June 27, 2023
Information Technology
DATE: June 27, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Sue Hartman, Director of Information Technology
Subject:
Sole-Source Contract with Packet Fusion, Inc for
Extended License and Maintenance Services for VoIP
Phone System
FINANCIAL IMPACT: Funding in the amount of $60,328.80 is allocated from the Information Technology operating budget (account
01262117-400501).
PREVIOUS COUNCIL
ACTION:
July 17, 2018
STATEMENT OF THE
ISSUE:
The original contract agreement for license, maintenance and services support for the City’s Packet Fusion, Inc.
VoIP system expires June 29, 2023. A new contract
extending the term and increasing the compensation
must be obtained to allow the City to continue using this system.
RECOMMENDED ACTION:
APPROVE a sole-source contract in the amount of
$60,328.80 with Packet Fusion, Inc. for licensed use,
maintenance, and support services for the City’s Voice
Over Internet Protocol (VoIP) system, with a term from
July 1, 2023, through December 31, 2024, including six
months of extended maintenance services, with the
option of four three-month extensions – Information
Technology Department (Sue Hartman 510-620-6874).
AGENDA
REPORT
June 27, 2023
DISCUSSION:
In December 2009, Packet Fusion was selected by competitive bid process to implement the City’s new ShoreTel Voice Over Internet Protocol (VoIP) Telephone system including license and maintenance for the communications software and hardware. Voice over internet protocol is a technology that allows one to make calls over the internet instead of traditional phone lines. This system is the City’s primary telephone communication system City wide. In July 2013, City Council approved continued maintenance for five years.
On July 17, 2018, the City of Richmond City Council approved a new contract with Packet Fusion, Inc for a five-year maintenance agreement that expires June 29, 2023. A new sole-source contract is needed to continue software and hardware license, and maintenance support. This contract allows for a six-month support agreement with an option for additional extensions in three month increments up to four times. This new contract agreement will allow the City to go out to bid for a new phone system in 2024.
City staff is seeking approval of an eighteen-month license, maintenance, and services sole-source contract with Packet Fusion, Inc. for the continued support of the City’s VoIP phone system for the period of July 1, 2023, through December 31, 2024, for a new total contract compensation amount not to exceed $60,328.80.
DOCUMENTS ATTACHED:
Attachment 1 – Contract
Attachment 2 – 1st Contract Amendment
Attachment 3 – Sole Source