TRANSMITTAL MEMORANDUM The Honorable Mayor and City ...
Go:m•ml Mnnng,•r 334 Fron1Strccl 'Keltb.ikan, AK 999() l Phone> (90 7) n S-3Ci03 Fa., (907) 225-507 5
TRANSMITTAL MEMORANDUM TO:
The Honorable Mayor and City Council
FROM:
Karl R. Amylon , General Manager
DATE:
May 5, 2017
RE:
Exempting the Procurement of Annual Support Services for the Telecommunications Division's 4G/LTE Network from the Competitive Bid/Written Quotation Requirements of the Ketchikan Municipal Code - Ericsson Inc.
The motion detailed below was prepared at the request of Telecommunications Division Manager Ed Cushing, who asked that it be placed before the City Council for consideration at its meeting of May 18, 2017. If adopted, the motion provides for exempting the procurement of annual support services for the Telecommunications Division's 4G/LTE network from the competitive bidding/written quotation requirements of the Ketchikan Municipal Code and authorizing the acquisition of such support services from Ericsson Inc. at a cost of $27,945. Subparagraph 6 of Section 3.12.050(a) of the Ketchikan Municipal Code provides for exempting the purchase of such annual support services from competitive bidding/quotations when : "Supplies, materials, equipment or contractual services which should be purchased from a specific source in order to prevent incompatibility with previously purchased supplies, materials, equipment or contractual services. For the purpose of this paragraph, the term 'incompatibility' is defined as: (A) The inability to interconnect, combine, interchange, or join; or (B) That which causes substantial duplication in maintenance, expertise or training or in the stocking of parts, materials, supplies or replacements . Any purchase which is to be excluded from competitive bidding by authority of this subparagraph which exceeds $10,000, must first be approved by the council. "
The rationale for the exemption is detailed in Mr. Cushing's transmittal memorandum and requires no elaboration on the part of my office. I concur with the Telecommunications Division Manager's recommendation . Mr. Cushing will be attending the City Council meeting of May 18, 2017, in order to address any questions and/or concerns that Council members may have. A motion has been prepared for City Council consideration.
RECOMMENDATION Pursuant to subparagraph 6 of Section 3.12.050(a) of the Ketchikan Municipal Code, it is recommended that the City Council adopt the motion exempting the procurement of annual support services for the Telecommunications Division's 4G/LTE network from the competitive bidding/written quotation requirements of the Ketchikan Municipal Code ; authorizing the General Manager to enter into an agreement for such annual support services with Ericsson Inc. at a cost not to exceed $27 ,945; and approving funding from the Telecommunications Division's 2017 Software & Equipment Maintenance Services account (Account No. 635-04).
Recommended Motion: Pursuant to subparagraph 6 of Section 3.12.050(a) of the Ketchikan Municipal Code, I move the City Council exempt the procurement of annual support services for the Telecommunications Division's 4G/LTE network from the competitive bidding/written quotation requirements of the Ketchikan Municipal Code; authorize the General Manager to enter into an agreement for such annual support services with Ericsson Inc. at a cost not to exceed $27 ,945 ; and approve funding from the Telecommunications Division's 2017 Software & Equipment Maintenance Services account (Account No. 635-04).
