20040914_m



COUNTY OF SAN MATEO Inter-Departmental Correspondence
Employee and Public Services Department

DATE:		August 30, 2004
BOARD MEETING DATE:		September 14, 2004

TO:	Honorable Board of Supervisors
FROM:	Mary Welch, Director, Employee and Public Services Chris Flatmoe, CIO/Director, Information Services

SUBJECT:	Resolution Authorizing the Purchasing Agent to Contract with AT&T Wireless and Nextel Communications for Countywide Cellular Phone Services

RECOMMENDATION:
Adopt a resolution authorizing the Purchasing Agent to enter into agreements with AT&T Wireless and Nextel Communications for countywide cellular phone services.

BACKGROUND:
Cell phone use, originally a small need developed at the departmental level, has grown into a yearly expense of more than $700,000 countywide. Reliance on multiple vendors and plans has resulted in price and service disparities. In November, 2003 the Federal Trade Commission ruled that users were allowed to keep their phone numbers when switching carriers, removing a significant barrier to open competition. Industry analysts projected savings of 10% - 15% as a result of the expected competition. On December 10, 2003 Purchasing and ISD invited all departments to participate in a committee to consider the consolidation of departmental needs, thus creating combined purchasing power, and to seek a request for proposals process that would best serve most departmental needs.

DISCUSSION:
On April 28, 2004 the Purchasing Division issued an RFP for countywide cell phone services. The RFP was advertised and 6 potential vendors were notified. The criteria identified in the RFP were: n Completeness and quality of coverage for all of San Mateo County n Completeness and quality of coverage inside County facilities n Technology of equipment offered n Procedures and alternatives for “move, add and change” administration n Administrative Procedures, invoicing, and reporting n Pricing structures and estimated overall cost n Services and options offered n Conformance to County terms and conditions, such as equal benefits and non-discrimination requirements Five responses were received. An RFP Committee composed of representatives from several departments identified two vendors as best meeting the County’s needs: AT&T Wireless for services supporting general users, and Nextel Communications for “push to talk” functionality supporting specific staff primarily in law enforcement, and to a lesser extent in Public Works, Information Services, and Parks and Recreation. We recommend that the new contracts be for three years (from October 1, 2004 through September, 2007), with the option to renew for an additional two years. AT&T Wireless and Nextel Communications meet both the County’s equal benefits and non-discrimination requirements, and County Counsel has reviewed and approved the contracts.

VISION ALIGNMENT:
These agreements keep the commitment of responsive, effective, and collaborative government through goal number 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

FISCAL IMPACT:
Costs associated with this contract have been included in departmental budgets for fiscal year 2004-05. It is estimated that the County will save between 18% and 21% ($126,000 to $147,000 annually) under the terms of these contracts.

Exhibit A

1.	General Description of RFP	Contract for cellular phone services.
2.	List key evaluation criteria	n Completeness and quality of coverage for all of San Mateo County n Completeness and quality of coverage inside County facilities n Technology of equipment offered n Procedures and alternatives for “move, add and change” administration n Administrative Procedures, invoicing, and reporting n Pricing structures and overall estimated cost n Services and options offered n Conformance to County terms and conditions, such as equal benefits and non-discrimination requirements
3.	Where advertised	Independent Newspaper Group (San Mateo and Redwood City publications)
4.	In addition to any advertisement, list others to whom RFP was sent	AT&T Wireless Cingular Wireless Nextel T-Mobile TriWireless Communications Verizon Wireless
5.	Total number sent to prospective proposers	6
6.	Number of proposals received	5
7.	Who evaluated the proposals	John Courtney, Sheriff Katie Forsythe, Probation Bonnie Radetsky, ISD Dennis Ryan, Sheriff Gordon Shriver, ISD Peter Tocchini, EPS Purchasing Julie Van Arkel, HSA Tony Yuson, ISD Radio
8.	In alphabetical order, names of proposers (or finalists, if applicable) and location	AT&T Wireless, 651 Gateway Blvd, Suite 1500, South San Francisco, CA 94080 Cingular Wireless, Building 2, 4420 Rosewood Dr., 2^nd floor, Pleasanton, CA 94588 Nextel, 1255 Treat Blvd., Suite 800, Walnut Creek, CA 94597 T-Mobile, 128 Spear Street, 3^rd floor, San Francisco, CA 94105 Verizon Wireless, 951 Mariner Island Blvd., Suite 680, San Mateo, CA 94404

COUNTY OF SAN MATEO

Inter-Departmental Correspondence