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2. 2 Request for Proposal (RFP) 15- 03  Released RFP 15-03 on December 8, 2014 SPS website E-rate Notification System Notified 33 vendors from the RFP distribution list  12 vendors responded  Held vendor interviews with 6 vendors (2/18/15 - 2/20/15)

3. 3 Why VoIP? Telephone industry is changing from an analog platform to a digital platform. – Rapidly increasing costs for analog services – Analog systems are in place at all District locations except the Auxiliary building – Varying features (voicemail and handsets) throughout district buildings FCC is phasing out E-rate reimbursements for local and long distance voice services VoIP system will supply all buildings with the same features Ownership of the VoIP system will be achieved at the end of 5 years VoIP system expected to last at least 10 years

4. 4 Proposed VoIP Solutions  Option 1 – Complete IP Solution with Video  Option 2 – Analog & IP Solution

5. 5 Proposed Solution Pro’s Option 1 Solution Unified / interconnected system allowing resources to be shared efficiently district-wide Emergency notifications to classrooms All phones have consistent layout and feature set Option 2 Solution Less expensive solution Simple implementation Use of existing phone equipment in classrooms (handsets)

6. 6 Proposed Solution Con’s Option 1 Solution More expense solution Full deployment to all classrooms may not be accomplished by the start of the 15/16 school year Option 2 Solution No emergency notifications to classrooms Classroom equipment would not be upgradable until end of the 5 years Variable features accessible by classrooms

7. 7 Option 1 Solution Costs: Years 1 - 5 Current System FY 15FY 16FY 17FY 18FY 19FY 20Total (FY16- FY20) Phone Charges $ 250,000$ 275,000$ 300,000$ 325,000$ 350,000$ 375,000$ 1,625,000 Repair Charges $ 12,000 $ 60,000 - E-rate$ (129,500)$ (102,600)$ (76,500)$ (35,000)$ - $ (214,100) Net$ 132,500$ 184,400$ 235,500$ 302,000$ 362,000$ 387,000$ 1,470,900 Option 1 System FY 15FY 16FY 17FY 18FY 19FY 20Total (FY16-FY20) System Charges $194,921 $974,605 Phone Charges $ 59,200$61,700$ 64,200$71,700$ 74,200$ 331,000 - E-rate$ (31,950)$ (21,000)$ (9,000)$ - $ (61,950) Net$ 222,171$ 235,621$ 250,121$ 266,621$ 269,121$ 1,243,655 Difference * (savings) $ 65,542$ 121$ (51,879)$ (95,379)$ (117,879)$ (227,245)

8. 8 Option 1 Solution Costs: Years 6 - 10 Current System FY 21FY 22FY 23FY 24FY 25Total (FY21 – FY25) Phone Charges $ 400,000$ 425,000$ 450,000$ 475,000$ 500,000$ 2,250,000 Repair Charges $ 12,000 $ 60,000 Net$ 412,000$ 437,000$ 462,000$ 487,000$ 512,000$ 2,310,000 Option1 System FY 21FY 22FY 23FY 24FY 25Total (FY21 – FY25) System Charges $ 1$ - $ 1 Phone Charges $ 76,700$ 84,700$ 87,200$ 89,700$ 98,700$ 437,000 Maintenance Charges $ 47,800 $ 239,000 Net$ 124,501$ 132,500$135,000$137,500$146,500$ 676,001 Difference * (savings) $ (287,499)$ (304,500)$ (327,000)$ (349,500)$ (365,500)$ (1,633,999)

9. 9 Option 2 Solution Costs: Years 1 - 5 Current System FY 15FY 16FY 17FY 18FY 19FY 20Total (FY16- FY20) Phone Charges $ 250,000$ 275,000$ 300,000$ 325,000$ 350,000$ 375,000$ 1,875,000 Repair Charges $ 12,000 $ 72,000 - E-rate$ (129,500)$ (102,600)$ (76,500)$ (35,000)$ - $ (214,100) Net$ 132,500$ 184,400$ 235,500$ 302,000$ 362,000$ 387,000$ 1,470,900 Option 2 System FY 15FY 16FY 17FY 18FY 19FY 20Total (FY16- FY20) System Charges $155,478 $777,390 Phone Charges $ 59,200$61,700$ 64,200$71,700$ 74,200$ 331,000 - E-rate$ (31,950)$ (21,000)$ (9,000)$ - $ (61,950) Net$182,728$196,178$210,678$227,178$229,678$1,046,440 Difference * (savings) $ (1,672)$ (39,322)$ (91,322)$ (134,822)$ (157,322)$ (424,460)

10. 10 Option 2 Solution Costs: Years 6 - 10 Current System FY 21FY 22FY 23FY 24FY 25Total (FY21 – FY25) Phone Charges $ 400,000$ 425,000$ 450,000$ 475,000$ 500,000$ 2,250,000 Repair Charges $ 12,000 $ 60,000 Net$ 412,000$ 437,000$ 462,000$ 487,000$ 512,000$ 2,310,000 Option 2 System FY 21FY 22FY 23FY 24FY 25Total (FY21 – FY25) System Charges $ 1$ - $ 1 Phone Charges $ 76,700$ 84,700$ 87,200$ 89,700$ 98,700$ 437,000 Maintenance Charges $36,956 $184,780 Net$113,657$121,656$124,156$126,656$135,656$621,781 Difference * (savings) $ (298,343)$ (315,344)$ (337,844)$ (360,344)$ (376,344)$ (1,688,219)