AGENDA- 05/18/17- KPUCA2
Memorandum To:
Karl R. Amylon , KPU General Manager
From:
Ed Cushing, KPU Telecommunications Division Manager
Date:
May 5, 2017
Subject:
Authorizing and Exempting the Procurement of Annual Software & Services Support from Ericsson, Inc. for the KPU Telecommunications Division from Competitive Bid I Written Quotation Requirements of the Ketchikan Municipal Code
The purpose of this memorandum is to request that the General Manager seek City Council approval to purchase an annual support agreement from Ericsson Inc. for our Ericsson 4G/LTE network. If adopted, the approval-motion provides for exempting the procurement of Ericsson Support from the competitive bidding I written quotation requirements of the Ketchikan Municipal Code and authorizing the acquisition of support services from Ericsson Inc. at a cost not to exceed $27,945.00. Background
As required in our 4G/LTE contract-partnership with Verizon Wireless, KPU Telecommunications utilizes Ericsson radio hardware and software for our (Verizon) 4G/LTE Network. Accordingly, Ericsson is the only source of annual hardware and software support - for which Ericsson charges an annual fee . The annual support fee for 2017-2018 is $27,945.00. The Ketchikan Municipal Code requires that the city council approve the purchase and that staff seek competitive bids with written quotations - unless the City Council approves an exemption. Subparagraph 6 of section 3.12.050 (a) of the KMC provides an exemption that is appropriate for this transaction. Subparagraph (6) states the following : "Supplies, materials, equipment or contractual services which should be purchased from a specific source in order to prevent incompatibility with previously purchased supplies, materials, equipment or contractual services. For purposes of this subparagraph, the term "incompatibility" is defined as: (a) The inability to interconnect, combine, interchange, or join; or
(b) That which causes substantial duplication in maintenance, expertise or training or in the stocking of parts, materials, supplies or replacements Any purchase which is to be excluded from competitive bidding by the authority of this subparagraph which exceeds ten thousand dollars must first be approved by the council. " Since acquiring sole-source support from Ericsson Inc. is the only option available to KPU that would ensure compatibility, I recommend seeking approval from City Council to exempt this procurement from the competitive bid/written quotation requirements of the KMC. The annual maintenance costs are part of the 2017 operating budget in the Software and Equipment Maintenance Services Account (635.04) Recommended Motion:
Pursuant to Subparagraph 6 of Section 3.12.050 (a) of the Ketchikan Municipal Code, I move the City Council exempt the procurement of Ericsson Support from Ericsson Inc., in the amount of $27,945 from the competitive bid and written quotation requirements of the KMC; and approve funding from the KPU Telecommunications Division 2017 Software and Equipment Maintenance Services Account (635.04) .
Cc:
David Martin, Assistant KPU Manager Bob Newell, City Finance Director
~
--
ERICSSON
Proposal
May 1, 2017 Att: Victor Esposito
Hi Victor, Please see enclosed proposal and SOW for the Customer Support for Ketchikan for the period May 1, 2017- April30, 2018. Please let us know when you can provide a PO for this support. Since we are providing you with the proposal late, we will continue providing the support uninterrupted while waiting for the PO from you.
PRICING Term
Technology
5/1/2017-4/3012018 5/1/2017-4/3012018 5/1/2017-4/3012018
LTE LTE LTE
Network Calltgory
Scope
Node
Node Count
RAN RAN
RBS RBS
HWS- Superior SWS- Advanced
9
RAN
RBS
SUM
9
TOT AI.. SUPPORT PRICE
9
Unit Support TolaiSupport Capacity Price per Node Paramelltr Price Count
$ $ $
RRU
1,380
$ $ 325 $
12,420
1,400
12,600 Cell Carriers
$
27,945
2,925
Node
Capacity Quantity 27 27 9
Thank you for your continued interest in Ericsson. Should you have any questions or concerns, please contact me, 469-231-3224. Sincerely,
J ell\,11\,t:j
V Cl LLV\,eY
Jenny Vallner Sales Director Ericsson Inc. 6300 Legacy Drive Plano, TX 75024 469-231-3224 972-583-5749 [email protected]
Page 1 of 2 EUS-17-050175 Rev A
ERICSSON INC.- PROPRIETARY & CONFIDENTIAL
May 1, 2017
NOT FOR TRANSMITTAL, REPRODUCTION, DISCLOSURE OR OTHER USE IN WHOLE OR IN PART WITHOUT THE EXPRESSED WRITTEN AUTHORIZATION OF ERICSSON INC.
_..
~ ERICSSON
Proposal
Disclaimer The products and/or services described in this proposal will be provided in accordance with the terms and conditions of the Master Purchase Agreement between Ericsson Inc. ("Ericsson") and KPU . Any special terms and conditions will be set out in a Statement of Work to the MPA. All of the prices listed and the quotes made in this Proposal are estimates based on the information provided by you and certain assumptions made by us. In the event the information or assumptions are inaccurate, Ericsson reserves the right to revise the pricing accordingly. Specifically, the Services pricing for Network Deployment may vary depending on the actual sites selected . This Proposal contains Ericsson's proprietary, confidential information and may not be transmitted, reproduced, disclosed or used otherwise in whole or in part without the express written authorization of Ericsson Inc.
Page 2 of 2 EUS-17-050175 Rev A
ERICSSON INC. - PROPRIETARY & CONFIDENTIAL
May 1, 201 7
NOT FOR TRANSMITTAL, REPRODUCTION, DISCLOSURE OR OTHER USE IN WHOLE OR IN PART WITHOUT THE EXPRESSED WRITTEN AUTHORIZATION OF ERICSSON INC.
