title
AUTHORIZING A CONTRACT FOR LIBRARY BROADBAND NETWORK EQUIPMENT FROM AMS.NET, INC.
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a motion:
1. Approving findings that support an exception to the competitive bidding process;
2. Authorizing the City Manager to execute an agreement with AMS.NET, Inc. for broadband network hardware equipment at a cost of $122,674;
3. Authorizing up to $20,000 for installation of equipment; and
4. Authorizing the City Manager to take appropriate actions necessary to carry out the purpose and intent of this motion.
body
Summary
The Stockton-San Joaquin County Public Library System (Library) has suffered from poor Internet connectivity for several years. Library users experience substantial delays in connecting, and Library staff is unable to take advantage of service opportunities afforded through broadband connections. In 2013, a unique opportunity was given to California Public Libraries. For the first time, public libraries were eligible to join The Corporation for Education Network Initiatives in California (CENIC). CENIC operates the California Research and Education Network (CalREN), a high-speed broadband network supplying services to all of California’s universities and public schools. CalREN provides bandwidth speeds 1,000 times greater than current Library speeds. To take advantage of this opportunity, the City signed an agreement in March 2016 with Califa, a non-profit organization that assists libraries in joining CENIC. During the assessment process, CENIC and City Information Technology (IT) staff determined that the Library needed to replace its outdated broadband equipment to migrate to CalREN. The Library engaged a consultant to assist with equipment selection and to help the Library apply for E-Rate, a Federal program providing discounts for Internet services and equipment. The consultant issued a Request for Proposals (RFP) for the equipment. AMS.NET was chosen as the most qualified vendor. On July 15, 2016, to comply with E-Rate deadlines, the City signed a sales order agreement with AMS.NET, Inc. (Attachment A), contingent upon City Council Approval and E-Rate funding. On February 2, 2017, the City received notice that it is eligible for E-rate and will receive a discount of 85% on the cost of most of the network equipment needed for the migration.
Staff recommends Council approve this motion for the purchase and installation of broadband network hardware to ensure the library has modern equipment that can support new broadband services.
DISCUSSION
Background
The City of Stockton manages the Stockton-San Joaquin Library, which is made up of five City and eight County branches. A key strategic goal of the Library is providing high-speed Internet connectivity to residents. However, because of the Library’s current limited bandwidth, customers experience substantial delays and in some cases a complete inability to connect.
In 2013, a unique opportunity was provided to California Public Libraries. For the first time, public libraries were eligible for the Gigabit Library Project, allowing them to become members of The Corporation for Education Network Initiatives in California (CENIC), which operates the California Research and Education Network (CalREN), a high-speed fiber-optic network supplying services to all of California’s universities and public schools. The Gigabit Library Project is now in its third year, having already connected 129 out of 176 eligible library jurisdictions in the State. The Stockton-San Joaquin Public Library system is poised to take advantage of this opportunity within the next few months. Transitioning to CalREN will result in Internet speeds of 1G (gigabyte), 1,000 times faster than current speeds. An improvement of this magnitude will have significant benefit to residents of Stockton and San Joaquin County. Faster speeds allow more resources to be used on a network, more data-rich applications to be made available to the public, and more opportunities to bring resources from around the world into the lives of local youth and families.
In addition to providing high-speed network access, CENIC also manages the time-consuming and cumbersome process of the Library’s annual application for E-rate, a Federal Government program providing discounts for purchase of network equipment and services. The Library has participated in E-Rate since 1997.
In March 2016, the City signed an agreement with Califa, an organization that assists libraries in joining CENIC. During the assessment phase, CENIC and City Information Technology staff determined that the Library needed to replace its outdated broadband equipment to migrate to the new network. To accomplish this, and to assist with E-Rate, the Library hired a consultant, EdTechnology Funds. EdTechnology facilitated the Library’s E-Rate application and issued a Request for Proposals (RFP) for the hardware equipment according to local requirements and E-Rate rules. The RFP was completed, and proposals were evaluated by the consultant and Library staff using City of Stockton and E-Rate competitive proposal criteria. AMS.NET was chosen as the most qualified vendor.
On July 15, 2016, to comply with E-Rate program deadlines, the City signed a sales order agreement with AMS.NET, contingent upon E-rate funding and City Council approval (Attachment A). On February 2, 2017, the Library received notification that it is eligible for the E-Rate program and will receive a discount of 85% on most of the network equipment needed for the CENIC migration. Some equipment, while necessary for the transition, was not eligible for E-Rate discount. In addition, on September 23, 2016, the Library received a grant through the California Public Library Broadband Project in the amount of $60,000 which will be used to further offset the cost of the equipment purchase.
Present Situation
During the course of the E-rate waiting period, AMS.NET reduced its original proposal of $324,128.86 to $285,572. They have confirmed in writing that they will base invoicing on the cost after E-rate discounts have been subtracted. AMS.NET will bill the City $122,674.
Installation of the equipment will be completed by a vendor to be chosen after a competitive quote process. The cost of installation will not exceed $20,000.
FINDINGS
Stockton Municipal Code Section 3.68.070 provides an exception to the competitive bidding process for negotiated contracts following solicitation of competitive proposals in cases where the City Council has made findings that support and justify the exception.
Therefore, the Council is asked to approve the following findings:
1. The RFP process was used instead of a bidding process because the project scope required industry expertise to identify the types of equipment needed to interact with the CalREN network. A strict cost competitive basis for selection would likely result in lower product quality, compromised service delivery, and unnecessary cost in meeting the City’s needs.
2. In accordance with E-Rate Program requirements, the City advertised an RFP for E-rate supported services on the E-Rate administrator website. The RFP and competitive process complied with both FCC rules and state and local procurement requirements.
3. Staff, with the assistance of a consultant, reviewed the proposals for price, experience with E-Rate, capability with existing infrastructure, and qualification for the City’s local preference. Based on these factors, AMS.NET, an E-Rate program approved vendor, was determined to be the most qualified.
4. AMS.NET is particularly equipped to meet the needs of the Library because of its familiarity and experience with the E-Rate program and its ability to provide equipment which will integrate seamlessly with the CalREN network.
FINANCIAL SUMMARY
The attached purchase quote (Attachment B) is for hardware equipment for a total cost of $285,572. The chart below shows the final costs after E-rate discounts and the California Public Library Broadband Project grant. The Library will be billed $122,674 and will use the grant funds to cover $60,000 of the expenditures. The net Library cost is $62,674 allocated between the City at $23,816 (38%) and County at $38,858 (62%) based on the number of library branches.
The equipment is not an addition to existing network equipment; rather it replaces existing Library equipment. Information Technology Internal Service Funds rates will be adjusted to account for future equipment replacement. In addition, Internet service costs are estimated to increase from $10,196 to $21,070 annually as this project results in Internet speeds 1,000 times greater than current services. Service increases will be incorporated into the annual Library Division Technical Services budget. Staff is also requesting up to $20,000 for installation costs, following a three quote process. Appropriation for the broadband network equipment acquisition was provided in the Fiscal Year 2016-17 041 Library Fund operating budget.
Attachment A - Agreement with AMS.NET
Attachment B - AMS Price Quote and Summary