Resolution 2024-32866 RESOLUTION NO. 2024-32866
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER, PURSUANT TO RFP 2023-628-LB FOR WIDE AREA
NETWORK AND INTERNET SERVICES; AUTHORIZING THE
ADMINISTRATION TO ENTER NEGOTIATIONS WITH HOTWIRE
COMMUNICATIONS LTD FOR INTERNET CONNECTIVITY (GROUP 1) AND
AT&T CORP FOR WIDE AREA NETWORK SERVICES (GROUP 2); AND
FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO
EXECUTE AGREEMENTS WITH EACH FIRM UPON THE CONCLUSION OF
SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
WHEREAS, on September 13, 2023, the Mayor and City Commission authorized the
issuance of Request for Proposals (RFP) No. RFP 2023-628-LB for Wide Area Network and
Internet Connectivity Services; and
WHEREAS, on October 18, 2023, the City received proposals from the following four(4)
firms: AT&T Corp, Comcast Business Communications LLC, Crown Castle Fiber LLC, Hotwire
Communications LTD; and
WHEREAS, the bid submitted by Crown Castle Fiber LLC failed to provide a completed
Cost Proposal Form as required in the RFP; and
WHEREAS, the proposal has been deemed non-responsive and cannot be further
considered; and
WHEREAS, on October 12, 2023, the City Manager appointed the Evaluation
Committee via LTC#458-2023; and
WHEREAS, the Committee was comprised of Francisco Garcia, Fleet and Facilities
Division Director; Lazaro Guerra, Public Safety Communications Division PSCU Administrator;
Shari Lipner, Emergency Management Division Administrator; Omar Mendoza, Public Works
Principal Engineer; and Frank Quintana, Information Technology Chief Information Officer; and
WHEREAS, the Evaluation Committee convened on October 27, 2023, to consider the
proposals received; and
WHEREAS, the Committee was provided an overview of the project, information relative
to the City's Cone of Silence Ordinance, the Government Sunshine Law, and general
information on the scope of services and a copy of each proposal; and
WHEREAS, the Committee was instructed to score and rank each proposal pursuant to
the evaluation criteria established in the RFP; and
WHEREAS, the evaluation process resulted in the proposers being ranked by the
Evaluation Committee in the following order:
Group 1 Internet Connectivity
1st—Comcast Business Communications LLC
2nd— Hotwire Communications LTD
3rd—AT&T Corp.
Page 66 of 2002
Group 2 Wide Area Network (WAN) Connectivity
1 st—AT&T Corp.
2nd— Comcast Business Communications LLC
WHEREAS, with regard to Group 1 —internet connectivity, the evaluation process, which
includes a consideration of qualifications, scope of services, and cost, resulted in Comcast as
the top-ranked bidder, closely followed by AT&T as the second-ranked bidder; and
WHEREAS, Section 2-369 of the City Code requires that, in determining the lowest and
best bidder, in addition to price, there shall be considered the following:
(1) The ability, capacity, and skill of the bidder to perform the contract.
(2) Whether the bidder can perform the contract within the time specified, without delay
or interference.
(3) The character, integrity, reputation, judgment, experience, and efficiency of the
bidder.
(4) The quality of performance of previous contracts.
(5) The previous and existing compliance by the bidder with laws and ordinances
relating to the contract; and
WHEREAS, both Comcast and Hotwire have previously performed work for the City.