TRANSMITTAL MEMORANDUM TO:
The Honorable Mayor and City Council
FROM:
Karl R. Amylon , General Manager
DATE:
May 5, 2017
RE:
Exempting the Procurement of Annual Support Services for the Telecommunications Division's 4G/LTE Network from the Competitive Bid/Written Quotation Requirements of the Ketchikan Municipal Code - Ericsson Inc.
The motion detailed below was prepared at the request of Telecommunications Division Manager Ed Cushing, who asked that it be placed before the City Council for consideration at its meeting of May 18, 2017. If adopted, the motion provides for exempting the procurement of annual support services for the Telecommunications Division's 4G/LTE network from the competitive bidding/written quotation requirements of the Ketchikan Municipal Code and authorizing the acquisition of such support services from Ericsson Inc. at a cost of $27,945. Subparagraph 6 of Section 3.12.050(a) of the Ketchikan Municipal Code provides for exempting the purchase of such annual support services from competitive bidding/quotations when : "Supplies, materials, equipment or contractual services which should be purchased from a specific source in order to prevent incompatibility with previously purchased supplies, materials, equipment or contractual services. For the purpose of this paragraph, the term 'incompatibility' is defined as: (A) The inability to interconnect, combine, interchange, or join; or (B) That which causes substantial duplication in maintenance, expertise or training or in the stocking of parts, materials, supplies or replacements . Any purchase which is to be excluded from competitive bidding by authority of this subparagraph which exceeds $10,000, must first be approved by the council. "
The rationale for the exemption is detailed in Mr. Cushing's transmittal memorandum and requires no elaboration on the part of my office. I concur with the Telecommunications Division Manager's recommendation . Mr. Cushing will be attending the City Council meeting of May 18, 2017, in order to address any questions and/or concerns that Council members may have. A motion has been prepared for City Council consideration.
RECOMMENDATION Pursuant to subparagraph 6 of Section 3.12.050(a) of the Ketchikan Municipal Code, it is recommended that the City Council adopt the motion exempting the procurement of annual support services for the Telecommunications Division's 4G/LTE network from the competitive bidding/written quotation requirements of the Ketchikan Municipal Code ; authorizing the General Manager to enter into an agreement for such annual support services with Ericsson Inc. at a cost not to exceed $27 ,945; and approving funding from the Telecommunications Division's 2017 Software & Equipment Maintenance Services account (Account No. 635-04).
Recommended Motion: Pursuant to subparagraph 6 of Section 3.12.050(a) of the Ketchikan Municipal Code, I move the City Council exempt the procurement of annual support services for the Telecommunications Division's 4G/LTE network from the competitive bidding/written quotation requirements of the Ketchikan Municipal Code; authorize the General Manager to enter into an agreement for such annual support services with Ericsson Inc. at a cost not to exceed $27 ,945 ; and approve funding from the Telecommunications Division's 2017 Software & Equipment Maintenance Services account (Account No. 635-04).
