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ITEM: AUTHORIZATION TO 1) AWARD A CONTRACT FOR THE PURCHASE OF PHONES AND RELATED EQUIPMENT; 2) UTILIZE THE INTERLOCAL PURCHASING SYSTEM CONTRACT, AS THE BASIS OF PRICING, FOR THE PURCHASE OF A PHONE SUPPORT SERVICE
REQUEST: Authorization to 1) Award a Contract to AtlasPhones.com for the purchase and delivery of phone equipment, including, desktop and conference phones with related equipment; 2) Award a Contract to GoTo Communications Inc. utilizing the Interlocal Purchasing System (TIPS) Contract, as the basis of pricing, for the purchase of a Voice over Internet Protocol (VoIP)- based phone service.
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EXPLANATION: The Village’s existing Mitel Phone System is now end-of-life (EOL). Mitel ceased selling licenses for their hardware and software in 2024, and they will discontinue all product support, including updates, patches, and security updates, after December 31, 2025.
Wellington’s Information Technologies (IT) Department is seeking solutions to replace the current Village phone system. The replacement of the current phone system would include the purchase of phones utilizing the latest technology and related equipment The replacement of Wellington’s current phone system would additionally include utilizing a Voice over Internet Protocol (VoIP)-based phone service A VoIP-based phone service will provide enhanced functionality and is internet based requiring no on-site hardware. The VoIP-based service will allow the removal of the existing phone support hardware and equipment currently housed in Village buildings.
Staff is seeking authorization to:
1. Award a Contract to AtlasPhones.com for the purchase and delivery of phone equipment, including, desk and conference phones with related equipment in the total amount of $47,706.00. Staff solicited quotes for the purchase of desk and conference phones with related equipment and received five (5) quotes, the quotes are summarized below:
|
Vendor |
Quote Amount |
|
Atlas Phones.com |
$47,706.00 |
|
GoTo Communications |
$60,733.23 |
|
SHI |
$66,041.40 |
|
Paragon Sourcewell |
$75,594.09 |
|
Xerox |
$80,390.00 |
2. Award a Contract to GoTo Communications Inc. utilizing The Interlocal Purchasing System (TIPS) Contract, as the basis of pricing, for the purchase of a VoIP-based phone service in the total amount of $236,710.44 for the initial three (3) year contract term. GoTo’s quote provides four months of free service, resulting in an additional $26,301.16 in potential savings during the first year of the contract.
On October 6, 2022, The Interlocal Purchasing System (TIPS) issued RFP #221003 to solicit proposals from qualified companies for electronics, appliances, and related goods and services. TIPS awarded a contract to multiple vendors including GoTo Communications Inc., effective from January 31, 2023, through January 31, 2026. This contract has an initial term of three (3) years, with an option for a one (1) year renewal.
The proposed contract with GoTo Communications begins service on August 13, 2025 (four months free service), with billing starting December 13, 2025. The contract term expires on December 13, 2028 at a cost of $6,575.29 a month. As this contract exceeds the $50,000 threshold, it requires Council approval per the Village’s Purchasing Manual. GoTo Communications' proposed fees are summarized below:
|
Year 1 Contract Cost |
$78,903.48 |
|
Year 2 Contract Cost |
$78,903.48 |
|
Year 3 Contract Cost |
$78,903.48 |
|
Total Term Contract Cost |
$236,710.44 |
Staff determined that GoTo Communications offers the highest level of service. GoTo Communications’ quote uniquely includes several services that other vendors provide with additional fees, such as video conferencing, fax services, and SIP trunks for internet calls. These included services in GoTo's proposal are estimated to provide an annual savings of $23,000.00. Additionally, GoTo provides four months of free service, resulting in an additional $26,301.16 in potential savings during the first year of the contract.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: Expenditures for the purchase of phone hardware and equipment will be funded through the Fiscal Year 2025 Capital Improvement Projects’ Budget. Phone support services costs for Fiscal Year 2025 will be funded through the General Fund and various Departmental Communications budgets. For Fiscal Year 2026, proposed funding for the phone support service will be allocated through the General Fund and across various Departmental Communications budgets.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Authorization to 1) Award a Contract to AtlasPhones.com for the purchase and delivery of phone equipment, including, desk and conference phones with related equipment in the amount of $47,706.00; 2) Award a Contract to GoTo Communications Inc. utilizing The Interlocal Purchasing System (TIPS) Contract as the basis of pricing for the Purchase of a Voice over Internet Protocol (VoIP)- based phone service in the total amount of $236,710.44 for the initial three (3) year contract term.