HomeMy WebLinkAboutItem #12 - Discussion ItemTO:
-.Zr/ 'ilanil. '?_rrtlDA
•
I1dhorab1e Members of
the City Co Mission
rRoM: Joseph R. Crassie
City Manager
;IJ:3J CT:
JUL 20 1018
rlLt:
Awards of Rid for Computers &
Colnmt1hioations: Fat Sheet
:."+CLUf3U1.1n9:
With the establishment of the Department of Computers and Communications
in the FY77/78 budget, specifications for bid were developed for (1)
the Police Mobile Digital System, (2) the Central Database Computer
System, and (3) the Fire & Rescue Information System. The specifica-
tions were prepared with participation of the Police Department, the
Fire Department, the Finance Department, and the Building and Vehicle
Maintenance Department. The specifications were repeatedly reviewed
and ultimately released by way of the Information and Telecommunications
Systems (ITS) Committee which is composed of the heads of the Departments
mentioned above.
History of the Bidding
On January 2, 1978 the specifications were mailed to approximately 24
bidders. A meeting with the potential bidders was held on Friday,
January 27, 1978 to answer any questions concerning the specifications.
Ten firms were represented at this bidders meeting. Amendments to the
specifications were submitted to the bidders (a) at the bidders meeting,
(b) as a result of the bidders meeting, (c) subsequent to the bidders
meeting and (d) a special amendment on computer maintenance was also
forwarded to the bidders. The bid submission date was extended for
two weeks upon two occasions, both times at the request of Motorola and
Digital Equipment Corporation, moving the bid submission date from
February 24 to March 24. Subsequent to the bidders meeting approximately
ten additional potential bidders requested specifications and were added
to the list of bidders.
The specifications were mailed to several major computer manufacturers,
including the following:
International Business Machines (IBM)
Honeywell, Inc.
Digital Equipment Corporation (DEC)
Burroughs Corporation
Sperry Univac, Inc.
MEM
MMM
ECM
1
mmw
mmw
1-
In addition, the specifications Were railed to many well known systems
companies that put together computer equipment and software from
Various Sources to produce total systems. Some of these were:
Arthur b. Little Systems, Inc.
Planning )research Corporation (PRC)
Boeing Computer Services, Inc.
E-Systems, Inc.
Motorola, Inc.
Computer Sciences Corporation
Aerospace Corporation
Kustom Signal
Normal purchasing procedures were followed in announcing the bidding by
the media.
Bidders were allowed to bid on the entire specifications or on separable
portions of the specifications. In addition, bids could be submitted
on individual units in the event that it might be most economical for
the City to purchase certain items directly from the original suppliers,
rather than from the major bidders.
Bids were received on March 24, 1978. The major bidders were:
(1) Motorola, Inc. bid upon the Police Mobile Digital System and the
Fire and Rescue Information system.
(2) E-Systems, Inc. bid upon all three parts.
(3) Digital Equipment Corporation (DEC) bid upon only the computer equip-
ment and services, although their bid responded to all three parts of the
specifications.
(4) Burroughs bid upon and was fully responsive to the Central Database
Computer System portion of the specifications.
(5) American Management Systems (AMS) bid software and services that
could be married to the DEC bid on the Central Database Computer System,
together becoming fully responsive to this part of the bid.
The minor bids received were:
(1) Penril Corporation bid upon the modems.
(2) General Electric bid upon the DEC equipment maintenance.
(3) Cincom System, Inc. bid upon the Database Management software.
(4) Telcom Industries bid upon the Telecommunications Concentrator option.
(5) Capital Funding Corporation bid upon the system financing.
(6) Gentry Associates, Inc. bid upon the remote terminals.
(7) Itel Corporation bid upon the financing.
None of the minor bids are being recommended for award.
Only one bidder bid the
complete system bid was
fore, each of the three
below:
�3=
entire package; this was E-Systetns, Inca and this
disqualified because it was too eMpensivee There-
parts was independently evaluated as desdribed
Police Mobile Digital System
Two bidders were responsive to the Police Mobile Digital System bid:
E-Systems and Motorola. The prices submitted by the bidders were as
follows:
Computer Hardware & Terminals
Computer Software
Systems Integration
Freight & Insurance
Communications Equipment
Acceptance Test
One Year of Communications
Equipment Maintenance
Total:
E-Systems Motorola
$ 781,254
284,417
222,434
4,382
327,128
75,879
$ 849,509
44,840
363,784
incl
368,626
67,975
incl 73,908
$1,695,494 $1,768,642
E-Systems was clearly the low bidder and is therefore recommended for the
award of bid. However, there are additional reasons to support the choice
of E-System in this case:
(1) The Motorola bid did not include printer/plotter software to work on
the Police Equipment, whereas E-Systems did include this item.
(2) The Motorola bid did not include the database management software;
the E-Systems bid price can be reduced by $17,005 if we elect to not
purchase this item.
(3) The Motorola bid did not initially meet our specification to inte-
grate in -car terminals into the existing Police system; Motorola later
attempted to change this and said that they would, in fact, integrate
the terminals in our existing software.
(4) E-Systems maintenance prices are lower than Motorola's maintenance
prices because E-Systems proposes an economical mode of maintenance not
contemplated initially by Motorola.
