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Contract Award for Authentication Software <br />System and Support Contract <br />August 2, 2016 <br />Page 2 <br />2FA Inc. recently changed its pricing model for new clients. Under their old pricing, agencies <br />would pay initially for perpetual licenses and then pay for support and maintenance on those <br />license for subsequent years. Under their new pricing, agencies contract with 2FA Inc. on a <br />subscription basis, effectively having to repurchase their individual licenses each year. 2FA Inc. <br />has made their old pricing structure available to the City on the condition that a purchase is made <br />at the beginning of August. Additionally, the vendor has extended a 10% discount for the <br />purchase of a multi -year maintenance and support contract upfront. The discount will carry over <br />to the renewal periods, should the City decide to exercise them. The City's Police Department <br />has decided to take advantage of the expiring pricing model as well as pay for the maintenance <br />fee upfront in order to receive the 10% discount, which has resulted in savings totaling $137,153 <br />($221,200 new pricing — $88,480 extended old pricing plus $4,433 multi -year discount). <br />The notice inviting bids was advertised on June 21, 2016 and offers were solicited. A summary of <br />the bids and offers received is as follows: <br />89 Vendors were notified <br />3 Vendors downloaded the bid <br />0 Bids received from a Santa Ana vendor <br />1 Bids received <br />Bids were opened on July 5, 2016, and evaluated. The bid received from 2FA, Inc. is responsive <br />to the specifications and meets the City's requirements. <br />STRATEGIC PLAN ALIGNMENT <br />Approval of this item allows the City to meet Goal #1 Community Safety, Objective #2, (broaden <br />communications, information sharing and community awareness of public safety activities), <br />Strategy B (purchase and install new in -car computers in patrol vehicles to facilitate enhanced <br />information sharing and timely police response). <br />FISCAL IMPACT <br />Funds in the amount of $55,324 for the software system and $23,884 for the three -year <br />maintenance and support contract are available in the FY 2016 -17 US Dept. of Justice AFF <br />account (no. 16614450 62300). <br />Upon exercise of the renewal periods, funds in the amount of $7,959 will be budgeted and made <br />available in each FY 2019/20 and 2020/21 in the US Dept. of Justice AFF account (no. 16614450 <br />62300). <br />22Ci-2 <br />