Control Number: 38199 Item Number: 97 Addendum StartPage: 0 AT&T Texas July 1, 2011 TABLE OF CONTENTS DOCKET NO. 38199 SOAH DOCKET NO. 473-10-5000 COMPLAINT OF HARRIS COUNTY § HOSPITAL DISTRICT AGAINST § PUBLIC UTILITY COMMISSION SOUTHWESTERN BELL TELEPHONE, § OF TEXAS LP d/b/a AT&T TEXAS § AT&T TEXAS' DIRECT TESTIMONY OF PAT CADENA Page AT&T Texas' Direct Testimony of Pat Cadena .................................................... 2 Addenda: Exhibit A ....................................................................................................... 8 Exhibit B ....................................................................................................... 81 Exhibit C ....................................................................................................... 87 <.. ^ f 0 1 Direct Testimony (Cadena) 1 involving contract terms, compliance requirements, order processing, and 2 product eligibility and associated pricing. 3 Q. WHAT OTHER POSITIONS HAVE YOU HELD AT AT&T, AND FOR HOW 4 LONG? 5 A. I was a Manager of Business Sales Administration for 18 months and a Service 6 Representative for 23 years for Major Accounts/State Agency Accounts. 7 Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY? 8 A. The purpose of my testimony is to provide information regarding the Texan 2000 9 contract and highlight some contract requirements. I will explain how the contract 10 works. 11 Q. HARRIS COUNTY HOSPITAL DISTRICT IS ALLEGING IN THIS 12 PROCEEDING THAT AT&T ERRONEOUSLY FAILED TO IMPLEMENT 13 TEXAN 2000 RATES FOR CERTAIN SERVICES. CAN YOU EXPLAIN 14 "TEXAN 2000 RATES"? 15 A. The Texan 2000 rates are contractual rates for products and services purchased 16 out of the Texan 2000-SWB-LS contract via purchase orders. 17 Q. WHERE CAN THE RELEVANT TEXAN 2000 RATES BE FOUND? 18 A. These rates are contained in the Texan 2000-SWB-LS contract. Texan 2000- 19 SWB-LS is the Texan 2000 Local Service Contract between the State of Texas, 20 General Services Commission, now the Department of Information Resources 21 (DIR), and Southwestern Bell Telephone LP. The contract, which is the result of 22 a public procurement process in response to the Request for Offers (RFO) 23 Document No. 99-Tele-2000 for certain local telecommunications products and 3 Direct Testimony (Cadena) 1 services to be ordered by DIR and other customers (as defined in the contract) 2 became effective in August 1999. 3 Q. WHAT IS YOUR EXPERIENCE WITH THE TEXAN 2000 CONTRACT? 4 A. I work with the Texan 2000 contract on a daily basis by providing Texan 2000 5 contract management support to the GEM business unit and by serving as a 6 resource to the internal sales and support teams on contract implementation and 7 questions involving contract terms, compliance requirements, order processing, 8 and product eligibility and associated pricing. I also handle the preparation and 9 submission of monthly reporting requirements under the Texan 2000 contract 10 and the processing of payments related to the administrative fees that must be 11 made to the DIR. I also maintain AT&T's Texan 2000 public website, including 12 updating the AT&T Texan 2000 public website when any changes are made to 13 the Texan 2000 contract. 14 Q. HOW LONG HAVE YOU BEEN RESPONSIBLE FOR PERFORMING THESE 15 SPECIFIC FUNCTIONS? 16 A. Since May 16, 2001. 17 Q. DO YOU HAVE A COPY OF THAT AGREEMENT? 18 A. Yes, Exhibit A to my Direct Testimony is a copy of the executed Texan 2000 19 contract, which includes an Appendix A-Standard Terms and Conditions, and 20 several exhibits, Exhibit B to my Direct Testimony is an executed copy of the 21 Second Amendment to the Texan 2000 contract, and Exhibit C is an executed 22 copy of the Third Amendment to the Texan 2000 contract. Each of these are 23 publicly available on the DIR website, which is the State of Texas' available 4 Direct Testimony (Cadena) 1 website, where the Texan 2000 contract can be viewed by AT&T customers and 2 the general public. 3 Q. ARE EXHIBIT A, EXHIBIT B, AND EXHIBIT C FROM AT&T RECORDS KEPT 4 BY AT&T IN THE REGULAR COURSE OF ITS BUSINESS BY AN 5 EMPLOYEE, WITH KNOWLEDGE OF THE ACT OR EVENT THAT WAS 6 RECORDED? 7 A. Yes. 8 Q. WHAT CUSTOMERS ARE ELIGIBLE TO ORDER PRODUCTS AND 9 SERVICES UNDER THE TEXAN 2000 CONTRACT? 10 A. The DIR and other Texas state agencies and political subdivisions of the State of 11 Texas, such as cities, counties, public school districts and municipalities are 12 eligible to order from the Texan 2000 contract. 13 Q. WHEN DID THE TEXAN 2000 CONTRACT FIRST TAKE EFFECT? 14 A. Pursuant to Article IV of the original Texan 2000 contract, the contract became 15 effective upon the date the last party signed it which was on August 31, 1999, 16 when last signed by the General Services Commission. 17 Q. WHAT WAS THE INITIAL TERM FOR THE TEXAN 2000 CONTRACT? 18 A. The term was from a period of 5 years. 