S49-E24162.A3 -Approve an amending ordinance authorizing a third amendment to Contract No. 4600012442 between the City of Houston and AT&T Corp. (approved by Ordinance No. 2014-0007, passed on January 8, 2014) to increase the maximum contract amount from $5,931,952.62 to $7,314,158.96 and to extend the contract term from January 16, 2022 to June 30, 2023 for Central Office-Based Communications Systems Services (Plexar) for various departments.
Specific Explanation:
The Chief Information Officer and the Chief Procurement Officer recommend that City Council approve an ordinance authorizing a third amendment to the contract between the City of Houston and AT&T Corp. to increase the maximum contract amount from $5,931,952.62 to $7,314,158.96 and to extend the Contract term from January 16, 2022 to June 30, 2023 for Central Office-Based Communications Systems Services (Plexar) for various departments.
This contract was awarded on January 8, 2014, by Ordinance No. 2014-007, for a two-year term with three one-year options, in the original amount of $2,000,000.00. An amending ordinance was passed on April 20, 2016; Ordinance No. 2016-0322 increased the maximum contract amount from $2,000,000.00 to $4,000,000.00. On October 10, 2018, a first amendment was approved by Ordinance No. 2018-0814 increasing the maximum contract amount from $4,000,000.00 to $5,261,125.66 and extending the contract term an additional year. On January 13, 2021, a second amendment was approved by Ordinance No. 2021-0029 increasing the maximum contract amount from $5,261,125.66 to $5,931,952.62 and extending the contract term an additional year. Expenditures as of November 12, 2021 total $5,931,952.62. The requested increase in dollars and the additional year will allow the contractor to continue providing these vital services to the City, including legacy telephone lines that are not compatible with the City's VoIP telephone systems such as for elevators and for fire and security alarms; and for community centers and remote locations.
The scope of work requires the contractor to provide all labor, material, and supervision to provide Plexar-custom services by an arrangement of simulated exchange access lines, station lines, switching equipment, customer facility groups, and other facilities on company premises, based on the concept of simulated exchange lines which all the contractor to provide a grade of service based on the customer’s individual usage needs.
The Plexar custom service is a central office-based business communication system that serves customers with a minimum of 75 stations within a single serving office and is provided by AT&T Corp., utilizing existing AT&T Corp. facilities and equipment. 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. It also maintains exclusivity based on standing as a Local Exchange Carrier for Houston, ownership and naming rights and legacy permission by the Texas Public Utility Commission.
This item will be presented to the Transportation, Technology, and Infrastructure Committee meeting on December 2, 2021.
M/WBE Participation
M/WBE Zero Percentage Goal Document approved by the Office of Business Opportunity.
Fiscal Note:
Funding for this item is included in the FY2022 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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Jerry Adams, Chief Procurement Officer Department Approval Authority
Finance/Strategic Procurement Division
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Estimated Spending Authority
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DEPARTMENT
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FY2022
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OUT YEARS
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TOTAL
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Houston Information Technology Services
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$483,001.16
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$899,205.18
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$1,382,206.34
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