Posting Language
Title
Authorize a contract for telecommunication services for all City departments through the Texas Department of Information Resources cooperative contract program, for an initial term of one year with up to four one-year extension options in an amount not to exceed $16,000,000. Funding: $3,200,000 is available in the Operating Budgets of various City departments. Funding for the remaining contract term is contingent upon available funding in future budgets.
Body
Lead Department
Austin Financial Services.
Client Department(s)
All City Departments.
Fiscal Note
Funding in the amount of $3,200,000 is available in the Fiscal Year 2026-2027 Operating Budget of various City Departments.
Funding for the remaining contract term is contingent upon available funding in future budgets.
Procurement Language:
Multiple contractors within this cooperative purchasing program were reviewed for these services. Austin Financial Services has determined this contractor best meets the needs of the various City Departments to provide these services required for the City.
MBE/WBE:
Cooperative Agreement contracts are exempt from the City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established.
For More Information:
Direct questions regarding this Recommendation for Council Action to Austin Financial Services - Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500.
Additional Backup Information:
The contract authorizes all City departments to procure critical telecommunications services that support remote network connectivity, long-distance calling, Voice over Internet Protocol, internet and data circuits, and other telecommunications services managed through the Texas Department of Information Resources (DIR) across the City.
This contract establishes a new multi-year agreement for these services. Previously, annual purchase orders were issued under the City’s DIR aggregate master agreement. The requested authorization is based on the current and anticipated usage of all City departments.
The State of Texas Department of Information Resources is a cooperative purchasing association recognized under Texas procurement statutes. Cooperative associations, themselves or using a lead government, competitively solicit and award contracts that are eligible for use by other qualified state and local governments. Due to their substantial volumes, larger than any one government could achieve independently, cooperative contracts routinely include superior terms, conditions, and pricing. Use of cooperative contracts also results in lower administrative costs and time savings.
Without contract approval, City departments could face disruptions or significant delays in obtaining essential telecommunications services, potentially affecting critical network connectivity, voice communications, data transmission, and the City’s ability to maintain continuous operations.
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Contract Details: |
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Contract Term |
Length of Term |
Contract Authorization |
|
Initial Term |
1 year |
$3,200,000 |
|
Optional Extension 1 |
1 year |
$3,200,000 |
|
Optional Extension 2 |
1 year |
$3,200,000 |
|
Optional Extension 3 |
1 year |
$3,200,000 |
|
Optional Extension 4 |
1 year |
$3,200,000 |
|
Total |
5 years |
$16,000,000 |
Note: Contract Authorization amounts are based on the City’s estimated annual usage.