Finally, the E-Systems bid explicitly provides the City the option to
purchase certain computer equipment and/or services directly from
another bidder, in this case DEC, if this will result in a saving to
the City. A saving will result if the City chooses this approach. It
is therefore recommended that award be made to Digital Equipment Cor-
poration for the following items:
MEM
Mte
MEW
rn
DiSk Storage
$ 107,100
Printer/Plotter(hardware) 6,070
Multiplexers 28,904
Software Services 193,500
Systems Software 13,420
Total Award to DEC: $ 348,994
This will reduce the award to E-Systems as follows:
Basic Bid Price: $1,695,494
Less:
DEC computer equipment
DEC software services
database management system
Plus:
Bulk Memory Option
Additional MDT Software Option
• 225,005
- 193,500
17,005
+ 31,168
+ 8,132
Total Award to E-Systems $1,299,264
Central Database Computer System
Three bidders responded to the Central Database Computer System bid:
(1) E-Systems, Inc. (2) Burroughs Corporation, and (3) Digital Equip-
ment Corporation (DEC) with American Management Systems (AMS) supplying
software. The costs of the three bids are shown in Figure #1.
E-Systems proposed a system composed of hardware from a variety of sources,
including both Burroughs and DEC. The price of this proposal is very
high and the configuration as proposed does not provide the desired re-
dundancy.
, 111111111111111111111d
II 1111 1
Vendor
II IIIIII II1I6.
I�iI�illY�lrlii�
1II11hil
111Iii
I�IuuI��Ylii f��u Ihild
DEC/AMS DEC/AMS
E-Systems Proposal #1 Proposal #2 Burroughs
�:ardware Costs $1,128,304
Software Costs 294,302
Other Costs 193,386
Financing Costs 249,475
u� Cost of B-1717 Computer Removal 50,686
8-Year Maintenance 611,403
dotal Costs
$ 828,106
188,250
-0-
167,996
50,686
760,400
$2,,527,556 $1,995,438
$ 886,725 $ 962,946
181,750 71,510
-0- 29,500
175,078 117,052
50,686 -0-
760,400 715,872
$2,054,639 $1,896,880
Figure 41: Comparison of Eight Year Costs on Proposed Central Database Computer Systems
1 1 1
American Management Systems (AMS) made two proposals, both Of whidh fe=-
quire Computer equipment as independently proposed by Digital Equipment
Corporation (DEC). The first proposal is to buy the equipment directly
from DEC. The second proposal is to buy most of the same equipment from
AMS. AMS and DEC propose that we purchase three PDP-11 computers and run
AMS "turnkey" software for payroll and financial applications. These
proposals contain the risk of using turnkey financial software that has
not yet been tested in a Miami -like environment. The use of three com-
puters instead of two also adds an. undesirable element of complexity to
the proposal.
The best proposal, and also the least costly proposal, is that submitted
by the Burroughs Corporation. Burroughs proposed two B-6800 computers.
These are large scale mainframes that will be capable of accomplishing
the City's workload for many years to come. Burroughs will substitute
this contract for the existing contract on the B-1717 now at Dinner Key.
This proposal has some very strong features over and above the others:
(a) a very powerful database management system is proposed; (b) almost
all devices attached to one computer are accessible from either computer;
(c) the computer system is capable of extensive growth in storage and
processing; (d) the software supplied on this computer is very extensive
and easy to use; (e) extensive redundancy is provided by this system;
and (f) multi -dropped terminals are supported by the software.
A major question exists as to whether it is an appropriate decision to
purchase another Burroughs computer, given our experience with the B-1717
now at Dinner Key. The answer to this question is that most of the
problems experienced on the B-1717 relate to its limited size; this
sizing was specified in the original computer specifications issued to
the vendors in 1975. It is not the fault of Burroughs that the City
asked for a very small computer. Another problem, also not the fault
of Burroughs, is an unstable power source at the Dinner Key site; this
problem will be corrected at the Police Building site by use of an "un-
interrupted power supply". To establish Burroughs' track record with
other customers, letters were sent out to B-6700 and B-6800 users around
the country; the results were substantially favorable. An excellent
example of a favorable experience with Burroughs equipment here in
Florida is at the Department of Law Enforcement where up -time in excess
of 99% is routine on Burroughs computers.
A second question exists as to whether the computers that the City is
purchasing are "used". These computers are "current production" from
the Burroughs assembly line and they are brand new in this sense. It
happens that in certain electronic components, i.e. in Central Processing
Units, Burroughs chooses to reuse components from obsolete computers.
There will be no detriment to the success of our installation on account
of this practice. By no stretch of the imagination can this computer be
considered "used".
MIL
Viere & Rescue Information System
Two bidders competed on the Fire & Rescue Information System: E Systefis
and Motorola. Both bids received 'Mere well over budget. Approximately
1.2 million dollars are available for this project, and the bids C:afne
in as follows:
Motorola $1,569,354
E-Systems (principal bid) 1,714,965
E-Systems (alternate #1) 2,347,133
E-Systems (alternate #2) 1,345,794
None of these bids is considered acceptable due to (a) the limited funds
available and (b) the inflexibilities that would be built into the soft-
ware as delivered.
