March 13,2018

BCSO Body-Worn & In-

Car Cameras
 Activity to Date
2

• In May 2016, BCSO purchased 230 in-car cameras and 70

body-worn cameras and required peripherals from Utility
for a total cost of $886,489.

• Additionally, the County spent a total of $983,032 on a

digital evidence management system for the digital transfer
of camera footage.

• New BCSO administration researched Axon option for in-

car and body-worn cameras and compared it to Utility.

• BCSO presented a proposal to Commissioners Court to

switch from Utility to Axon.

Neither system acquisition has been through a formal

competitive procurement process
 Utility vs. Axon Financials
3

Dun & Bradstreet - Financial Comparison

Utility Axon
Public/Private Private Public
Total Annul Revenue Not Available $268.2 million
Number of Employees 35 699
Overall Business Risk Moderate to High Low to Moderate
Higher than average risk of Likelihood of continued
Risk of Business Discontinuation
discontinued operations operations
Probability of Becoming No Longer
11% 0.2%
Viable
Maximum Credit Recommendation $20,000 $2,250,000
Current Assets/Current Liabilities 2.7 2.27
Cash Flow Strength (0 – 100) 57 50
Return on Assets 3.2% 6.22%
 Utility vs. Axon Financials
4

Dun & Bradstreet - Regulatory/Credit Issues

Utility Axon
Annual 2016 10-K Report & 1st
Recent SEC Filings None Found
Qtr 2017 10-K Report*
UCC Filings (Creditor Claims) 4 20
Tax Liens 1 0
Lawsuits 0 2

*Inquiry deals with Axon’s accounting for order backlogs, revenue recognition for the Taser 60
program, and the effect of a free-trial program for body-worn cameras on reported profit margins.
This inquiry was outlined in a CNN Money article on October 20, 2017.
 Utility vs. Axon – Body-Worn
5

Utility (Current) Axon (Proposed)

Assumed # of Cameras 504 504

Up-Front Capital $84,279 $0

Annual Maintenance &
$599 $1,083
Support per Camera
Annual Maintenance &
$198,316 $545,832
Support
 Utility vs. Axon – In-Car
6

Utility (Current) Axon (Proposed)

Assumed # of Cameras 250 250

Up-Front Capital $40,153 $220,000

Annual Maintenance &
$895 $1,188
Support per Camera
Annual Maintenance &
$223,750 $297,000
Support
 Utility vs. Axon – Total Cost
7

Utility (Current) Axon (Proposed)

Up-Front Capital $124,432 $220,000
Annual Maintenance &
$422,066 $842,832
Support
Total 10-Year Cost $4,210,869** $8,338,681**

**10 year cost reflects phase-in of cameras.

• Axon is providing a credit in the amount of $870,728 for cameras already

purchased from Utility, as well as the cost of network upgrades, switches,
and routers.
 Comparison of Benefits
8
Utility
Less costly
Videos are continually uploaded to
the cloud in real time
No SEC filings or lawsuits
Axon
Easier to mount and control – Can
be mounted on garments other than
vest
Wider field of view “out of the box”
BCSO testing indicates increased
durability
 Axon – Cost vs. Budget
9

Funds available for capital expenses $319,717

Utility capital expense $124,432
Axon capital expense $220,000

O&M Budget $673,470

Total year 1 O&M cost for Utility $287,843*
Total year 1 O&M cost for Axon $533,193

*357 Body-worn cameras & 250 In-car cameras phased in

 Recommendation
10

• Given the significant cost difference between the two

systems, and the proposed 10 year length of the Axon
engagement, staff recommends that the Court consider
asking the Purchasing Agent to initiate a formal
competitive process (Request for Proposals)

• Suggested evaluation committee:

• Purchasing
• BCSO
• District Attorney
• BCIT
• Budget & Finance