ORDINANCE amending Ordinance No. 2015-0151, to increase the maximum contract amount for an agreement between the City of Houston and GTE MOBILNET OF SOUTH TEXAS LIMITED PARTNERSHIP dba VERIZON WIRELESS for Wireless Communications Equipment and Services for Houston Information Technology Services - $3,020,201.63 - General and Central Service Revolving Funds

S36-T25007.A1 - Approve an amending Ordinance to Ordinance No. 2015-0151, passed on February 18, 2015, to increase the maximum contract amount from $26,666,666.00 to $29,686,867.63 for Contract No. 4600013135 between the City of Houston and GTE Mobilnet of South Texas Limited Partnership d/b/a Verizon Wireless for Wireless Communications Equipment and Services for Houston Information Technology Services Department.

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 $26,666,666.00 to $29,686,867.63 for the contract between the City of Houston and GTE Mobilnet of South Texas Limited Partnership d/b/a Verizon Wireless for Wireless Communications Equipment and Services for Houston Information Technology Services Department.

This contract was awarded on February 18, 2015 by Ordinance 2015-0151 for a three-year contract term, with two one-year options in the original amount of $26,666,666.00. Expenditures as of September 11, 2019 totaled $25,862,491.71.

The increase to the maximum contract will fund the final months of the existing 5-year agreement. The shortfall resulted because the original agreement did not contain contingency for growth of wireless devices.  Over the past  4 1/2 years, City departments have added 1,290 devices to accommodate the growing need for the digital transformation of field worker processes.  In addition, the City has received $2,700,000 in rebates over the life of this contract which largely offsets the requested additional contractual spending authority.  The City will transition to a new wireless services contract prior to February 24, 2020.

This contract  was presented to the Transportation, Technology & Infrastructure (TTI) Committee on September 5, 2019.

MWBE Subcontracting:
This contact was awarded with an 19% MWBE participation goal and Verizon Wireless  is currently achieving a 16.2% participation level.  The Office of Business Opportunity has conducted its regularly scheduled quarterly review with Verizon,  and it determines Verizon is on pace to meet the goal and will re-evaluate its progress at each quarterly review.  The Office of  Business Opportunity will continue to monitor the contract to ensure MWBE participation. 

Fiscal Note:
Funding for this item is included in the FY2020 Adopted Budget. Therefore, no Fiscal Note is required in the Financial Policies.

                                       Estimated Spending Authority

Ordinance No. 2015-0151, Passed February 18, 2015

$   783,411.91  General Fund (1000)

$2,236,789.72  Central Services Revolving Fund (1002)

$3,020,201.63  Total