In order to stretch the funding available to develop the Fire & Rescue
Information system, it was decided by the ITS Committee that the Fire
Department application should be programmed upon the Central Database
Computer System. The benefits of this approach are (a) the cost of
the computer hardware for the system is substantially reduced, (b) the
software development cost for the system is also reduced because more
and better systems software is available on the Burroughs computer, (c)
the end -result will be closer to the needs of the Miami Fire Department
with a system developed in-house as opposed to a system that has been
designed for a different City, (d) a system developed in-house will be
much less expensively modified as needs change than a system developed
by a vendor, and (e) much of the Fire and Rescue data is related to
the needs of other agencies, especially geographic data, and all de-
partments will benefits by having this data shared on the same computer.
The only objections to using the Central Database Computer for the Fire
and Rescue System are (a) the problems of a shared system environment
and (b) the appropriateness of a Burroughs computer in a public safety
environment. The Fire Department sent representatives to Jacksonville,
Florida to see such a system in action and to discuss this environment
with the participants. The City of Jacksonville has been sharing two
Burroughs B-6700 computers between many applications including hospitals,
courts, administration, education, and public safety (Police, not Fire).
The public safety application was considered to be successful and to
have acceptable up time in Jacksonville, according to both Police and
other administration spokesmen. Given the limited nature of the demands
upon the B-6800s in the City of Miami environment, without applications
in support of courts, education, hospitals, it is reasonable to share the
Central Database Computer with the Fire & Rescue application.
The development of the Fire and Rescue Information System on the Central
Data Base Computer is very economical. The additional costs for develop-
ing the Fire and Rescue system over and above the costs of the central
system are estimated as follows:
MOB
IOW
mow
MEW
lilt
mmmw
MEM
■
manW
MM
MME
MEI- MMIq
mm- w
mmw
m- ma
MEM
mmem
m
MERIN
iCt
Mr-
Additional Memory
Additional Interfaces
Additional Disk Drives
Cathode Ray Tubes
Hard Copy Terminals
Communications Equipment
In -House Development
Total Fire & Rescue System Cost
$ 40,380
35,014
36,472
136,110
112,335
485,000
300,000
$1,145,311
Note that this cost betters any of the bids received from the vendors by
a substantial margin. The Fire Department has already begun the process
of hiring an in-house development staff for this project.
Communications Equipment
Because the decision was made to reject the vendor bids on the turnkey
Fire & Rescue Information systems, it was now necessary to acquire
Fire & Rescue communications equipment to support the in-house developed
system. For this reason the two bidders, E-Systems and Motorola, were
requested to submit a previously unavailable sub -total for the Fire &
Rescue communications equipment alone. This equipment includes:
dispatch consoles
radio base stations
radio receivers (in vehicles)
push-button status units (in vehicles)
mobile printers (in vehicles)
Unfortunately, both bidders made the mistake of tieing this purchase for
a limited amount of Fire & Rescue communications equipment to the Police
Mobile Digital System bid. Motorola took this request for a sub -total
on Fire & Rescue communication equipment as an opportunity to lower their
price on the total of the Police Mobile Digital System together with the
Fire & Rescue communications equipment.
Inasmuch as (1) the intention of the request for a sub -total on the Fire
& Rescue communications equipment was not to solicit new bids on the
Police system, (2) the original specifications state in bold print that
the proposals as submitted will be last and final offer, and (3) the amount
of Motorola's reduction in price was not sufficiently significant in any
event, it was decided by the ITS Committee to reject all Fire and Rescue
Information Systems bids and to rebid the Fire and Rescue communications
equipment at a later date. Substantial documentation is available on
this subject for review by any party.
Central Database System Cost Allocations
The Central Database System as proposed by Burroughs contained options to
purchase additional equipment. To support the Fire and Police departments
the amounts to be purchased are shown in Figure #2. This figure also
describes the cost allocations of this system to the Fire Department, to
the Police Department, and to other City Departments. The agreed upon
formula is that the Fire and Police Departments will each fund one quarter
of the Central System out of bond monies, and that the remaining half of
MEMEEMP
MEMBEM
mimm
ma- re
MEE
mm▪ w
maw
EME
mma
flMEM
MEW
M- MW
9-
the system will be funded by an eight -year lease purchase from the
Burroughs Corporation at a very favorable interest rate of 5% oh the
unpaid balance. Remote terminals will be funded entirely by the
department(s) requiring them. This allocation of costs between Police,
Fire, and other departments is consistent with expectations of how
much usage these departments will receive of the Central Database com-
puters.
=10=
Sasio System: (less remote teritihals)
Cofnputers $ 949,430
Optional Memory 80,760
Optional Interfaces 70,028
Optional Disk Drives 109,416
Installation* 100,000
Uninterrupted Power Supply* 120,000
Total Central System Cost: $1,429,634
Police Department Share:
Quarter of Basic System Cost
3 Serial Printers*
15 CRTs
6 Letter Quality Printers*
357,408
11,970
41,250
25,785
Total from Police Bond Funds: $ 436,413
Fire Department Share:
Quarter of Basic System Cost
4 Serial Printers*
22 Slave Terminals*
50 CRTs
2 Letter Quality Printers*
$ 357,408
15,960
87,780
136,110
8,595
Total from Fire Bond Funds: $ 605,853
Non -Police, Non -Fire Share:
Half of Basic System Cost
10 Serial Printers*
40 CRTs
4 Letter Quality Printers*
$ 714,818
39,900
114,525
17,190
Total funded by Lease Purchase: $ 886,433
Figure #2: Central Database Computer System Cost Allocations.
