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INDIAN RIVER COUNTY, FLORIDA MEMORANDUM TO: Jason E. Brown, County Administrator THROUGH: Richard B. Szpyrka, P.E., Public Works Director From: Manuel Cabo, Telecommunications Manager SUBJECT: Extension of Agreement between Indian River County (IRC) and AT&T DATE: May 1, 2018 BACKGROUND: On February 16, 2010, the Board of County Commissioners approved three new contract service agreements with AT&T to cover the following County telephone systems: lines in the Vero Beach Central Office area, enhanced 911 Phone System, and lines operating in the Sebastian Central area. These agreements serviced the use of the phone lines by all offices under the Board of County Commissioners and the Constitutional Officers including the Elections Office and Sheriffs office, which benefited multiple individual accounts and created a 25.06% annual savings over previous agreements. On March 8, 2016 these contract agreements were extended for two years. The agreements are now due to be extended again. Attached are proposed AT&T service contract extensions, covering PRI (Primary Rate Interface) services, AT&T Centrex Telephone Line Services, 911 ANI (Automatic Number Identification) services, and 911 ALI (Automatic Location Information) services. ANALYSIS The attached AT&T Contract renewals are for two additional years, at the discounted rate structure that is currently in place, with an option to extend two additional years. The original contract agreements gave the County a 25% discount over the previous cost of the services provided by AT&T. The renewal of these agreements maintains this discount and shields the County against a Telecommunications rate increase. At current AT&T pricing levels, the county saves more than $39,079.66 per month with these agreements in place when compared to non -contractual AT&T rates. (See attached spreadsheet - contractual rate = $18,913.34 per month vs. non -contractual = $57,993.00 per month). As a utility, AT&T service is Purchase Order exempt, per the IRC Purchasing Manual, and there is not statutory requirement for the County to bid the service. AT&T is the only area service provider available that can provided the necessary services for the IRC PBX telephone systems currently utilized by the County. In order for the County to utilize other telephone service providers, the County must first convert to a VoIP telephone system that will cost approximately $500,000. AT&T PRI services are the main telecommunications format through which all IRC PBX telephone systems communicate with the PSTN (Public Switched Telephone Network). The PRIs handle most County telephone traffic, both incoming and outgoing, for multiple PBX telephone systems throughout the County. C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@B40D 1 8F9\@BCL@B40D 1 8F9.docx 94