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Barnes & Associates, Inc. <br /> <br />EVALUATION OF TELEPHONE SYSTEMS <br /> for <br /> <br />CABARRUS COUNTY HOME HEALTH AGENCY <br /> Sheet I of 3 <br /> <br />EXECUTIVE SUMMARY--This report covers our initial review of two telephone <br />system proposals received by CABARRUS COUNTY HOME HEALTH AGENCY as <br />follows: <br /> <br />Northern Telecom NORSTAR By DIGITEL USA (Atlanta, GA) <br /> <br />Comdial Impact DXP <br /> <br />By The Concord Telephone Company <br />(Concord, NC) <br /> <br />This evaluation will focus on apparent costs associated with each alternative, technical <br />comparisons (including growth and functions), and vendor support. <br /> <br />A chart is enclosed to provide a comparison of the two alternatives in summary form. <br />This chart should be used in connection with the narrative information to follow. <br /> <br />COST COMPARISON--it is our understanding that Cabarrus County Home Health <br />Agency (CCHHA) is interested in procuring a system on a full service lease basis, with <br />all life cycle maintenance expense to be included in the lease payment. The Concord <br />Telephone Company's (CTC's) proposal for all 24 line telephones includes a Full <br />Service Lease with a guaranteed renewal rate that also includes maintenance. The <br />Digitel proposal is for a Lease/Purchase that does not include maintenance in the <br />lease rate. Digitel did not include post warranty maintenance costs in their proposal <br />so we estimated the cost of post warranty maintenance on the Norstar system to be <br />$198.72 per month based on proposals submitted by Charlotte Norstar dealers on a <br />recent bid we evaluated. The Digitel Lease/Purchase also calls for a Fair Market <br />Buyout at the end of the lease which could amount to 30% of the original purChase <br />price. The Norstar system proposed by Digitel can have up to 6 lines directly <br />terminated on each M7208 telephone (the primary telephone proposed). We <br />understand that CCHHA will initially need at least 12 outside lines. This means that <br />Digitel's Norstar system will require all lines to be rated as PABX Trunks instead of the <br />Key Trunk rate that applies to CTC's proposed system, thereby adding $148.80 to the <br />Norstar's monthly cost. <br /> <br /> <br />