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HomeMy WebLinkAboutMemo - Request for Sole Source FindingCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Annie Perez, Director Purchasing Department FROM : Mario F. Nunez, Director. -a Solid Waste Department / DATE : SUBJECT: October 16, 2014 FILE : RE: Sole Source Provider of In -Cab Video Recording and Video Management REFERENCES: ENCLOSURES: The Solid Waste Department is requesting a sole source provider for the evaluation and potential purchase of 142 video event recorders in order to improve driver safety and reduce operating costs of the solid waste fleet. Lytx, Inc. has been identified as a supplier of this technology in the United States which not only markets these products but also analyzes and reports the driving video events captured by such devices. Lytx, Inc. has offered a trial period of six months in which the vendor will install the hardware in each refuse vehicle and demonstrate its capabilities, at no cost to the City. Following the free six month trial period, the City has the option of either to terminate the trial or contract their services by purchasing the equipment and paying for the hardware installation. The Solid Waste Department estimates $181,015.56 in total costs should the City decide to keep the program running. Only half of the cost would be reflected in the current fiscal year and the other half in the following fiscal year. After the first year annual subscription, there would an annual cost of $62,855.84 to the Solid Waste Department including Global Positioning Systems (GPS) tracking services. The account to be used for this program is general fund account 04001.212000.534000.0000.00000. There are sufficient funds budgeted in this account to undertake this program. Upon completion of your findings, please forward a copy of the Resolution and the Agenda Summary Form for our files. Your attention to this matter is greatly appreciated. SOLE SOURCE PROVIDER APPROVED: An ePtrez Director of Purchasing MARKET RESEARCH Contract No.: N/A Current Term: Expiration Date: Title: DriveCam Program Recommendation: Sole Source Contract Procurement Contracting Officer/Specialist: Richard McLaren ❑ Solicit Competition ❑ Access Contract ❑ Other Background: This market research is intended for a one-time sole source purchase of a dual camera system for the City of Miami's Department of Solid Waste (Solid Waste). Solid Waste is interested in researching the effects of the installation of a dual camera system in select refuse trucks. The goal is to identify and address the root causes of poor driving behavior by combining sight and sound with real-time driver feedback. The City does not currently have a contract for these services. Research Conducted: Market research was conducted to source the industry and analyze the cost of providing the program as required by Solid Waste. In doing so, the Department of Procurement, has conducted research to determine the best approach to secure the services. Procurement staff has also conducted internet searches as an alternate source. The following web sites were researched: a) www.iytx.com b) www.teletrac.com c) www.teleogis.com d) www.wikipedia.orq e) www.investing.businessweek.com f) www.ulitzer.com g) www.gsalibrary.gsa.gov Solid Waste was contacted by Lytx, Inc. (Lytx), the sole supplier of the DriveCam video event recorders. Lytx, formerly known as DriveCam, is based in San Diego, California. Lytx specializes in designing, manufacturing and selling video driver safety programs used by commercial fleets. The company focuses on identifying and addressing the root causes of poor driving behavior by combining sight and sound with real-time driver feedback and coaching resulting in reductions in collision -related costs and fuel consumption. Lytx has indicated that research has shown that DriveCam, powered by Lytx reduces collision costs by 80% and prevents fuel waste by up to 12% by focusing on driving behavior and providing clients a program to improve such behaviors. Lytx serves primarily waste management and sanitation; concrete and construction; transit; para-transit and motor coach; utilities, telecom and services; trucking and distribution; government and municipality vehicles. In 2011, Lytx released a behavior based fuel management solution to provide online reporting and coaching to improve fuel efficiency and lower emissions. This release also included a fleet tracking solutions that provides a real-time view of fleet operations, helping to ensure compliance and improve productivity. A —recent -study --Potential Reduction in Large Truck an Bus Traffic Fatalities and Injuries using Lytx's DriveCam Program" was conducted by Virginia Tech Transportation Institute. The study quantitatively evaluated the potential safety benefits of equipping all United States heavy trucks and buses with Lytx's DriveCam program. Trucks and buses equipped with the DriveCam Program had the potential toreduce and average of 727 fatal truck and bus crashes (20.5% of the total fatal crashes), and save 801 lives (20% of the total fatalities) each year. Similar results for injury crashes showed that the vehicles equipped with the DriveCam had the potential to reduce an average of 35.2% of the total injury crashes and 35.5% of the total injuries each year. In Orange County Florida, the County's Risk Management Department looked at options to correct the problems that were occurring on the County's roads. Once DriveCam was identified as a viable option, Orange County entered into a 90-day trial program in 2009 with 30 vehicles. Upon presentation of the initial results, the DriveCam was implemented across 780 vehicles and will be implemented throughout the entire fleet of 2,200 vehicles. As a result of implementing the DriveCam program, Orange County has seen an 81% reduction in the cost of accidents, a 76% reduction in the frequency of accidents, and a 50% reduction in coachable behaviors during the first year of implementation. Prior to implementing the program, Orange County initially thought the payback for the program would be 3-4 years. Based on the results produced, the payback was only one year. Procurement staff attempted to but was unable to reach Orange County's Manager of Risk Management, John Petrelli (407-836-9640). The City of Mobile, Alabama also achieved greater safety and savings with the DriveCam Program. The