On June 30, 2009, POST purchased 108 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 with an option to extend the service agreement for two (2) additional years.  On February 19, 2015, the Commission approved a contract for the extension of a one year warranty in the amount of $321,264. 

The vendor, FAAC, Inc., indicated a willingness to continue to maintain the systems in maximum operational readiness and has proposed a one-year, all-inclusive warranty of all maintenance to include additional upgrades of hardware, software and firmware to current specifications for a cost of $321,264.  This amount is for 108 systems installed at 24 RSTCs and 6 mobile platforms.

On January 29, 2015, the Commission approved purchase of the LEDS maintenance warranty for August 1, 2015 to July 31, 2016. 

FAAC, Inc., has proposed a one-year, all-inclusive warranty for 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 systems analysis and repair, twenty-four (24) hour on-call support, twenty-four (24) hour onsite response by California based technicians and unlimited number of site visits.  The terms of the plan are consistent 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 907 Problem Change Reports (PCRs) during the life of the all-inclusive warranty.  This is an average of 151 PCRs per year; however, there was a heavier load in the earlier period of the warranty, and it is also estimated that 10% did not actually result in on-site visits as issues were corrected via online remote access system analysis and repair.

Current PCRs indicate approximately 68 calls for service between January 1, 2015 through December 31, 2015. 

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.  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 call of $6,600 per call. 

Based on the calls for service records for past year, 68 calls for service not covered under warranty could potentially cost $448,800.

If POST purchases the proposed one-year, all-inclusive warranty for $321,264. there would be no costs for maintenance or repairs and all RSTCs would receive a system wide upgrade of all LEDS software and firmware to current specifications. 

This project is supported by POST Strategic Plan Objectives B.3  POST structure and systems support efficiency, productivity, and quality, and are appropriately resourced.