TRANSMITTAL LETTER FOR BOARD MEETING OF JUNE 3, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authority to increase purchase order and amend the agreement with AT&T Global Services, Inc. for Contract 07-RFP-22 to provide Local Telephone Service and Long Distance Calling Service, in an amount of $150,000.00, from an amount of $746,334.60 to an amount not to exceed $896,334.60 Account 101-27000-612210, Purchase Order 3049206
Body
Dear Sir:
On November 1, 2007, the Board of Commissioners authorized the Director of Procurement and Materials Management to issue purchase order and enter into an agreement for Contract 07-RFP-22 to provide Local Telephone Service and Long Distance Calling Service with AT&T Global Services, Inc., in an amount not to exceed $746,334.60. The contract expires on June 30, 2012.
This contract has no prior change orders.
In the past, not all the District telecommunications services were under an agreement because these services were solely available from the only phone company servicing the District. Due to deregulation it was determined that all Information Technology telecommunication services can be competitively bid for local and long distance calling service. As a result, the request for proposal 07-RFP-22 was ultimately awarded to AT&T Global Service, Inc.
Shortly after this agreement was in place, it was discovered that the summary billing from AT&T included service fees for Maintenance and Operations telemetry circuits. The summary billing from AT&T made it impossible to properly allocate charges for services to the appropriate departments. In a joint effort by General Administration, Maintenance and Operations, and the Information Technology Departments, it was determined that a full audit of all telephony services, including PRI’s, POTS and telemetry be performed. A request for proposal (08-RFP-13) was advertised and awarded to Wilson Consulting who worked closely with General Administration, Maintenance and Operations, Information Technology, and AT&T to identify and align all circuits to the correct and corresponding service invoices. The District now receives individual invoices for Information Technology’s PRI and POTS services as well as separate invoices per plant for Maintenance and Operations telemetry services. Furthermore, AT&T has provided the District with an online, interactive and query-able invoice management system.
Due to the drastic reorganization of lines and circuits to their respective service accounts, Information Technology will advertise a new RFP for PRI and POTS services which more accurately represents the District’s telephone infrastructure. In addition, the Maintenance and Operations Department will advertise an RFP for telemetry services. However, funds on the existing PO were depleted much sooner than originally anticipated due to the inability to properly allocate detailed charges to the respective department. A change order in the amount of $150,000.00 is requested to allow sufficient time to prepare, advertise and award these new RFPs.
This change order is in compliance with the Illinois Criminal Code since the change order is germane to the contract.
It is hereby recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to execute a change order to increase the purchase order and amend the agreement for Contract 07-RFP-22 in an amount of $150,000.00 (20% of the current contract value) from an amount of $746,334.60 to an amount not to exceed $896,334.60.
Funds for the 2010 expenditure in the amount of $150,000.00 are available in Account 101-27000-612210.
Requested, Keith D. Smith, Director of Information Technology, KDS:JPC:MHL:EJ:TJM:tjm
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for June 3, 2010