Explanation
BACKGROUND: For the option to purchase Long Distance Services for the Department of Development, the largest user. The term of the proposal option contract would be a little over two years with the option to renew for two each additional one year periods. The proposed contract is through December 31, 2006.
In May of 2004, MCI, the long distance service provider to the City, informed the City that it would discontinue long distance services to the City because of past due unpaid invoices. The City researched records that indicated that the City was due credits from MCI, instead of being in arrears on payments. Despite efforts by both parties, an agreement on amounts due or credited could not be reached and MCI threatened to discontinue long distance services for the City of Columbus.
The Purchasing Office had already advertised and solicited competitive bids in accordance with Section 329.06 Solicitation No. SA001111JY. The Purchasing Office opened formal bids on May 27, 2004. Six bids were received. (MAJ:29) bids solicited; (MAJ:6) bids received, (MBE:4) bids solicited; (MBE:0) were received (FBE:0) bids solicited; (FBE:0) bids received. All but one of the bids were deemed non-responsive due to not meeting all specifications. The remaining bid was in question regarding the bidders ability to provide the service responsibly. Due to the poor bid response, the Finance Director designee recommended that the best course of action was to cancel the formal solicitation and seek informal proposals for long distance service to be provided early in June, 2004.
To maintain long distance services, the Mayor declared an emergency on June 3, 2004, and authorized the Finance Director to secure long distance services. In the short term, some accounts were assumed by Qwest. In the meantime a bid process for long distance service was already in progress.
The Finance/Purchasing Office, with the endorsement of the Department of Technology, cancelled SA001111JY and accepted proposals and presentations from the two lowest numerical bidders on the original formal bid, SBC Global Services, Inc. and Qwest Communications. The team that evaluated the proposals and presentations recommended SBC Global Services, Inc. as the service provider. The Department of Technology and Finance/Purchasing Office entered into negotiations with SBC Global Services, Inc. with the valued assistance of our Assistant City Attorney. The Finance/Purchasing Office and the Department of Technology recommend that the City immediately enter into contract for long distance services with:
SBC Global Services, Inc., MAJ, CC#74-2746907, $1.00
This ordinance is being submitted as an emergency because, without emergency action, no less than 37 days will be added to this procurement cycle, and we already owe providers for long distance services secured since the emergency declaration, as our service was dropped by MCI.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the Purchasing Contract Account. City Agencies will be required to obtain approval to expend from their own appropriations for their estimated annual expenditures where they exceed $100,000 on an annual basis.
Title
To authorize and direct the Finance Director to enter into contract(s) for the option to purchase Long Distance Services with SBC Global Services, Inc. and to authorize the expenditure of $1.00 to establish the contract from the Purchasing/Contract Operation Fund, and to declare an emergency. ($1.00).
Body
WHEREAS, the Purchasing Office advertised and solicited formal bids on May 27, 2004 and,
WHEREAS, prior to the evaluation process the City's long distance provider, MCI, threatened to and ultimately did discontinue long distance services and,
WHEREAS, the results of the formal bid were unacceptable, with most bidders declared non-responsive, and,
WHEREAS, the Department of Technology requested SA001111JY to be cancelled and pursued informal bids in order to receive revised proposals and presentations from the two lowest bidders from the original solicitation; and,
WHEREAS, to maintain long distance services, the Mayor declared an emergency on June 3, 2004, and authorized the Finance Director to secure long distance services. In the short term, some accounts were assumed by Qwest. In the meantime, a bid for long distance service was already in progress; and
WHEREAS, the team that evaluated the proposals and presentations determined SBC Global Services, Inc. to be the lowest cost and best long distance provider pursuant to the informal solicitation; and
WHEREAS, the City has successfully completed negotiations with SBC Global Services, Inc. for a proposed contract; and,
WHEREAS, there is currently no long term contract to provide long distance services for City phone lines and therefore in order to establish a supply matrix as soon as possible, this ordinance is being submitted for consideration as an emergency measure; and
WHEREAS, an emergency exists in the usual daily operation of the Development Department, in that it is immediately necessary to enter into a contract for the option to purchase essential Long Distance Services, thereby preserving the public health, peace, property, safety, and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance Director be and is hereby authorized and directed to enter into the following contract(s) for an option to purchase long distance services in accordance with Solicitation No. SA00111JY as follows:
SBC Global Services, Inc. All Items: Amount: $1.00
SECTION 2. That the expenditure of $1.00 is hereby authorized from Purchasing Contract Account, Organization Level 1: 45-01, Fund: 05-517, Object Level 3: 2270, OCA: 451130, to pay the cost thereof.
SECTION 3. That this long distance service and the ensuing contract were initiated and pursued in accordance with City of Columbus Code Chapter 329.27 Emergency Waiver of Regulations.
SECTION 4. That for the reason stated in the preamble here to, 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.