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C7E-Accept Recommendation RFP For Telecommunications Audit ServicesCOMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The MayorAnd City Commission Of The City Of Miami Beach, Florida, Accepting The Recommendation Of The City Manager Pursuant To Request For Proposals (RFP) No. 2015- 1 26-LR For Telecommunications Audit Services. lntended Outcome Ensure Expenditure Trends Are Sustainable Over the Lono Term Data (Surveys, Environmental Scan, etc: N/A Item Summary/Recommendation : The Administration issued RFP 2015-126-LR to seek the proposals from qualified firms in telecommunications invoice auditing to perform a review of the City's telecommunication accounts with the purpose of recovering erroneous payments and to provide recommendations to the Cityfor reducing the cost of the related services. The RFP was approved for issuance by the City Commission on March 11,2015. The RFP was released on March 12,2015. A pre-proposal conference to provide information to the proposers submitting a response was held on March 20, 2015. On April 10, 2015, the City received proposals from: BTU Consultants, LLC; Communications Brokers, lnc. dba/CBlTelecommunications Consultants, Eric Ryan Corporation; Espy Services, lnc.; S2K Consulting, lnc.; Telanalysis, LLC; and Troy & Banks, lnc. On April 22,2015, the Evaluation Committee appointed by the City Manager convened to consider the responsive proposals received. The Committee was instructed to score and rank the sole proposal received pursuant to the evaluation criteria established in the lTN. The results of the evaluation committee process were presented to the City Managerfor his recommendation to the City Commission. After reviewing the submission and the Evaluation Committee's rankings of proposals received, the City Manager recommends that the Mayor and the City Commission, pursuant to RFP No. 2015- 126-LR, for Telecommunications Audit Services, authorize the Administration to enter into negotiations with the top ranked proposer, Eric Ryan Corporation. Should negotiations be unsuccessfulwith the top ranked proposer, the City Manager recommends the Administration be authorized to negotiate with the following firms in order of rank: S2K Consulting, lnc., and Telanalysis, LLC. Further, the City Manager recommends the Mayor and City Clerk be authorized to execute an Agreement upon conclusion of successful negotiations by the Administration. RECOMMENDAT!ON ADOPT THE RESOLUTION. Board Recommendation: Financial lnformation : Source of Funds: Amount Account 1 N/A - 2 OBPI 3 Total Financial lmpact Summary: Alex Denis, Extension 6641 -Offs: Dep;rflmgnt Director 4$tftfurt City Manager Gity tvl{nagerAW^D+141[IrA r,-=--l JLM#)_ 15\M 201 5-1 26-LR Telecommunications Audit Services - SU MMARY I T:\AGENDA\20 AGE}IDA ITEM C7 E aP,TE ?64{{B AAIAMIBTACH 166 g MIAMIBEACH City of Miomi Beoch, ,l700 Convention Center Drive, Miomi Beoch, Florido 33,I39. www.miomibeochfl.gov MMISS N MEMORANDUM To: Mayor Philip Levine and Members FROM: Jimmy L. Morales, City Manager DATE: May 6, 2015 the City SUBJECT: A RESOLUTION OF THE MA AND CITY COMMISSION OF THE CITY OF MIAM! BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF THE PROPOSALS RECEIVED, PURSUANT TO REQUEST FOR PROPOSAL NO. 20f 5-126-LR (THE RFp), FOR TELECOMMUNICATIONS AUDIT SERVICES; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. ADM INISTRATION RECOM M EN DATION Adopt the Resolution. FUNDING Revenue to the City. BACKGROUND The Administration issued RFP 2015-126-LR to seek the proposals from qualified firms in telecommunications invoice auditing to perform a review of the City's telecommunication accounts with the purpose of recovering erroneous payments and to provide recommendations to the City for reducing the cost of the related services. The City currently uses telecommunication services provided by AT&T-under the master agreement for telephone lines, circuit lines, DSL connections and for Wide Area Network (WAN) circuits that provide services to over 33 buildings and facilities throughout the City. The City has approximately 1170 phone lines,65 circuit lines, and five (5) DSL connections. Currently, the City average monthly cost for these services is $141,000. A telecommunications audit has not been performed in over approximately thirteen (13) years. RFP PROCESS The RFP was approved for issuance by the City Commission on March 11,2015. The RFP was released on March 12, 