2007/01/03 Council Agenda Packet

Contract Highlights - The contract (copy attached) is equal to the maintenance contract that we have in-place today, providing complete maintenance for our 17 PBX's and the AimworX System, with the work to be performed by 1.5 dedicated technicians. The total 5-year contract price is $1,100,424. After the initial year, each additional year includes an increase of 4.76%. At this time, we are recommending the annual payment option. The contract includes a 30-day termination clause. How We Arrived at this Point - In December, 2005, it was decided by Legal, Purchasing, and IT/Telecommunications, to issue an RFQ for technician services and maintenance for our NEC Voice Network. Issued in March, 2006, to companies in the Everett & Seattle area, four companies responded. After careful review and evaluation, we recommended signing a multi-year contract with Verizon. The attached contract is a result of that RFQ. Companies were queried as to their expertise in the NEC environment and to their willingness and ability to provide maintenance, including dedicated technician services, for the City of Everett. A panel of 4 city staff evaluated the proposals. This recommendation is based on their findings. NEC Relationship - Each company stated more than 20 years of NEC experience, 2 specializing in small/med business systems, and 2 in the larger business networks. Dedicated Technicians - Three out of four companies supported dedicating a technician to a customer. Of the three companies, Verizon was the only company with more than 1 technician within 15 minutes to city facilities. The others averaged 30-60+ minutes response time, depending on traffic. Customer Base - Comparing each company's customer base in size to our voice network, only Verizon lists customers that compare. The other companies listed multi-site networked systems that utilize the same network concepts, but of a smaller nature. Having the experience of working with equipment equal to our network is vital knowledge when problem solving. After-hour Response - The most critical portion of our network -Only one company, Verizon, offers live-person after-hour response, the others offered a combination of answering service, pager and/or voicemail with an initial response time (not repair time) of 2 or 4 hours. When a network is down, 15 minutes is a long time for the initial response. With live-person after- hour response, your trouble ticket is created immediately, remote testing is immediate, and if dispatch is necessary, the on-call technician is notified immediately. Having the one-to-one live contact with the repair center, technicians, and their supervisors is vital to having the problem solved quickly. New - In the 2007 Budget Process, it was requested that we add one FTE to the Telecommunications Division, to replace one of the dedicated technicians. This request will save the city an estimated $25,000 the first year, with a greater savings thereafter. At the time that this position is filled, the contract will be adjusted to reflect the reduction of one dedicated technician. The remaining .5 dedicated technician position will continue to report to the city until such time that the contract expires, or the city deems that this position is not needed. Dec.28,2006