HomeMy WebLinkAboutIT04-076 - Extension - Focal Communications Corporation - Telecommunications Services - 04/01/2004 ' � d
INFORMATION TECHNOLOGY
Stan Waldrop, Director
Phone:253-856-4600
• Fax: 253-856-4700
KEN T Address 220 Fourth Avenue S
W A S H I N O T O N Kent,WA.98032-5895
DATE: 3/26/2004
TO: Jim White, Mayor
THROUGH: Mike Martin, Chief Administrative Officer
FROM: Stan Waldrop, Information Technology Director
SUBJECT: Local&Long Distance Telephone Service Contract Extension
I am requesting a waiver,pursuant to Kent City Code 3.70.080, of the City's procurement
ordinance to extend the City's current local and long distance service with Focal
Communications because a procurement process would not be cost effective. The reasons for
extending the City's contract with Focal Communications rather than pursue a competitive bid
processinclude:
♦ Focal Communications is reducing the fixed and variable portions of the City's local and
long distance service costs resulting in an approximate 8% savings based on the City's 2003
usage (see Attachment 1).
♦ Focal Communications provides a unique service delivery configuration that provides the
City with redundant paths for telephone service that would be difficult to accomplish with
other vendors.
♦ The staff time and expense necessary to conduct a competitive process,negotiate a contract,
and potentially change telephone service providers would likely exceed the potential cost
savings (see Attachment 1).
♦ The service interruption and risk associated with changing telephone service providers is not
commensurate with the potential cost savings.
Based on these factors,the City's most cost effective option is to renew the Focal
Communications contract with the proposed new rates.
If you agree with this memorandum and these findings, leas ipdicate by signing
below.
JIM ITE, Mayor
Da d:
1
Attachment 1
Local Long Distance Service
Estimated Procurement Costs
Bid Process
Consulting 1 $ 3,000 $ 3,000
IT Director Hours 16 $ 50 $ 800
Assistant City Attomey Hours 4 $ 40 $ 160
Technical Services Su ervior Hours 8 $ 32 $ 256
Network Specialist Hours 8 $ 28 $ 224
Total $ 4,440
Contract Negotiations
Consulting 1 $ 1,000 $ 1,000
IT Director Hours 16 $ 50 $ 800
Assistant City Attomey Hours 8 $ 40 $ 320
Technical Services Su ervior Hours 4 $ 32 $ 128
Total $ 29248
Change Service Providers
Consulting 1 $ 2,000 $ 2,000
IT Director Hours 40 $ 50 $ 2,000
Technical Services Su ervior Hours 40 $ 32 $ 1,280
Network Specialist Hours 40 $ 28 $ 1,120
Technical Services Su ervior OT Hours 24 $ 48 $ 1,152
Network Specialist OT Hours 24 $ 42 $ 1,008
Total $ 89560
Total Potential Procurement Cost $ 15,248
Estimated Rate Savings Based on 2003 Usage
Fixed Cost $ 30,712 $ 29,632 $ (1,080) -3.52%
Variable Cost $ 22,547 $ 18,516 $ (4,031) -17.88%
Taxes & Surcharges $ 10,906 $ 10,906 $ - 0.00%
Total $ 649164 $ 59,053 $ (59111) -7.97%