CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to Contract 23-268, Mobile Broadband Data Services, to Verizon Wireless for an amount not to exceed $72,204 and a total award of $408,439
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DEPARTMENT: Information Technology
SUBMITTED BY: Jacqueline Nguyen, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Cooperative Procurement 23-268, Mobile Broadband Data Services, to Verizon Wireless on October 3, 2023, for a two-year term. Mobile broadband data services were procured under the State of Illinois cooperative contract with Verizon Wireless. This procurement provides mobile broadband data services over Verizon’s cellular network for the City's needs. Mobile broadband data services are used by several departments including Police, Fire, Electric Utility, Water Utilities, Department of Public Works, and TED. Devices and applications using mobile broadband data services include vehicles, laptop computers, routers, drones, and other devices.
At the time of procurement, the Information Technology (IT) Department estimated the amount of funds the contract would need to cover the two-year period based on historical cost data and anticipated growth in the use of mobile broadband services.
DISCUSSION:
Due to the factors listed below, the cost of cellular data services is running ahead of forecast and a Change Order is requested to add funds to complete the term of the contract.
1. Some forecast assumptions about cellular data costs for the Axon in-car camera system for the Police Department proved incorrect
2. Process problems regarding Verizon data service deactivation
3. Devices in shared pool data pricing plans did not perform as expected, and occasionally exceeded allowable limits
4. New ways of operating within the Police Department have driven additional cellular data services. For example, squad cars now use two cellular data connections, one for the router, which serves all devices in the squad car, and an additional one for the PC when the officer is not in the squad car. Also, Investigations officers are now all equipped with PCs that have cellular data service to enable mobility and enhance responsiveness.
Since these costs were running ahead of the forecast, an audit of the use of cellular data services was conducted. This audit focused on eliminating data devices where usage patterns and business needs indicated they were a candidate for deactivation. This has resulted in deactivating 105 data devices. Also, the IT Department worked with Verizon to optimize the data pricing plans. This resulted in reduced costs and the elimination of overage fees. Finally, the IT Department and Verizon worked together to secure new, lower overall cellular data pricing with the State of Illinois.
This Change Order is requested to provide these additional funds to complete the contract through October 2, 2025.
FISCAL IMPACT:
CIP #: N/A
The requested Change Order will be charged to the account listed below. The net financial impact of the increase in mobile broadband data services combined with the audit of cellular data services, as explained above, results in a 2025 budget overage of $14,250. The audit of cellular data will save approximately $45,000 over the last six months of the contract. Without the IT Department’s audit of City department cellular data usage, the increase in mobile data expenses would result in an approximate budget overage of $59,220. Staff will continue to monitor spending and adjust as needed.
|
Account Number |
Fund Description |
Total Budget Amount |
|
16101100-542415 |
General Fund |
$ 647,399.00 |