ORDINANCE approving and authorizing agreements between City of Houston and (1) GTE MOBILNET OF SOUTH TEXAS LIMITED PARTNERSHIP d/b/a VERIZON WIRELESS, and (2) AT&T CORP to provide Wireless Telecommunication Devices and Services for Houston Information Technology Services and Various Other City Departments; providing a maximum contract amount - $61,918,787.00 – General, Enterprise and Other Funds

Request for Proposals received on April 4, 2024 for Doc985031860 - Approve an ordinance awarding contracts to (1) GTE Mobilnet of South Texas Limited Partnership d/b/a Verizon Wireless, and (2) AT&T Corp in the maximum contract amount of $61,918,787.00 to provide wireless telecommunication devices and services for a three (3) year contract term, with two (2) one-year renewal options for Houston Information Technology Services Department and various other City departments.

Specific Explanation:

The Chief Information Officer and the Chief Procurement Officer recommend that City Council approve an ordinance awarding a three (3) year contract, with two (2) one-year renewal options, for a maximum five-year contract term to (1) GTE Mobilnet of South Texas Limited Partnership d/b/a Verizon Wireless (Verizon Wireless), and (2) AT&T Corp (AT&T), in the maximum contract amount of $61,918,787.00 to provide wireless telecommunication devices and services for Houston Information Technology Services Department (HITS) and various other City departments.

The scope of work requires the contractors to provide all labor, materials, equipment, and supervision required to provide cellular voice and data services and associated telecommunication devices Citywide, which enable City employees and machines to communicate and share information. These services enable the City to accommodate mobile workers such as policemen, firemen, inspectors, and public officials as well as for devices that are positioned away from City facilities such as cameras, sensors, and lift stations, and for disaster recovery to sustain existing services or enable new and temporary services during emergencies. The services will cover both domestic and international locations.

Verizon Wireless and AT&T will be required to provide similar services, including flat rate plans for Domestic and International Smartphone rates and Aircard Data Access rate plans, which include all applicable discounts. The vendors will provide equipment such as Smartphones, Tablets, Hotspots, Basic Phones, Aircards, and accessories such as car chargers, batteries, and protective cases. In addition, the vendors will provide services to include:

·         Twenty-four hours a day, seven days a week support;

·         Leveraging new technologies and industry’s best practices;

·         Assistance and network capacity as needed for emergency, urgent, or critical events;

·         Providing Public Safety users with the ability to roam to and from the Nationwide Public Safety Broadband network;

·         Equipment flexibility;

·         Expertise and support with large scale enterprise networks; and

·         Assistance from Enterprise Group for design and architectural review or deployment.

The new contracts will enable the City to secure competitive  monthly service costs and increase opportunities for rebates, along with access to free and reduced-price devices. Additionally, these agreements will support essential in-building enhancements, improving connectivity for public safety and first responders. The primary goal is to provide wireless telecommunication devices and services that deliver the best overall value for the City, significantly reducing costs while enhancing service quality and flexibility. This will ensure that our public safety teams and first responders have the reliable, high-quality connectivity they need.

The Request for Proposals (RFP) was advertised in accordance with the State of Texas bid laws, and proposals were received from AT&T, Verizon Wireless, and T-Mobile USA, Inc. The Evaluation Committee consisted of employees from HITS, the Houston Police Department, and Houston Public Works, with additional non-voting representation from Houston Airport System.  

The proposals were evaluated based upon the following criteria:

·         Responsiveness of Proposal

·         Technical Competence

·         Price Proposal

Verizon Wireless and AT&T received the highest overall scores and were deemed the best overall value to perform the requirements as outlined in the RFP.

Contract awards are as follows:

This item was presented to the Government Operations Committee on September 30, 2024.

M/WBE Participation:

This RFP was advertised with a 18.00% M/WBE participation goal. Below is a breakdown of participation by each vendor.

AT&T submitted a M/WBE participation plan calculating to 21.5% MWBE participation.

Verizon Wireless submitted a M/WBE participation plan calculating to 18.15% MWBE participation.

Pay or Play:

The proposed contract requires compliance with the City’s “Pay or Play” Ordinance regarding health benefits for employees of City Contractors.

In this case, AT&T has elected to provide health benefits to eligible employees in compliance with City policy. Verizon Wireless has elected to pay into the Contractors Responsibility Fund in compliance with City policy.  

Hire Houston First:

Hire Houston First does not apply to this expenditure, because it may involve the use of federal funds and is subject to specific procurement rules of the federal government.

Fiscal Note:

Funding for this item is included in the FY2025 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.

_________________________________         _____________________________________

Jedediah Greenfield                                Department Approval Authority 

Chief Procurement Officer      

Finance/Strategic Procurement Division

$2,490,326.21 – HAS Revenue Fund (8001)

$31,056,154.76 – Central Service Revolving Fund (1002)

$28,372,306.03 – General Fund (1000)

$61,918,787.00 – Total