AGENDA #4c
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Software Purchase for the Police Department
DATE: April 10, 2000
The attached resolutions would accept the bid of Open Software Solutions Incorporated in the amount of $263,364 for police record keeping software, mugshot software and related equipment, and mobile data software, and authorize the Manager to accept the contract and low bid offered by Branch Banking & Trust for financing $189,000 of this purchase at an interest rate of 5.01%.
On February 28, 2000 the Council adopted a resolution authorizing the Manager to pursue the purchase of records software, mugshot software and equipment, and mobile data terminals that would connect via radio modem to both the State and Chapel Hill Police Department databases.
The mobile data terminal equipment (laptop computers, modems, mounts, message switch computer) and other hardware would be purchased through the North Carolina State Contract.
The records software, mugshot software and equipment, and the mobile data software would be purchased from Open Software Solutions, Inc. in accordance with the “Best Value” information technology procurement statute.
The Council’s resolution also authorized the Manager to issue requests for proposals for financing $189,000 of the software packages using a three-year installment-purchase contract in accord with the plan and discussion presented on February 28, 2000.
The “Best Value” bid procedure is authorized and explained in North Carolina General Statute 143-135.9, which is attached. In essence, it allows the Town to purchase information technology based on multiple factors including cost, technical merit of the product, the vendor’s past performance, and the probability of the product performing as required.
Police Department staff has determined that products by Open Software Solutions of Greensboro, North Carolina, best meet the requirements of the Department and is the best value for the Police Department.
In looking to replace the present records software in use by the Department and to add mobile data terminals to the system, the following requirements were established in order to ensure that the new system would meet present and future needs:
Police Department staff initially reviewed software by five providers - HTE/Chiefs, Interact Inc., Open Software Solutions, Southern Software, and Spillman Technology. Three of the providers were eliminated because they did not meet the Department’s requirements. Southern Software and Open Software Solutions gave product demonstrations.
Based on the total cost of ownership, technical merit of the product, the vendor’s past performance, and the probability of the product performing as required, it was determined that Open Software Solutions would best meet the needs of the Chapel Hill Police Department. This company has been making Windows-based law enforcement software since 1994. The software is being used by many mid-size law enforcement agencies in the State, including High Point, Winston-Salem, Rocky Mount, Wilson, Wilmington, and New Hanover County. Chapel Hill staff visited the High Point Police Department to see an established system. All the users with whom we spoke are pleased with the product and customer support.
In accord with the Council’s discussion and approval on February 28, we propose to finance the portion of the total system not paid for through federal and State grants, a total of $189,000.
Requests for proposals for financing the purchase of these software packages were sent to five financial institutions on March 13 with responses requested on March 17. The proposals specified quotes for three-year fixed rate installment payments on software purchases with an expected minimum useful life of 3 years.
Four responses were received on March 17 as follows:
|
|
3 Year Term
|
|
|
Financial Institution |
Interest Rate |
Total Principal, Interest & Fees |
|
Branch Banking & Trust |
5.01% |
$205,820 |
|
Centura |
5.27% |
$206,808 |
|
First Union |
5.38% |
$206,878 |
|
First Citizens |
5.78% |
$208,571 |
EVALUATION OF FINANCING PROPOSALS
Based on the above proposals, Branch Banking & Trust offers the lowest total interest cost with a bid of 5.01% for the 3-year term.
The attached resolution would
authorize the Manager to enter into a lease-purchase contract with Branch
Banking & Trust for the purchase of these software packages. The resolution confirms that the Town does
not expect to issue more than $10 million in tax-exempt debt during the
calendar year, which allows financial institutions to bid lower rates on these
types of lease-purchase contracts.
Payments on the contract would begin in 2000-2001 using funds as outlined and approved by the Council at its February 28 meeting. The first year payments would come from funds available in the current year budget that would be carried over to next year, so that there would be no financial impact on next year’s budget for this purchase.
