REPORT TO THE CITY COUNCIL FROM: BRYON HORN, Director Information Services Department BY: FRANK D. VAWTER, Assistant Director Information Services Department SUBJECT ..Title Approve the Award of a Cooperative Purchase Agreement to AMS.Net/MGT for Cisco FLEX licensing, maintenance, and support services for the City's phone system in the annual amount of $161,630.64 and authorize the Chief Information Officer or designee to execute the agreement. The total contract value over five years will be $808,153.20. This agreement is in accordance with Administrative Order 3-1 and the Merced County FOCUS Agreement 2021092 (FOCUS) ..Body RECOMMENDATION Staff recommend that the City Council authorize the Chief Information Officer to continue the Cisco FLEX licensing agreement with AMS.Net/MGT for the ongoing licensing, maintenance, and support of the City's phone system. This agreement spans five years, with an annual cost of $161,630.64 and a total contract value of $808,153.20. Pricing is based on the competitively bid Merced County FOCUS Agreement No. 2021092. EXECUTIVE SUMMARY The Information Systems Department (ISD) is responsible for the operation and maintenance of the City's phone system, including support of multiple call centers. To better align services with organizational needs, ISD has adopted a revised approach to licensing, maintenance, and support through a new agreement with Cisco. This transition provides a more suitable licensing model for all users and introduces additional features that will benefit the City. BACKGROUND The City previously partnered with AMS.Net, due to challenges in procuring genuine equipment through traditional RFP processes, which have at times resulted in the delivery of counterfeit or gray market products-even when specifications explicitly required genuine items. To mitigate this, ISD utilizes cooperative purchasing agreements. The Merced County FOCUS Agreement (No. 2021092) is a competitively bid contract that enables AMS.Net/MGT to provide the City with Cisco equipment and services at the most competitive pricing available. As an authorized Cisco dealer, AMS.Net/MGT consistently delivers cost-effective, reliable solutions compared to other authorized vendors, reinforcing ISD's commitment to fiscal responsibility. The Information Services Department (ISD) proposes entering into a five-year agreement with Cisco facilitated through AMS.Net/MGT, to support the City's phone system. The agreement totals $161,630.64 annually, with approximately 70% of the total cost funded by reallocating existing appropriations from the outgoing agreement. Features of the Agreement Include: * Softphone licensing included per user (no additional licensing required). * Skills-based routing for call center operations * Outbound IVR functionality to initiate calls and connect to call center representatives * Enhanced features for call center supervisors * Licensing for the Unity voicemail system ENVIRONMENTAL FINDINGS The approval of this purchase does not constitute a project under the California Environmental Quality Act (CEQA). LOCAL PREFERENCE Local preference was not implemented because this is a cooperative purchase using the Merced County FOCUS Agreement. FISCAL IMPACT The funds required for this expenditure are included in our current appropriations. Attachments: AMS.NET Quote AMS.NET Cooperative Agreement Executed