Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to enter into a Universal Extension - 5 States, Amendment to Service Agreement for AT&T ILEC Centrex Services Provided Pursuant to Standard Terms agreement in order to modify and extend an existing Universal Term Contract (UTC) for the option to obtain Centrex services with AT&T. This contract provides for Centrex telephone services throughout the City. This modification is necessary to add 12 months to the term of the contract. The contract, PA005828 (originally PO007157) was negotiated with AT&T and established without competitive bidding under the authority of Ordinance No. 0427-2016 and Ordinance No. 0848-2022.
The prior extension of this contract has expired. The Department of Finance and Management modified and extended the prior extension on April 1, 2025 under the authority of Ordinance No. 3095-2024. However, due to contract processing issues internal to AT&T, the April 1, 2025 extension did not provide the correct pricing terms to the City. In order to extend the same pricing terms in effect prior to April 1, 2025, the Department of Finance and Management desires to nullify the extension that was effective April 1, 2025 and instead enter into the Universal Extension authorized by this Ordinance, which will be effective beginning April 1, 2025 for a 12-month period.
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 was contemplated and completed; however, due to processing issues internal to AT&T, a different extension is now desired to provide correct pricing terms to the City for the next 12 months.
(3) Why it would not be in the city's best interests to have the additional contract requirements awarded through other procurement processes: AT&T 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 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 AT&T’s currently offered rates, established for the 12-month term, and this extension of the current contract provides lower pricing to the City for these services than would be available if a different extension method with AT&T is used.
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 must set aside its own funding for its estimated expenditures.
EMERGENCY DESIGNATION: The Department of Finance and Management requests emergency designation due to the time sensitivity of replacing the recent extension that is to be nullified and replaced by the extension authorized in this Ordinance so that invoices with correct pricing will be sent to the City.
Title
To authorize the Finance and Management Director to modify and extend the contract for the option to purchase Centrex services with AT&T; and to declare an emergency.
Body
WHEREAS, the Department of Finance and Management entered into a Universal Term Contract for Centrex services for use citywide; and
WHEREAS, it is necessary to modify and extend the existing Universal Term Contract with AT&T by entering into a Universal Extension - 5 States, Amendment to Service Agreement for AT&T ILEC Centrex Services Provided Pursuant to Standard Terms agreement (the “Universal Extension”), to include 12 months of service, beginning April 1, 2025 and expiring March 31, 2026; and
WHEREAS, that Universal Term Contract was previously modified and extended on April 1, 2025 under the authority of Ordinance No. 3095-2024. However, due to contract processing issues internal to AT&T, the April 1, 2025 extension did not provide the correct pricing terms to the City. In order to extend the same pricing terms in effect prior to April 1, 2025, the Department of Finance and Management desires to nullify the extension that was effective April 1, 2025 and instead enter into the Universal Extension; 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 Universal Extension due to the time sensitivity of replacing the recent extension that is to be nullified and replaced by the Universal Extension so that invoices with correct pricing will be sent to the City; 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 enter into the Universal Extension to modify and extend a Universal Term Contract for Centrex services with AT&T for a 12-month period beginning April 1, 2025.
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.