*estimated amount, equipment to be rebid
ttidget Impadt
The purchase of the equipment discussed herein Will have an impact Upon
the annual budget this year and in years to come. This impact is esti-
mated separately for each system:
Police Mobile Digital System: The maintenance cost of the mobile digital
equipment will not be borne until the FY79/80 budget. This cost will be
at the maximum shown below, if the City chooses to have the maintenance
performed by the vendor. It may be possible to cut this figure nearly
in half if in-house maintenance is elected.
Mobile Digital Terminal Maintenance
Radio Equipment Maintenance
Computer Equipment Maintenance Increase
Supplies and Electricity (est)
Total:
FY78/79
- 0 -
- 0-
$ 3,000
2,000
$ 5,000
FY79/80
$20,000
31,000
10,000
10,000
$71,000
Central Database Computer System: The installment and maintenance cost
of the B-1700 can be discontinued upon installation of the B-6800s.
However, the cost of the B-1700 will grow to $90,000 annually plus
maintenance if we do not purchase the B-6800s, because the existing
system will not suffice for the existing needs. The cost comparisons
ar.:, as follows:
B-1700 Installments
B-1700 Maintenance
IBM 360/20 Maint
IBM Keypunch Equip
B-6800 Installments
Software Rental
B-6800 Maintenance
Terminal Maintenance
Line & Modem Costs
Electric Usage Increase
(est)
Operating Supplies
FY77/78
$ 50,000
18,000
5,000
21,000
-0-
5,000
-0-
-0-
-0-
-0-
30,000
FY78/79
- 0-
- 0-
-0-
$ 21,000
150,000
7,000
105,000
12,000
15,000
15,000
40,000
FY79/80
-0-
-0-
-0-
-0-
$150,000
9,000
105,000
16,000
30,000
15,000
40,000
Total: $129,000 $365,000 $365,000
Please note that the apparent increase of $236,000 is tempered by the
fact that an increase of $55,000 will occur whether or not the B-6800
is purchased.
Fire and Rescue Information System: During FY78/79 the Fire & Rescue
system will be under development, rather than in operation. The bulk
of the operating costs of this system will therefore not be encountered
until the FY79/80 budget:
MWE
MIAW
NEW
MEW
MME
MMg
MEW
mmw
mmm
mME
mmw
MEW
mmw
Mak
MEE
, M*
MOW
MEE
EMI
i2
'Y77/7$ t17.8/79 FY79/80
B=6800 Off -Shift Maint .=0= ''0 $ 22,500
Electric Usage Increase
(est) ,-0- $15000 30,000
Remote Terminal Maint -0i 15,500 19,000
Modem & Line Costs $18,000 18,000 30,000
Operating Supplies -0- _ _ 5,000 10,000
Total: $18,000 $53,500 $111,500
Resulting Benefits
The costs of the systems to be awarded are well spent when compared to
the benefits to be obtained:
Police Mobile Digital System: Police officers in substantially all police
patrol cars will have direct access to a wealth of computer information
without having to ge through a dispatcher. Radio voice traffic will be
substantially reduced, radio channel space will be used more effectively,
and greater dispatch efficiency will result. Officers will have rapid
response to inquiries for "hot" information and a greater "hit" rate on
stolen vehicles and wanted persons will result. Information previously
unavailable to police officers will become available in a timely fashion,
thereby increasing the effectiveness of both patrol and investigative
units. The computer databases at the City, County, State and Federal
levels will become working tools for the police officers. All traffic
will be governed by controlling security and privacy legislation.
Central Database Computer System: This system will be used for a number
of very important applications:
(1) Improvement of the existing financial system via on-line entry and
on-line inquiry. This will result in more timely and accurate information
and may reduce the staff necessary to operate the financial system.
(2) Development of a budget preparation and monitoring system. A budget
system is very much needed to reduce the enormous amount of time and
effort expended by all departments City-wide to prepare budgets with
sufficient detail. A budget system is also needed to monitor compliance
to the budgetary spending limits. Properly implemented such a system can
reduce the number of personnel in the City being used for budgetary purposes.
(3) Payroll and Time Accounting applications are in need of improvement.
Unnecessary effort is now being expended on the control of time records
and payroll records throughout City departments. Savings will be obtained
by a system that provides summary data on-line to users.
(4) Many City departments have a need for geographic based information.
In City government it is essential that information is organized and
maintained geographically in a system that can be readily queried. An
interdepartmental geo-file will allow zoning information to be compared
to crime, or to fire -hydrants, or to voting tallies on-line, by inquiry
from a computer terminal.
MM
117
imam
MMW
(5) tuman resource records need to be placed oh the computer for ready
retrieval: Personnel history, training, etc. should be maintained oh
the computer and a current roster of personnel should be available to
all departments. Ethnic and minority reporting should be automatically
provided by this means rather than hand tallied.
