APPROVE spending authority in an amount not to exceed $89,541.82 for Purchase of Spare Microwave Radio System Parts for Houston Information Technology Services, awarded to ALCATEL-LUCENT USA - General Fund

S17-H21110  - Approve the spending authority in an amount not to exceed $89,541.82 for the sole source purchase of spare microwave radio system parts for Houston Information Technology Services.

Specific Explanation:

The Interim Chief Information Officer and the Chief Procurement Officer recommend that City Council approve spending authority in an amount not to exceed $89,541.82 for the sole source purchase of spare microwave radio system parts and that authorization be given to issue a purchase order to Alcatel-Lucent USA for the Houston Information Technology Services (HITS).

In 2013 the Public Safety Radio system began operations and as a part of the system purchase HITS took possession of the supply of spare parts for the microwave radio system that connects the radio sites together. The City has yet to exhaust the original assortment of spare parts and have not had to purchase additional parts from the manufacturer until now. HITS has been notified by the microwave radio system manufacturer that the radios used in the City's sites will be discontinued. The manufacturer has granted the City of Houston a one month window to purchase the discontinued spare parts. Replacing the current system will take time to procure and efforts identifying funds, HITS is requesting to make a one-time purchase of additional spare parts from the manufacturer while they are available to sustain the microwave radio system until a replacement system can be put in place. The product line is being discontinued and the parts being requested are the only ones that can be used in the equipment the City owns and operates. HITS anticipate that identifying funding and conducting the subsequent procurement will take approximately 18 to 24 months.

Alcatel-Lucent USA is the sole source provider and exclusive manufacturer of the radio parts.  Additionally, Alcatel-Lucent USA is the only representative authorized to sell and maintain these products.

This recommendation is made pursuant to Chapter 252.022 (a) (7) "a procurement of items that are available from only one source" of the Texas Local Government Code for exempt procurements.

Hire Houston First:

This procurement is exempt from the City’s Hire Houston First Ordinance.  Bids/proposals were not solicited because the department is utilizing a sole source contractor.

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John J. Gillespie, Chief Procurement Officer           Department Approval Authority Signature

Finance/Strategic Procurement Division