City reduced claims costs, and in using the program, helped the City become safer by improving driver behavior, reducing incidents of unsafe cell phone use, and decreased accidents by 62 percent. The DriveCam event video was also used to exonerate drivers by revealing truth in liability. Procurement staff attempted to but was unable to reach the City of Mobile, Alabama's Safety Manager, Gary Gamble (251-208-7892). Waste Management, one of the largest recycling companies or materials handling companies, with a vast fleet of 18,000 drivers in 22 business areas across the United States, has engaged DriveCam to transform its safety culture. The program has played a critical role in the company's "Mission to Zero" safety initiative, and has reduced vehicle accidents by almost 70%, and auto liability by $3.1 million. In 2011, U.S. General Services Administration (GSA) awarded a blanket purchase agreement (GS-30E- BPA01) to Lytx for the purchase of DriveCam in -vehicle video recorders and driver feedback systems. The award of this agreement helps GSA fleets meet the lower distracted driving and fuel consumption mandates called for in Executive Orders 13513 and 13514. DriveCam has been proven to help in both areas, as evidenced by those government agencies and commercial fleets using the DriveCam. The Department of State reported that "the DriveCam program resulted in a.62% reduction in near collisions, a 54% decrease in the number of events, a 49% decrease in the severity of events, and a 71 % improvement in seat belt usage in the program's first year of operation". In addition to the organizations above, Lytx has also worked with many government organizations ranging from US Marine Corps, Department of State, the State of Alaska DOT, City of Kansas City, MO, City of Denver, and the Washington Metropolitan Transit Authority, among others. Comparable Contracts: There were no comparable, contracts found for these services, as the governmental entities that purchased DriveCam, did so as sole sources or blanket purchase order. It is important to note also, that Lytx has offered the City a 180-day no -cost trial period to demonstrate the DriveCam program, real time fleet tracking/AVL services and fuel management services. Recommendation: A sole source contract is in the best interest of the City because: a) There is only one source of supply. Lytx is the sole source provider of the DriveCam Program, therefore competition is not available b) The County's Solid Waste department has unique needs precluding the use of alternative approaches or solutions. c) No other vendor has been identified with the capability of meeting the needs of Solid Waste. d) There are no competitive contracts to access for this purpose as other governmental entities purchased the program specific to their individual needs as sole sources or blanket purchase orders. It is recommended that the City contract with Lynx, Inc. as a sole source provider. The benefit of this recommendation is that Lytx has offered the City a 180-day trial program, at no cost to the City. During this trial period, Lytx will provide Solid Waste with the following: a) Driver Safety and Risk Management: A driver based analytics solution that will enable fleet managers to identify, access and correct risk behaviors before they lead to collision. This will involve the installation of a video event recorder in the vehicle behind the rear view mirror. The recorder will include two lenses, one facing the front of the vehicle and one facing the interior of the vehicle. This will capture events generated by the recorder's g-force sensors while also providing real-time in -cab feedback to the driver. b) Fuel Management: A behavior based fuel management system that measures traditional metrics such as vehicle idling, speeding, and vehicle forces to improve fleet performance and fuel efficiency. c) Fleet Tracking: A video event recorder with integrated GPS that provides a real time view of fleet operations. d) Unique Support: During the trial period, Lytx will provide Solid Waste a dedicated Client Account Manager to assist with day-to-day tasks. An implementation Project Manager will also be assigned to assist with the installation process, assignment of vehicles and scheduling of installations. Additionally, the City will be assigned a Program Consultant to ensure that the overall program and City goals are met. Following the 180-day trial period, Solid Waste will make a determination on whether to purchase the DriveCam program, based on the results of using the program during the free trial period. Procurement Contracting Offi er: Director/Asst. Director: Date: ?% ? ( ;04 Date: 9 ZZ (((I From: Rush Akin [m0iKo:raNnJD Sent: Wednesday, October 8,201411/17AM To: Nunez, MadoF. Cc: Sharpe, Ann -Marie Subject. RE: DriveCam Lytx - GSA Contract Mark) With the 142units over 6months, weare happy tosubsidize $16O,0DO.Below isesummary ofproducts + services being supplied during the trial at no cost. As discussed, it is worth the investment to us to make certain you are seeing good results with the program and that we (the City and LYTX teams working together) can drive SAFETY and change human behavior for the good of the City and its employees and validate we have a good partnership for the long term 3-5 years or more. Make sense? DC3P (hardware) $545.00 Installation Training E-Learningfor Coaches Managed Services and QrivmCanmOnline reporting Optional Fuel Management A_�)A���� $353.00annua|k/ ' $25,062.00 Total = $158,539.00 Regards, Rush From: Nunez, MahoF. [maDlto:MFNunez@miamigov.mm] Sent: Wednesday, October 8, 2014 9:44 AM To: Rush Akin Cc: Sharpe, Ann -Marie Subject: RE: DriveCam Lytx - GSA Contract Kush, What isthe dollar amount your company iswilling toinvest onthe trial agreement? From: Rush Akin [maUtU:raNnPlytx/com] Sent: Sunday, September28. 2014 12:45 PM To: Nunez, Mario F. Cc: Sharpe, Ann -Marie Subject: RE: DriveCarn Lytx - GSA Contract Hi Mario, Checking in —let meknow if you need anything. Put me to work(�� Regards, Rush From: Rush Akin Sent: Friday, September 19,JO14 10:14AM To: Nunez, K4ahnE Cc: Sharpe, Ann -Marie Subject: RE: DriveCam Lytx - GSA Contract Team, Attached is our GSA contract for reference. We also have a contract with NJPA (which is what City of Orlando procured off of).Let meknow ifyou need anything else. Again, huge thanks for the opportunity. Best Regards, Rush