BOARD MEETING DATE: May 2, 2003
AGENDA NO. 9

PROPOSAL:

Execute Contract to Purchase Telecommunication Services

SYNOPSIS:

On January 10, 2003, AQMD released an RFP to select a vendor(s) capable of providing telecommunication services to AQMD in the most cost-effective manner, and if possible, to consolidate all telephone company-related services to a single telecommunications provider. These telecommunication services included local, long distance, and toll-free services; leased circuits; ISDN PRI/BRI T1 lines; calling cards; internet access; wireless voice and data; enhanced billing and reporting; and phone switch maintenance. This action is to issue three-year purchase orders to selected vendors to provide telecommunication services to AQMD. Funds for this purchase are included in the FY 2002-03 Budget.

COMMITTEE:

Administrative, April 11, 2003, Recommended for Approval

RECOMMENDED ACTION:

Authorize the purchase of telecommunication services required by AQMD from the following vendors for a three-year period:

  1. A contract with AT&T for local, long distance, toll free, air monitoring/telemetry, dedicated Long Beach T1, and wireless connectivity services.
  2. A contract with Norstan for phone switch maintenance services.
  3. A contract with Sprint for calling card services.
  4. A contract with Verizon Enterprise Sales for Internet services.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

On January 10, 2003, the AQMD released RFP #P2003-19 for Telecommunication Services. The purpose of this RFP is to solicit and identify vendors capable of providing high quality and reliable telecommunication services to the AQMD in the most cost-effective manner, and if possible, to consolidate all telephone company related services to a single telecommunications provider. The overall goal is to reduce current expenses for voice and data communication services, optimize the use of the AQMD's current voice communication network, and provide the AQMD with the necessary flexibility to take full advantage of new telecommunications technologies as they evolve.  Telecommunication services solicited under this RFP will include local telephone service, long distance telephone service, toll-free telephone service, air monitoring telemetry network frame relay circuits, calling card services, dedicated T1 link to Long Beach, internet access, phone switch maintenance, and wireless connectivity.

Outreach

In accordance with the AQMD’s consulting and contracting policies, public notices advertising the RFP and inviting bids were published in the following publications:
 

1.

Antelope Valley Press

11.

Inland Valley

22.

Rafu Shimpo

2.

Black Voice News

 

Daily Bulletin

23.

San Bernardino Sun

3.

California, State of, Contracts

12.

Korea Central Daily

24.

Signal, The

 

Register

13

Los Angeles Daily News

 

(includes Santa Clarita,

4.

Chicano, El

14.

Los Angeles Sentinel

 

Newhall, and Saugus)

5.

Chinese Daily News

15.

Los Angeles Times

25.

Voz, La, Publications

6.

Desert Sun

16.

Opinion, La

26.

Wave Community

 

(Coachella Valley)

17.

Orange County Register

 

Newspapers

7.

Eastern Group Publications

18.

Philippine News

 

(includes Southwest Topics

8.

Excelsior, The

19.

Precinct Reporter

 

Wave, Angeles Mesa Wave,
& Central News Wave

9.

Informador, El

20.

Prensa Hispana, La

 

 

10.

Inland Empire

21.

Press Enterprise

   
 

Hispanic News

 

(Riverside County)

   

Additionally, potential bidders were notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon, or http://www.aqmd.gov/busjob/ ] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Thirty-nine copies of the RFP were mailed out and thirty-nine vendors attended the mandatory bidders conference held on January 31, 2003. Nine bids were received in response to the RFP when final bidding closed at 1:00 p.m. on February 28, 2003. Of the nine bids, one was from a disabled veteran-owned business enterprise, none were from women-owned or from certified minority-owned businesses, and two were from non-certified MBE minority-owned business enterprises.