Hotwire Communications has performed well, with the City not experiencing any major
deficiencies in the internet services that are so critical to City operations; and
WHEREAS, the City has, however, experienced significant deficiencies with Comcast's
performance; and
WHEREAS, the City has experienced inconsistent internet services relating to the
revenue control and access systems at the City's parking garage; and
WHEREAS, during this term, Comcast experienced multiple extended outages that
forced the Skidata system to be unavailable, with these service interruptions forcing the Parking
Department to open access to garages without the ability to collect payments, resulting in a loss
of revenue for the City; and
WHEREAS, based on this prior performance, the Chair of the Evaluation Committee
stated that they could not support continuing to do business with Comcast Business
Communications LLC as the City continues to experience an extended outage relating to critical
data center connectivity that began in December of 2021 and remains ongoing; and
WHEREAS, when services transitioned to Hotwire in 2018 under the current agreement,
Comcast was the only vendor capable of providing the required services in the affected area,
and, therefore, those services were not transitioned to Hotwire. However, despite multiple
attempts by the City to correct the outage with Comcast, the matter remains unresolved; and
2
Page 67 of 2002
WHEREAS, with regard to the evaluation process, which resulted in Comcast being
deemed top-ranked, it is important to note that when cost is not considered, the Evaluation
• Committee ranked Comcast in last place of the three proposals considered; and
WHEREAS, Comcast's first-place rank is primarily attributable to the points it received
for the cost portion of the evaluation criteria, where it submitted a cost proposal that was
approximately 50% less than the cost proposal submitted by Hotwire and AT&T; and
WHEREAS, however, any financial benefits that could be experienced by the City if it
were to award a contract to Comcast would likely be short-lived as Comcast took several
exceptions to the terms and conditions of the RFP, including reserving the right to increase
prices at any time throughout the contract period; and
WHEREAS, given Comcast's prior performance and the fact that the Evaluation
Committee, when considering qualifications and scope of services, deemed Comcast to be the
lowest-ranked bidder, as well as the exceptions that Comcast took to the terms and conditions
of the RFP with regard to pricing, staff does not believe it is prudent to award a contract to
Comcast for internet services; and
WHEREAS, instead, staff recommends that internet services be awarded to Hotwire
Communications, the top-ranked bidder when qualifications and scope of services are
considered, and the second-ranked bidder overall when cost points are added; and
WHEREAS, with regard to Group 2 — WAN services, the evaluation process resulted in
AT&T being top-ranked when qualifications, scope of services, and cost are considered. AT&T
is the current provider of WAN services and has performed well throughout the contract term.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the City Manager, pursuant to RFP 2023-
628-LB for wide area network and internet services; authorize the Administration to enter
negotiations with Hotwire Communications LTD for internet connectivity (Group 1) and AT&T
Corp for wide area network services (Group'2); and further authorize the City Manager and City
Clerk to execute agreements with each firm upon the conclusion of successful negotiations by
the Administration.
PASSED AND ADOPTED this 3/ day of 1G1(44%/y2023.
ATTEST:
•
FEB 0 6 2071
Steven Meiner, Mayor
\..\.11111
Rafael E. Granado, City Clerk ..................,
INCORP ORATED AtPROVED AS TO
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.,,cH 2 ..-1& FOR EXECUTION
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City Attorney c.P' Date
Page 68 of 2002
Competitive Bid Reports-C2 C
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: January 31, 2024
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER, PURSUANT TO RFP 2023-628-LB FOR WIDE AREA
NETWORK AND INTERNET SERVICES; AUTHORIZING THE
ADMINISTRATION TO ENTER NEGOTIATIONS WITH HOTWIRE
COMMUNICATIONS LTD FOR INTERNET CONNECTIVITY(GROUP 1)AND
AT&T CORP FOR WIDE AREA NETWORK SERVICES (GROUP 2); AND
FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO
EXECUTE AGREEMENTS WITH EACH FIRM UPON THE CONCLUSION
OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION.
•
RECOMMENDATION
It is recommended that the Mayor and City Commission approve the Resolution accepting the
City Manager's recommendation, pursuant to RFP 2023-628-LB for wide area network and
intemet services, authorizing the Administration to enter negotiations with Hotwire
Communications LTD for intemet connectivity(Group 1) and AT&T Corp for wide area network
services (Group 2). The Resolution also authorizes the City Manager and City Clerk to execute
agreements upon the conclusion of successful negotiations.
This solicitation is currently under the cone of silence.
BACKGROUND/HISTORY
The City operations require intemet connectivity and wide area network (WAN) services, an
electronic network that connects devices across the organization. The services are required for
most of the City's operational needs, including but not limited to cross-functional data
transmission, life safety systems, access control and facilities management needs, and public
wireless intemet connectivity. Internet connectivity services are currently provided by Hotwire
Communications. WAN services are currently provided by AT&T.
