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HomeMy WebLinkAboutSecurity Digital Video Recorders System - ADI - Honeywell FuCouncil/Agency Meeting Held: Deferred/Continued to: )"ppro d ❑ Conditionally Approved ❑ Denied ity I k's Sig ature Council Meeting Date: February 7, 2011 Department ID Number: PD-11-001 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Kenneth W. Small, Chief of Police SUBJECT: Approve Sole Source Procurement for Security Digital Video Recorders (DVR) Statement of Issue: Administrative Regulation 229 requires City Council approval for all sole source procurements over $50,000. The Police Department is requesting approval of sole source procurement for purchase of security digital video recorders. Financial Impact: Funds are currently budgeted in the City's equipment replacement fund 10040213.83700. Recommended Action: Motion to: Approve sole source procurement from ADI for the purchase of security digital video recorders (DVR) system. Alternative Action(s): Do not approve the sole source procurement and instruct staff on how to proceed. REQUEST FOR COUNCIL ACTION MEETING DATE: 2/7/2011 DEPARTMENT ID NUMBER: PDA1-001 Analysis: The DVR records and stores video from over 80 cameras throughout, the civic center, police department, and jail. The DVR recorders provide digital records of all images from the cameras and are used to produce digital recordings for investigations, evidential proceedings, and surveillance. The recordings obtained are used daily for internal administrative investigations, responses to civil litigations, evidence of crimes committed, and is submitted to the County District Attorney's office upon request. The DVR's are over 5 years and cannot be repaired. It is recommended that sole source procurement from Honeywell, an AD[ distributor, for the purchase of security digital video recorders (DVRs) be approved. The Honeywell Fusion DVRs are the best product in the industry that merges and interfaces with existing access control and alarm systems currently in use. Other products will not interface well with recording software and cost would be greater to link with other equipment. Due to the certifications of the City of Huntington Beach's technical staff, the City is able to buy Honeywell product through ADI at wholesale (dealer) pricing. This means the City of Huntington Beach is able to buy the product at the best pricing and is not paying a dealer's markup. The markup is 40% and it is a $49,920 savings for City of Huntington Beach to purchase from this vendor. Environmental Status: None Strategic Plan Goal: Maintain and Enhance Public Safety Attachment(s): © 0y�NitNGtp rti gC+3 OUXT14% CITY OF HUNTINGTON BEACH Sole -Source Justification (For use on all goods and services acquisitions.) This justification document consists of two (2) pages. All information must be provided and all questions must be answered. The "Required Approvals" section must include a date for each signature, as appropriate for the transaction. =Requesting Department Information Date: January 3, 2011 Requestor Name: Mindy James Division Manager: Chuck Thomas (Type names. Do not sign.) Department: Police Department Head: Kenneth W. Small (Typenames. Do not si n. Must be same as signature below. Department Contact Infor'mation Contact Name: Darrin Dixon Street Address: 2000 Main Street, Huntington Beach, CA 92648 Telephone: 714 536-5245 Fax: Shipping Address: Same Cellular phone: Required Contact Information Contractor/Supplier Name: ADI Contractor/Supplier Address: 2700 Blankenbaker Parkway, Suite 150 Contractor/Supplier City/State/Zip: Louisville, Kentucky 40299 Original Contract Amount:* $107,300 (retail pricing) (*Includes original contract and previously approved amendments) Amendment Amount:* (if applicable) $64,380 (wholesale pricing) ("Current amendment onl New Contract Amount:* $ ('Includes original contract and all amendments, including current amendment Provide a brief description of the acquisition, including all goods and/or services the contractor will provide. This company is a distributor of video and other low voltage security products. Contract Type and Term, Contract Type: Select One: ® Goods ❑ Service ❑ Goods & Services Contract Term: Begin: 1/1/2011 End: 1/1/2014 What account number will be used to purchase? Business Unit: 10040213 Object Code: 83700 'Reauired ADDrovals Head Approved Denied Fiscal Services Manager f2'artment Approved Denied D ' ctor of Finance pproved ❑ enied D uty City Administrator "' ved ❑ Denied Signatur /' Signature Signature signature l--4--it T 6—�// Date l— ����( Date //,,41 Date Date (Transactions exceeding $50,000 must be approved by City Council CITY OF HUNTINGTON BEACH Sole Source Justification (For use on all goods and services acquisitions.) Complete responses must be provided for all of the following items. A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW: 1. Why is the acquisition restricted to this goods/services/supplier? (Explain why the acquisition cannot be competitively bid.) Honeywell video equipment can only be purchased thru ADI distributor. ADI is owned by Honeywell. 2. Provide the background of events leading to this acquisition. Replacement of security digital video recorders (DVR) 3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?). The best product in the industry that merges & interfaces with existing access controll and alarm systems we use. 4. What are the consequences of not purchasing the goods/services or contracting with the proposed supplier? Other products will not interface well with recording software and cost would be greater to link with other equipment 5. What market research was conducted to substantiate no competition, including evaluation of other items considered? (Provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department concluded that such alternatives are either inappropriate or unavailable. The names and addresses of suppliers contacted and the reasons for not considering them must be included OR an explanation of why the survey or effort to identify other goods/services was not performed.) Honeywell Fusion DVR's were chosen due to the fact that they are the easiest to use and quickest to find video evidence on hard drives. Video evidence can be searched in increments of 24 hours, 1 hour, 10 minutes, or 1 minute. B. PRICE ANALYSIS 1. How was the price offered determined to be fair and reasonable? (Explain what the basis was for comparison and include cost analyses as applicable.) Due to the certifications of the City of Huntington Beach's technical staff, the City is able to buy Honeywell product through ADI at a wholesale (dealer) pricing. This means the City of Huntington Beach is able to buy the product at the best pricing and is not paying a dealer's markup. The markup is 40% and it is a $49,920 savings for City of Huntington Beach to purchase from this vendor. 2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier. Purchase equipment at wholesale pricing verses retail pricing (40% mark up or $42,920 savings). Remit completed form to: City of Huntington Beach — Purchasing Division 2000 Main Street, Huntington Beach, CA 92648-2702 December 20, 2010 City of Huntington Beach Marilyn Goldstein 2000 Main St Huntington Beach, CA 92648 Dear Marilyn, To ensure the highest level of customer service and channel management, Honeywell distributes its video surveillance products to its' commercial dealer market through only one distribution source, which is ADI. ADI is a Honeywell company with over 100 locations throughout the United States. ADI is a distributer of video and other low voltage security products. Due to the certifications of the City of Huntington Beach's technical staff, the City is able to buy Honeywell product through ADI at a wholesale (dealer) pricing. This means the City of Huntington Beach is able to buy the product at the best pricing and is not paying a dealers' markup. Please contact me for any further clarification. Thank you. Sincerely, Scott Ferguson Regional Sales Manager Honeywell Video Systems Honeywell Security Group 2700 Blankenbaker Parkway, Suite 150 Louisville, Kentucky 40299