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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: April 20, 2021 <br /> Action Agenda <br /> Item No. 8-b <br /> SUBJECT: Approval of Three-Year Contract with Meridian IT, Inc. for AVAYA Voice over IP <br /> System <br /> DEPARTMENT: Information Technologies & <br /> Finance and Administrative <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Jim Northrup, Orange County Chief <br /> Information Officer, 919-245-2276 <br /> PURPOSE: To approve a three-year contract with Meridian IT, Inc. totaling $267,746.92 for <br /> upgrading the County's existing Avaya phone system to the most current release and move to a <br /> subscription model in the process. <br /> BACKGROUND: Currently, the County pays $70,350 every year for annual maintenance for the <br /> existing AVAYA voice over IP system (VoIP). Over the past 12 months, the County developed a <br /> more robust call center environment to meet the pandemic response and vaccine distribution <br /> challenges. More licenses were needed to support these new call center operations. As the <br /> County moved into a new licensing tier, the manufacturer of the phone system, Avaya, has <br /> required a software upgrade to handle the increase in licenses. The new proposal that has been <br /> reviewed by Finance and Administrative Services and the County Attorney seeks to move the <br /> County's current licensing model from perpetual with annual maintenance to a subscription model <br /> with maintenance built into the subscription costs. <br /> The software upgrade needs to occur regardless of the licensing model, i.e., perpetual or <br /> subscription paid annually. The labor, hardware and licensing costs are detailed below. <br /> This contract for $267746.92 was reviewed by the County Attorney's Office and does not deviate <br /> from the standard requirements of the Attorney's Contract Template. <br /> Current Model Proposed Model <br /> Y1 Cost $70,350.00 $67,755.14 <br /> Y2 Cost* $71,757.00 $67,755.14 <br /> Y3 Cost* $73,192.14 $67,755.14 <br /> Labor Cost $62,526.50 $67,385.50 <br /> New Hardware $12,096.00 <br /> Discount** -$15,000.00 <br /> $277,825.64 $267,746.92 <br /> Estimated savings over 3 years $10,078.72 <br /> *estimated 2%cost increase annually <br /> **the quoting tool used by the vendor applied an Avaya discount <br />