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APPROVE A MOTION TO ENTER INTO A COOPERATIVE AGREEMENT WITH TELCION COMMUNICATION GROUP THROUGH MERCED COUNTY.
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RECOMMENDATION
It is recommended that the City Council adopt a motion to:
1. Approve the use of a Cooperative Agreement through Merced County Fast Open Contracts Utilization Services (FOCUS) Contract Number 2021106 with Telcion Communications Group to acquire telecommunication services, related equipment, supplies and maintenance services.
2. Authorize the City Manager, or designee, to execute a multi-year Cooperative Purchasing Agreement, expiring June 7, 2024 in an amount not to exceed $750,000 with Telcion Communication Group (Attachment A).
3. Approve findings which support and justify an exception to the competitive bid process; and
4. Authorize the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose and intent of this motion.
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Summary
Staff recommends entering into a new contract for a Voice over IP (VOIP) cloud-based phone system using the Cooperative Agreement with Telcion Communications Group for maintenance and repair services, hardware and supplies, and anticipated purchase of replacement telephones over the next three years at the cost of approximately $250,000 per year. The new hardware will replace aged equipment, where needed as well as provide the City the ability to scale up and add users over the contract term. The proposed contract term through June 7, 2024, is for an estimated amount not to exceed $750,000.
DISCUSSION
Background
The City Council approved motion 2017-07-11-1106 in July of 2017 and entered into a five (5) year agreement with Telcion Communications Group for a cloud-based VOIP phone system to replace the City’s on-premise phone system. The replacement of the phone system met the strategic goals of reducing the footprint of the data center by moving to a cloud solution and adding more functionality to the phone system. Moving to a cloud-based system reduced the amount of hardware and software the City must purchase and maintain, providing the City with a substantial cost savings over a five-year period. Reducing the hardware in the data center reduces the energy consumption used to power and cool the data center. Reducing the amount of hardware also reduced the amount of time staff spends maintaining the system, allowing staff to focus on other projects.
Present Situation
Staff recommends entering into a new contract for a VOIP cloud-based phone system using the Cooperative Agreement with Telcion Communications Group (Attachment A) for maintenance and repair services, hardware and supplies, and anticipated purchase of replacement telephones over the next three years at the cost of approximately $250,000 per year. The new hardware will replace aged equipment, where needed as well as provide the City the ability to scale up and add users over the contract terms.
The Merced County FOCUS contract was established through a request for proposal conducted by Merced County. Utilizing this Cooperative Agreement combined with a sole source justification to use Telcion Communications Group will allow the City to continue to support operational activities with a trusted vendor at competitive prices for telecommunication services. The proposed contract has a term through June 7, 2024. IT recommends approval for an estimated amount of $750,000 which will cover the three-year contract term.
Findings
Stockton Municipal Code Section 3.68.070(A)(5) provides an exception to the competitive bidding process where the City accesses the terms of a competitively bid and negotiated cooperative purchasing agreement and where the City Council has approved findings that support and justify the exception. The findings are as follows:
1. Merced County has established a Cooperative Agreement with Telcion Communications Group to allow for the pooling of various agencies’ purchasing volume to directly reduce the cost of telecommunication services.
2. Participation in the FOCUS Cooperative Agreement for the purchase of telecommunication services, related equipment, supplies and maintenance services will provide the City with a cost savings of 45% off retail pricing for hardware, 30% off subscription pricing and 19% off warranty pricing.
3. The use of an existing Cooperative Agreement will reduce the administrative burden and time required to conduct a separate competitive procurement.
4. Telcion Communications group has been the telecommunication services provider for the City for five years. Utilizing this Cooperative Agreement allows the City to continue to support operational activities with a trusted vendor at competitive prices.
FINANCIAL SUMMARY
The Cooperative Agreement with Telcion Communications Group is for the acquisition of telecommunication services, related equipment, supplies and maintenance services. Total expenditures are not to exceed $750,000 through June 7, 2024 (reference Table 1 for annual breakdown). Budget for FY 2021-22 estimated cost is appropriated in the 510 Technology Fund, Project accounts, and Department accounts. Future annual estimated costs will be included in the annual budget appropriation process.
Table 1 - Proposed Purchase Authority
|
Product Type |
Current Annual Spend |
FY 2022-23 |
FY 2023-24 |
FY 2024-25 |
Total |
|
Telecommunication services and products from Telcion Communications |
$200,000 |
$250,000 |
$250,000 |
$250,000 |
$750,000 |
Attachment A - COOP Agreement with Telcion Communications Group