S17-H25688 - Approve Spending Authority for the Sole Source Purchase of Private Analog, Telebranch and 3-1-1 Services for Various Departments.
SPECIFIC EXPLANATION:
The Interim Chief Information Officer and the Chief Procurement Officer recommend that City Council approve spending authority for the sole source purchase of tariffed telecommunication services in the total amount of $1,700,000.00 and that authorization be given to issue purchase orders, as needed to Southwestern Bell Telephone Company d/b/a AT&T Texas. The requested spending authority is expected to sustain the various departments through June 30, 2018.
Southwestern Bell Telephone Company d/b/a AT&T Texas is the sole source incumbent 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.
As the vendor is the only provider for the legacy private analog lines in specific areas within the Greater Houston Area, no other telephone providers can provide this specialty service in this area. The private analog lines are point-to-point or multipoint circuits (i.e. fax and modem lines) dedicated to monitoring remote systems and facilities such as water stations. The Telebranch service allows 5 digit dials to remote locations without the implementation of a complete phone system. The 3-1-1 service allows all Greater Houston residents to dial a three-digit code and be patched into the vendor’s alternate locations inclusive of other offices, residences, cellular phones, pagers, and/or voicemail.
The vendor provides the following sole source tariff services to the City of Houston pursuant to the rates:
- Analog Private Line Service ~ Private Network Services Tariff, § 2
- 3-1-1 Service ~ General Exchange Tariff, § 47
- Telebranch Service ~ General Exchange Tariff, § 21
This recommendation is made pursuant to Chapter 252, Section 252.022 (a) (7) “a procurement of items that are available from only one source” of the Texas Local Government Code for exempt procurements.
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 an sole source contractor for this purchase.
M/WBE Participation:
M/WBE Zero Percentage Goal document approved by the Office of Business of Opportunity.
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John J. Gillespie, Chief Procurement Officer Department Approval Authority Signature
Finance/Strategic Procurement Division