Attachment 1 reflects the evaluation of the proposals and the respective ratings for contract bids. The evaluation committee rated AT&T the highest for local, long distance, toll free, air monitoring/telemetry, dedicated Long Beach T1, and wireless connectivity services; Norstan the highest for phone switch maintenance services; Sprint the highest for calling card services; and Verizon Enterprise Sales the highest for internet services. Therefore, staff recommends AT&T, Norstan, Sprint, and Verizon Enterprise Sales for the purchase of identified telecommunication services. The recommended contract awards were determined to be the most advantageous for AQMD based on the overall RFP evaluation criteria, considering both cost and technical capabilities. In particular, consideration of basic service requirements (specifically, overall experience, technical expertise, and resources necessary to quickly identify and resolve problems at all levels) out-weighed potentially lower up-front costs in the evaluation for local, long-distance and toll-free calling. Because these services are mission-critical to AQMD, for both day-to-day and emergency operations, the selected contractor must have a proven track record. In addition, as noted in the RFP, minimizing the number of contractors is a desired goal; therefore, it is more advantageous to have local, long-distance, and toll-free calling services with the same provider.

Panel Composition

The panel consisted of a consultant from Computer Training and Consulting and four staff from Information Management: a Systems Analyst, a Telecommunications Analyst, and two Telecommunications Technicians II. Of these five panelists, four are male and one is female; one is Asian-Indian, two are Asian-Pacific Islander, one is Caucasian, and one is Hispanic-American.

Resource Impacts

Funds of $836,400 were budgeted for FY 2002-03 under the Communications Account. Funding for subsequent years will be budgeted appropriately.

Attachment(s)

Attachment 1 - Summary of Evaluation of Respondents to RFP #P2003-19
1-A: Category 1 – Local Telephone Service
1-B: Category 2 – Long Distance Telephone Service
1-C: Category 3 – Toll Free Telephone Service
1-D: Category 4 – Air Monitoring Telemetry Network Frame Relay Circuits
1-E: Category 5 – Calling Cards
1-F: Category 6 – Dedicated T1 Link to Long Beach
1-G: Category 7 – Internet Access (Fractional T3 with Guaranteed Bandwidth)
1-H: Category 8 – Meridian Phone Switch Maintenance
1-I: Category 9 – Wireless Connectivity

ATTACHMENT 1
 
Summary of Evaluation of Respondents to RFP #P2003-19

1-A:     Category 1 – Local Telephone Service

Four proposals meeting the stated criteria were received in response to Category 1 (Local Telephone Service) of this RFP. They were from AT&T, Technology Integration Group (TIG), Verizon Enterprise Sales (Verizon), and WorldCom Government Markets (WorldCom).

Standard Services Criteria (50 points maximum)
 

Proposer

AT&T

TIG

Verizon

WorldCom

Panel Average

50

30

50

45

Cost (50 points maximum)
 

Proposer

AT&T

TIG

Verizon

WorldCom

(Actual $ Amount per Year)

$15,407

$26,012

$36,078

$67,632

Panel Average

50

29.6

21.4

11.4

Additional Points (15 points maximum)

Criteria

Proposer

AT&T

TIG

Verizon

WorldCom

Small Business or Small Business Joint Ventures
Points (Maximum = 10)

0

0

0

0

DVBE or DVBE Joint Ventures
Points (Maximum = 10)

0

0

0

0

Use of DVBE or Small Business Subcontractors
Points (Maximum = 7)

0

0

0

0

Panel Average

0

 

0

0

 

Total

100

59.6

71.4

56.4

1-B:     Category 2 – Long Distance Telephone Service

Three proposals meeting the stated criteria were received in response to Category 2 (Long Distance Telephone Service) of this RFP. They were from Angel Telecom Inc. (Angel), AT&T, and Sprint.

Standard Services Criteria (50 points maximum)
 

Proposer

Angel

AT&T

Sprint

Panel Average

22

50

45

Cost (50 points maximum)
 

Proposer

Angel

AT&T

Sprint

(Actual $ Amount per Year)

$42,385

$51,249

$50,789

Panel Average

50

41.4

41.7

Additional Points (15 points maximum)

Criteria

Proposer

Angel

AT&T

Sprint

Small Business or Small Business Joint Ventures
Points (Maximum = 10)

10

0

0

DVBE or DVBE Joint Ventures
Points (Maximum = 10)

0

0

0

Use of DVBE or Small Business Subcontractors
Points (Maximum = 7)

0

0

0

Panel Average

10

 

0

 

Total

82

91.4

86.7

1-C:     Category 3 – Toll Free Telephone Service

Three proposals meeting the stated criteria were received in response to Category 3 (Toll Free Telephone Service) of this RFP. They were from Angel Telecom Inc. (Angel), AT&T, and Sprint.