2015. A pre-proposal conference to provide information to the proposers submitting a response was held on March 20, 2015. On April 10, 2015, the City received proposals from: BTU Consultants, LLC; Communications Brokers, lnc. dba/CBl Telecommunications Consultants, Eric Ryan Corporation; Espy Services, lnc.; 52K Consulting, lnc.; Telanalysis, LLC; and Troy & Banks, lnc. On April 2, 2015, the City Manager appointed an Evaluation Committee (the "Committee") consisting of the following individuals: . Laura Franco-Rubines, Assistant lnternalAuditor, lnternal Audits, City of Miami Beach. Benjamin Nussbaum, Financial Analyst lll, Finance Department, City of Miami Beach 167 Commission Memorandum - RFP 2015-126-LR Telecommunications Audit Services May 6, 2015 Page 2 . Jose Suarez, Division Director, lnformation Technology Department, City of Miami Beach. Ana Zecchini, Application System Manager, lnformation Technology Department, City of Miami Beach Alternates: . Francisco Quintana, System Support Manager, lnformation Technology Department, City of Miami Beach. James Sutter, lnternal Auditor, lnternal Audits Department, City of Miami Beach. Allison Williams, Chief Accountant, Finance Department, City of Miami Beach The Committee convened on Aprll 22,2015 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 general information on the scope of services, references, and a copy of each proposal. The Committee was instructed to score and rank the proposal pursuant to the evaluation criteria established in the RFP. The evaluation process resulted in the following: A brief summary of the firms and their proposal is provided below for informational purposes. The Eric Ryan Corporation (ERC) was established in 1990 and has been providing telecommunications audit services for 25 years. They have provide these type services to over 6,500 clients, including government entities such as the Federal Reserve Bank of Cleveland, University of Central Florida, City of Pittsburg, plus numerous Fortune 500 companies. ERC has identified over one and a half billion dollars in billing errors and future savings opportunities for their clients. ERC proposed revenue sharing rate to the City of 82o/o. RFP 201s-126-LR Telecommunications Audit Services oo -AE8tLE(Ef =tJ I Nt cE C(E(E-O';o6462 o) !Cod N 0) Gfa oao- !c(Et .EEoo o)N (E C =cot 'ulrl vz d BTU Consultants, LLC 51 b 69 6 66 6 44 6 24 6 Communications Brokers, lnc. dba/CBl Telecommunications Consultants 70 5 80 6 80 4 55 5 19 5 Esov Services. lnc. 50 7 59 7 54 a 3'1 7 28 7 Eric Rvan Corooration 90 J 91 1 93 1 97 6 1 S2K Consultinq, lnc. 91 2 82 3 88 2 93 2 9 2 Telanalvsis, LLC 95 1 89 2 87 J 91 3 I 2 Trov & Banks. lnc. 90 a B1 4 78 B1 4 16 4 168 Commission Memorandum - RFP 2015-126-LR Telecommunications Audit Services May 6, 2015 Page 3 S2K Consulting, lnc. has been in business for 7 Yz years, and was designed to focus on billing advocacy and has focused on government agency support since its inception. S2K proposed revenue sharing to the City of 65%. Telanalysis, LLC, is a specialized in the telecommunications consulting practice whose principal focus is on telecommunications billing and tariff investigative management. They have been in business for 29 years. There clientele base is diverse in business disciplines and stature and is comprised of governments, associations, educational institutions, commerce industries, hospitals, law firms and newspapers. They have performed well over two thousand telecom billing audits. Talanalysis proposed revenue sharing rate to the City of 82o/o. MANAGER'S DUE DILIGENCE & RECOMMENDATION After reviewing the submission and the Evaluation Committee's rankings of proposals received, the City Manager recommends that the Mayor and the City Commission, pursuant to RFP No. 2015-126-LR, for Telecommunications Audit Services, authorize the Administration to enter into negotiations with the top ranked proposer, Eric Ryan Corporation. Should negotiations be unsuccessful with the top ranked proposer, the City Manager recommends the Administration be authorized to negotiate with the following firms in order of rank: S2K Consulting, lnc., and Telanalysis, LLC. Further, the City Manager recommends the Mayor and City Clerk be authorized to execute an Agreement upon conclusion of successful negotiations by the Administration. CONCLUSION The Administration recommends that the Mayor and the City Commission, approve the resolution accepting the recommendation of the City