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Budget committee advances amendment to extend AT&T telecom contract, adds roughly $666,000
Summary
The committee advanced a proposed third amendment to the city's master telecommunications contract with AT&T that would extend the agreement five years and increase the authorized amount to reflect an additional roughly $666,000; the Controller's Office found AT&T's CalNet 3-based rates generally competitive.
The San Francisco Board of Supervisors Budget and Finance Committee on Jan. 27 advanced an amendment to the city's 2010 master telecommunications contract with AT&T to extend the agreement through Dec. 31, 2020 and to increase the authorized contract amount by about $666,000.
A Department of Technology deputy director told the committee the amendment covers local and long-distance telephone services, data services and professional services and reflects additional departmental requests that were not included when the ordinance was introduced. "We ask that you amend the legislation before you to add $666,000 to the total contract amount," the deputy director said.
Joe Lapka of the Controller's Office presented the office's competitiveness review, saying the analysis used publicly available CalNet 3 price catalogs and the city's reported utilization to compare AT&T to other CalNet providers. "AT&T actually came out to be the lowest-cost provider for both dedicated transport and toll-free service," Lapka said, and where AT&T was not the lowest-cost provider the differences were minor. He also noted that non-recurring charges were concentrated in dedicated transport and that differences in installation and transition costs are not reflected in simple monthly-cost comparisons.
The department said it successfully negotiated slightly lower long-distance rates with AT&T after the review; the department estimated savings of about $20,000 per year from that reduction, and up to roughly $100,000 over the life of the contract, depending on usage.
Mr. Rose, the budget analyst, recommended amending the ordinance to reflect the requested increase and continuing the item to the Feb. 3 Budget and Finance Committee meeting for final action. Supervisor Tang moved to approve the ordinance as amended per the analyst's recommendation and continue to Feb. 3; Supervisor Yi seconded and the committee took the motion without objection.
Next steps: the ordinance, as amended, will return to the committee on Feb. 3 for further consideration and then proceed to the full Board of Supervisors unless otherwise directed.
