TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 2, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Issue purchase order and amend agreement with AT&T Corp. to Furnish and Deliver co-location services for a period of 36 months in an amount not to exceed $650,722.00, Account 101-27000-612210, Requisition 1316291
Body
Dear Sir:
Authorization is requested to issue a purchase order and amend agreement with AT&T Corp. to furnish and deliver 36 months of co-location services to the District. The co-location services will start 12/15/10 and end 12/14/13. The District's current Information Technology data centers are at or near capacity from both a physical space perspective as well as from power consumption limits. The District is currently in the process of designing two new Information Technology data centers, one at the Stickney plant and the other at the Egan plant. However, these data centers will not be operational for at least three years. The District has already experienced significant delays in the execution of existing projects due to the limits of the existing data centers. No additional capacity or physical space exists to stage new equipment that must be brought online before the dismantling of existing systems.
AT&T Corp., the District's sole service provider of Opt-E-MAN Wide-Area-Network lines, has submitted prices for the 36 months of co-location required, in a tier-4 data center. Inasmuch as AT&T Corp. is the only source of supply for the District's existing Wide-Area-Network communications, it is recommended from a security perspective to co-locate the District's equipment at their data center as to not introduce any additional and unnecessary access points to the District's network, data, and computer systems. Therefore, nothing would be gained by advertising for bids (Section 11.4 of the Purchasing Act).
The District already has a Master Agreement in effect with AT&T Corp., of which these services are available from upon the execution of an addendum to the existing Agreement.
AT&T Corp. is registered and in good standing with the State of Illinois.
The Multi-Project Labor Agreement is not applicable to this contract because it is primarily a co-location service providing contract.
In view of the foregoing, it is requested that the Director of Procurement and Materials Management be authorized to issue said purchase order and amend agreement with AT&T Corp. in an amount not to exceed $650,722.00.
Funds for the 2010 expenditure, in the amount of $243,274.00, are available in Account 101-27000-612210. The estimated expenditure for 2011 is $203,724.00 and 2012 is $203,724.00. Funds for the 2011 and 2012 expenditures are contingent on the Board of Commissioners' approval of the District's budget for those years.
Requested, Keith D. Smith, Director of Information Technology, KDS:JC
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 December 2, 2010