Submitted By: Shantel Bynes
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Presentation By: Kenneth Jamerson
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Department: Ocala Fiber Network
FORMAL TITLE:
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Additional expenditures under the contract with Cogent Communications, Inc. for an aggregate expenditure of $439,600
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OCALA’S RELEVANT STRATEGIC GOALS:
Operational Excellence, Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
On May 16, 2023, the Council approved a three-year contract with Cogent Communications, Inc. to purchase 20 Gbps of internet bandwidth. The contract also included a month-to-month fee for provisioning IP addresses. The contract became effective on May 31, 2024, with a total value of $314,600.
FINDINGS AND CONCLUSIONS: Throughout the duration of the contract, IP addresses have become increasingly scarce, while customer demand has risen. Consequently, the market value of IP address allocations has surged significantly. In response to these market changes, Cogent has increased the monthly recurring charges for its IP addressing services. The increases have resulted in the need for additional funding of $125,000.
To secure current pricing, Cogent Communications, Inc. has agreed to amend the existing contract to convert the IP address service from month-to-month to a 12-month term.
Approval of the additional expenditures will increase the total contract value from $314,600 to $439,600.
FISCAL IMPACT:
The expenditure associated with Cogent Communications, Inc. (Contract 240330) will be paid from the account #490-031-290-539-53-34050 Other Services-Fiber for Resale
PROCUREMENT REVIEW:
These services were procured in compliance with the City’s procurement policy.
LEGAL REVIEW:
This Agreement has been reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny