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