HomeMy WebLinkAbout14-123 Award of Contract to Jive Communications, Inc. for a new Phone System & ServiceCITY OF ^
LADE �LSIIYOIZE
%V DREAM EXTREMEn
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: GRANT YATES, CITY MANAGER
DATE: MAY 13, 2014
SUBJECT: AWARD OF CONTRACT TO JIVE COMMUNICATIONS,
INC. FOR A NEW PHONE SYSTEM AND SERVICE
Recommendation
It is recommended by staff that City Council:
1.) Award contract for replacement of the Unified Communications system to Jive
Communications, Inc. in the amount of $45,239.59 plus 10% contingency of
$4,524.00.
2.) Authorize the City Manager to execute a service agreement with Jive
Communications, Inc. in the amount of $1,944.98 per month.
3.) Allocate $20,000 for satellite city facility locations to install needed infrastructure
improvements and equipment for backbone connectivity (5 Routers, licenses, fiber
cable installation and labor).
Background
The telephone system currently used by the City is a legacy Nortel Meridian Private Box
Exchange (PBX). The functions and features of this PBX, both hardware and software,
are outdated by current standards. Furthermore, it is no longer supported by an annual
service agreement and all maintenance is performed on an as- needed basis with no
guaranteed repair window. Because of this, the City is vulnerable to extended phone
outages in the event that one of the PBX components should fail.
In addition, each City location (City Hall, City Yard, Senior Center, Community Center and
Cultural Center) is on a separate phone PBX system with no direct link between each
UNIFIED COMMUNICATIONS REPLACEMENT
TUESDAY, MAY 13, 2014
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independent PBX. As a result, the City does not have a unified communications system
that can internally route phone calls to every facility and employee.
Discussion
In an effort to bring the City's telephony infrastructure up to current standards, staff issued
a request for proposal on March 31, 2014 to elicit proposed solutions from qualified unified
communications vendors. The following requirements were determined by staff to be
necessary aspects of any proposed solution:
1.) Flexibility: Utilize voice - over -IP (VoIP) to allow for a broader range of end user
accessibility scenarios.
2.) Robustness: Ensure adequate redundancy and failover to eliminate or at least
keep phone call outages to an absolute minimum.
3.) Innovative: Allow the City and staff to communicate more efficiently and effectively
by utilizing the latest technology tools and features that a modern unified
communications platform provides.
4.) Support: Ensure that any repairs and /or replacement of components are provided
in a responsive and cost effective manner.
The submission deadline was April 21St, 2014. The City received seven responses to the
issued RFP. Of the seven responses, five offered an on- premise solution while two
proposed cloud- hosted solutions. The vendors who responded, along with the unified
communications platform they proposed, were as follows:
• CMS Solutions - ShoreTel
• Business Telecommunications Systems, Inc. - ShoreTel
• IntelesysOne - ShoreTel
• Integrated Technology - Avaya Connect
• Blueprint Technologies, Inc. - Mitel
• Jive Communications, Inc. - Jive Cloud
• RX3 Communications - Telesphere
With an on- premise solution, as the City currently uses, all private telephony equipment
resides physically on City property. In a cloud- hosted turnkey service, only end user
UNIFIED COMMUNICATIONS REPLACEMENT
TUESDAY, MAY 13, 2014
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devices, such as handsets, physically reside locally while all other necessary components
are hosted by the service provider at a remote data center.
The matrix below summarizes the features by vendor that were included in their base
proposal (I and those that were listed as optional (:; ). Some vendor solutions provided
limited functionality for a feature in the base proposal that could be expanded upon as an
additional option at an additional cost (,'+ ).
V
*Feature available to end user based on their subscription level. Not all users would have access to this feature.
In order to evaluate each of the proposed solutions by price, an estimated total cost of
ownership (TCO) over five years was determined by staff for each of the seven proposals.
A normalized cost for each proposal was computed by factoring in the cost of the base
proposal, plus the cost to implement all additional options along with the estimated cost
of monthly phone charges (based on current rates) and the costs for on -going support as
indicated by the vendor. Given these factors, the following chart comparing the TCO over
five years for each proposed solution was derived:
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*Feature available to end user based on their subscription level. Not all users would have access to this feature.
In order to evaluate each of the proposed solutions by price, an estimated total cost of
ownership (TCO) over five years was determined by staff for each of the seven proposals.
A normalized cost for each proposal was computed by factoring in the cost of the base
proposal, plus the cost to implement all additional options along with the estimated cost
of monthly phone charges (based on current rates) and the costs for on -going support as
indicated by the vendor. Given these factors, the following chart comparing the TCO over
five years for each proposed solution was derived:
UNIFIED COMMUNICATIONS REPLACEMENT
TUESDAY, MAY 13, 2014
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$400,000.00
$350,000.00
$300,000.00
$250,000.00
$200,000.00
$150,000.00
$1001000.00
$50,000.00
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Proposed Solutions Cost Comparison
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to 5 -Yea rTCO E_ One -Time Cost �.Annual Costs
A selection committee comprised of key stakeholders from various departments was
organized to review each of the proposals. Each proposal was ranked based on the
criteria listed above along with the TCO for the solution over five years.
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to 5 -Yea rTCO E_ One -Time Cost �.Annual Costs
A selection committee comprised of key stakeholders from various departments was
organized to review each of the proposals. Each proposal was ranked based on the
criteria listed above along with the TCO for the solution over five years.
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to 5 -Yea rTCO E_ One -Time Cost �.Annual Costs
A selection committee comprised of key stakeholders from various departments was
organized to review each of the proposals. Each proposal was ranked based on the
criteria listed above along with the TCO for the solution over five years.
6
6
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4
5
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After reviewing the proposals, talking to vendors and verifying references, each proposed
solution was evaluated based on innovation, robustness of services, on -going support
options and total cost of ownership. Out of all the proposals received, the selection
committee came to the conclusion that Jive Communications, Inc. provided the most
responsive and cost effective solution based upon the City's needs.
Fiscal Impact
The upfront cost for the proposed solution is $49,763.59 (including 10% contingency) plus
$20,000 for infrastructure improvements which is below the existing approved budget of
$100,000. Furthermore, the City pays in excess of $3,000 per month on average for
UNIFIED COMMUNICATIONS REPLACEMENT
TUESDAY, MAY 13, 2014
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phone charges for all five city facilities. The monthly cost of the proposed solution is
$1,945, which includes unlimited local and domestic long distance calling, resulting in an
estimated annual savings of $12,000.
Prepared by: John Herrera, I.T. Administrator
Matt Brown, I.T. Analyst
Reviewed by: Jason Simpson, Director of Administrative Services
Approved by: Grant Yates, City Manager
Attachment(s): None