HomeMy WebLinkAboutFIN-10-133 - P10-028 - Corp Integrated Commun Networkl
REPORT
REPORT TO: Mayor Carl Zehr & Members of Council
DATE OF MEETING: 2010-09-07
SUBMITTED BY: Larry Gordon, Director of Supply Services
PREPARED BY: Steve Rudak, Buyer (2213)
WARD(S) INVOLVED: N/A
DATE OF REPORT: 2010-08-31
REPORT NO: FIN 10-133
SUBJECT: P10-028 -Corporate Integrated Communications Network
RECOMMENDATION:
That proposal P10-028, Corporate Integrated Communications Network, be awarded to UNIS
LUMIN Inc., Oakville, Ontario, at their proposed price of $866,131.72, plus H.S.T. of
$112,597.12, for a total of $978,728.84, and further that the Mayor and City Clerk be authorized
to execute an agreement satisfactory to the City Solicitor.
That the successful proponent be deemed to be the City's Vendor of Record for the initial ten
(10) year period, with an option to renew for one (1) additional five (5) year term, subject to
mutual agreement.
BACKGROUND:
This proposal represents the first phase of the overall telecommunications system upgrade as
presented in the Corporate Services Department Report CRPS-10-133. The initial phase of the
project includes the installation of a new VoIP telephone system and the related data network at
the Consolidated Maintenance Facility (CMF), as well as integration to our existing ROLM
phone system. This proposal includes a 10-year vendor of record arrangement with the vendor
to perform future phases of the overall upgrade project and to maintain the system.
Beyond the CMF phase of the project moving forward, staff will bring a report back to Council
outlining costs, funding and timelines before proceeding with any subsequent phases, with the
Vendor of Record for phase 2 -Remote sites and phase 3 -City Hall.
1- 1
The cost to perform the VoIP and network upgrades to the remaining remote sites is estimated
to be $400,000. The cost to install VoIP at City Hall is estimated at $800,000. These phases of
the upgrades will also be funded out of the Telephone Reserve Fund with portions being funded
out of the Computer Reserve Fund for network components, where appropriate.
REPORT:
The proposal was advertised publicly in The Record, on the City of Kitchener website and the
Internet through the Ontario Public Buyers Electronic Tendering Information System. Sixty-one
(61) potential bidders downloaded proposal documents, and by the closing date of Friday June
25th, 2010, five (5) proposals had been received.
The following proposals were received:
Arcom Telecom Inc. Dartmouth NS
Bell Canada Mississauga ON
Flexity Solutions Inc. Richmond Hill ON
Telus Communications Co. London ON
Unis Lumin Inc. Oakville ON
The proposal received from Unis Lumin Inc. represents the most favourable overall value to the
City over the term of contract.
The proposals were reviewed by M. Grummett, Director of Project Integration and Co-
ordination, D. Murray, Acting Director of Information Technology, T. Gibbons, Network Systems
Specialist, N. Nicholson, Telecommunications Analyst, and S. Rudak, Buyer, who concur with
the above recommendation.
FINANCIAL IMPLICATIONS:
Funding will be partially provided from Cost Centre 6022006 -Computer Reserve Fund and
6022002 -Telephone Reserve Fund
Financial Report is attached.
Budget estimate for the CMF phase is $900,000.
** Any surplus funds will remain in this account to be used for subsequent phases.
ACKNOWLEDGED BY: Dan Chapman, General Manager of Financial Services and City
Treasurer
1-2
Purchasing Tender -Phone System for CMF
Partially Funded from Cost Centre 6022006 * -Computer Reserve Fund
Funding Sources
Current Balance 6022006, as at Aug 16, 2010 835,203.00
Additional Revenue Projected 256,073.00
Total Projected Funding 1,091,276.00
Projected Expenditures
Tender 343,946.54
HST, net of rebate 6,053.46
Existing Encumbrances 298,602.00
Projected Expenses (Unencumbered) 233,329.20
Total Expenditures Projected 881,931.20
Projected Reserve Balance* 209,344.80
*Any balance in this account will be used to fund future expenses related to computers.
Budget in Computer reserve for CMF phone purchase is $350,000.
runaea rrom ~osr ~enrre buzzuuz ~~ - ieiepnone rcesen
Funding Sources
Current Balance 6022006, as at Aug 16, 2010 1,680,550.00
Additional Revenue Projected 265,165.00
Total Projected Funding 1,945,715.00
Projected Expenditures
Tender 522,185.18
HST, net of rebate 9,190.46
Existing Encumbrances 3,200.00
Projected Expenses (Unencumbered) 310,246.36
Total Expenditures Projected 844,822.00
Projected Reserve Balance** 1,100,893.00
'e Fund
**Any balance in this account will be used to fund future expenses related to the phone system
Budget in Telephone reserve for CMF phone purchase is $550,000.
Total tender amount above before HST is 866,131.72
HST total 15,243.92
881,375.64
9/2/2010 Q:Wgendas\Committee of the Whole\2010\Sept 7\FIN-10-133 - Attachment.xls CMFPhone
1-3