craig |
REVIEWED BY (PRINT NAME)
Robert Ziglar |
REPORT DATE
01/27/2015 |
APPROVED BY
Robert A. Stresak |
DATE APPROVED
01/29/15 |
PURPOSE
Decision Requested |
FINANCIAL IMPACT
Yes
|
| ISSUE: |
| Should the Commission approve the Executive Director to enter into a contract with FAAC Incorporated for the purchase of the maintenance warranty for all the LEDS systems for one year in an amount not to exceed $321,264? |
| BACKGROUND: |
On June 30, 2009 POST purchased thirty (30) Law Enforcement Driving Simulator (LEDS) systems for the Regional Skills Training Centers (RSTC) in the amount of $11,128,940.77. The original purchase included an all-inclusive, five-year warranty which was activated for each individual system after successful installation. The LEDS systems were deployed statewide over an 8 month period and the warranties will expire from March 2015 to October 2015.
The vendor, FAAC indicated a willingness to continue to maintain the systems in maximum operational rediness, and has proposed a one-year, all-inclusive warranty which additionally includes adjusting the warranty expiration dates to POST’s benefit, and a systemwide upgrade of all LEDS hardware, software, and firmware to current specifications for a cost of $321,264.00. This amount is for thirty (30) systems, installed at twenty-four (24) sites. |
| ANALYSIS: |
FAAC indicated they would extend the expiration dates on the first fifteen systems installated from March to August 2015, and shorten the dates on the last fifteen from October to August 2015 making the coverage for all systems for the period of August 2015 to August 2016. This benefits the older systems, and does not affect the later installed systems as all systems will receive upgrades to current FAAC specifications.
The all-inclusive warranty includes scheduled preventative maintenance to keep systems in proper operational readiness, unscheduled remedial service resulting from system failures, material, labor and transportation costs, online remote access for system analysis/repair, twenty-four (24) hour on call support, twenty-four (24) hour onsite site response by California-based technicians, and unlimited number of site visits. The terms of the plan are consistant with the current warranty, excluding maintenance of the trailers which house the mobile systems.
POST staff has researched the LEDS maintenance history and learned program wide there have been 878 Problem Change Reports (PCR’s) during the life of the all-inclusive warranty. This is an average of 175 PCR’s per year; however, there was a heavier load in the earlier period of the warranty, and it is also estimated that 10% didn’t actually result in on-site visits as issues were corrected via online remote access system analysis/repair.
Current PCR’s indicate approximate 130 calls for service for FY 2014-15.
If POST does not purchase the proposed warranty, FAAC is willing to offer individual RSTC sites the ability to purchase standalone warranties at a cost between $18,720 and $40,440 depending on the type and number of systems. A breakdown of the cost of the one-year warranty to the individual RSTC's is in Attachment A.
If POST does not purchase the warranty, and only a portion of the individual RSTC sites agree to purchase standalone warranties, the liability to repair operational readiness issues at the sites not participating in the standalone warranty option would still fall on POST, as the equipment belongs to POST. In this event, POST will have to decide whether to shut down the LEDS training program at the site, or incur unbudgeted repair costs at the non-warranty response cost of $6,600 per call.
Based on the calls for service records for past years, 130 calls for service not covered under warranty could potentially cost $858,000.
If POST purchases the proposed one-year, all-inclusive warranty for $321,264.00 there would be no costs for maintenance or repairs, and all RSTC’s would receive a systemwide upgrade of all LEDS hardware, software, and firmware to current specifications. |
| RECOMMENDATION: |
| Staff recommends the Commission approve the Executive Director to enter into a contract with FAAC Incorporated for the purchase of the maintenance warranty for all the LEDS systems for one year in an amount not to exceed $321,264.00. |
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