(6) Nearly all City departments have a need for an automated word pro
cessing capability. By use of the computer many routine secretarial
and/or clerical functions can be reduced or eliminated, thereby allowing
more work to be produced with fewer employees.
(7) On-line indexing and preparation of legislation is an application of
great value to reduce the work involved in preparing legislation for
the City Commission agenda and in filling and indexing the resulting
legislation for later recall and publication.
Fire & Rescue Information System: The Fire and Rescue Information System
is composed of (1) a message system to replace the obsolete teletype
system, (2) a dispatch and status reporting system that will optimize use
of the radio channels and provide an efficient and orderly means of con-
trol, (3) a reporting system that captures information at the point of
origin to automatically produce all necessary reports to avoid unnecessary
paperwork, thereby reducing the needed manpower, (4) an operations control
system whereby summary information from the reporting system is made
available in a timely manner to Fire chiefs to provide the opportunity
to control changing conditions in readiness, risk and other conditions,
and (5) a geographic analysis of relevant fire prevention and suppression
data will be available for constant and convenient use.
MEW
mow
mow
MEE
-14-
tedotrimendation
Awards of bid ate recoMMended
4
*to Burroughs Corporation in the amount of $1,501,519 for the Central
Database Computer System, also to be used for the Fire and fescue
Information System;
*to E-Systems, Inc. Garland Division in the amount of $1,299,264 for
the Police Mobile Digital System;
*to Digital Equipment Corporation in the amount of $348,994 for computer
equipment and services portions of the Police Mobile Digital System.
met
MEW
MMW
MMINEMINIM
MIMOF
MIEMaar
MOE
MINP
ik
Amw
TO:
FROM:
CITY OF MIAMI. FLORIDA
1NttR•OFFICE MEMORANDUM
George r, Knox
City Attorney
mitt: July 14, 1978 PII.e:
sue.,tCT: bidding for Computers &
Communications Equipment
William N. Smith RtFtRtNttet
Director
Dept. of Computers & Communications rNCLoauRFls:
In discussions with Commissioner' J.L. Plummer prior to awarding bids
on the Computers & Communications equipment, Commissioner Plummer
expressed reservations concerning the appropriateness and legality
of the procedures that have been followed in regards to the prepara-
tion of specifications, in the bidding process and in the evaluation
of the bids submitted.
Commissioner Plummer requested that the opinion of the Law Department
be obtained as to form and legality of this process. It is therefore
requested that your opinion on the appropriateness of the procedures
that
followed L. .. formulated
v.....t L.. .7 ' 'L�... for L... benefit .+.. CAL L L1 ..
that. WL..L . followed be form Ulal.ed 111 writing foL the benefit of \.11V
City Commission for possible award on the July 27, 1978 meeting.
In particular, it is suggested that the Law Department look into some
of the more controversial aspects, such as:
-the requests for sub -totals on Fire & Rescue communications
equipment after receipt of initial bids;
-the legality of E-Systems contracting on this phase, given
criticism that they designed the first phase;
-the contention that the City's prior contracts with E-Systems
have any bearing upon Motorola's ability to meet the specifica-
tions;
-the appropriateness of the rejection of Motorola's bid on Fire
& Rescue equipment on account of it being tied to the Police
system;
-the necessity to have hearings with the bidders subsequent to
accepting bids..
The Department of Computers and Communications will be pleased to
cooperate and to provide any and all documentation upon request.
EflW: dr
cc: Joseph R. Grassie, City Manager
Art Mullins, Purchasing Agent
ITS Committee Members
CITY OF MIAMI. FLORIDA
to:
tNtER-OFFICE MEMORANDUM
William N. Smith, Director
ters & Communications
G-.rge . Knox,
City qtorney
SUbJtctf:
RikrERENCE9:
ENCLOSUMES:
July 21, 1978
Legal. Opinion - $iddinq for
Computers and Communications
Equipment
FILE: MIS-78-38
This is in response to your request for a legal opinion as to
the legality of the procedures followed in the preparation of
the specifications, evaluation, and acceptance of the bids
submitted for computers and communications equipment.
The pertinent facts are as follows:
The City advertised for and received bids pursuant to
applicable provisions of the City Charter and Code for
computers and communications equipment for the Police
and Fire Departments. After bids were received, but
before any were accepted, the City requested an addi-
tional breakdown of sub -totals from each bidder. These
bids were rejected when one or more of the bidders
submitted prices that were contingent on obtaining both
Fire and Police contracts. The City re -bid the Fire
project and subsequently accepted bids for various parts
of the project from various bidders.
The questions submitted were essentially:
1. WHETHER THE REQUEST OF SUB -TOTALS AFTER RECEIPT OF
INITIAL BIDS IS LEGALLY PERMISSIBLE?
2. WHETHER A BID THAT DOESN'T CONFORM TO THE BID NOTICE
AND IS CONTINGENT ON THE AWARD OF A SEPARATE CONTRACT
IS ENTITLED TO CONSIDERATION?
3. WHETHER IT IS NECESSARY TO HAVE HEARINGS WITH THE
BIDDERS SUBSEQUENT TO ACCEPTING BIDS?
