Agenda Item AGENDA STAFF REPORT 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
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: |
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):
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. |
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.
Fiscal Year |
Description |
Fiscal Year Total |
2023-24 |
New
DR Site Circuit Additional Cost – 5 months (Feb. 2024 – June 2024) |
$6,374 |
2024-25 |
Existing
and Future Services – 12 Months (July 2024 – June 2025) |
$504,878 |
2025-26 |
Existing
and Future Services – 12 Months (July 2025 – June 2026) |
$504,878 |
2026-27 |
Existing
and Future Services – 7 Months (July 2026 – Jan. 2027) |
$294,512 |
Estimated Total Cost: |
$1,310,642 |
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