Title
Proposed Amendment No. 4
Contract No. GLWA-CS-1689
AT&T Telecommunication/ WAN/ LAN/ Managed Security Services
O&M
Body
Agenda of: July 26, 2023
Item No.: 2023-259
Amount: Original Contract Amount DWSD Contract
Amendment No. 1 DWSD Contract
Amendment No. 2 $60,000,000.00
Amendment No. 3 0.00
Proposed Amendment No. 4 60,000,000.00
Total Revised Contract $120,000,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: June 30, 2023
RE: Proposed Amendment No. 4
Contract No.: GLWA-CS-1689
AT&T Telecommunication/ WAN/ LAN/ Managed Security Services
Vendor: AT&T
MOTION
Upon recommendation of Jeffrey E. Small, Chief Information Officer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. GLWA-CS-1689, Proposed Amendment No. 4, “AT&T Telecommunication/WAN/LAN/ Managed Security Services” with AT&T, at an increased cost not to exceed $60,000,000.00 for a total cost not to exceed $120,000,000.00 and for an increased duration of five (5) years for a total duration of ten (10) years; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
AT&T has been the primary telecommunications, network and managed security services provider since before the standup of GLWA. The Information Technology Group brought Amendment No. 2 of this contract before the Board in 2018 to include the continuation of services for GLWA, and the migration of network and telecommunication services to DWSD as a part of the bifurcation efforts. Amendment No. 3 was executed in 2020 and included a swapping of retiring technology services for similar replacement services at no additional cost or duration of term. The planned start date of this amendment is September 13, 2023 and will end if all terms are approved on September 12, 2028.
JUSTIFICATION
This amendment provides a continuation of services, including telecommunications, wide area and local area network services, internet connectivity, and managed security services. These services provide the backbone of GLWA’s communication infrastructure. The structure of this agreement allows GLWA to continuously upgrade to newer modern service offerings and retire dated technology without bearing the added inflationary expense that is commonly seen in today’s economic environment.
As part of the five-year IT road map, plans include a refresh of the network infrastructure (switches and routers) and the implementation of a new software defined wide area network (SD WAN), which will integrate into GLWA’s existing virtual environment. Also, the current circuitry will be upgraded to flexible, on demand connectivity between GLWA locations and internet traffic. Enhanced security features will be deployed.
PROJECT MANAGEMENT STATUS
Original Contract Time DWSD Contract
Amendment No. 1 DWSD Contract
Amendment No. 2 5 Years (09/13/ 2018 - 09/12/2023)
Amendment No. 3 0 Years
Proposed Amendment No. 4 5 Years (09/13/2023 - 09/12/2028)
New Contract Time 10 Years (09/13/2018 - 09/12/2028)
PROJECT ESTIMATE
Original Contract Amount DWSD Contract
Amendment No. 1 DWSD Contract
Amendment No. 2 $60,000,000.00
Amendment No. 3 0.00
Proposed Amendment No. 4 60,000,000.00
New Contract Total $120,000,000.00
FINANCIAL PLAN IMPACT
Summary: Sufficient funds are provided in the financial plan for this contract.
Funding Source: Operations & Maintenance (O&M) Budget
Cost Center(s): Information Technology Infrastructure (Centralized Services-883331)
Expense Type(s): Telecom, Managed Security & Network Services (626700)
Estimated Cost by Year and Related Forecast Variance: See table below.
Fiscal Year Amount
FY 2019 Budget (Prorated) $8,000,000.00
FY 2020 Budget 12,000,000.00
FY 2021 Budget 12,000,000.00
FY 2022 Budget 12,000,000.00
FY 2023 Budget 12,000,000.00
FY 2024 Budget 12,000,000.00
FY 2025 Budget 12,000,000.00
FY 2026 Financial Plan 12,000,000.00
FY 2027 Financial Plan 12,000,000.00
FY 2028 Financial Plan 12,000,000.00
FY 2029 Financial Plan (Prorated) 4,000,000.00
Financial Plan Forecast $120,000,000.00
Proposed Contract Amount $120,000,000.00
Variance (positive/ (negative)) $ 0.00
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on July 12, 2023. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.