The URL can be used to link to this page

Telecommunications Carrier Recommendation RFPTHE CITY OF DUB E ~-~~ MEMORANDUM February 1, 2007 TO: The Honorable Mayor and City Council Members _, FROM: Michael C. Van Milligen, City Manager ~~ ~, SUBJECT: Telecommunications Carrier Recommendation A Request for Proposals was issued for local voice service, long distance services and Internet services. Information Services Manager Chris Kohlmann is recommending that the City utilize Qwest Choice for analog connections, McLeod for PRI and long distance services, and Lightedge for Internet services. I concur with the recommendation and respectfully request Mayor and City Council approval. I ~) !1~ ;2 ~~-- (,~~~, ~~'"1~1; ~1~ Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Chris Kohlmann, Information Services Manager THE CITY OF UB E ~~ ~ - . MEMORANDUM Date: January 30, 2007 To: Michael C. Van Milligen, City Manager Cc: Telecommunications Carrier Assessment Team From: Chris Kohlmann, IS Manager RE: Telecommunications Carrier Recommendation BACKGROUND The City of Dubuque in partnership with Dubuque County worked with RSM McGladrey to compile and issue a request for proposal for local voice service, long distance services and intemet services. RSM McGladrey assisted with this RFP as part of the scope of services for the Telecommunications Carrier Assessment Study they were hired to complete for both the City and County. The team working on this project included: (City Staff) Ken Tekippe, Finance Director, Randy Gehl, Public Information Officer, former Budget Director Dawn Lang, Jenny Larson Budget Director, Don Vogt, Public Works Director, Kim Wadding Police Chief, Dan Brown, Fire Chief, former E911 Supervisor Sandi Hutchcroft, Mark Murphy, E911 Supervisor, Kathy Sturm, Purchasing Coordinator, Juanita Hilkin, City Manager's Office, (County Staff) Denise Dolan, County Auditor, Steve Hahlen, Dubuque County Jail, Jeff Miller, Dubuque County GIS Coordinator, Sue Brietbach, Dubuque County IS Manager and Sue Gauer, Dubuque County Auditor's Office. I have facilitated this group. Qualified responses to the RFP were received from Qwest, Lightedge and McLeod. 01 /30/2007 DISCUSSION In evaluating proposals the group sought a vendor that provided a comprehensive, cost-effective solution for current specifications, future capacity requirements, and ongoing service and support for telephony and long distance services. The City and County evaluated proposals that would benefit the needs of each organization along with any partnerships that would provide a better product or service for both organizations. The specific evaluation criteria used in scoring responses were: • Carriers Experience and Vision: Evaluation of the vendor's services and company's history in providing new services and solutions. • SupportlService Capabilities: Serviceability of services provided, and technical support for the Communications services provided. The ability to provide regional support for services provided. • Scalability: Modular, cost-effective solutions in both IP services and voice services over the next five years. • Leading Edge Technology: The ability to incorporate future requirements and technological advances. • Financial and Corporate Viability: The ability to show a sound financial standing and an ability to show cash reserves and other financial contingencies. to addition, redundancy of services for contingency and disaster preparedness were key in the group's recommendation. The