Title
AUTHORIZATION TO ENTER INTO A CONTRACT WITH ALTAWORX, LLC FOR VOICE OVER INTERNET PROTOCOL (VOIP) TELECOMMUNICATION SERVICES
Body
To the Honorable Board of Commissioners of the Chicago Park District:
I. Recommendation
Pursuant to Chapter XI, Section D.1.b.(2)(e)(i) & (iii) of the Code of the Chicago Park District (the “Code”), it is recommended that the General Superintendent and CEO or her designee enter into a contract with Altaworx, LLC to provide Voice over Internet Protocol (VoIP) services to the Chicago Park District.
II. Award Information:
Company: Altaworx, LLC
455 Magnolia Ave, Suite B
Fairhope, AL 36532
Company Type: Limited Liability Corporation
Majority Interests: Rickie Richey 55.0%
Donn Greiner 35.0%
Scott Boykin 7.5%
Bob Nicols 2.5%
Contract Term: One (3) year initial term with two (2) additional one (1) year extension options.
Contract Amount: Not-to-exceed $2,100,000 for the initial contract term.
Scope of Services: To provide Voice-over-Internet-Protocol (VoIP) services
Affirmative
Action Goals: The Minority- and Women-Owned Participation for this contract will include: 0% Minority-Owned and 18% Women-Owned.
Authorization: Authorize the General Counsel to include other relevant terms and conditions in the written Agreement. Authorize the General Superintendent to execute the Agreement and the Secretary to attest as to the signing of the Agreement and keep an original copy of the Agreement on file.
III. Budget and Financial Information
Budget Classification: Operating
Fiscal Year: 2023-2025
Source of Funds: 001.8230.8230.623015.00001.01.01.00001
IV. Procurement Information
Pursuant to Chapter XI, Section D.1.b.(2)(e)(i) & (iii) of the Code, competitive sealed bids are not required.
V. Explanation
The Chicago Park District Department of Information Technology maintains 2,488 CENTREX (Central Exchange), 657 POTs (Plain Old Telephone service), and 27 voice lines using a PRI (Primary Rate Interface) circuit. The District's CENTREX telephone service lines are provided by AT&T and managed by the City of Chicago (the "City").
The City of Chicago implemented the CENTREX telephone system over 40 years ago and has been migrating the lines off the CENTREX system to VoIP (Voice-over-Internet-Protocol) service for the past four years to modernize its telecommunications platforms.
The decision to migrate the District’s lines from CENTREX to VoIP is based on AT&T and the City discontinuing CENTREX service due to the cost of maintaining the infrastructure. Furthermore, this has been identified as the optimal solution because VoIP utilizes modern technology to enhance business communications with features such as voicemail-to-email, conference calling, hunt groups, auto-attendant, phone directory, multi-ringing, among other essential features. This solution will be implemented as part of the upcoming move to the District’s new headquarters location.
The Department of Information Technology gathered telecommunication-need requirements from 10 departments and conducted a solicitation for proposals from currently contracted telecommunication vendors of the State of Illinois, City of Chicago, and/or the Chicago Park District. As a result of this review, Altaworx, LLC was determined to be the best selection to provide this service.
Altaworx is a leading, cutting-edge technology company addressing the emerging demand for VoIP business telephone systems. As a member of the AT&T Alliance Channel, Altaworx serves customers in thirty-five states, Canada, and Mexico. Altaworx operates its cloud-based voice solutions from two AT&T data centers located in Dallas, TX and Atlanta, GA.
Beyond its qualifications, Altaworx, LLC submitted the most competitive pricing amongst the pre-qualified pool. In fiscal year 2022, the District spent $1.4 million for its landline service and budgeted a similar amount in fiscal year 2023. The new pricing coupled with the associated comprehensive review of telephone line needs is estimated to result in approximately $0.7 million in savings compared to prior year expenditures and current year budget.
VI. General Conditions
1. Conflicts: The agreement shall not be legally binding on the Chicago Park District if entered into in violation of the provisions of 50 ILCS 105, the Public Officer Prohibited Activities Act.
2. Ethics: The Chicago Park District’s Ethics Code, Chapter III of the Code of the Chicago Park District, shall be incorporated into and made part of the agreement.
3. Contingent Liability: Any agreement lawfully entered into for a period of more than one year shall be executory only for the amounts for which the Park District may become liable in succeeding fiscal years pursuant to 70 ILCS 1505/17(i). The agreement shall contain a clause that any expenditure beyond the current fiscal year is subject to appropriation in the subsequent fiscal year budget.
4. Economic Disclosure Statement (“EDS”): Contractor has submitted a full and complete EDS.