MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

FROM: Mark Fowler, Purchasing and Contracting Officer

DATE: April 3, 2003

SUBJECT: RESOLUTION 2003-038; Authorizing the Award of Contract to ACS for the purchase and installation of a new Network Telephone System for Central Peninsula General Hospital.

The attached resolution authorizes Central Peninsula General Hospital, Inc. to upgrade the hospital network telephone system, in an amount not to exceed $157,425.30.

Planning for upgrades to the hospital telephone system has been underway since 2001 and funds were allocated for the project in the 2003 hospital budget. Therefore, on December 10, 2002, the Kenai Peninsula Borough solicited bids for this project on behalf of CPGH. Two bids were received on January 8, 2003 and were reviewed by the hospital Information Services personnel to ensure that all specifications were met. Both of the prospective bidders were deemed responsive with ACS submitting the low bid of $168,337.30. However, as stated in CPGH's attached memo, due to manufacture price reduction on some of the specified equipment, ACS has extended those cost savings with a revised bid of $157,425.30.

The Central Peninsula General Hospital Board of Directors as well as the Central Kenai Peninsula Hospital Service Area Board has approved the purchase and installation of new telephone equipment.

Funds are available in account number 600.81111.02DRF.48516.