M E M O   /   N O T E   D E   S E R V I C E

 

 

To / Destinataire

Mayor, Members of CSEDC & Council / Maire, Membres du CSODE et du Conseil

File/N° de fichier:  File Number

ACS2009-CMR-OCM-0004-IPD

From / Expéditeur

Kent Kirkpatrick, City Manager

Contact / Personne-ressource :

Alain Rochefort, Manager, Technology Infrastructure 

613-580-2424 x25890

Subject / Objet

Update – Mitel Donation of VOIP equipment / Mise à jour - Don par Mitel d'équipement de Voix sur IP

 

Date: 

26 May 2009/le 26 May 2009

 

This memorandum provides an update for Council on the donation of Voice Over Internet Protocol equipment by MITEL to the City of Ottawa. At the April 7, 2009 Corporate Services and Economic Development Committee meeting, the following motion was carried:

 

Moved by Councillor M. Wilkinson

 

WHEREAS the City of Ottawa has a current, pending Request for Proposal (“RFP”) that seeks a Voice Over Internet Protocol (“VOIP”) Solution and Related Services for City Facilities; and

 

WHEREAS the RFP proposes, among other things, a standing offer between the City and the selected proponent for a term of six years, with the City reserving the right, at its sole discretion, to extend the agreement for up to two additional 1-year periods; and

 

WHEREAS, although a preferred proponent has been identified under the RFP, no contract negotiations have yet commenced; and

 

WHEREAS the rights reserved to the City in the RFP include the right to cancel the RFP at any time and, further, states that neither the receipt of proposals, nor the completion of any of the RFP’s stated evaluation and selection stages constitutes an obligation on the part of the City to award a contract; and

 

WHEREAS, on April 1st 2009, Mitel Networks Corporate offered to donate technology to the City that is valued at over $2 million, indicating, in part, that they wish to help the City reduce spending on technology solutions so that more funds can be made available for programs that benefit the community in general;

 

 

THEREFORE BE IT RESOLVED THAT the Request for Proposal for Voice Over Internet Protocol (“VOIP”) Solution and Related Services be suspended, and that staff be directed to work with the Fairness Commissioner to clarify Mitel Networks Corporation’s offer to donate technology, and report back to the Corporate Services and Economic Development Committee and Council as soon as possible.

 

                                                                                                CARRIED

 

Following the offer from MITEL, staff sought written clarification from the company under the supervision of the Fairness Commissioner and subsequently discussed the results of that process with the Fairness Commissioner. The Fairness Commissioner has reported that in his opinion the competitive process followed by the City for the Voice Over Internet Protocol (“VOIP”) and Related Services prior to the donation offer from Mitel was fair, transparent and impartial to all bidders.  Consequently, against this background, the acceptance of the donation by the City would fail to meet a reasonable standard of fairness in procurement.

 

Upon learning of this opinion, Dr. Terrence Matthews, Chairman of Mitel informed the City on May 22, 2009 that he was immediately withdrawing the company’s offer.

 

In light of this new information, staff recommend a motion at the June 2nd CSEDC meeting be moved directing that the suspension of the original VOIP procurement process be lifted and that the procurement process continue through to its conclusion.

 

 

 

Kent Kirkpatrick

City Manager