RECOMMENDATION
That the Council:
1. North Carolina General Statute 143-135.9.
2. Copy of February 28, 2000 memorandum.
RESOLUTION A
A RESOLUTION ACCEPTING THE BID OF OPEN SOFTWARE SOLUTIONS FOR THE PURCHASE OF SOFTWARE AND RELATED EQUIPMENT (2000-04-10/R-4a)
WHEREAS, the Town of Chapel Hill has determined specific criteria for software and related hardware for the Police Department; and
WHEREAS, based on the total cost of ownership, technical merit of the product, the vendor’s past performance, and the probability of the product performing as required, Open Software Solutions, Incorporated best meets the needs of the Chapel Hill Police Department;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council use the Best Value procurement method authorized under G.S. 143-135.9 and accepts the offer to sell of Open Software Solutions, Incorporated in the amount of $236,364.
This the 10th day of April, 2000.
RESOLUTION
B
A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A LEASE-PURCHASE
CONTRACT FOR THE PURCHASE OF COMPUTER SOFTWARE FOR THE POLICE
DEPARTMENT(2000-04-10/R-4b)
WHEREAS, the Town of Chapel Hill solicited and received competitive proposals from financial institutions for the lease-purchase of a computer software packages for Police Department operations and record-keeping;
WHEREAS, Branch Banking & Trust offers the lowest interest rate of 5.01% for this purchase;
NOW, THEREFORE, BE IT RESOVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to enter into a contract with Branch Banking & Trust on behalf of the Town for the lease-purchase of software packages at a fixed interest rate of 5.01% for a three-year term.
BE IT FURTHER RESOLVED that the aforesaid contracts by and between the Town of Chapel Hill, Open Software Solutions, Inc., and Branch Banking & Trust, together with the amounts to be paid thereunder, be and the same are hereby designated as qualified tax-exempt obligations of the Town of Chapel Hill for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
BE IT FURTHER RESOLVED that the Council does not reasonably expect that the Purchaser (and any subordinate entities) will issue more than $10,000,000 in qualified tax-exempt obligations pursuant to such Sections 265(b)(3)(ii) during the current calendar year.
This the 10th day of April, 2000.
ATTACHMENT
1
143-135.9.
“Best Value” information technology procurements.
(a) For purposes of this section:
(1) “Best Value” procurement means the selection of a contractor based on a determination of which proposal offers the best trade-off between price and performance, where quality is considered an integral performance factor. The award decision is made based on multiple factors, including: total cost of ownership, meaning the cost of acquiring, operating, maintaining, and supporting a product or service over its projected lifetime; the evaluated technical merit of the vendor’s proposal; the vendor’s past performance; and the evaluated probability of performing the requirements stated in the solicitation on time, with high quality, and in a manner that accomplishes the stated business objectives and maintains industry standards compliance.
(2) “Government-Vendor Partnership” means a mutually beneficial contractual relationship between State government and a contractor, wherein the two share risk and reward, and value is added to the procurement of complex technology.
(3) “Information technology” includes electronic data processing and telecommunications goods and services, microelectronics, software, information processing, office systems, any services related to the foregoing, and consulting or other services for design and/or redesign of business processes.
(4) “Solution-Based Solicitation” means a solicitation in which the requirements are stated in terms of how the product of service being purchased should accomplish the business objectives, rather than in terms of technical design of the product or service.
(b) The intent of “Best Value” Information Technology procurement is to enable contractors to offer and the agency to select the most appropriate solution to meet the business objectives defined in the solicitation and to keep all parties focused on the desired outcome of a procurement. Business process reengineering, system design, and technology implementation may be combined into a single solicitation.
(c) The acquisition of information technology by the State of North Carolina shall be conducted using the “Best Value” procurement method. For acquisitions which the procuring agency and the Division of Purchase and Contracts deem to be highly complex or determine that the optimal solution to the business problem at hand is not know, the use of Solution-Based Solicitation and Government-Vendor Partnership is authorized and encouraged.