In order to consider replacement agreements for these services, Request for Proposals (RFP)
No. RFP 2023-628-LB for Wide Area Network and Internet Connectivity Services was
developed to seek proposals from qualified parties.
ANALYSIS
Page 60 of 2002
On September 13, 2023, the Mayor and the City Commission authorized the issuance of
Request for Proposals (RFP) No. RFP 2023-628-LB for wide area network and intemet
connectivity services. On September 13, 2023, the RFP was issued. A voluntary pre-proposal
conference was held to provide information to proposers submitting a response on September
28, 2023. The Procurement Department issued bid notices to 10,904 companies through the
City's e-procurement system, with 57 prospective bidders accessing the advertised solicitation.
RFP responses were due and received on October 18, 2023. The City received four (4)
proposals from the following firms:
• AT&T Corp
• Comcast Business Communications LLC
• Crown Castle Fiber LLC
• Hotwire Communications LTD
The bid submitted by Crown Castle Fiber LLC failed to provide a completed Cost Proposal
Form as required in the RFP. Therefore, the proposal has been deemed non-responsive and
cannot be further considered.
On October 12, 2023, the City Manager appointed an Evaluation Committee via LTC # 458-
2023 to consider the proposals received. The Committee was comprised of Francisco Garcia,
Fleet and Facilities Division Director, Lazaro Guerra, Public Safety Communications Division
PSCU Administrator; Shari Lipner, Emergency Management Division Administrator; Omar
Mendoza, Public Works Principal Engineer; and Frank Quintana, Information Technology Chief
Information Officer. The Evaluation Committee convened on October 27, 2023, to consider_the
proposals received.
The Committee was provided an overview of the project, information relative to the City's Cone
of Silence Ordinance, and the Government Sunshine Law. The Committee was also provided
with general information on the scope of services and a copy of each proposal. The Committee
was instructed to score and rank each proposal pursuant to the evaluation criteria established in
the RFP.
The evaluation process resulted in the ranking of proposers as indicated below and in
Attachment A.
Group 1 Internet Connectivity Group 2 WAN Services
1st—Comcast Business Communications 1st—AT&T Corp.
LLC 2nd—Comcast Business Communications
2nd— Hotwire Communications LTD LLC
3rd—AT&T Corp.
With regard to Group 1 — intemet connectivity, the evaluation process, which includes a
consideration of qualifications, scope of services and cost, resulted in Comcast as the top-
ranked bidder, closely followed by AT&T as the second-ranked bidder. However, Section 2-369
of the City Code requires that, in determining the lowest and best bidder, in addition to price,
there shall be considered the following:
(1)The ability, capacity and skill of the bidder to perform the contract.
(2) Whether the bidder can perform the contract within the time specified, without delay or
interference.
(3)The character, integrity, reputation,judgment, experience and efficiency of the bidder.
(4)The quality of performance of previous contracts.
(5) The previous and existing compliance by the bidder with laws and ordinances relating to
Page 61 of 2002
the contract.
Both Comcast and Hotwire have previously performed work for the City. Hotwire
communications has performed well with the City not experiencing any major deficiencies in the
intemet services that are so critical to City operations. The City has, however, experienced
significant deficiencies with Comcasts' performance.
The City has experienced inconsistent intemet services relating to the revenue control and
access systems at the City's parking garage. During this term, Comcast experienced multiple
extended outages that forced the Skidata system to be unavailable. These service interruptions
forced the Parking Department to open access to garages without the ability to collect
payments, which caused a loss of revenue for the City. Based on this prior performance, the
chair stated that they could not support continuing 'to do business with Comcast Business
Communications LLC. Additionally, the City continues to experience an extended outage
relating to critical data center connectivity that began in December of 2021 and continues today
for critical services that remain unresolved. When services were transitioned to Hotwire in 2018
under the current agreement, Comcast was the only vendor capable of providing the required
services in the affected area, and, therefore, those services were not transitioned to Hotwire.
However, despite multiple attempts by the City to correct the outage with Comcast, the matter
remains unresolved.
