S17-H26327 - Approve payment for sole source services received from Southwestern Bell Telephone Company dba AT&T Corporation for central office based business communication systems in an amount not to exceed $352,250.69 for the Houston Information Technology Services.
Specific Explanation:
The Chief Information Officer and the Chief Procurement Officer recommend that City Council approve payment for sole source services received for central office based business communication systems in an amount not to exceed $352,250.69 for the Houston Information Technology Services and that authorization be given to issue payment to Southwestern Bell Telephone Company dba AT&T Corporation.
Approximately from June 2008 to April 2013, AT&T performed services, at the City’s request, to address daily business related requirements, which were originally engaged under purchase orders. The City accepted the services but billing invoices were believed to be in error and thereby in an effort to research and not issue incorrect payments; full payments were not issued. After extended research by both the City and AT&T, to compromise and settle the dispute, an amount was negotiated that will provide payment of services AT&T provided to the City during this period; and fees for these services do not exceed $352,250.69.
The Contractor has provided the services to the City as described below:
- 3-1-1 services under General Exchange Tariff, § 47;
- Plexar, the central-office based business communications system provided by AT&T;
- Analog services under Private Network Services Tariff, § 2;
- Telebranch services under General Exchange Tariff, § 21; and
- Primary Rate Interfaces (PRIs) – telecommunications interface standard used
for carrying multiple voice and data transmissions between the network and a user.
To ensure tracking and timely billing reconciliation going forward HITS has implemented a Telecom Expense Management System (TEMS); which tracks all provisioning, de-provisioning and billing for telecommunications.
AT&T Corp. is the sole source incumbent contractor who provides the City with the current sole source private network and general exchange tariffed services, and maintains exclusivity based on a combination of having: (a) standing as a Local Exchange Carrier in Houston, Texas; (b) product ownership and naming rights; and (c) legacy permission by the Texas Public Utility Commission.
M/WBE Participation:
An M/WBE Goal is not applicable when paying for services received.
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 for this purchase.
Fiscal Note:
Funding for this item is included in the FY2018 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ord. 2014-1078.
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_______________________________________
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___________________________________
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Jerry Adams, Chief Procurement Officer
Finance/Strategic Procurement Division
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Department Approval Authority
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Estimated Spending Authority
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DEPARTMENT
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FY2018
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OUT YEARS
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TOTAL
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Houston Information Technology Services
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$352,250.69
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$0.00
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$352,250.69
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