Agenda Item   

AGENDA STAFF REPORT

 

                                                                                                                        ASR Control  21-000845

 

MEETING DATE:

10/19/21

legal entity taking action:

Board of Supervisors

board of supervisors district(s):

All Districts

SUBMITTING Agency/Department:

County Executive Office   (Approved)

Department contact person(s):

Joel Golub (714) 567-5085 

 

 

KC Roestenberg (714) 567-5075

 

 

Subject:  Authorize Use of California Network and Telecommunications Agreement

 

      ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

 

 

3 Votes Board Majority

 

 

 

    Budgeted: Yes

Current Year Cost: $2,854,500

Annual Cost: FY 2022-23 $5,709,000
FY 2023-24 $5,709,000
FY 2024-25 $5,709,000

 

 

 

    Staffing Impact:

No

# of Positions:

Sole Source: N/A

    Current Fiscal Year Revenue: N/A

  Funding Source: Information Technology ISF 289: 100%

County Audit in last 3 years: No

 

 

    Prior Board Action: 5/19/2020 #46, 6/4/2019 #38, 5/22/2018 #58, 3/15/2016 #27

 

RECOMMENDED ACTION(S):

 

 

1.

Authorize County use of State of California Department of Technology California Network and Telecommunications Program agreement number C4-LEG-12-10-TS-01 and C4-DNCS-19-001-40 with AT&T Corporation for voice, data and long-distance services.

 

2.

Authorize the County Procurement Officer or authorized Deputy to execute Authorizations to Order with AT&T Corporation, when necessary, in accordance with the State of California and AT&T Corporation California Network and Telecommunications Program agreement, to order voice, data and long-distance services in an amount not to exceed $19,981,500 for the term of January 1, 2022, through June 30, 2025.

 

 

 

 

 

SUMMARY:

 

Authorization of the County's use of the State of California Department of Technology agreement and executing related Authorizations to Order with AT&T Corporation for California Network and Telecommunications services will allow the County to continue receiving necessary voice, data and long-distance services for ongoing County business needs.

 

 

 

BACKGROUND INFORMATION:

 

The County has been purchasing voice, data and long-distance services through the State of California’s (State) California Network and Telecommunications (CALNET) program since 1999.  SBC Global Services, Inc., dba AT&T Global Services on behalf of Pacific Bell Telephone Company, dba AT&T California (AT&T) entered into an agreement (Agreement) with the State for the CALNET 2 program in January 2007.  Pursuant to the Agreement, any public agency, as defined in Government Code section 11541, was allowed to order services and products solely as set forth in the Agreement.  As a public agency that is a political subdivision of the State, the County was required to complete an Authorization to Order (ATO) under the State Agreement prior to ordering services. Any services ordered through an ATO are provided pursuant to the terms and conditions and rates contained in the Agreement.

 

Through the years, the Board of Supervisors (Board) has approved the County’s use of the CALNET agreements.  Below is a list summarizing prior Board actions and additional background information.

 

Date

Prior Board Action / Background Information

January 15, 2008

Board approved the County’s use of the CALNET 2 agreement for a five-year term resulting in an ATO being executed by the County with AT&T.  The annual amount approved by the Board was not to exceed $5.5 million

January 15, 2013

Board authorized the continued use of the CALNET 2 agreement through January 29, 2014, for an additional $5 million.

December 17, 2013

Board authorized continued use of the CALNET 2 agreement through January 29, 2015, for an additional $5 million.  In addition, the Board authorized the County to execute the CALNET 3 ATO once the new CALNET 3 agreement was executed by the State and AT&T.

November 25, 2014

Board authorized continued use of the CALNET 2 ATO through January 29, 2016. OCIT also received authorization to utilizing the CALNET 3 agreement through June 30, 2017, for CALNET 3 Subcategory 1.6 services, and through June 30, 2018, for all other portions of CALNET 3.

March 15, 2016

Board ratified and authorized the continued use of the ATO as necessary to continue to receive services under CALNET 2 through January 29, 2018, to allow time for the transfer of services from CALNET 2 to CALNET 3.

May 22, 2018

Board authorized continued use of CALNET 3 agreement for a one-year term, effective July 1, 2018, through June 30, 2019, in an amount not to exceed $4,719,524. 

March 15, 2019

State notified non-State entities that it has exercised its final one-year option to extend all CALNET 3 agreements through June 30, 2020. In addition, the State announced that they were working on awarding the CALNET Next Generation (CALNET 4) agreements to replace CALNET 3.

June 4, 2019

Board authorized continued use of the CALNET 3 agreement for an additional one-year term, through June 30, 2020, in an amount not to exceed $4.98 million to cover the current voice, data and long-distance services and an additional not to exceed amount of $2,340,100 to cover anticipated circuits that will be transferred from the CenturyLink agreement to CALNET 3 for redundancy to ensure network availability and additional circuits for new County facilities. 

October 1, 2019

State exercised its option to extend the CALNET 3 agreement by 18 months, through December 31, 2021, to allow enough time for vendors and customers to migrate services.

May 19, 2021

Board authorized continued use of the CALNET 3 agreement for an additional 18 months, through December 31, 2021, in an amount not to exceed $8,563,502.

March 8, 2021

State announced the new CALNET Next Generation Data Networks and Communications Services available under the CALNET 4 agreement.

 

Authorization of the County's use of the CALNET 4 agreement and executing related ATOs with AT&T will allow the County to continue receiving necessary voice, data and long-distance services for ongoing County business needs.

 

Under the CALNET 4 ATO with AT&T, the County has the option of terminating specific services or the ATO in total without penalty prior to expiration of the CALNET 4 agreement, with 30 calendar days of written notice of cancellation.

 

The Contractor’s performance has been confirmed as satisfactory. OCIT has verified there are no concerns that must be addressed with respect to Contractor’s ownership/name, litigation status or conflicts with County interests. 

 

As authorized by the State, AT&T may subcontract with other telecommunications providers for the provision of specific deliverables and services in the subcontractors’ authorized facilities-based territories.  This encourages the telecommunications industry to work together in alliance arrangements to provide peer-to-peer services on a fully retail basis for the delivery of CALNET deliverables and services. This agreement, due to the nature of the services, allows for the usage of subcontractors. In order to add subcontractor(s) to the agreement, the provider/contractor must seek express consent from the County department. Should the addition of a subcontractor impact the scope of work and/or contract amount, the department will bring the item back to the Board for approval. In the past, subcontractor(s) have been used for this agreement. See Attachment E for the Contract Summary Form.

 

The CALNET agreements include non-standard Indemnification and Limitation of Liability language. The agreements have been reviewed by County Counsel and Risk Management. A Risk Assessment Form is attached to this Agenda Staff Report as Attachment F.

 

The Orange County Preference Policy is not applicable to this contract award.

 

 

 

FINANCIAL IMPACT:

 

Appropriations for these agreements are included in the FY 2021-22 Budget for Fund 289, OCIT Countywide Services and will be included in the budgeting process for future years.  These costs are billed through OCIT and charged back to the various County departments.  The ATOs with AT&T contain language that permits reduction or termination of the ATOs for specific services or in total without penalty.

 

 

STAFFING IMPACT:

 

N/A

 

ATTACHMENT(S):

 

Attachment A – Authorizations to Order
Attachment B – CALNET Agreement Number C4-LEG-12-10-TS-01
Attachment C – CALNET Agreement Number C4-DNCS-19-001-40
Attachment D – Government Code 11541
Attachment E – Contract Summary Form
Attachment F – Risk Assessment Form