Item Coversheet


Meeting Date: 3/26/2019
Item Creation Date: 2/15/2019

T24891.A1 - Session Initiation Protocol (SIP) Trunking Services (MCI COMMUNICATIONS SERVICES, INC.) - ORDINANCE

Agenda Item#: 28.


ORDINANCE amending Ordinance No. 2014-0973, to increase the maximum contract amount to an agreement between the City and MCI COMMUNICATIONS SERVICES, INC d/b/a VERIZON BUSINESS NETWORK SERVICES, INC. for Session Initiation Protocol Trunking Services for Various Departments - $1,530,803.45 - Central Services Revolving Fund


S10-T24891.A1 - Approve an amending Ordinance to Ordinance No. 2014-0973, passed  October 29, 2014, to increase the maximum contract amount from $3,846,541.00 to $5,377,344.45 for Contract No. 4600012825 between the City of Houston and MCI Communications Services, Inc. d/b/a Verizon Business Network Services, Inc. for Session Initiation Protocol (SIP) Trunking Services for Various Departments.

Specific Explanation:
The Chief Information Officer and the Chief Procurement Officer recommend that City Council approve an amending ordinance to increase the maximum contract amount from $3,846,541.00 to $5,377,344.45 for the contract between the City of Houston and MCI Communications Services, Inc. d/b/a Verizon Business Network Services, Inc. for SIP Trunking Services for various departments.

This contract was awarded on October 2014, by Ordinance 2014-0973 for a three-year contract with two one-year options for a total five-year term in the original amount of $3,846,541.00. Expenditures as of February 18, 2019 totaled $3,831,541.00.  The contract incurred expenditures at a rate higher than anticipated due to transitioning a larger number of legacy telecom service lines during implementation.  The transition to SIP provided better pricing while also allowing the higher bandwidth services. As a result, the maximum contract amount will be exhausted prior to the end of the contract term. The additional spending authority is projected to sustain services until contract expiration.

The Scope of work requires the Contractor to provide all labor, parts, materials, equipment and supervision necessary to provide Session Initiated Protocol (SIP) Trunk and Transport services to converge voice data for the City.  SIP trunking enables the Phone Exchange System to send and receive calls via internet. As SIP is applied for the signaling protocol for multiple real-time applications, SIP trunk can control voice, video and messaging applications.  It is also a Voice Over Internet Protocol (VoIP) technology and streaming media service.  Most unified communications applications provide voice, video, and other streaming media applications such as desktop sharing, web conferencing, and shared whiteboard.

The City has approximately 15,000 telephones in over 400 locations to support staff operations, meeting rooms and conference rooms, and has expanded and upgraded the VoIP phone system to include all users, with exception of the three locations that comprise the Houston Airport System. The VoIP system will have capacity for basic telephone features such as inbound and outbound dialing, voicemail, call forwarding/transfer, caller ID/caller hold and conferencing capabilities for the following call types:

• Local calls
• Long distance calls
• Inbound calls
• Emergency calls – E911 to local PSAP (public-safety answering point)
• Emergency notification of situations/events to all phones, and
• 311 Citizen Assistance

MWBE Subcontracting:
This contract was awarded with a 2% M/WBE participation goal Verizon Business Network Services, Inc. is currently achieving a 1.62% participation level.  The Office of Business Opportunity will continue to monitor this contract to ensure M/WBE participation.

Fiscal Note:
Funding for this item is included in the FY2019 Adopted Budget. Therefore, no Fiscal Note is required in the Financial Policies.







Jerry Adams, Chief Procurement Officer

Finance/Strategic Procurement Division




Department Approval Authority

Estimated Spending Authority





Houston Information Technology Services




Prior Council Action:

Ordinance 2014-0973 - Passed October 29, 2014

Amount and Source of Funding:
$1,530,803.45 - Central Services Revolving Fund (1002)
Contact Information:




Brenda Chagoya, Division Manager


(832) 393-8723

Valerie Player-Kaufman, Sr. Procurement Specialist



(832) 393-8749

Somayya Scott, Deputy Assistant Director


(832) 393-0082

revised cover sheetSigned Cover sheet