To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Contract #23-841 with PagerDuty, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County a Master Service Agreement containing mutual indemnification, and an Order Form with PagerDuty, Inc., a corporation, in an amount not to exceed $828,000, for hosted information system incident reporting and management software for Contra Costa Health’s Information Technology Systems Unit (CCH IT) for the period from August 29, 2024 through August 28, 2027.
FISCAL IMPACT:
This Contract will result in contractual service expenditures of up to $828,000 over a 3-year period and will be funded 100% by Hospital Enterprise Fund I revenues.
BACKGROUND:
This contract meets the needs of the county by providing incident reporting management software. CCH IT has utilized the PagerDuty, Inc. incident reporting and tracking system since 2020. This software is vital to tracking, responding to, and analyzing critical incidents related to the CCH IT enterprise-wide service desk for all internal alert services, including on-call system rotation, incident response, triage alerts, and software systems. The software aims to enhance operational efficiency by reducing response time, expanding coordination resolutions, and analyzing incidents to facilitate proactive adjustments to configurations and workflows, thereby preventing future incidents. This contract supports CCH concerning its mandate to deliver, support, and maintain systems and infrastructure for all divisions and programs within Contra Costa Health. After considering the following competitor incident management in this market space: AlertOps, Lightstep, Incident Response, and Atlassian Opsgenie, this contractor was approved by the Public Works Department’s Purchasing Division on February 21, 2024. Contract deliverables include cloud computing SaaS incident response platform for CCH IT.
Under this Contract #23-841, the parties will execute (1) a Master Services Agreement (MSA) and (2) an Order Form for CCH IT’s subscription to PagerDuty’s Status Pages incident management solution. Under the MSA, PagerDuty, Inc.’s liability is limited to the amount County has paid PagerDuty in the twelve months preceding the claim, except for breaches of confidentiality, for which the liability cap is two times (2X) the amounts paid to PagerDuty by County in the twelve (12) month period immediately prior to a claim. Under the MSA, the County is obligated to indemnify PagerDuty against third-party claims arising from County’s failure to perform its obligations under the MSA, and failure to secure required consents for data in the PagerDuty system.
Approval of this new Contract #23-841 allows the contractor to provide services through August 28, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract is not approved, this incident management solution needed by the CCH IT service desk will remain at bay, leaving the department without the incident management function or process automation feature required to triage service requests and increase the potential for affected users and the failure of the external site.