DEPARTMENT: Information Technology Services Department
DEPARTMENT HEAD: Craig Hopkins, Chief Information Officer
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Approval of E-rate contract with AT&T Corp for the provision of Switched Ethernet Service to Pre-K 4 SA and the San Antonio Public Library
SUMMARY:
Ordinance approving a Master Agreement contract with AT&T Corp. for an estimated annual cost of $151,920.00 for metropolitan area network service for the San Antonio Public Library and Pre-K 4 SA. Funding is available in the FY 2020 Information Technology Services Fund Operating Budget.
BACKGROUND INFORMATION:
The Federal Communications Commission’s (FCC) E-rate program began in 1997 and makes telecommunications and internet access services more affordable for schools and libraries. The program is funded through the FCC and administered by the Universal Service Administrative Company (USAC). The procurement process for E-rate vendors is different from the City procurement process and the timeframe to execute E-rate specific contracts is before July 1st.
All eligible schools and libraries identify goods and services they need and submit their requests for competitive bids to the USAC. The E-rate solicitation and award process requires that a listing for services and equipment be published on USAC's website for 28 days. The posting (FCC Form 470) is publicly advertised and open to any vendor to submit a proposal. Discounts offered by vendors can range from 20 to 90 percent and based on the poverty level of schools. Once the 28 days have concluded, all submitted proposals are reviewed and scored by the City’s Staff E-rate evaluation panel. The panel consists of 3-5 E-rate Team members. The proposals are score based on the cost of eligible items (highest weighted factor), prior experience and whether proposals meet service needs. After scoring the proposals, the selected vendor(s) are notified via Letter of Intent, informing them Staff will recommend that City Council award them a contract based on their proposals. The Letters of Intent are placeholders, until contracts with the selected vendors are executed and approved. The contract execution must occur before July 1st, the start of the E-rate year. A contract may be approved on or after July 1st but contracted for services are not eligible for E-rate reimbursement until such contract is executed and approved.
The two City departments that are eligible for E-rate reimbursements are Pre-K 4 SA and the San Antonio Public Library. The estimated annual cost of this contract is $151,920.00 and represents the amount after all E-rate discounts are applied.
ISSUE:
The evaluation and award process for E-rate services differs from the City’s procurement process, with eligible cost the primary factor for award. Also, the E-rate year is from July 1st to June 30th. Formal filing of all documents and contract execution must be complete before July 1st.
City staff recommends approval of the proposal submitted by AT&T Corp. for Switched Ethernet Service. The term of the proposed AT&T Corp. contract is for 36 months, and the cost over the life of the contract is $455,760.
ALTERNATIVES:
If the contract is not approved and executed by July 1st, the City will not be eligible for E-rate discounts for the time period that the contract is not executed.
FISCAL IMPACT:
This ordinance authorizes a Master Agreement contract with AT&T Corp. for an estimated annual cost of $151,920.00 for metropolitan area network service for the San Antonio Public Library and Pre-K 4 SA. Funding is available in the FY 2020 Information Technology Services Fund Operating Budget.
RECOMMENDATION:
Staff recommends approval of the proposed AT&T E-rate contract.