REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 9, 2020
FROM
LARRY AINSWORTH, Chief Information Officer, Information Services Department
SUBJECT
Title v
Participation in the State of California CALNET 3 Contract with Verizon Business Network Services, Inc. and AT&T Corp. for Telecommunication Services
End
RECOMMENDATION(S)
Recommendation
1. Authorize the Information Services Department to continue to participate in the approved State of California CALNET 3 contract (County Contract No. 15-68 A-3) with Verizon Business Network Services, Inc., increasing the total contract amount by $750,000, from $3,612,011 to $4,362,011, for the total contract period of January 26, 2015, through December 31, 2021, for telecommunication services.
2. Authorize the Information Services Department to continue to participate in the approved State of California CALNET 3 contract (County Contract No. 16-57 A-4) with AT&T Corp., increasing the total contract amount by $1,500,000, from $4,000,000 to $5,500,000, for the total contract period of March 1, 2016 through December 31, 2021, for telecommunication services.
3. Delegate the Chief Information Officer as the authorized official to electronically sign and submit the State of California Authorization to Order form required to participate in the CALNET3 contract, subject to review by County Counsel.
4. Designate the Chief Information Officer as the authorized official to sign future documents to confirm or implement the contracted telecommunication services, as needed, related to the CALNET 3 contract with Verizon Business Network Services, Inc. and AT&T Corp., so long as such documents do not increase the total contract amounts of $4,362,011 and $5,500,000, respectively, as authorized in Recommendations No. 1 and No. 2, or extend the period of the contracts, subject to review by County Counsel.
5. Direct the Chief Information Officer to transmit all documents and amendments in relation to this agreement to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Brad Grooms, Telecommunication Services Division Chief, 388-5544)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
Approval of these extensions will not result in the use of Discretionary General Funding (Net County Cost). The Information Services Department (ISD) spends approximately $500,000 and $1,000,000 per year on telecommunication services based on current trend with Verizon Business Network Services, Inc. (Verizon) and AT&T Corp. (AT&T), respectively. The costs for these services are determined by actual usage, but will not exceed the total contract amounts of $4,362,011 and $5,500,000 for Verizon and AT&T, respectively. Sufficient appropriation is included in the ISD Telecommunication Services 2020-21 recommended budget. Operating costs are recovered via service rates and fees approved annually by the Board of Supervisors (Board).
BACKGROUND INFORMATION
ISD operates and maintains the County’s wide area network, an integrated electronic telecommunication network that provides countywide data, voice and video communications. It enables County departments to communicate with one another and offers secure and reliable access to data housed on County managed information systems. Service providers such as Verizon and AT&T enable the County to provide network connectivity, including voice, video, and data traffic, to County departments and non-County public entities.
On January 27, 2015 (Item No. 35), the Board approved the initial agreement, which was subsequently extended twice on June 12, 2018 (Item No. 51), and May 21, 2019 (Item No. 62), for a total not-to-exceed amount of $3,612,011.
Approval of Recommendation No. 1 will allow ISD to continue to participate in the State of California (State) CALNET 3 contract with Verizon, extending the contract an additional year through December 31, 2021, and increasing the not-to-exceed amount to $4,362,011. This extension will allow sufficient time for the State to fully implement the new CALNET 4 contract, which is currently in progress
On February 9, 2016 (Item No. 18), the Board approved the initial agreement, which was subsequently extended three times on May 23, 2017 (Item No. 69), June 12, 2018 (Item No. 49), and May 21, 2019 (Item No. 62) for a total not-to-exceed amount of $4,000,000.
Approval of Recommendation No. 2 will enable ISD to continue to participate in the State CALNET 3 contract with AT&T, extending the contract an additional year through December 31, 2021, and increasing the not-to-exceed amount to $5,500,000. This extension will allow sufficient time for the State to fully implement the new CALNET 4 contract, which is currently in progress.
This item will also allow the Chief Information Officer to electronically sign and submit State Authorization to Order and/or Letter of Authorization forms that are required to participate in and effectively administer the approved State of California CALNET 3 contract with Verizon and AT&T Corp. Additionally, it is recommended that the Chief Information Officer, be authorized to execute documents needed to ensure that Verizon and AT&T provide the services identified in the contract scope of work, subject to review and approval by County Counsel.
PROCUREMENT
The State CALNET 3 contract provides an array of comprehensive telecommunication services to all state agencies, which are provided through multiple competitively priced vendor contracts. Per the State of California CALNET 3 contract, any public agency defined in Government Code Section 11541 is allowed to order services and products under the contract. The State of California CALNET 3 contract streamlines the ordering process statewide and eliminates the need for agencies to go through a lengthy procurement process. Local government agencies are encouraged, but not required, to use the State of California CALNET 3 contract. The contract provides a catalog of services and pricing for approved vendors including AT&T and Verizon.
In addition to the State’s procurement process for CALNET 3, on October 5, 2018, ISD issued a Request for Proposal (RFP) No. ISD119-ADM-3088 to identify vendors to provide countywide telecommunication services for the five-year period of July 1, 2019, through June 30, 2024. The intent of the RFP was to ensure cost competitiveness by presenting the opportunity for all interested and qualified vendors to submit their lowest pricing options. On June 11, 2019 (Item No. 34) and on July 9, 2019 (Item No. 19), the Board approved contracts with three of the five responding vendors: Frontier (Contract No. 19-394), CenturyLink (Contract No. 19-393), and Spectrum (Contract No. 19-478). The remaining vendors responding to the RFP were AT&T and Verizon, both who proposed their CALNET 3 contract pricing. As a result, on May 21, 2019 (Item No. 62), the Board approved the County’s participation in the CALNET 3 contracts with both AT&T and Verizon.
ISD has determined that it is in the best interest of the County to continue to participate in the State of California CALNET 3 contract with Verizon and AT&T due to the streamlined ordering process and to ensure the County continues to have the most cost effective options available for the various telecommunication services required via competitively procured pricing.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Bonnie Uphold, Deputy County Counsel, 387-5545) on May 11, 2020; Purchasing (Leo Gomez, Purchasing Manager, 387-2063) on May 12, 2020; Finance (Joon Cho, Administrative Analyst, 387-5402) on May 22, 2020; and County Finance and Administration (Kelly Welty, Deputy Executive Officer, 387-4376) on May 22, 2020.