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TO:

Honorable Mayor and Members of the Common Council

FROM:

Jon Urben, General Services Manager

DATE:

August 14, 2024

SUBJECT:

Res 24-458 Approve Cooperative Purchase of Cellular Phone Service from T-Mobile for Information Technology Division ($109,500.00 annually)

BACKGROUND

Since June 2019, the City has utilized Verizon Wireless under the State of Wisconsin’s Cooperative Purchasing program for cellular phone service. After five years, the Information Technology (IT) Division felt it would be prudent to compare our current plan and costs with all the authorized cellular phone provider plans on the State’s cooperative purchasing program to ensure we are achieving the best savings possible for this service.

ANALYSIS

IT conducted comparisons of a model “high” month of the City’s current cellular phone service usage and other needs against the plan offerings of the State’s authorized cellular phone service providers. This analysis concluded the “T-Mobile for Government” plan (NASPO ValuePoint Cooperative Purchasing Contract Master Agreement MA176-1) met all of our service needs and, most importantly, by comparing the past year’s Verizon usage against the T-Mobile for Government rates for both service and hardware, was the most cost competitive. With T-Mobile’s rates, the City is expected to realize an estimated $34,000 per year savings. Purchasing has confirmed this contract qualifies as cooperative purchasing exception to our purchasing ordinance.

FISCAL IMPACT

Using the City’s 2023 cellular phone usage as a sample year and applied to the T-Mobile for Government authorized cellular phone provider plan, the estimated annual fiscal impact of this service will be approximately $109,500. This plan is a month-to-month program with no term commitment. IT expects the plan conversion will take place within the next 8–10 weeks and all phone numbers will remain the same. These services are budgeted annually within each applicable department’s telephone accounts (6454).

RECOMMENDATION

Section 12-15 of the Municipal Code provides that, subject to approval of the City Manager, cooperative purchases pursuant to a contract with any other local, state or federal governmental unit or agency may be made without following a competitive bidding or quotation process. In accordance with Section 12-15 of the Municipal Code and with approval by the City Manager, Purchasing recommends the Common Council approve this cooperative purchase from T-Mobile, 12920 SE 38th St, Bellevue, WA 98006. If there are any questions about this purchase, please contact me or Information Technology Manager Tony Neumann.

Attachments

Res 24-458