4. WHETHER A DESIGNER OF THE FIRST PHASE OF A PROJECT
IS PRECLUDED FROM BIDDING ON THE SECOND PHASE?
stat
mane
MEE
I
Mmm
MME
n
ma
IOW
Mak
re-
1 Wig
William N. Smith, Diredtor
computers & ComMu hieatibhs
Legal Opinion
Page 2
duly 21, 1908
5. WHETHER THE BY=PASSING OF THE PURCHASING AGENT IN
THE EVALUATION OF BIDS CONSTITUTE A LEGAL PROBLEM,
WHEN THE FINANCE DIRECTOR PARTICIPATED IN THE EVALUA-
TION OF SAID BIDS IN HIS STEAD?
The response to question one is as follows:
Firstly, the City Charter and City Code, §§ 53 and 16-21 gives
the City Manager the power to reject all bids and advertise again
in obtaining the lowest responsible bidder and/or the bid that is
most advantageous to the City. In requesting a sub -total of prices
after the receipt of bids outlining total prices, is in line with
authority provided in the City Charter and Code.
Generally, public bodies are accorded a wide degree of discretion
in determining whether a single bid should be required for an
entire project or for two or more separate projects, or for alter-
nate plans or materials. 43 Am Jur, Public Works and Contracts
§
38.
It appears that this is totally proper under the authorities cited
above since a bid constitutes merely an offer.
The response to question number two is as follows:
As a general rule, a bid may be rejected when it doesn't conform
to a reasonable requirement of the bid advertisement and speci-
fications. To accept a non -responsive bid would be a violation of
the "competitive bidding" concept and would result in unfair com-
petition to the conforming bidders. In this regard, the City has.
a duty to reject such a bid. McQuillin Municipal Corp. (3rd Ed.)
§29.65. When sub -totals are requested and lump sums are provided,
a major variance exists. In this context, it gives the non -conforming
bidder a substantial advantage over other bidders, and thereby
restricts or stifles competition. Therefore, such a bid is not
entitled to consideration.
William N. 8rith► biredtor
a
Computers & C°o MUniCations
Legal Opinion
Page 3
July 2, 1978
The response to question number three is as follows:
Although, the law doesn't require it, hearings after the accep-
tance of bids are granted only upon a showing of some mistake,
error or bad faith in the bidding process. The City is not
required to grant a post -bid hearing in the absence of circumstances
described above.
The response to question number four is as follows:
The general principle in bids for municipal contracts require a
fair opportunity for free competition. Unless the designer of
the initial phase of a project had some advantage not shared by
other prospective bidders, his subsequent bid on the second phase
is not deemed to be violative of the "compet itive bid concept".
As is apparent, this would hinge on a given set of factual circum-
stances.
The response to question number five is as follows:
Section 52 of the City Charter provide that the City's Purchasing
Agent shall be the Director of Finance or an officer in the Depart-
ment of Finance. His duties shall include making all purchases for
the City and he shall insure that opportunities for competition are
safeguarded under rules and regulations established by ordinance.
It would appear that the responsibility vested in the Purchasing
Agent by the City Charter was carried out by the Director of
Finance while sitting as a member of the Bid Evaluation Committee.
(The ITS Committee).
GFK/TVP/ow
PREPAREDEDAND APPROVED BY:
Y•
TERRY V.�
iIM�y PERCY
ASSISTANT CITY ATTORNE
MOW
NNW
IAD
Mifflk
EMS
MEM
TO:
Joseph R. Grassi
City Mahager
aTt: July i4 # 1978
U 11ECT:
ci
Controversial Aspedte of AWard
for $id oft Computers and
Comfnunicatiofs Rquipment
FROM: f11i11iam N, Sm' th j Director ,.T.FEnENcLi:
Dept. of Computers & Comiilunicatiohs
.4CLC3U14.E8;
The fact sheet prepared on the Computers and Communications equipment
bid adequately describes the history and data pertinent to this award.
However, certain controversial points are brought forward here for
purpose of clarification in an effort to put these issues "to rest".
1. Low Bidder: Motorola claims to be the low bidder. The bid documents
show otherwise. Motorola justifies their claim because when we asked
them for a subtotal on the Fire & Rescue communications equipment only,
they tied this low subtotal to the Police equipment, thereby in effect
lowering their total price. This action was in contradiction to the
bidding instructions. Therefore we elected to rebid the Fire and
Rescue communications equipment. It would not have benefitted the City
to elect this subsequent bid because of certain drawbacks that we have
documented.
2. Design vs Implementation: It is alleged that E-Systems designed the
Mobile Digital System and is therefore legally precluded from engaging
in its implementation. This is not the case. E-Systems designed and
developed a mobile digital system. This system was proved by way of a
demonstration test using three E-Systems mobile terminals. The bidders
are now competing upon the sale of additional hardware to run a full
scale, as opposed to a limited, operation. E-Systems did not prepare
the specifications for this hardware. Both bidders proposed acceptable
hardware. E-Systems is being selected over Motorola on the basis of
cost to the City.
