To: Board of Supervisors
From: Anna Roth, Health Services Director
Report Title: Purchase order with Structured, Inc. (dba Verge Technologies, Inc.)
☒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, a purchase order with Structured, Inc. (dba Verge Technologies, Inc.) in an amount not to exceed $2,126,700 for Varonis network security software for the period of August 1, 2024 through July 31, 2027.
FISCAL IMPACT:
Approval of this action will result in expenditures of up to $2,126,700 over a three-year period and will be funded by Hospital Enterprise Fund I revenues.
BACKGROUND:
Contra Costa Heath (CCH) Information Technology Division has been utilizing Varonis data security software since 2016 to identify security threats within the CCH data network. This specialized software complements the County’s needs by detecting cyber threats from both internal and external actors, monitoring account activity, and analyzing user behavior. Importantly, it ensures compliance with HIPAA, the HITECH Act, and Meaningful Use guidelines, which mandate robust security safeguards.
On August 10, 2021, the Board of Supervisors approved agenda item C.20 to execute an amendment to the Varonis Technologies master license agreement and a purchase order with Verge Technologies in an amount not exceed $1,214,246.43 for Varonis Technologies subscriptions for the period from August 1, 2021, through July 31, 2024.
Approval of this purchase order enables the vendor to provide software services until July 31, 2027.
CONSEQUENCE OF NEGATIVE ACTION:
If the software services are not renewed, CCH would lose its ability to detect security threats within the data network. Furthermore, this would result in non-compliance with both HIPAA and the HITECH Act.