AGENDA- 05/18/17- KPUCA2
Memorandum To:
Karl R. Amylon , KPU General Manager
From:
Ed Cushing, KPU Telecommunications Division Manager
Date:
May 5, 2017
Subject:
Authorizing and Exempting the Procurement of Annual Software & Services Support from Ericsson, Inc. for the KPU Telecommunications Division from Competitive Bid I Written Quotation Requirements of the Ketchikan Municipal Code
The purpose of this memorandum is to request that the General Manager seek City Council approval to purchase an annual support agreement from Ericsson Inc. for our Ericsson 4G/LTE network. If adopted, the approval-motion provides for exempting the procurement of Ericsson Support from the competitive bidding I written quotation requirements of the Ketchikan Municipal Code and authorizing the acquisition of support services from Ericsson Inc. at a cost not to exceed $27,945.00. Background
As required in our 4G/LTE contract-partnership with Verizon Wireless, KPU Telecommunications utilizes Ericsson radio hardware and software for our (Verizon) 4G/LTE Network. Accordingly, Ericsson is the only source of annual hardware and software support - for which Ericsson charges an annual fee . The annual support fee for 2017-2018 is $27,945.00. The Ketchikan Municipal Code requires that the city council approve the purchase and that staff seek competitive bids with written quotations - unless the City Council approves an exemption. Subparagraph 6 of section 3.12.050 (a) of the KMC provides an exemption that is appropriate for this transaction. Subparagraph (6) states the following : "Supplies, materials, equipment or contractual services which should be purchased from a specific source in order to prevent incompatibility with previously purchased supplies, materials, equipment or contractual services. For purposes of this subparagraph, the term "incompatibility" is defined as: (a) The inability to interconnect, combine, interchange, or join; or
(b) That which causes substantial duplication in maintenance, expertise or training or in the stocking of parts, materials, supplies or replacements Any purchase which is to be excluded from competitive bidding by the authority of this subparagraph which exceeds ten thousand dollars must first be approved by the council. " Since acquiring sole-source support from Ericsson Inc. is the only option available to KPU that would ensure compatibility, I recommend seeking approval from City Council to exempt this procurement from the competitive bid/written quotation requirements of the KMC. The annual maintenance costs are part of the 2017 operating budget in the Software and Equipment Maintenance Services Account (635.04) Recommended Motion:
Pursuant to Subparagraph 6 of Section 3.12.050 (a) of the Ketchikan Municipal Code, I move the City Council exempt the procurement of Ericsson Support from Ericsson Inc., in the amount of $27,945 from the competitive bid and written quotation requirements of the KMC; and approve funding from the KPU Telecommunications Division 2017 Software and Equipment Maintenance Services Account (635.04) .
Cc:
David Martin, Assistant KPU Manager Bob Newell, City Finance Director
~
--
ERICSSON
Proposal
May 1, 2017 Att: Victor Esposito
Hi Victor, Please see enclosed proposal and SOW for the Customer Support for Ketchikan for the period May 1, 2017- April30, 2018. Please let us know when you can provide a PO for this support. Since we are providing you with the proposal late, we will continue providing the support uninterrupted while waiting for the PO from you.
PRICING Term
Technology
5/1/2017-4/3012018 5/1/2017-4/3012018 5/1/2017-4/3012018
LTE LTE LTE
Network Calltgory
Scope
Node
Node Count
RAN RAN
RBS RBS
HWS- Superior SWS- Advanced
9
RAN
RBS
SUM
9
TOT AI.. SUPPORT PRICE
9
Unit Support TolaiSupport Capacity Price per Node Paramelltr Price Count
$ $ $
RRU
1,380
$ $ 325 $
12,420
1,400
12,600 Cell Carriers
$
27,945
2,925
Node
Capacity Quantity 27 27 9
Thank you for your continued interest in Ericsson. Should you have any questions or concerns, please contact me, 469-231-3224. Sincerely,
J ell\,11\,t:j
V Cl LLV\,eY
Jenny Vallner Sales Director Ericsson Inc. 6300 Legacy Drive Plano, TX 75024 469-231-3224 972-583-5749 [email protected]
Page 1 of 2 EUS-17-050175 Rev A
ERICSSON INC.- PROPRIETARY & CONFIDENTIAL
May 1, 2017
NOT FOR TRANSMITTAL, REPRODUCTION, DISCLOSURE OR OTHER USE IN WHOLE OR IN PART WITHOUT THE EXPRESSED WRITTEN AUTHORIZATION OF ERICSSON INC.
_..
~ ERICSSON
Proposal
Disclaimer The products and/or services described in this proposal will be provided in accordance with the terms and conditions of the Master Purchase Agreement between Ericsson Inc. ("Ericsson") and KPU . Any special terms and conditions will be set out in a Statement of Work to the MPA. All of the prices listed and the quotes made in this Proposal are estimates based on the information provided by you and certain assumptions made by us. In the event the information or assumptions are inaccurate, Ericsson reserves the right to revise the pricing accordingly. Specifically, the Services pricing for Network Deployment may vary depending on the actual sites selected . This Proposal contains Ericsson's proprietary, confidential information and may not be transmitted, reproduced, disclosed or used otherwise in whole or in part without the express written authorization of Ericsson Inc.
Page 2 of 2 EUS-17-050175 Rev A
ERICSSON INC. - PROPRIETARY & CONFIDENTIAL
May 1, 201 7
NOT FOR TRANSMITTAL, REPRODUCTION, DISCLOSURE OR OTHER USE IN WHOLE OR IN PART WITHOUT THE EXPRESSED WRITTEN AUTHORIZATION OF ERICSSON INC.
