Explanation
BACKGROUND: This ordinance authorizes the Finance and Management Director to establish four (4) Universal Term option contracts with AT&T for various communication services without the use of the competitive bidding process. The Universal Term option contracts to be established are (1) Centrex Services, (2) 311 Services, (3) Communication Circuits (DS1, ISDN PRI, GigaMAN, etc) and (4) MDA Savings Agreement. Universal Term option Contracts establish firm, fixed requirements and pricing while providing a simpler method for City agencies to procure and fund these services. The Purchasing Office and the Department of Technology have entered into negotiations with AT&T to determine scope and pricing.
The Purchasing office would also like to utilize the State of Ohio Master Service Agreement # MSA0022 for the purchase of AT&T Switched Ethernet (ASE) Service as it aligns with the cities technology migration strategy. The State of Ohio contract will be utilized if the cost is to the advantage of the City of Columbus. Ordinance 0582-1987 authorizes the use of State of Ohio Department of Administrative Services cooperative contracts when deemed cost effective. The State of Ohio Master Service Agreement with AT&T for Communications Circuits was not competitively bid. This ordinance will authorize the Finance and Management Director to establish purchase orders of up to $100.000.00 without additional Council approval for various AT&T communications services from established State of Ohio Contracts. The purpose for this is to allow City agencies to use the State Contract for cost saving purposes.
This ordinance also waives the competitive bidding process of the Columbus City Codes for the above-mentioned Universal Term option Contracts. Given the complexity of the systems and services being provided and embedded nature of these items it is not practical to bid any of these services at this time. Changing technology and potential competition in the marketplace have prompted the Department of Technology and the Purchasing Office to begin identifying requirements and developing specifications for a possible competitive bid in the future. However at this time and for the immediate future, AT&T is the only feasible provider of these services. This determination was made after extensive consultation between the Department of Technology and the assigned Purchaser of this commodity area.
This ordinance asks that the Finance and Management Director be authorized to establish purchase orders of up to $100,000.00 for each city agency without additional Council approval for the listed contracts.
Emergency action is requested to ensure the best prices telephony and communications for all City agencies.
AT&T CC#34-0436390 (Expires 2/25/16)
Total Estimated Annual Expenditure: $2,500,000.00
This company is not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings For Recovery Database.
This ordinance is being submitted as an emergency because, without emergency action, the contract will be in danger of lapsing and all AT&T communications services could be interrupted. The current contracts end March 31, 2016.
FISCAL IMPACT: Funding to establish this option contract is budgeted in the General Fund. City agencies will be required to obtain approval to expend from their own appropriations for their estimated annual expenditures.
Title
To authorize and direct the Finance & Management Director to enter into four (4) contracts with AT&T for the option to purchase (1) Centrex Services, (2) 311 Services, (3) Communication Circuits (DS1, ISDN PRI, GigaMAN, SIP Trunking, etc) and (4) MDA Savings Agreement; to authorize the expenditure of four (4) dollars to establish the contract from the General Fund; to waive the applicable competitive bidding provisions of Chapter 329 of the Columbus City Codes; and to declare an emergency. ($4.00)
Body
WHEREAS, it is necessary to authorize the Finance and Management Director to enter into four contracts with AT&T for the purchase of (1) Centrex Services, (2) 311 Services, (3) Communication Circuits (DS1, ISDN PRI, GigaMAN, SIP Trunking, etc) and (4) MDA Savings Agreement; and
WHEREAS, because of the complexity of the systems and services being provided and embedded nature of these items it is not practical to bid any of these services at this time; therefore, it is in the best interest of the City of Columbus to waive the competitive bidding requirements for the purchase; and
WHEREAS, this ordinance addresses Purchasing objectives of 1) maximizing the use of City resources by obtaining optimal products/services at low prices and 2) encouraging economic development by improving access to City bid opportunities and 3) providing effective option contracts for City agencies to efficiently maintain their supply chain and service to the public and 4) use of cooperative contracts; and
WHEREAS, because 1) Centrex Services, (2) 311 Services, (3) Communication Circuits (DS1, ISDN PRI, GigaMAN, SIP Trunking, etc) and (4) MDA Savings Agreement will be used to provide services in conjunction with various other City projects, this is being submitted for consideration as an emergency measure; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Technology in that it is immediately necessary to authorize the Finance and Management Director to enter into contracts with AT&T for the option to purchase 1) Centrex Services, (2) 311 Services, (3) Communication Circuits (DS1, ISDN PRI, GigaMAN, SIP Trunking, etc) and (4) MDA Savings Agreement, 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 & Management Director be and is hereby authorized to enter into contracts for an option to purchase 1) Centrex Services, 2) 311 Services, 3) Communication Circuits (DS1, ISDN PRI, GigaMAN, SIP Trunking, etc) and 4) MDA Savings Agreement with terms ending March 31, 2019 with the option to extend the contracts for one (1) additional one-year period, subject to mutual agreement, as follows:
AT&T, All items, Amount: $4.00
SECTION 2. That the expenditure of $4.00 is hereby authorized in Fund 1000 General Fund in Object Class 03 Services, Materials and Supplies per the account codes in the attachment of this ordinance.
SECTION 3. That this Council has determined it is in the best interest of the City of Columbus to waive the competitive bidding requirements of City Code Chapter 329 for the action authorized in SECTION 1.
SECTION 4. 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.