Finally, with regard to the evaluation process, which resulted in Comcast being deemed top-
ranked, it is important to note that when cost is not considered, the Evaluation Committee ranked
Comcast in last place of the three proposals considered. Comcast's first-place rank is primarily
attributable to the points it received for the cost portion of the evaluation criteria, where it
submitted a cost proposal that was approximately 50% less than the cost proposal submitted by
Hotwire and AT&T. However, any financial benefits that could be experienced by the City if it
were to award a contract to Comcast would likely be short-lived as Comcast took several
exceptions to the terms and conditions of the RFP, including reserving the right to increase
prices at any time throughout the contract period.
Given Comcast's prior performance and the fact that the Evaluation Committee, when
considering qualifications and scope of services, deemed Comcast to be the lowest-ranked
bidder, as well as the exceptions that Comcast took to the terms and conditions of the RFP with
regard to pricing, staff does not believe it is prudent to award a contract to Comcast for intemet
services. Instead, staff recommends that intemet services be awarded to Hotwire
Communications, the top-ranked bidder when qualifications and scope of services are
considered, and the second-ranked bidder overall when cost points are added.
With regard to Group 2 — WAN services, the evaluation process resulted in AT&T being top-
ranked when qualifications, scope of services, and cost are considered. AT&T is the current
provider of WAN services and has performed well throughout the contract term.
SUPPORTING SURVEY DATA
Not Applicable.
FINANCIAL INFORMATION
The department's annual budget is approximately$500,000 for this project but may vary year to
year depending on budget appropriations. It is not anticipated, that grant funding will be utilized
for this Project.
Page 62 of 2002
Amounts)/Account(s):
550-0640-000316-14-414-582-00-00-00- $500,000.00
CONCLUSION
Based on the foregoing, the Administration recommends that the Mayor and City Commission
of the City of Miami Beach approve the Resolution accepting the City Manager's
recommendation, pursuant to RFP 2023-628-LB for wide area network and intemet services,
authorizing the Administration to enter negotiations with Hotwire Communications LTD for Group
1 — intemet connectivity and AT&T Corp for Group 2 — wide area network services, and
authorizing the City Manager and City Clerk to execute agreements upon conclusion of
successful negotiations.
Was Agenda Item initially requested by a lobbyist which, as defined in code Sec. 2-481,
includes a principal engaged in lobbying? No.
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
No No
Strategic Connection
Non-Applicable
Legislative Tracking
Information Technology/Procurement
ATTACHMENTS:
Description
•
o Attachment A
o Resolution
Page 63 of 2002
•
RFP 2023.1128.LB
WOE AREA NETWORK AND Franciso Oarcts Lamm Guaira ' .Shari Llpn.r g d Omar Mandan g Frank Quintana
INTERN SERVICES
5 a d d • AT�
GROUP 1 ITE8NcT CONNECTMrY Quallh8va Q1rralti8ua Subtotal 8 Qu11MM Quantitative Sublotal Qualltibre Orun8hOya Subtotal Qu SIMISa al+r8nnw SuhbMY Qualttatrie ouantlta5ve al0tohi
AT&T Corp. 64 12 76 3 50 12 82 3 83 12 75 3 56 12 68 2 60 12 72 2 13 3
Comcast Business
Communications,LLC 62 30 92 1 35 30 65 2 55 30 85 _ 1 39 30 69 1 30 30 80 3 w 8 1
I Hotwire Communications 68 14 80 2 70 14 64 1 64 14 78 2 53 14 67 3, 70 14 84 1", 9 2
Toll ol.,r.w.
Prom Cool PN00010 rulnum binY To01 ToFw ApoOOC P.n.Pol. (Colo 111.1.1
AT&T Corp. $ 24.422.041 m 12 o q
Comcast Business v Harm _
Communications,LLC w w c to
Hotwire Communications v swam w 1. 0 14
FOR DISPLAY PURPOSES ONLY.FINAL RANKING DOES NOT CONSTITUTE AN AWARD RECOMMENDATION. _
•
Page 64 of 2002
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•
Page 65 of 2002