3. Contracts with E-Systems: It is contended that the City has entered
into a agreement wlth E-Systems to market the software on the Police
Mobile Digital System. This is not true. An agreement does exist to
market software on behalf of the City but this agreement contains no-
thing about marketing the Computer Assisted Dispatch or the Mobile
Digital System. On the other hand, the original sales contract with
E-Systems signed in 1974 contains a limitation against disclosing of
E-Systems developed software to third parties. At our request in order
to have a fair and open competition, E-Systems agreed in writing to allow
the City to disclose this software to Motorola if they should win the
contract, providing that Morotola sign a non -disclosure agreement pre-
venting them from reselling this software. A sample non -disclosure agree-
ment was provided by E-Systems.
TO: MAYOR tall r.;:.':',1 ''E 2rti t�
r t;Z COMMISSION
TRANSi::i'3"r".'. • i� JUL 2 1 1978
it
mw
MM
4 'Revised Bids: It is claimed that tric Wilson invited the bidders
to reduce their total price in a confusing letter of April 7, 1978.
Motorola, in fact, went "out of their way" to interpret this letter
to mean that they could reduce their total system price because they
knew that they would otherwise lose the contest. The facts are that
the letter carefully spelled out the items to be bid and included the
statement "Include only the equipment listed below..." The letter
asked for a sub -total on this equipment which was to be lower than the
sum of the unit prices that had been already bid on said equipment.
In a telegram on this same subject it was reiterated that "...only
the information called for in said letter is to be submitted in con-
formity with the original specification and proposal. No other bids
or proposals will be accepted". Despite this fair warning Motorola
submitted a bid on this Fire and Rescue equipment, but only effec-
tive if the Police Mobile Digital system was awarded to Motorola. In
this manner the clear intent of the letter of April 7, 1978 was abused.
5. Re-employment of Mr. Wilson: A malicious rumor has been circulating
that Mr. Wilson is to be employed by E-Systems in the future. This is
absolutely untrue. Mr. Wilson has volunteered to undergo a polygraph
test, if asked, to ascertain that he has never discussed this possi-
bility with E-Systems and that he has never seriously contemplated
this possibility. Mr. Wilson considers himself to be a career public
servant and has no inclination to work for a private company. In my
opinion, Mr. Wilson has reason to be angered and to take action against
any individuals perpetuating this rumor. E-Systems is also willing
to file an affidavit stating that they have never approached or discussed
any employment opportunity with Mr. Wilson.
6. Second Hand Computer: It is alleged that the proposed Burroughs com-
puters are "second hand". The computers, in fact, will be directly
off the assembly line to the City and will in this sense be current
production. Burroughs does engage in the practice of recycling electronic
parts of older computers in fabricating certain new models; this prac-
tice has brought about this allegation. But substantially all of the
equipment as proposed will be "brand new".
7. Prior Experience with Burroughs: It is contended that we should not
get involved with Burroughs again because of an unsatisfactory experience
with the Burroughs B-1717. The fact is that the B-1717 was too small
for the job that it was selected to do; however, the size of the com-
puter was not specified by Burroughs; the B-1717 indeed performs work
beyond the capabilities of the larger computers at the Police Department.
The reliability of the B-1717 has also been criticized. However, this
computer is operating with unstable electric power that is creating
reliability problems. These problems will be substantially reduced
when the new computers run off the uninterrupted power supply at the
police department. Similar problems were encountered with the Police
computers of another vendor before they were run under steady power.
Other Burroughs large system users were contacted as to their experience
with Burroughs; the results of these inquiries were favorable and are
available for anyone to read. An example of an excellent experience
with Burroughs equipment is the Florida Crime Information Center in
Tallahassee.
All of the above clearly supports awatd of bid as recoftmended.
We are Oh firm ground oh all issues. This recommendatioh is
OWieirred in by all of the following:
Kenneth I. Harms, Chief of Police
Herman W. Brice, Fire Chief
James E. Gunderson, Director of Finance
William Ni Smith, Director of Computers and Communications
Jack R. Piatt, Assistant Director of Computers and
Communications
Eric Wilson, Assistant Director of Computers and
Communications
WNS:EHW:dr
cc: George Knox, Law Department
Art Mullins, Purchasing Division
ITS Committee Members
mmmm
mmmw
NEER
MEW
MMEWff
MMMMi
nt
MEW
■E
mmmm
mmmm
MIER
NEEL
mmmm
MENEM
Migagitt
MEW
ems:
mmimms
OBF
mom
MEW
ew
MMW
mmm
ENE
maw
nA
rt
03y Cvtx..f f4
�`:' mieu„Ira 44L.;i }l.f.���'v+
CORPORATE. OFFICE:
5809 ANNI,POLIS ROAD, SUITE 512
BLADENSBURG,MARYLAND 20i10
PHONE: 301.927xd. 980
c
Mr. William N. Smith, Director
Dept. of Computers & Communications
City of Miami Police Department
400 N.W. 2nd Avenue
Miami, Florida 33128
MIDWEST OFI"ICE:
2970 MARIA AVENUE, SUITE 115
NORTHBROOK, ILLINOIS 60062
'HONE: 312.564xi 070
July 26, 1978
SUBJECT: CITY OF MIAMI COMPUTER & MOBILE
COMMUNICATIONS BID ANALYSIS
Dear Mr. Smith:
DIGITAL
Sachs/Freeman Associates has been retained by the City of Miami to
provide consultant services in the evaluation of bids for computer
and digital _ GiiiLiL. L J_ J J :Y.. c.u. ma..^
axx.....v...� . ... ... • ..—
o A review of the submitted proposals, including costs
o An assessment of the merits of each proposal in meeting the
objectives of the bid specification
o Particular consideration of the documented bid evaluation
performed by the City of Miami
o Comments involving the specification itself, the bid process,
and other aspects of this procurement that could impact the
award process
This memorandum summarizes the results of the evaluation. Evaluation
details have been discussed at length with representatives of the
City's Department of Computers and Communications, and the department
is aware of the supporting information that led to the comments i}erein.