Manager, pursuant to Request for Proposal (RFP) No. 2015-126-LR, for Telecommunications Audit Services. JLM/MT/AS/AD T:\AGENDA\20'1s\May 6\Procurement\RFP 2015-'126-LR Telecommunications Audit Services - Memo.doc 169 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE GITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS RECEIVED, PURSUANT TO REQUEST FOR PROPOSALS NO. 2015.126-LR (THE RFP), FOR TELECOMMUNTCATTONS AUDIT SERVICES; AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED PROPOSER, ERIC RYAN CORPORATION; AND SHOULD THE ADMINISTRATION BE UNSUCCESSFUL !N NEGOTIATING AN AGREEMENT WITH THE TOP.RANKED PROPOSER, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH THE SECOND HIGHEST RANKED PROPOSERS, S2K GONSULTING, lNC. AND TELANALYSIS, LLC; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION OF SUCGESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, Request for Proposal (RFP) No. 2015-126-LR was issued on March 12, 2015 with an opening date of April 1 0, 2015; and WHEREAS, a pre-proposal conference was held on March 20,2015; and WHEREAS, the City received seven (7) proposals from BTU Consultants, LLC; Communications Brokers, lnc. dba/CBl Telecommunications Consultants, Eric Ryan Corporation; Espy Services, lnc.; S2K Consulting, lnc.; Telanalysis, LLC; and Troy & Banks, lnc.; and WHEREAS, on April 2,2015, the City Manager via Letter to Commission appointed an Evaluation Committee (the "Committee"), consisting of the following individuals: . Laura Franco-Rubines, Assistant lnternal Auditor, lnternal Audits, City of Miami Beach o Benjamin Nussbaum, Financial Analyst lll, Finance Department, City of Miami Beach . Jose Suarez, Division Director, lnformation Technology Department, City of Miami Beach . Ana Zecchini, Application System Manager, lnformation Technology Department, City of Miami Beach Alternates: Francisco Quintana, System Support Manager, lnformation Technology Department, City of Miami Beach James Sutter, lnternal Auditor, lnternal Audits Department, City of Miami Beach Allison Williams, Chief Accountant, Finance Department, City of Miami Beach WHEREAS, the Committee convened on April22,2015 to consider all proposals; and WHEREAS, the Committee was provided an overview of the project, information relative a a 170 to the City's Cone of Silence Ordinance and the Government Sunshine Law; general information on the scope of services, references, and a copy of the proposal; and WHEREAS, the Committee was instructed to score and rank the proposals pursuant to the evaluation criteria established in the RFP; and WHEREAS, the Committee's ranking was as follows: Eric Ryan Corporation, top-ranked; S2K Consulting, lnc. and Telanalysis, LLC tied for second highest ranked; Troy & Banks, lnc., fourth highest ranked; Communications Brokers, lnc. dba/CBl Telecommunications Consultants, fifth highest ranked; BTU Consultants, LLC, sixth highest ranked, and Espy Services, lnc., seventh highest ranked; and WHEREAS, after reviewing all the submissions and the Evaluation Committee's rankings, the City Manager exercised his due diligence and is recommending that the Administration be authorized to enter into negotiations with the top ranked proposer, Eric Ryan Eric Ryan Corporation, and should negotiations be unsuccessful with the top ranked proposer, the City Manager recommends the Administration be authorized to negotiate with the following firms in order of rank: S2K Consulting, lnc., and Telanalysis, LLC. Further, the City Manager recommends the Mayor and City Clerk be authorized to execute an Agreement upon conclusion of successful negotiations by the Administration. 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 pertaining to the ranking of proposals received, pursuant to Request for Proposals No. 2015-061-LR (the RFP), for Telecommunications Audit Services; authorize the Administration to enter into negotiations with top-ranked proposer, Eric Ryan Corporation; and should the Administration be unsuccessful in negotiating an agreement with the top-ranked proposer; authorize the Administration to negotiate with the second highest ranked proposers, S2K Consulting, lnc. and Telanalysis, LLC; and further authorize the Mayor and City Clerk to execute an agreement upon conclusion of successful negotiations by the Administration. PASSED AND ADOPTED this _ day of 2015. ATTEST: Rafael E. Granado, City Clerk Philip Levine, Mayor ,6[[fSYiR6ilB' & FOR EXECUTION(--. 4'Lq'9 ,I:ffilfilhlst$ffi - Dote 171