Report Prepared by: Jeff Bennyhoff, Director of Information Technology
Title
SUBJECT: Approval of NASPO ValuePoint Agreement #MA1502 CELLCO PARTNERSHIP, D.B.A. Verizon Wireless Amendments Number Four Through Eight for Wireless Data and Voice Services
REPORT IN BRIEF
Considers approving a NASPO ValuePoint Agreement #MA1502 CELLCO PARTNERSHIP, D.B.A. Verizon Wireless Amendments Number Four Through Eight for Wireless Data and Voice Services.
RECOMMENDATION
City Council - Adopt a motion:
A. Waiving the City’s competitive bidding requirement as permitted by Merced Municipal Code section 3.04.210 and authorizing the purchases to be made with a cooperative purchase agreement through NASPO ValuePoint, a government procurement program; and,
B. Approval of NASPO ValuePoint Agreement #MA1502 CELLCO PARTNERSHIP, D.B.A Verizon Wireless Amendments Number Four Through Eight for Wireless Data and Voice Services; and,
C. Authorizing the City Manager or designee to execute the necessary documents.
Body
ALTERNATIVES
1. Approve as recommended by Staff; or
2. Deny; or
3. Refer to Staff for further evaluation.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
In December of 2020, Council approved the utilization of two contracts for wireless data and voice services for Verizon Wireless services. One through the state of California Calnet agreement and the other through NASPO ValuePoint Agreement. Staff brought forward two contracts as each contract had slightly different services offerings, pricing, and terms. Staff recommended approving both agreements to allow for maximum flexibility in the utilization of Verizon services to meet the City’s operational objectives from all departments.
At the time staff brought forward the NASPO ValuePoint Agreement there were three amendments in place. As time has moved forward the NASPO agreement has had additional amendments take effect. Staff is seeking authority to utilize these additional amendment terms and conditions. Amendment number four through eight are summarized in the table below:
|
Amendment #4 |
Participating Entities, which are not states, may under some circumstances sign their own Participating Addendum. |
|
Amendment #5 |
Pagination of wording for attachments C, G, N, V, and W |
|
Amendment #6 |
New Products added under Award Category 3 |
|
Amendment #7 |
May be updated from time-to-time to add or remove Products without an amendment to the Contract. |
|
Amendment #8 |
The contract’s expiration extended to 8/11/2029; New Products added |
The City has been utilizing Verizon Wireless for data and voice services since 2010. However, the City also has a contract in place to utilize AT&T FirstNet for continuity of operations needs of each department. The City can use AT&T FirstNet network for priority services for public safety staff, or if the services coverage is poor for Verizon where their staff need to operate. Should the City decide not to utilize the NASPO or CALNET contract for Verizon services the city will need to publish a new RFP for wireless data and voice services or exclusively rely upon our AT&T FirstNet Contract.
By waiving the competitive bidding requirement as permitted by Merced Municipal Code section 3.04.210 to utilize the NASPO contract the City receives significant discounts for data and voice services. NASPO is the cooperative purchasing division of the National Association of State Procurement Officials (NASPO), facilitating cooperative public procurement solicitations. NASPO ValuePoint delivers high-value, reliable, and competitively sourced cooperative contracts. This offers public entities pricing, favorable terms and conditions, and value-added services. On average, the City spends approximately $25,000 per month on cellular services for talk, text, & data plans through the NASPO contract. This is a cost reduction of approximately 25% off of retail price for comparable plans. In addition, the City receives discounted rates through Verizon for purchasing of new equipment, such as smartphones, iPads, and Hotspots. The approximate cost reduction for new devices is $500 off retail price, often proving devices at a zero cost.
IMPACT ON CITY RESOURCES
No budget appropriation is needed. Supplies and Services under this agreement utilize current operating budget.
ATTACHMENTS
1. Verizon Master Agreement - Participating Addendum and Amendments number 1 through 8.