To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Purchase Order with Stromasys LLC
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Purchasing Agent, or designee, to execute on behalf of the Health Services Director, (1) a purchase order with Stromasys LLC in an amount not to exceed $48,000 and (2) Stromasys End User License Agreement for system emulator software and services, for the period from February 3, 2025 through February 2, 2030.
FISCAL IMPACT:
Approval of this action will result in expenditures of up to $48,000 over a five-year period and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Contra Costa Health (CCH) IT Department maintains a legacy medical billing application, PSP/InSyst, on a physical server running Stromasys emulator software at the Martinez data center. Approval of this purchase will enable the IT department to upgrade this system from aging hardware to a virtual environment, ensuring its continued functionality. This upgrade will also free up valuable office space and reduce energy consumption by eliminating the need for temperature-controlled conditions required by the current server. This purchase will be made via sole source justification, for product and service continuity.
The Stromasys End User Agreement obligates the County to indemnify Stromasys for any third-party claims arising out of County's use of the software. Stromasys' liability under this agreement is limited to the amount paid by County in the twelve months preceding the claim.
CONSEQUENCE OF NEGATIVE ACTION:
If this action is not approved, CCH will not be able to upgrade the legacy medical billing application from its outdated physical server to a virtual environment. This could result in increased risk of system failure, continued high energy costs due to the need for temperature-controlled conditions, and ongoing consumption of valuable of...
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