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Agenda Item
ASR
Control 23-001101 |
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MEETING
DATE: |
01/23/24 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
All
Districts |
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SUBMITTING Agency/Department: |
County
Executive Office (Approved) |
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Department contact person(s): |
KC
Roestenberg (714) 567-5075 |
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Ed
Althof (714) 834-3069 |
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Subject: Amendment
to Contract with Level 3 for Wide Area Network Services
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ceo CONCUR |
County Counsel Review |
Clerk of the
Board |
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Concur |
Approved Agreement to Form |
Discussion |
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3 Votes Board Majority |
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Budgeted: Yes |
Current
Year Cost: $6,374 |
Annual
Cost: FY 2024-25 $504,878 |
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Staffing
Impact:
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No |
#
of Positions: |
Sole
Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 5/23/2023 #50, 5/25/2021 #77, 5/7/2019
#S29A, 6/5/2018 #23 |
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RECOMMENDED
ACTION(S):
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1. |
Authorize the County Procurement Officer
or Deputized designee to execute Amendment Number 21 to extend and amend the
contract with Level 3 Communications, LLC D/B/A Lumen for wide area network
services effective February 1, 2024, through January 30, 2027, in an amount
not to exceed $1,310,642, for a revised cumulative total contract amount of
$21,472,088. |
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2. |
Delegate to the Chief Information
Officer or designee the authority to control the County’s purchase and
termination of circuit services, modify circuit services, approve charges,
and approve operational details for circuit services provided under the Level
3 Contract. |
SUMMARY:
Approval and
authorization to execute Amendment Number 21 to the County’s contract with
Lumen will allow the County to maintain existing circuit services necessary for
County business.
BACKGROUND
INFORMATION:
The County
currently procures network and telecommunications services from Level 3
Communications, LLC D/B/A Lumen (Level 3) to support the County’s network and
voice infrastructure. The contract for Wide Area Network services (Level 3
Contract) was originally established for the period November 14, 2006, through
November 13, 2009 with Time Warner Telecom Holdings, Inc. (Time Warner) in 2006
as a result of a request for proposal (RFP) process. In 2009, Time Warner
changed its name to TW Telecom Holdings, Inc., but continued operating as the
same organizational entity until Level 3 acquired TW Telecom Holdings, Inc. in
2015, and assumed the Level 3 Contract. On June 16, 2015, the Board approved
the Assumption and Consent Agreement with Level 3. On May 23, 2017, the Board
authorized an extension to the term of the Level 3 Contract for a one-year
period, effective June 14, 2017, through June 13, 2018. On November 1, 2017, CenturyLink, Inc.
(CenturyLink) acquired the parent of Level 3 in a stock and cash purchase in
which CenturyLink, Inc. would act as the ultimate parent entity and Level 3
operate as an affiliate of CenturyLink, Inc. in the CenturyLink portfolio of
affiliated companies, doing business as “CenturyLink”. Because Level 3 would remain a separate
operating entity, the Level 3 Contract was not assigned or transferred to a
separate CenturyLink entity.
On June 5, 2018,
the Board authorized an additional extension to the term of the Level 3
Contract for the one-year period June 14, 2018, through June 13, 2019.
On May 7, 2019,
the Board authorized an additional extension to the term of the Level 3
Contract for the period effective May 7, 2019, through June 30, 2021, and
authorized the execution of Assignment, Transfer, and Assumption Agreement with
Atos International, Atos Governmental IT Outsourcing Services, LLC (Atos), and
Level 3 D/B/A CenturyLink to transfer to the County’s contract with Level 3 for
circuit and related services that Atos provided to the County as part of its
service obligations under the Atos master services agreement, at no additional
cost.
On September 14,
2020, CenturyLink announced the rebranding of the company as Lumen
Technologies. However, at this time,
ownership and structure of the affiliate companies remains unchanged.
On May 25, 2021,
the Board authorized an additional extension to the term of the Level 3
Contract for the period effective July 1, 2021, through June 30, 2023.
On May 23, 2023,
the Board authorized an additional extension to the term of the Level 3
Contract for the period effective July 1, 2023, through June 30, 2024. A more
detailed history of the Level 3 Contract, including all other prior Board
actions, is provided in Attachment C titled, "Contract History" and
the contract and its prior amendments are attached in Attachment B.
Proposed Amendment
Number 21
Due to the
relocation of the County’s new Disaster Recovery (DR) site, a new network
circuit is required to provide network connectivity to the new location and
that is the reason this amendment is being submitted less than 30 days prior to
the commencement of the requested Contract extension. Orange County Information
Technology (OCIT) would like to add the new circuit for a 36-month term in
order to save cost. Therefore, Board approval is required to extend the
Contract through January 30, 2027.
Below is a cost breakdown of the
estimated future costs. The monthly recuring cost for the DR circuit is $1,275
per month and the total for FY 23-24 is $6,374. The amounts shown in FY 24-25
and beyond reflect costs for the extension periods for the existing and new DR
circuits.
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Fiscal Year |
Description |
Fiscal Year Total |
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2023-24 |
New DR Site
Circuit Additional Cost – 5 months (Feb. 2024 – June 2024) |
$6,374 |
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2024-25 |
Existing and
Future Services – 12 Months (July 2024 – June 2025) |
$504,878 |
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2025-26 |
Existing and
Future Services – 12 Months (July 2025 – June 2026) |
$504,878 |
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2026-27 |
Existing and
Future Services – 7 Months (July 2026 – Jan. 2027) |
$294,512 |
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Estimated Total Cost: |
$1,310,642 |
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The Level 3
Contract does not include subcontractors or pass through to other providers.
See Attachment D for the Contract Summary Form.
FINANCIAL IMPACT:
The total
additional amount being requested for the period February 1, 2024, through
January 30, 2027 is $1,310,642. Appropriations and revenue have been included
in the FY 2023-24 Budget for Fund 289, OCIT Countywide Services and will be
included in the budget process for future years.
The Level 3
Contract includes a provision stating the contract is subject to, and
contingent upon, applicable budgetary appropriations being approved by the
Board for each year during the term of the contract. If such appropriations are not approved, the
contract may be terminated without penalty to the County.
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A – Amendment Number 21
to Contract MA-017-16010665
Attachment B – Original Contract and Previous Amendments
Attachment C – Contract History
Attachment D – Contract Summary Form