Approval is requested for the award of a contract to Lucent Technologies of Fremont to upgrade the City’s telecommunications system for the Information Technology Department (ITD).

The City’s telephone switching system consists of an AT&T (now Lucent Technology) System 85 switch located in the DPS building, installed in 1985, and an AT&T System 75 switch located at the Community Center and installed during the Community Center remodel in 1991. Centigram II outbound voice-mail was added to each system in 1993.

The existing equipment, while meeting the City’s needs in the past, lacks the flexibility to deal with the City’s expanding telecommunications needs. The vintage call detail accounting software lacks the capacity to keep up with the continuous additions and changes to area codes and prefixes; and the systems do not provide for the delivery of identical services to all City staff, regardless of location.

In addition, support costs are increasing for both systems. Maintenance costs are expected to increase by 8-10% a year, replacement parts for both systems are difficult to find, and the off-premise extensions for the Corporation Yard, WPCP, SCI3/DED and Senior Center are currently costing the City over $100,000 per year. Lastly, the Centigram voice mail systems and the call accounting software are not Year 2000 compliant.

In August 1997, ITD retained the services of World Communications Group (WCG) of San Mateo to perform a needs assessment and survey the options available to the City. The consultant’s report was presented to ITD in mid-1998.

After reviewing the telecommunications options available to the City, staff recommends an upgrade from the existing Lucent 75/85 switches to a Lucent DEFINITY Enterprise Communication Server (ECS) as the most cost effective and timely way to expand the City’s telecommunications capacity. This will allow the City to utilize the existing infrastructure and in-place wiring. In addition, the cards and circuit packs in the System 75 switch at the Community Center can be reused in the ECS. This approach will reduce the cost of new equipment, reduce the installation time and costs, minimize rewiring costs and reduce system downtime. The existing software can also be upgraded, reducing City staff training (both technical and end users) as the system architecture is already familiar to both groups.

Section 2.08.030 of the Sunnyvale Municipal Code establishes exceptions to the competitive bidding process in situations where the City’s requirements can be met solely by a single patented article or process. While there are other manufacturers of telecommunications systems, a contract with a manufacturer other than Lucent Technologies would require replacement of the entire system. The extensive system downtime, inconvenience to the public as well as to City staff and the new equipment costs would be prohibitive.

Total system costs are $774,612 ($541,768 for the DEFINITY Enterprise Communication Server and six expansion port networks (EPN’s), $83,266 for the INTUITY voice mail system, sales tax of $51,565, and installation costs of $98,013). These costs reflect State of California discounted pricing as well as an additional 26% discount because the City is an existing Lucent customer. Funds are available in ITD Account #021201-5030.

It is recommended that Council award a contract in an amount not to exceed $774,612 to Lucent Technologies of Fremont to upgrade the City’s telecommunications system and authorize the Purchasing Officer to issue a purchase order to that effect.

Prepared by:

Elaine Wesely
Purchasing Officer

Reviewed by:

Mary J. Bradley
Director, Finance

Reviewed by:

Shawn Hernandez
Director, Information Technology

Approved by:

Robert S. LaSala
City Manager