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BACKGROUND <br /> Since 1999 the City has utilized a combination of multiple Mitel phone systems, AT&T <br /> Centrex service and various phone switches for its voice communications which are <br /> heavily reliant on leased equipment and services from AT&T. Overall, the systems have <br /> met the City's most basic phone needs but significant shortcomings are evident including <br /> lack of centralized phone administration, multiple vendors requiring various types of <br /> service agreements, reliance on leased phone lines, minimal phone features compared <br /> with current technology, and obsolete equipment making replacement parts and service <br /> difficult. In view of this situation, the City's replacement fund includes $350,000 available <br /> for an updated phone system that will utilize voice over Internet Protocol (VoIP or IP <br /> Telephony) enabling phone service to utilize the City's network and Internet services. <br /> VoIP phone systems represent the current telephone standard and provide many <br /> enhancements over our current system. <br /> As part of the construction of the Firehouse Arts Theater, the City researched and bid for <br /> a phone vendor/manufacturer that it could use initially for the Firehouse and then for all <br /> city facilities and services. The end result of this process was the selection of ShoreTel <br /> and its system has been operating at the Firehouse since that time. That installation has <br /> allowed the City to fully evaluate ShoreTel equipment and technology in view of the City's <br /> broader communication needs. City information technologies staff and users have found <br /> ShoreTel to be satisfactory and as such, it was specified for this bid. As currently <br /> structured, ShoreTel utilizes a network of independent value-added resellers (VAR's) who <br /> procure and install the ShoreTel systems. As a result, the RFP for this project was <br /> intended to attract ShoreTel VARs with significant municipal experience installing and <br /> maintaining ShoreTel systems. <br /> DISCUSSION <br /> As part of the selection process, staff relied on criteria set forth in the RFP and City <br /> purchasing guidelines to determine the most qualified bidder. Specifically, since all <br /> equipment bid would be from the same equipment manufacturer, staff focused its <br /> attention on overall system design, VAR experience and qualifications, cost, and the <br /> thoroughness/responsiveness of proposals submitted. <br /> Regarding system design, Packet Fusion's proposal mirrors the City's interest in building <br /> a redundant and fault tolerant system that is suitable for the critical nature of emergency <br /> services and public service. Further, Packet Fusion was the only proposer with <br /> demonstrated experience installing an enterprise-wide ShoreTel system that includes full <br /> integration with Police 911, CAD and records management systems. Also, it's ShoreTel <br /> municipal experience and related references, including a reference from ShoreTel itself, <br /> are excellent. As indicated above, Packet Fusion has installed and maintains the <br /> Firehouse Arts Theaters VoIP system and staff has been satisfied with its work. Finally, <br /> Packet Fusion's, proposal was significantly superior addressing all City requests for <br /> information, pricing and qualifications. <br /> Both bids have similar pricing with Packet Fusion's being slightly more by approximately <br /> $1,350. Pricing includes costs associated with provisioning the key RFP criteria of a <br /> distributed and redundant architecture within the Civic Center buildings. However, as <br /> Page 2 of 3 <br />