Standard Services Criteria (50 points maximum)
 

Proposer

Angel

AT&T

Sprint

Panel Average

22

50

45

Cost (50 points maximum)
 

Proposer

Angel

AT&T

Sprint

(Actual $ Amount per Year)

$17,269

$22,276

$23,736

Panel Average

50

38.8

36.4

Additional Points (15 points maximum)

Criteria

Proposer

Angel

AT&T

Sprint

Small Business or Small Business Joint Ventures
Points (Maximum = 10)

10

0

0

DVBE or DVBE Joint Ventures
Points (Maximum = 10)

0

0

0

Use of DVBE or Small Business Subcontractors
Points (Maximum = 7)

0

0

0

Panel Average

10

 

0

 

Total

82

88.8

81.4

1-D:     Category 4 – Air Monitoring Telemetry Network Frame Relay Circuits

Five proposals meeting the stated criteria were received in response to Category 4 (Air Monitoring Telemetry Network Frame Relay Circuits) of this RFP. They were from Angel Telecom Inc. (Angel), AT&T, Sprint, Technology Integration Group (TIG), and Telepacific Communications (Telepacific).

Standard Services Criteria (50 points maximum)
 

Proposer

Angel

AT&T

Sprint

TIG

Telepacific

Panel Average

22

50

45

45

35

Cost (50 points maximum)
 

Proposer

Angel

AT&T

Sprint

TIG

Telepacific

(Actual $ Amount per Year)

$112,248

$73,512

$171,984

$156,318

$176,520

Panel Average

32.7

50

21.4

23.5

20.8

Additional Points (15 points maximum)

Criteria

Proposer

Angel

AT&T

Sprint

TIG

Telepacific

Small Business or Small Business Joint Ventures
Points (Maximum = 10)

10

0

0

0

0

DVBE or DVBE Joint Ventures
Points (Maximum = 10)

0

0

0

0

0

Use of DVBE or Small Business Subcontractors
Points (Maximum = 7)

0

0

0

0

0

Panel Average

10

 

0

0

0

 

Total

64.7

100

66.4

68.5

55.8

1-E:     Category 5 – Calling Cards

Eight proposals were received in response to Category 5 (Calling Cards) of this RFP. They were from Angel Telecom Inc. (Angel), AT&T, Qwest, Sprint, Technology Integration Group (TIG), Telepacific Communications (Telepacific), Verizon Enterprise Sales (Verizon), and WorldCom Government Markets (WorldCom).

Standard Services Criteria (50 points maximum)
 

Proposer

Angel

AT&T

Qwest

Sprint

TIG

Telepacific

Verizon

WorldCom

Panel Average

22

50

35

45

45

35

50

45

Cost (50 points maximum)
 

Proposer

Angel

AT&T

Qwest

Sprint

TIG

Telepacific

Verizon

WorldCom

(Actual $ Amount per Year)

$2,616

$2,847

$1,737

$594

$1,755

$1,524

$1,656

$1,527

Panel Average

11.3

10.4

17.1

50

16.9

19.5

17.9

19.4

Additional Points (15 points maximum)

Criteria

Proposer

Angel

AT&T

Qwest

Sprint

TIG

Telepacific

Verizon

WorldCom

Small Business or Small Business Joint Ventures
Points (Maximum = 10)

10

0

0

0

0

0

0

0

DVBE or DVBE Joint Ventures
Points (Maximum = 10)

0

0

0

0

0

0

0

0

Use of DVBE or Small Business Subcontractors
Points (Maximum = 7)

0

0

0

0

0

0

0

0

Panel Average

10

 

0

0

0

0

0

0

 

Total

43.3

60.4

52.1

95

61.9

54.5

67.9

64.4

1-F:     Category 6 – Dedicated T1 Link to Long Beach

Six proposals were received in response to Category 6 (Dedicated T1 Link to Long Beach) of this RFP. They were from AT&T, Sprint, Technology Integration Group (TIG), Telepacific Communications (Telepacific), Verizon Enterprise Sales (Verizon), and WorldCom Government Markets (WorldCom).