It should be pointed out at the onset that, at the City's request,
the SFA investigation was completed in a one -week time period. As
a result, in-depth investigation into all aspects of bidder response
to the bid specs were not possible. However, a sufficient evaluation
was performed to enable us to make specific comments on the procure-
ment involved.
One area of investigation by SFA dealt with bicl prices particularly
as they might be adjusted to enable bid comparisons on an equitable
basis. To the extent possible, changes were made to original bid
prices to reflect omissions of the bidders, or price adjustments for
comparative purposes. The result of these changes, in the MPD area,
f
Page Tear
is for the ESystems bid to be somewhat Tower than the Motorola bid.
However, the City is reminded that the system being procured is very
complex and sophisticated and in our judgement a price difference of
the magnitude involved should not be the basis for selecting one bidder
over the other. In other words, we believe that factors of system
performance, efficiency, convenience and other characteristics are
the major determinants to the outcome of this procurement.
Our review of the bids raised additional questions beyond those that
had previously surfaced concerning whether bidders are in compliance
with selected sections of the bid specs. These questions were not
isolated to a particular bidder or to a. particular section of the
specifications.
Each of these issues (as well as those raised during the initial bid
evaluations by the City of Miami) were explored with the City, and
agreement obtained on the nature of the concern and its general im-
pact on system implementation: �..In addition, an assessment was made
by the City of the importance of the particular omission, deviation,
or less satisfactory effect involved. Issues included such subject-
tive options as simple contention versus controlled contention, depot
versus on -site maintenance, and others.
The general conclusions reacnea by SEA were that (a) there were no
issues of overriding importance or concern that would disqualify a
bidder, and (b) there were no issues that weighed heavily in swinging
the evaluation one direction or the other. However, the general
assessment of the bids, using the weighting established by the City
on the issues, led to the conclusion that E-Systems was the preferred
bidder.
One alternative under consideration by the City is to procure selected
system elements directly from a computer hardware supplier. We are
somewhat concerned about this approach (even though we recognize that
this action has been taken on other procurements, and that the items
in question are peripherally related to the major missions of the
system involved), even though it may result in some cost saving to
the City. We suggest that careful attention be given to such factors
as assignment of system responsibility and the risks of system integra-
tion in taking this approach.
Considerable activity relative to the Fire Department portion of this
procurement has taken place by the City. Without belaboring the
problems occasioned by the two rebids, it is our understanding that
cost considerations have dictated the department to go to a shared
rather than a dedicated computer arrangement. In that case, SFA agrees
with the City that there is no alternative but to rebid this portion
of the procurement, since there is no way of evaluating present fire
bids based on a shared computer concept.
Page Three
11111111910.
only a lifnited amount of time Was spent ettaivating the Central. bata-
base Computer System. Only minor spec deviations were noted, and
We do not see any opposition to the choice of Burroughs as the success-
ful bidder.
In closing, we would like to point out that contract negotiations asso-
ciated with this procurement are crucial to the successful completion
of the project. City of Miami representatives must go over the City
requirements in detail with each potential contractor, to assure there
is clear understanding of what will be delivered. Changes to and
clarifications of the bid spec document, which should be the primary
contractual agreement between the successful bidder and the City,
must be put in writing. Particular attention should be given to the
acceptance test portion of the specs. •
Since1y,
Herbert M. _achs
Vice President
HMS/dr
WERMIEt
MIW
mmoinri
MMW
MMW
MEM
ME▪ E
MME
fl
MMW
MMINHE
MIIMEIRe
mm- m
MEE
MED
RE▪ SEW
August 21, 1978
Mr. Philip Hamersmith
Film Industry Consultant
Metropolitan Dade County
31 Sidonia, Apt. #4
Coral Gables, Florida 33134
Dear Mr. Hamersmith:
Reference is made to Mayor Maurice A. Ferrets letter to you
dated August 15, 1978.
Enclosed herewith please find a copy of Motion No. 78-501
which was passed and adopted by the Miami City Commission
in connection with the Greater Miami International Film
Festival.
Very truly yours,
TTY HIRAI
Assistant City Clerk
mh
Encl.a/s
RALPH G. ONG1
City Clerk
MAttV HIRAI
Assistant City Clerk
DEPUTY CITY CLERKS
Sylvia M. Mendosa
Robert Norris
Wilhelrnina 8. Porter
Robert E. Tingley
STAFF
Georgia M. Little
MICROFILM DIVISION
Maria Isabel Fernandez
Evelio Rizo
OFFICE OF THE CITY CLERK/City Hall/3500 Pan American Drive/Miami, Horida 33133/579-6065
-07,?/