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Agenda Item # 14

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to execute a contract with AT&T Wireless (AT&T) for one year to provide cellular telephone service, with an option to extend the contract on an annual basis for four additional years.   This contract shall not exceed   $230,000 for the first year with an escalation rate of 2% for each of the next four years, for a total contract amount not to exceed $1,196,930 over the five-year period. 

BACKGROUND: 

The Board of Directors authorized VTA to enter into a contract with AT&T Wireless (formerly Cellular One) to provide cellular telephones and services on October 5, 2000.   The one-year contract included an option to extend the contract on an annual basis for three additional years, and the third option year was exercised and will expire on October 23, 2004. 

VTA has approximately 300 active cellular telephone accounts and 30 wireless Local Area Network (LAN) cards used in computer laptops for field personnel.   Cellular telephones are used by three primary groups of VTA employees for their business needs:   1) Construction personnel; 2) Operations staff; and 3) Authorized management staff. These employees frequently work off-site in the field or must be able to conduct VTA business from remote locations.

DISCUSSION: 

The Request for Proposals (RFP) for cellular telephone services and equipment was advertised on July 8, 2004.  Oral interviews were conducted on August 31, 2004.   Five proposals were received from the following vendors:

• AT&T Wireless
• Cingular Wireless LLC
• Nextel of California, Inc.
• Sprint
• Verizon Wireless

A VTA evaluation team consisting of two Communications System Analysts, the Contracts Administrator, and the Communications Systems Manager conducted an evaluation of the proposals.   Proposals were evaluated based on the following criteria as outlined in the RFP:

1. Qualifications of the Firm;
2. Staffing and Project Organization;
3. Service area coverage, duration and quality of written warranty, equipment repair and replacement in a timely manner, standard and optional features offered, and quality of equipment;
4. Local Firm Preference;
5. Cost and Price.

While the rates proposed by each vendor were very close, AT&T surpassed the other firms with regards to service, and service area coverage.   AT&T offers a plan that provides free upgrades and an equipment warranty that replaces equipment at no charge, regardless of reason for damage. AT&T’s plan also uses rugged cellular telephones with good battery life.  Cellular service coverage area was also examined, and AT&T was found to surpass other proposers in this area. In addition, AT&T provides a standard talk time of 5-6 hours before the cellular telephone needs to be recharged, versus only 2 hours for some other suppliers.

The terms for VTA’s existing contract with AT&T was not to exceed $250,000 for the first year, with a 3% escalation rate for an additional three years, or a total contract amount not to exceed $1,045,906 over the four year period. AT&T’s current proposal is not to exceed $230,000 for the first year with an escalation rate of 2% for each of the next four years, for a total contract amount not to exceed $1,196,930 over the five-year period.   While each proposer’s prices were very competitive, the estimated cost savings from using AT&T will come to approximately $3,000 to $6,000 per month. AT&T provides a “pooled plan,” whereby individual users are not charged a higher rate once their maximum minutes are reached, but can take minutes from other users whose usage is lower Based on the evaluation of the proposals, staff recommends award of this fixed rate contract to AT&T. 

ALTERNATIVES:

There are no viable alternatives to the recommended action if VTA wants to continue to provide key employees the ability to continue to conduct VTA business when away from their office or workstation.

FISCAL IMPACT: 

Funding for cellular telephone equipment and service is included in the VTA Fiscal Year 2005 Adopted Budget.

SMALL BUSINESS ENTERPRISE (SBE) PARTICIPATION:

Based on the limited scope of work and no subcontracting opportunities, no specific goal has been established for this contract.  Contractor is encouraged to make reasonable efforts to utilize SBEs in its procurement of ancillary services and products associated with the performance of this contract.  Although there is no SBE goal requirement, contractor has committed to 60% SBE participation on this contract.

CONTACT THE OFFICE OF THE BOARD SECRETARY FOR ATTCHMENTS.

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