Item Coversheet

CITY COUNCIL AGENDA COMMUNICATION
AGENDA DATE:March 14, 2017
SUBJECT:

Authorize the City Manager to Execute a Contract with T-Mobile USA, Inc. for Cellular Equipment and Service for an Average Annual Amount of $79,800 with Three (3) Optional One-Year Renewals through the State of Texas Department of Information Resources (DIR) Purchasing Program.

STAFF RESOURCE:

Eric Matthews, Information Technology Director

ACTION PROPOSED:

Authorize the City Manager to Execute a Contract with T-Mobile USA, Inc. for Cellular Equipment and Service for an Average Annual Amount of $79,800 with Three (3) One-Year Renewals through the State of Texas Department of Information Resources (DIR) Purchasing Program.




BACKGROUND

Currently, the City of Allen utilizes approximately 250 lines of cell phone service, which along with equipment and various other service expenditures was costing up to $10,000 per month.

 

Recent negotiations have reduced the monthly cost, but the current provider network (Sprint) continually underperforms in Allen as well as most outlying areas.  City staff has tested and analyzed phone provider options.  T-Mobile currently provides data services for the public safety vehicles and have diligently worked to fine tune their network over the last couple of years.  City staff has conducted testing of the T-Mobile network and the feedback has been very positive.  Not only has testing been successful, but transitioning to T-Mobile will prove to be very cost effective. Average monthly costs with the new provider (T-Mobile) will be reduced to approximately $6,650 per month.

 

This contract is procured through the State of Texas DIR purchasing program and is therefore able to be utilized on a month-to-month basis.  If at any point during this contract, the City determines that a better solution is available, the DIR contract allows the flexibility of terminating the agreement at the end of the month.


BUDGETARY IMPACT

Expenses for City cell phone equipment and service are included in the annual Information Technology Departmental operating budget.


STAFF RECOMMENDATION

Staff recommends authorizing the City Manager to execute a contract with T-Mobile USA, Inc. for cellular equipment and service for an average annual amount of $79,800 with three (3) optional one-year renewals through the State of Texas Department of Information Resources (DIR) purchasing program.


MOTION

I make a motion to authorize the City Manager to execute a contract with T-Mobile USA, Inc. for cellular equipment and service for an average annual amount of $79,800 with three (3) optional one-year renewals through the State of Texas Department of Information Resources (DIR) purchasing program.



ATTACHMENTS:
Description
T-Mobile USA, Inc. Quote
DIR-TSO-3416