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HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM P. FILE ID: Date: 2/18/2009 Requesting Department: IT Commission Meeting Date: 4/2/2009 District Impacted: All Type: ®Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item ❑ Other Subject: Request for Proposal to Provide Network Backbone Equipment Maintenance Purpose of Item: Law Department Matter ID No. A Resolution accepting the recommendation of the City Manager approving the findings of the Evaluation Committee, pursuant to Request for Proposal 75163, authorizing the City Manager to negotiate and execute agreement(s), in substantially the attached form, with Bellsouth Communication Systems, LLC d/b/a AT&T Communications Systems Southeast ("AT&T"), for the provision of Network Backbone Equipment Maintenance, for a period of two years, with an option to renew for three (3) additional one-year periods, allocating funds from the various sources of funds of the user departments, subject to availability of funds and budgetary approval. Back,ground Information: SEE ATTACHED Budget Impact Analysis NO Is this item related to revenue? YES Is this item an expenditure? If so, please identify funding source below. General Account No.- Special o:Special Revenue Account No. _ CIP Project No.- NO o:NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: CIP If using ei receiving capital funds Grants .Purchasin Chief Final Approvals (SIGN AND DATE Budget _ l� Risk Mangy ✓ ` Dept. Dire City Mana �1 VOW - 1 Page 1 of 1 AGENDA ITEM SUMMARY FORM: (CONTINUED) SUBJECT: Request for Proposal to Provide Network Backbone Equipment Maintenance Backaround Information: On June 6, 2008, the Purchasing Department issued Request for Proposal (RFP) No. 75163. As required by the Procurement Code, the RFP was advertised and issued online. On July 16, 2008, at the RFP closing, one (1) proposal was received and deemed responsive. An Evaluation Committee created by the City Manager reviewed and evaluated the Proposals and determined that AT&T, was responsive to the RFP requirements. The Committee recommended the City negotiate and execute agreement(s) with Bellsouth Communication Systems, LLC d/b/a AT&T Communications Systems Southeast ("AT&T" ), to provide Network Backbone Equipment Maintenance. The Department of Information Technology requires the services of a proposer that can ensure the continuous operation of the City's network infrastructure in order to minimize downtime, recommend periodic updates of operating systems and configurations for network equipment to keep abreast of industry standards while maintaining the optimization of the City's network, and assists the City's technicians in the design, configuration and installation of the network backbone equipment. Since Fiscal Year 2004/2005, the City of Miami has had a contract with Unisys Corporation to provide the City of Miami with Network Equipment Backbone Maintenance. These services included assistance in trouble shooting hardware related problems, and the replacement of broken/damaged network equipment. The cost to the City of Miami during this period of time was $1,197,231.20, averaging over $250,000 per year. The following is the yearly breakout of the costs: 2004-2005 $309,313.42 2005-2006 $132,136.28 2006-2007 $318,205.14 2007-2008 $289,020.83 2008-2009 $148,555.63 (6 months) Total $1,197,231.20 In an effort to save substantial money the Information Technology Department developed a replacement plan that included three key components. Component 1 This component is a Network Equipment Backbone Maintenance contract with a service provider to ensure the continuous operation of the City of Miami's network infrastructure to minimize interruptions and downtime. The City has been negotiating with AT&T to develop a price list that would meet the City of Miami's needs. At the conclusion of these negotiations it was determined that only critical network components would be supported by AT&T. Currently, the monthly cost to support these critical network components will be $8,322.24 or approximately $100,000, per year. Component 2 The Department of Information Technology (ITD) decided that it would self maintain/insure the majority of network equipment. This component will consist of the cost to keep spare network equipment on hand to immediately replace broken equipment. The initial cost for spare equipment will be approximately $22,020. It will be a onetime cost that can be spread out over the life of the AT&T Network Backbone Maintenance Contract and possibly beyond. These spare parts can also be utilized to quickly network new sites, enabling the Department of Information Technology to meet emergency request while the network equipment is ordered in a standard time period. Component 3 The third component is to replenish the spare network equipment that has been used to replace the network equipment that has broken during the year. As this is a new process, the initial budget will be set a little higher than would probably be used at $50,000. If no hardware failures are experience during the year, these funds can be utilized to upgrade old network equipment that would no longer be supported by the manufacture with newer technology. The Budget for this project is as follows: Component Description 2008/2009 (6 mths) 2009/2010 2010/2011 2011/2012 1 Maintenance $50,000 $100,000 $100,000 $100,000 2 Spare Parts $22,022 $0 $0 $0 3 Replacement Fund $50,000 $50,000 $50,000 $50,000 TOTAL $122,020 $150,000 $150,000 $150,000 Over a three and a half year period of time the new Network Backbone Maintenance plan to include City of Miami self maintenance will save the City at a minimum $300,000. Further, the City of Miami will probably not have to spend $50,000 on replacing equipment each year, therefore, the savings could be even higher.