19 Q. HAS THE TEXAN 2000 CONTRACT BEEN IN EFFECT SINCE AUGUST 1999? 20 A. Yes, through a number of contract extensions, the Texan 2000 contract has been 21 in continuous effect from 1999 to the present. 5 Direct Testimony (Cadena) 1 Q. DO YOU ANTICIPATE ANOTHER EXTENSION AT THE END OF AUGUST? 2 A. We are currently in negotiations for a new contract. 3 Q. WHEN THE TEXAN 2000 CONTRACT BECAME EFFECTIVE, DID ALL 4 GOVERNMENTAL ENTITIES AUTOMATICALLY BEGIN RECEIVING TEXAN 5 2000 RATES? 6 A. No, in fact, Section 5 (No Quantity Guarantees) of the Third Amendment to the 7 Texan 2000 contract specifically states that state agency-customers, political 8 subdivisions and institutions of higher education are authorized to use the Texan 9 2000 contract but are not mandated to do so. 10 Q. IS A SEPARATE, WRITTEN CONTRACT REQUIRED FOR A 11 GOVERNMENTAL ENTITY TO BENEFIT FROM THE TEXAN 2000 12 CONTRACT FOR ALL SERVICES? 13 A. No, it depends on the service. A written contract is not required for the purchase 14 of SmartTrunk Interfaces, B Channels, Direct Inward Dialing (DID) numbers and 15 Digital Loop Service. But for those services the submission of a specific request 16 is required as Mr. Coleman explains in his Direct Testimony. 17 Q. DOES THE TEXAN 2000 CONTRACT INCLUDE RATES FOR SMARTTRUNK 18 INTERFACES, B CHANNELS, DID NUMBERS, AND DIGITAL LOOP 19 SERVICES? 20 A. Yes. 21 Q. HOW WERE THE TEXAN 2000 RATES, TERMS AND CONDITIONS 22 DETERMINED? 23 A. Texan 2000 rates, terms and conditions were negotiated and agreed upon by 24 AT&T and the Texas DIR. 6 Direct Testimony (Cadena) 1 Q. IS THE TEXAN 2000 CONTRACT AVAILABLE TO EVERY GOVERNMENTAL 2 ENTITY, INCLUDING HCHD? 3 A. Yes, I maintain a website for AT&T where the Texan 2000 contract, including all 4 of the associated amendments, services and pricing is publicly posted. The site: 5 http://www.Texan-2000.com/, has been publicly available since late 2002. 6 Additionally, the DIR maintains a copy of the contract on its own publicly 7 available website. 8 Q. IS A CUSTOMER REQUIRED TO COMPLY WITH CHAPTER 2251 OF THE 9 TEXAS GOVERNMENT CODE IN MAKING PAYMENTS TO AT&T? 10 A. Yes, pursuant to Section 8C (Order Processing and Payments) of the Third 11 Amendment to the Texan 2000 contract. This is especially relevant to this 12 proceeding because Chapter 2251 of the Texas Government Code relates to the 13 Prompt Payment Act and specifically provides claims and dispute requirements, 14 including a 21-day invoice dispute requirement. In this case, HCHD's claims 15 appear to have been raised in some cases more than 7 years after bills were first 16 issued. 17 Q. IS THE TEXAN 2000 CONTRACT CONSIDERED A TARIFF? 18 A. No. 19 Q. COULD YOU PLEASE SUMMARIZE YOUR TESTIMONY? 20 A. The Texan 2000 contract, while available to all qualifying governmental entity 21 customers, is not mandatory and is not always selected by those customers. 22 Q. DOES THIS CONCLUDE YOUR TESTIMONY? 23 A. Yes. 7 EXHIBIT A (CADENA) s TEXAN 2000 SALES AGREEMENT BETWEEN THE STATE OF TEXAS, GENERAL SERVICES COMMISSION AND SOUTHWESTERN BELL TELEPHONE CO. GSC Contract No. TEXAN 2000 - SWB - LS This TEXAN 2000 Sales Agreement (the "Agreement") is made and entered into by and between the The State of Texas, General Services Commission, a state agency whose address is 1711 San Jacinto, Austin, Texas 78701 (the "GSC") and Southwestern Bell Telephone Co. ("Contractor"), a Missouri corporation, with offices at 175 E. Huntland, Austin, TX 78215. The GSC is authorized to enter this Agreement pursuant to the Chapter 2170 of Title 10, Subtitle D of the Texas Government Code. In consideration of the mutual covenants and agreements, herein contained, the parties hereto agree to the following: ARTICLE 1. CONTRACT DOCUMENTS This AgreenjWt and the documents, listed below, together constitute the Contract and shall be referred to as the Contract Documents. The referenced documents are as follows: 1) Request for Offer Number 99-TELE-2000 including all addenda (the "RFO"), Exhibit A hereto; 2) Contractor's Response to the RFO, Exhibit B hereto; H: h i l Ute le/tex an2 0o0s w b( s fin a l. doc 3) The Best and Final Offer (BAFO) for 99-TELE-2000, Exhibit C hereto; 4) Contractor Response to BAFO, Exhibit D hereto; 5) Contractor's post-BAFO submissions, Exhibit E hereto; 6) Clarification Document and its attachments, Exhibit F hereto; and 7) HUB Participation Information, Exhibit G hereto. This Agreement shall be construed wherever possible to avoid conflict between and among the Articles hereof and the Exhibits hereto. Where a conflict cannot be avoided, the following descending order of precedence shall be observed in determining which of the Contract Documents contains the controlling provision:: 1) This Agreement; 2) Exhibit G; 3) Exhibit F (as to particular goods or services); 4) Exhibit E; 5) Exhibit D; 6) Exhibit C; 7) Exhibit B; and 8) Exhibit A.