group compared single vendor solutions along with combinations of vendor solutions where services could be split between providers. Internet services were not included in the scope of this recommendation since no vendor provided a superior or more cost effective solution than the current solution from Lightedge. Vendor scoring sheets and a summary of the alternatives considered are attached. This information was prepared by RSM McGladrey with input and consensus on the recommendation by team members. RECOMMENDATIONS City/County Service Sharing Based on the needs of each entity and cost it was the consensus of the team and RSM Mcgladrey that it was best for each organization to pursue their own solutions. There would be no additional cost savings or increase in services to pursue a "partnered" solution between the City and County. The County is continuing their work on telecommunications planning and enhancements so that partnerships in this area can possibly happen in the future. 01 /30/2007 2 The City of Dubut~ue and Dubuque County ~~; ~. GABBIER SERVICES VENDtJR EVALUATIC)N Ve npOr tValuaLlQn mal rlX Total Possible 850 } Q~~JL 775 ~ 585 Percent of Total Possible 100°fo 91 % 69% ~~,~e. t~:,:~. , r. ~~~r~.,au Carrier Services Criteria orn Possible Notes SCORE Notes SCORE Notes SCORE arriers xpenence an ~sron: Experience in Voice local lines 50 See Qwest Sheet 50 See Mct_eod Sheet 40 Experience in Voice T-1's 50 50 40 Experience in Internet 25 25 15 Experience in DSL 25 20 20 Vision in Carrier Technology 25 0' ca a ~ rty: Products or Services Scalability 50 50 4 uppo ervrce apa ~ ~tAes: Account Support 50 50 30 Account Team 25 25 10 Customer Service Availability 50 50 20 Customer Service Speed of Resolution 50 50 30 Billing Audits and Controls 15 15 15 Billing Resolutions 15 15 15 Billing options 15 1 15 ea rng ge ec no ogy: Voice Products-lines T-1 50 50 40 Voice Products-Integrated 15 '10 15 Internet Services DSL 15 ".`15 15 Internet Services Dedicated 75 15 15 rnancra to i rty: Soundness of Institution 25 20 5 Business Turbulence 15 15 5 Finance Strengths and Weakness 15 't0 'Carrier Services Pricing Local Lines Pricing 50 $2,636.00 102 Lines 50 $3,769.00 (102 Lines} 20 Centrex Lines Pricing 50 $4,267,00 349 Lines 50 $12,895.55 349 Lines) 10 Voice T-1 Pricing 50 $1,340.00 30 $840.00 50 DSL Pricing 35 $47.99 r Site ADSL 25 $19.95 per Site ADSL 25 Long Distance Inbound {50oointerr5o00 infra) 35 $470.50 25 $310.00 35 Long Distance Outbound (soooineeri5oao infra) 35 $470.50 25 $319.00 35 Total Possible 850 TOTALS 775 585 Carrier Services Criteria Points Possible Carriers Experience and Vision: Experience in Voice local lines 50 Experience in Voice T-1's `50' Experience in Internet 25 Experience in DSL 20 Vision in Carrier Technology " 20 Scalability: Products or Services Scalability 50 SupportlService Capabilities: Account Support 'S0 Accaunt Team 25 Customer Service Availability 50 Customer Service Speed of Resolution 50 Billing Audits and Controls 15 '. Billing Resolutions ~5 Billing options 15 Leading Edge Technology: Voice Products-Lines T-1 50 Voice Products-Integrated -10 Internet Services DSL 15 Internet Services Dedicated 15 Financial Stability: Soundness of institution 20 ' Business Turbulence # 5 . Finance Strengths and Weakness ~0 Carrier Services Pricing Local Lines Pricing 50 Centrex Lines Pricing 50 Voice T-1 Pricing 30 DSL Pricing 25 Long Distance Inbound (sooointerrsooo intro) 25 Long Distance Outbound (5ooointerisooo intro) 25 Total Possible 775 dotes 9 Q0 + years n 14 Cates ;largest :area & customer base - largest area & customer base- `: largest!