HomeMy WebLinkAboutSummary FormDate: 4/2/2008
AGENDA ITEM SUMMARY FORM
FILE ID: v - 04) 5 /
Requesting Department: Information Technology
Commission Meeting Date: 5/22/2008 District Impacted: All
Type: ® Resolution ❑ Ordinance n Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Wide Area Network (WAN) Communication Services with AT&T
Purpose of Item:
A resolution authorizing the piggyback of City of Miami Beach Request for Proposal ("RFP") No. 05-
06/07, for Wide Area Network ("WAN") Communications Services, from AT&T, authorizing the
City Manager to execute agreement(s), in substantially the attach form, for the terms listed under each
respective agreement, for an estimated first year cost of $600,000, funding will be derived utilizing
various sources of funds, subject to the availability and budget approval.
Background Information:
SEE ATTACHED
Budget Impact Analysis
Is this item related to revenue?
YES Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
CIP
If using or receiving capital funds
Grants
Purchasin
Chief
Final Approvals
(SIGN AND DATE)
Budget
Risk Manageme
Dept. Director
City Manager
Page 1 of 1
AGENDA ITEM SUMMARY FORM (CONTINUED)
Background Information:
The City of Miami's current Wide Area Network (WAN) Communication Services provider is AT&T, pursuant to
Request for Proposal No. 02-03-100, effective until February 9, 2009, authorized by Resolution No. 04-0005.
However, AT&T (formerly BellSouth Business Systems) has offered the City of Miami reduced pricing for their
Wide Area Network (WAN) services pursuant to City of Miami Beach, Request for Proposal (RFP) No. 05-06/07,
Wide Area Network Communications Services.
The City of Miami Beach recently contracted with AT&T for WAN Communication Services pursuant to RFP 05-
06/07, and after lengthy negotiations executed agreements in October 2007. This recent contract with the City of
Miami Beach covers two major WAN products: the technological newer and more reliable fiber based, Metro -
Ethernet service and the legacy copper based Frame -Relay service.
It is in the best interest of the City of Miami to utilize the City of Miami Beach Request for Proposal, as a
purchasing vehicle for several reasons. First, the City of Miami Beach contract pricing is significantly more cost
effective than the City of Miami's current WAN pricing from AT&T. Second, the City of Miami's current contract
with AT&T will expire February 4, 2009. Finally, if the City of Miami were to go through its own RFP process, it
would likely produce very similar results, since we are dealing with a very limited selection of vendors — only
AT&T and Comcast are able to provide these services and both were respondents to the City of Miami Beach
RFP. However, the time frame for going through an Request for Proposal process would delay our
implementation of the new pricing structure for a minimum of six (6) to nine (9) months, effectively costing the city
of Miami (conservatively) over $10,000 per month, or approximately $60,000 - $90,000. This does not take into
account the cost of issuing a request for proposal by the City of Miami (advertising, personnel time, coordination
of outside evaluators).
The favorable pricing is reflected by comparing the monthly cost of the WAN services currently utilized by the City
of Miami:
Services
Existing
Pricing
Proposed
Pricing
%
Savings
Number
of City
Sites
Monthly
Savings
Yearly
Saving
Frame -Relay 256K
$290.00
$271.50
25%
4
$290.00
$3,480.00
Frame -Relay 1.5mg
$427.00
$348.75
18%
61
$4,775.00
$57,300.00
Frame -Bundle 3mg
$1,030.00
$682.50
33.7%
4
$1,390.00
$16,680.00
Metro -Ethernet 10mg
$1,026.00
$756.00
26%
15
$4,050.00
$48,600.00
Metro -Ethernet 100
mg
$1,900.00
$1,358.00
28.5%
4
$2,168.00
$26,016.00
If the City of Miami were to enter into an agreement with AT&T pursuant to City of Miami Beach's Request for
Proposal No. 05-06/07, significant cost savings would be realized. If the existing City of Miami WAN capacity
were to remain constant with zero growth, the estimated savings would be over $150,000 per year. But for the
past five (5) years, the WAN capacity has grown over 10%, so assuming minimal growth the estimated savings
exceeds $200,000 per year, in the second year. The estimated first year cost is $600,000.