Report to Mayor and City Council
Tuesday, September 17, 2024
Consent
SUBJECT:
Title
CONSIDERATION OF APPROVAL OF CONTRACT FOR RING CENTRAL UNIFIED COMMUNICATION SOFTWARE LICENSES, MAINTENANCE, AND SUPPORT WITH RINGCENTRAL, INC. (CITY COUNCIL)
Body
I. SUMMARY
The City requires Ring Central software licenses, maintenance, and support to provide a modern cloud-based unified communications service for staff including enterprise-class voice, fax, call handling, mobile apps, and bring-your-own-device (BYOD) capability that integrates with enterprise applications such as Microsoft Teams. The cloud-based unified communications services provide extension to extension calling, the ability to make and receive calls to and from the public switched telephone network (PSTN) and may be accessed from a variety of user devices including laptops, smartphones, desktops, and IP Desk Phones. The upgrade of our unified communications platform to Ring Central will enable City staff to utilize all City voice services regardless of their location, in the office, mobile operation center, or temporary assigned work location while providing a seamless customer experience to the public. Staff is requesting City Council to consider approval of a new Contract with RingCentral, Inc. to provide Ring Central software licenses, maintenance, and support under the State of California Cooperative Purchasing Program.
Staff is requesting City Council to consider approval of a contract with RingCentral, Inc. to provide Ring Central unified communication software licenses, maintenance, and support under the NASPO Cooperative Purchasing Program, for a total amount of $238,955.40 over a 5-year term, with an initial year amount of $47,791.08 and $47,791.08 for each renewal year.
II. RECOMMENDATION
Recommendation
1. APPROVE a contract with RingCentral, Inc. for Ring Central unified communication software licenses, including software maintenance, and software support for a total contract amount not to exceed $238,955.40, for a term of 5 years; and
2. AUTHORIZE the Mayor to execute the contract after approval as to form by the City Attorney.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate and consistent with the requirements of the City’s Purchasing Ordinance.
IV. BACKGROUND
The City requires Ring Central Unified Communications Software Licenses for a modern enterprise-class voice, fax, call handling, mobile apps, and bring-your-own-device (BYOD) capability to make and receive calls to and from the public, making extension-to-extension internal calls, and for the software to be accessible from a variety of user devices including laptops, smartphones, desktops, for enabling a mobile workforce. City staff seek approval of a contract to implement the City’s Ring Central software licenses upon expiration of the existing service term. Staff received competitive pricing from RingCentral, Inc. under the NASPO Cooperative Purchasing Program.
Section 2611(g) of the City’s Municipal Code (CMC) allows City, through its Purchasing Manager, to dispense with competitive bidding processes to purchase materials, supplies, equipment, or services by utilizing a cooperative purchasing program engaged in by any local, county, State, or Federal public entity or entities, even if the contracts and implementing agreements entered into by the participating entity or association under those cooperative purchasing programs were not entered into pursuant to a process that resulted in the contract being awarded to the lowest responsible and responsive bidder under CMC 2610(i); provided, that the selected bidder was selected in compliance with the competitive bidding or proposal process requirements of any participating entity or association within three years of City’s approval of the City contract entered into with the selected bidder via cooperative purchasing. The City Council has made a determination that the benefits to City of utilizing cooperative purchasing outweigh any incremental higher price that may be paid by City in certain instances as a result of not soliciting directly utilizing the lowest responsible and responsive bidder standard under CMC 2610(i).
The State of California is part of a NASPO cooperative purchasing program through which it entered into a contract with Quest Media & Supplies, Inc., and Quest Media & Supplies, Inc. authorized resellers including RingCentral, Inc., referred to as The State of California Participating Addendum Number# 7-17-70-40-03 and California NASPO ValuePoint Master Agreement Number#AR2505, after engaging in a competitive bidding process, whereby it now receives Ring Central licenses at a significantly discounted rate.
The City’s Purchasing Manager has determined that the competitive bidding or proposal process utilized by the State of California complies with the requirements of Section 2611(g) of the CMC and has therefore, waived the formal bidding process for procurement of the Ring Central licenses.
The City and RingCentral, Inc. seek approval from City Council to execute a contract for total amount not to exceed $238,955.40 for a maximum term of five (5) years.
V. FISCAL IMPACT
The cost associated with the 5-year contract with RingCentral, Inc. is not to exceed the amount of $238,955.40. The first-year costs for software licenses, including maintenance and support, is for a total of $47,791.08.
The total cost of $47,791.08 for the initial year of software licensing, including maintenance, and support is included in the current Information Technology & Security Department FY2024-25 budget. Software licensing, maintenance and support will be included in the proposed FY2025-26 and subsequent fiscal year budgets.
|
Fiscal Year |
Amount |
Account Number |
|
FY2024-25 |
$47,791.08 |
101-54-520-101-6020 |
|
FY2025-26 |
$47,791.08 |
101-54-520-101-6020 |
|
FY2026-27 |
$47,791.08 |
101-54-520-101-6020 |
|
FY2027-28 |
$47,791.08 |
101-54-520-101-6020 |
|
FY2028-29 |
$47,791.08 |
101-54-520-101-6020 |
|
Total |
$238,955.40 |
101-54-520-101-6020 |
VI. EXHIBITS
1. Contract with RingCentral, Inc.
2. Order Form
3. Purchasing Waiver
Prepared by: Gary Carter, Director, Information Technology&Security Department