The Texas Department of Information Resources (DIR) is moving forward with several network and communications procurements, including a network engineering services award valued at $5 million.
The DIR board on Thursday approved an award to Insight Public Sector for network engineering services. The contract is expected to run from execution through Aug. 31, 2027, with as many as three optional one-year renewals.
The work includes installation, activation and troubleshooting for multiprotocol label switching and hybrid cloud connectivity, integration of data and voice services and maintenance and documentation supporting DIR’s network engineering operations.
Insight is the incumbent provider and will continue providing the same services under the new contract.
DIR Chief Procurement Officer Lisa Massock said the statement of work was sent to 10 vendors and generated three responses. The department also requested a best and final offer, which reduced the price by $62,000 annually and produced $246,000 in savings across four one-year terms. Pricing was locked for the full term.
During the meeting, a board member asked how the new agreement’s pricing compared with the previous contract. DIR staff did not provide that comparison during the discussion.
The department also presented an amendment extending a contract for management, support and operations of its voice over Internet protocol platform.
The two-year extension, which the board approved, is valued at about $2.4 million and would use the remaining renewal options under the agreement. DIR officials said Insight has performed well on the work and regularly supports agencies with voice services, including entities with large call-center operations.
DIR also moved forward with the purchase of two Cisco ASR 100-gigabit routers for new office buildings under construction between Congress Avenue and Lavaca Street in Austin.
The one-time equipment purchase is valued at about $1.1 million and will be billed to the Texas Facilities Commission.
A board member questioned why two routers cost more than $1 million. DIR staff said much of the cost is tied to the high-capacity line cards and that the department generally receives a roughly 40 percent discount from Cisco list pricing.
DIR does not purchase the equipment directly from Cisco and instead buys through authorized resellers.
The opportunity was sent to six vendors on DIR contracts. Two initially responded and one submitted a best and final offer.
DIR staff said the purchase covers equipment only. The department’s network team will install and commission the routers.
DIR Advances Network Engineering, Voice and Router Procurements
What to Know:
- Insight Public Sector’s network engineering award is valued at $5 million, with pricing locked for the full term.
- A best and final offer cut the network engineering cost by $62,000 annually, totaling $246,000 across four one-year terms.
- DIR is also advancing about $3.5 million in voice services and router spending, including a $1.1 million router purchase billed to the Texas Facilities Commission.
