The State of California’s Department of General Services said it plans to award statewide contracts for wireless communications equipment and services to Verizon Wireless and Sprint Nextel Corp.
Verizon Wireless will be the primary provider of traditional wireless phones, while Sprint Nextel will be the primary provider of push-to-talk products and services. Each company will serve as secondary provider in the other company’s category.
“We recognized early on that some departments, particularly those that operate in remote areas of the state, need more than one option for their wireless service provider,” said DGS Director Ron Joseph. “These contracts offer the flexibility of multiple providers while ensuring that the state reaps the benefits of its tremendous buying power.”
California said it expects to spend more than $26 million on cell phones, walkie-talkies and related devices and services during the next two years. The state said it achieved a 38-percent average cost reduction over existing contracts that is expected to save about $20 million during the next two years. The contracts are for two years with three optional one-year extensions.
The DSG added that some departments will not be able to immediately take advantage of the new contracts due to existing, fixed-term contracts with other wireless providers.
The state noted the contracts were awarded through a competitive process where suppliers’ scores were based 60 percent on pricing and 40 percent on technical and business requirements. Those requirements included coverage, customer references, customer service offerings, support during the transition from existing contracts, and other criteria.