~rea & customer base With Company Size hai-d'#o~ii'take:quick technology moves Most diverse ,carrier Top. with Rirec# :and Carrier Access service Top with Rrect'and Carrier Access ervice Top: with `Direct':and Carrier Access ervice `' - Top'with 'Rirect;and Garrier'Access service Standard do'have 3>diffierent companies; Standard do haue 3 different<coripanies Standard do have 3'dfferent companies most?services„ia~gest area &'customer base.'. most'services; largest area & customer base:' most services; targest area & customer base most services, largesfarea & ciastorner base Qwest f~as suruived Bard technology times Look for ale or acquisition Qwest has`survived hard technology imes $2;636:00 (102:Lines} `$4;267:00 (349 Lines} $1,340:00 , $47:99 per Site ADSL $470.5 {$:0564 inter & .0355 Intro} $470.5 ($.0564 do#er & :0355 tetra) '~fit~~.e~t1L Carrier Services Criteria Notes Carriers Experience and Vision: Experience in Voice local lines 40 65% of McLeod's Revenue Experience in Voice T-1's 40 Founded 1992, Lar es# CLEC Experience in Internet 15 Multi le the to internet 12% of revenue Experience in DSL 20 Smaller amount of DSL Vision in Carrier Technology 20 Leaden in ante rated Solutions, reseller in Sines market Scalability: Products or Services Scalability 40 limited roduct lines Research and Development mi ht be limited with companies osition SupportlService Capabilities: Ve diversi#ied in Irate rated products, most( a CLEC Account Support 30 Account Team 10 Account service and su art rsonnel have been decreased with McLeod"s financial issues Customer Service Availability 20 Based on histo and Cities experience Customer Service Speed of Resolution 30 Based on histo and Cities ex erience Billing Audits and Controls 15 Basic Billing Resolutions 15 Basic Billing options 15 Basic Leading Edge Technology: Voice Products-Lines T-1 40 14 ears in CLEC environment Voice Products-Integrated 15 Leader in static and d namic Irate rated access Internet Services DSL 15 Ex erienced for IA Internet Services Dedicated 15 Experienced far IA Financial Stability: Soundness of institution 5 Business Turbulence 5 Finance Strengths and Weakness 5 Carrier Services Pricing Local Lines Pricing 20 $3,769.00 {102 Lines} Centrex Lines Pricing 10 $12,835.55 (349 Lines( Voice T-1 Pricing 50 $840A0 DSL Pricing 25 $19.95 r Site ADSL Long Distance Inbound ~sooointensooo intra> 35 $310 .04 intro & .033 inter) Long Distance Outbound {so©ointed500o intro) 35 $319 (.04 intro & ,033 inter Total Possible ~ 585 ~ ~~ ~~ SJnirn Plata /T A"nreu.~rr„n.rr City 4f Dubu ue Carrier Services Cost Analysis j Solution 1 Mast Cast Effective ~ Present Services Proposed Services SERVICE Descri tion QTY Cost TOTAL Desc# on QTY COST TOTAL SAVINGS Phone Lines (Centrex, fax, etch McLeod 102 $ 2,830.50 Qwest Choice 102 $ 2,635.68 $ i 94:82 PRI McLeod 2 $ 1.116.00 McLeod 2 $ 840.00 $ 276A0 Long Distance- Intrastate ' McLeod 6463 $ 387.78 McLeod 6463 $ 258.52 $ 129.2$. Lon Distance-Interstate g McLeod 185 McLeod $ 11.10 185 ' $ 7.40 $ 3.70 Total Current $ 4,345.38 To tal Pro osed 5 3,741.60 [ ~ TOTAL MfJNTHLY 5AYiNGS 603.7$ ' Concerns incentives j ~ Multiple carriers Redundant paths to PSTN Multiple bills Cost savings $$$$$$ Account codes on LD No changes on PRI's Directing service calls City of Dubuque Solution 'f Most Cost Effective Voice Circuits a sites Remote sites Remote