Standard Services Criteria (50 points maximum)
 

Proposer

AT&T

Sprint

TIG

Telepacific

Verizon

WorldCom

Panel Average

50

45

45

35

50

45

Cost (50 points maximum)
 

Proposer

AT&T

Sprint

TIG

Telepacific

Verizon

WorldCom

(Actual $ Amount per Year)

$6,000

$17,060

$14,400

$9,756

$9,654

$17,496

Panel Average

50

17.6

20.8

30.8

31.1

17.1

Additional Points (15 points maximum)

Criteria

Proposer

AT&T

Sprint

TIG

Telepacific

Verizon

WorldCom

Small Business or Small Business Joint Ventures
Points (Maximum = 10)

0

0

0

0

0

0

DVBE or DVBE Joint Ventures
Points (Maximum = 10)

0

0

0

0

0

0

Use of DVBE or Small Business Subcontractors
Points (Maximum = 7)

0

0

0

0

0

0

Panel Average

0

 

0

0

0

0

 

Total

100

62.6

65.8

65.8

81.1

62.1

1-G:     Category 7 – Internet Access (Fractional T3 with Guaranteed Bandwidth)

Six proposals meeting the stated criteria were received in response to Category 7 (Internet Access) of this RFP. They were from Angel Telecom Inc. (Angel), AT&T, Sprint, Technology Integration Group (TIG), Verizon Enterprise Sales (Verizon), and WorldCom Government Markets (WorldCom).

Standard Services Criteria (50 points maximum)
 

Proposer

Angel

AT&T

Sprint

TIG

Verizon

WorldCom

Panel Average

22

50

45

45

50

45

Cost (50 points maximum)
 

Proposer

Angel

AT&T

Sprint

TIG

Verizon

WorldCom

(Actual $ Amount per Year)

$64,392

$58,176

$56,640

$60,393

$42,993

$55,973

Panel Average

33.4

37

38

35.6

50

38.4

Additional Points (15 points maximum)

Criteria

Proposer

Angel

AT&T

Sprint

TIG

Verizon

WorldCom

Small Business or Small Business Joint Ventures

Points (Maximum = 10)

10

0

0

0

0

0

DVBE or DVBE Joint Ventures

Points (Maximum = 10)

0

0

0

0

0

0

Use of DVBE or Small Business Subcontractors

Points (Maximum = 7)

0

0

0

0

0

0

Panel Average

10

 

0

0

0

0

 

Total

65.4

87

83

80.6

100

83.4

1-H:     Category 8 – Meridian Phone Switch Maintenance

Three proposals were received in response to Category 8 (Phone Switch Maintenance) of this RFP. They were from Angel Telecom Inc. (Angel), Norstan, and Verizon Enterprise Sales (Verizon).

Standard Services Criteria (50 points maximum)
 

Proposer

Angel

Norstan

Verizon

Panel Average

22

50

50

Cost (50 points maximum)
 

Proposer

Angel

Norstan

Verizon

(Actual $ Amount per Year)

$87,800

$37,440

$92,205

Panel Average

21.3

50

20.3

Additional Points (15 points maximum)

Criteria

Proposer

Angel

Norstan

Verizon

Small Business or Small Business Joint Ventures
Points (Maximum = 10)

10

0

0

DVBE or DVBE Joint Ventures
Points (Maximum = 10)

0

0

0

Use of DVBE or Small Business Subcontractors
Points (Maximum = 7)

0

0

0

Panel Average

10

 

0

 

Total

53.3

100

70.3

1-I:     Category 9 – Wireless Connectivity

Two proposals were received in response to Category 9 (Wireless Connectivity) of this RFP. They were from AT&T and Sprint.

Standard Services Criteria (50 points maximum)
 

Proposer

AT&T

Sprint

Panel Average

50

45

Cost (50 points maximum)
 

Proposer

AT&T

Sprint

(Actual $ Amount per Year)

$7,503

$7,885

Panel Average

50

47.6

Additional Points (15 points maximum)

Criteria

Proposer

AT&T

Sprint

Small Business or Small Business Joint Ventures
Points (Maximum = 10)

0

0

DVBE or DVBE Joint Ventures
Points (Maximum = 10)

0

0

Use of DVBE or Small Business Subcontractors
Points (Maximum = 7)

0

0

Panel Average

0

 
 

Total

100

92.6

/ / /