Explanation
BACKGROUND: The City's existing Universal Term Contract (UTC) with The Ohio Bell Telephone Company, doing business as AT&T Ohio, for the option to obtain Centrex services expires March 31, 2026. Since the last extension of this contract, The Ohio Bell Telephone Company has been the subject of a corporate reorganization, and this contract needs to be assigned to AT&T Enterprises, LLC, which is a disregarded entity of AT&T DW Holdings, Inc.
This legislation authorizes the Finance and Management Director to enter into a Modification of Contract agreement and a Universal Extension - 5 States, Amendment to Service Agreement for AT&T ILEC Centrex Services Provided Pursuant to Standard Terms agreement with AT&T Enterprises, LLC in order to modify and extend an existing Universal Term Contract (UTC) for the option to obtain Centrex services. This contract provides for Centrex services throughout the City. This modification is necessary to (1) add 12 months to the term of the contract, and (2) assign the existing UTC (PA005828; originally PO007157) from The Ohio Bell Telephone Company (FID 34-0436390) to AT&T Enterprises, LLC (a disregarded entity of AT&T DW Holdings, Inc., FID 99-1008219).
This UTC was originally negotiated with The Ohio Bell Telephone Company, doing business as AT&T Ohio, and was established without competitive bidding under the authority of Ordinance No. 0427-2016, was extended under the authority of Ordinance No. 0848-2022, and was extended further under the authority of Ordinance No. 1316-2025.
The following explanation is provided per Section 329.09(a) of Columbus City Codes:
(1) Amount of additional funds to be expended under the modification: No additional funds are necessary to modify the option contract as requested.
(2) Why the need for additional goods or services could not be foreseen at the time the contract was initially awarded: An extension of the existing contract is now desired to provide continued Centrex services to the City for the next 12 months and to allow for the assignment of the contract to a different AT&T entity due to a corporate reorganization within AT&T.
(3) Why it would not be in the city's best interests to have the additional contract requirements awarded through other procurement processes: This UTC provides many services to City agencies and departments citywide. The original contract was negotiated with AT&T without competitive bidding due to the complexity of the systems and services being provided and embedded nature of these systems and services. For that reason, AT&T Enterprises, LLC is currently the only feasible provider of these services. This determination was made after extensive consultation between the Department of Technology and the Purchasing Office when this contract was originally established.
(4) How the price for the additional goods or services which are the subject of the modification was determined: Pricing for the services provided is determined based upon rates currently offered by AT&T Enterprises, LLC and established for the 12-month term.
There is no change in the services being procured. The original terms and conditions remain in effect, except length of term.
FISCAL IMPACT: No funding is required to modify the option contract. The Department of Technology and other service users must set aside its own funding for its estimated expenditures.
EMERGENCY DESIGNATION: The Department of Finance and Management requests emergency designation as the current UTC term expires March 31, 2026.
Title
To authorize the Finance and Management Director to modify and extend the Universal Term Contract for the option to purchase Centrex services with AT&T Enterprises, LLC; and to declare an emergency. ($0.00)
Body
WHEREAS, the Department of Finance and Management entered into a Universal Term Contract with The Ohio Bell Telephone Company, doing business as AT&T Ohio, for Centrex services for use citywide, which has been extended through March 31, 2026; and
WHEREAS, since the last extension of this contract, The Ohio Bell Telephone Company has been the subject of a corporate reorganization, and this contract needs to be assigned to AT&T Enterprises, LLC, which is a disregarded entity of AT&T DW Holdings, Inc.; and
WHEREAS, it is necessary to modify and extend the existing Universal Term Contract for the purposes of (1) adding 12 months to the term of the contract, and (2) assigning the existing UTC (PA005828; originally PO007157) from The Ohio Bell Telephone Company (FID 34-0436390) to AT&T Enterprises, LLC (a disregarded entity of AT&T DW Holdings, Inc., FID 99-1008219); and
WHEREAS, such modification is to be evidenced by the Department of Finance and Management entering into a Modification of Contract agreement and a Universal Extension - 5 States, Amendment to Service Agreement for AT&T ILEC Centrex Services Provided Pursuant to Standard Terms agreement with AT&T Enterprises, LLC (together, the "Assignment and Extension”);
WHEREAS, pursuant to the Assignment and Extension, the term of the contract will be extended from April 1, 2026 through March 31, 2027; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to authorize the Director of Finance and Management to enter into the Assignment and Extension to appropriately assign the existing UTC to the correct AT&T entity resulting from a corporate reorganization and because the existing UTC expires on March 31, 2026; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director is hereby authorized to modify and extend the existing Universal Term Contract for Centrex Services (PA005828) by entering into the Assignment and Extension with AT&T Enterprises, LLC to assign the contract to AT&T Enterprises, LLC and to extend the contract for a 12-month period beginning April 1, 2026 through March 31, 2027.
SECTION 2. That this modification is in accordance with relevant provisions of Chapter 329 of the Columbus City Codes.
SECTION 3. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.