sites City Of Dubugue Carrier Services Cast Anal sis Solution 2 Single Carrier Present Services Proposed Services SERVICE Descri tion QTY Cost TOTAL Descri tion QTY COST TOTAt_ SAYINGS Phone Lines (Centrex, fax, etc) McE.eod 102 $ 2,83fl.50 Qwest 102 $ 2,635.68 $ 194:82 PRI Mcleod 2 $ 1,116.00 Qwest 2 $ 1,140.00 $ (24.OOj~I Long Distance-Intrastate McLeod 6463 $ 387.78 Qwest 6463 $ 364.51 $ 23.27 Lon Distance- Interstate McLeod 185 $ 11.10 Qwest 185 $ 6.57 $ 4.53.. Total Current $ 4,345.38 Total Pra used $ 4,146.76 TOTAL MONTILY SAYINGS S 198:62 Concerns Incentives Single source outage Redundant paths to PSTN Transition to Qwest Cost Savings Single Biil Single carrier Strongest account and service team Direct service with Qwest no middleman City of Dubuque Solution 2 Single Carrier City Hall PRI T-1 Qwest PRI T-1 Remote sites Qwest Analog Lines PSTN Qwest Analog Lines Remote sites Remote sites / Qwest Analog Lines Remote sites Remote sites Qwest Remote sites Analog Lines Remote sites City Of Dubuque -~ Carrier Services Gost Analysis ' Solution 3 Most Redundant and Dynamic __ _._ Present Services Pro osed Services ' SERVICE Descri tion 4N Cost TOTAL Descri tion QTY CAST TOTAL. SAYINGS Phone Lines iCentrex, fax, etc) McLeod 102 $ 2,830.50 Qwest 1 p2 $ 2,635.68 $ 194.82 pRl McLeod 2 $ 1,116.00 Lighti=dge 2 S 1,060.00 $ 56.00 Long Distance- Intrastate McLeod 6463 $ 387.78 Vest & LE 6463 $ 258.52 $ 929.26 Lon Distance-interstate P~1cLeod 185 $ 11.10 Qwest & LE 185 $ 5,18 $ 5.92 Total Current $ 4,345.38 Total Pro osed $ 3,959.38 ~-~ ' TOTAL MONTHLY'sAVINGS ~_38&.00 Concerns Incentives I i Multiple carriers Redundant paths to PSTN Multiple Bills Utilization cf bandwidth Account codes on LD Investment in Router $5,900.00 City of Dubuque Solution 3 Dynamic > sites y,~ Remote sites Remote sites County Qf Dubuque Carrier Services Cast Analysis Solution 1 Mast Cast Effective Present Services Proobs[?rl Serviraa VICE Descri tlon QTY Cost TOTAL Descrl tton QTY COST TOTAL, > SAYINGS Phone Lines Centrex pLEC ( ) _ Qwest 353 $ 3,000.50 Qwest 312 $ 2,823.60 $ 176.90. ~' IPhone Lines (Gentrex remotes) Qwest 2 $ 75.58 Qwest 43 $ 1,677.00 $ (1,601.42)' Long Distance- Intrastate AT&T 8,715.00 $ 958.65 Qwest 8,715.00 $ 491.53 $ 467.12 Lon Distance-Interstate AT&T 2,482.82 $ 273.11 Qwest 2,482.82 = $ 88.14 ~, 184.97 Total Current $ 4 307.84 Total Pro osed $ 5,080.27 `QTAL MiCNTHLY DIFFERENCE Concerns Incentives Cost Increase Better Tong distance rates Listings. Qwest would transition you to this on next contract. Recontracting will bring account current Carrier Access wilt provide customer service. County Solution 1 Mast Gost Effective Voice Circuits J ate sites Remote sites sites - ~ ` ~' ~ F Remote sites Remote sites County t7f Dubuque Carrier Services Cast Analysis Solution #2 Mc~eadUSA Present Services Prenc~sed ServicPc ERVICE Desert Lion QTY Cost TOTAL Descr) tion QTY COST TOTAL SAVINGS ! Phone Lines (Centrex DLEC) I Phone Lines {Centrex remotes) Long Distance-Intrastate Lon Distance-Interstate Oldest 353 Oldest 2 ATBT 8715 AT&T 2,482.82 $ $ $ $ 3,000.50 75.58 958.65 273.11 st Owest Oldest Owest 312 43 8,715.00 2,482.82 $ $ S $ 8,062.08 1,111.12 491.53 88.14 ' $ (5,061.58) $ (1,035.54). $ 467.12 $ 184.97 Total Current $ 4,307.84 Tot al Pro osed $ 9,752.87 _ TOT AL MQNTHLY plFt" IRttl"ItitCE ~,~~ Concerns Huge cost increase tncentives Better long distance rates County Solution 2 Voice Circuits ote sites Remote sites sites ;z ~~~ ~„~ ~' Remote sites Remote sites