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113-1999 LTC CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us L.T.C. NO. J 1 <-99 LETTER TO COMMISSION TO: Mayor Neisen O. Kasdin and Members of the City ommission DATE: May 11, 1999 SUBJECT: Bid Response FROM: Sergio Rodriguez City Manager On January 20, 1999 and again April 28, 1999, during the City Commission meetings, concerns were expressed by the Commission as to the low number of proposals received in response to Bids, RFP's, RFQ's, RFLI's, etc. It was requested for the Administration to explore other opportunities that would yield the City a greater number of responses to future bids. The Procurement Division performs and has implemented the following processes to increase the quantity of responses to formal solicitations; ~ Place a Legal Notice in the Miami Daily Business Review. ~ Notify all vendors listed in the Financial Management Purchasing Vendor Database System for the specific commodity group of the solicitation by mail or facsimile. ~ Request a listing of suggested vendors from the requesting Department and/or the project Consultant. ~ Review trade journals, Thomas Register, Building and Construction Blue Book, yellow pages and Internet for possible sources. ~ Review State, Miami-Dade County and other Municipal Bids for potential sources. ~ Post a list of all Solicitations on the City of Miami Beach Internet Web Page. ~ Work with the using Departments to issue BidJRFP/RFQ/RFLI documents that are issued in a commercially acceptable format with specifications that are open and competitive. ~ Developed a standard BidJRFPIRFQ format to increase vendor responsiveness. ~ Installation of a Fax-on-Demand System will allow prospective vendors to receive Bid/RFPIRFQIRFLI documents, Bid Tabulations, etc. directly to their fax machines. Currently only Vendor Applications are available through this system. Memorandum May 11, 1999 Page 2 Additionally, the Procurement Division is actively seeking the increase of vendor participation in the procurement process by: ~ Attending business development and minority business trade shows, conferences, etc. ~ Involvement with Local, State and National Purchasing Associations which share vendor databases, solicitation information. etc. ~ Televising Bid Solicitation Announcements on the local governmental access channel. Recently, the Procurement Director attended the Florida Association of Professional Purchasing Officers Conference, where the issue of the low rate of solicitation responses was discussed. This problem is not only felt by the City of Miami Beach, but by many Municipalities throughout the State. This problem is attributed to several factors including: the healthy economy, the shortage of trade labor and the shortage of some raw materials. Additionally, construction costs have risen by approximately 25% over the last two (2) years and ArchitecturallEngineering Consultants have been slow to compensate for this and adjust their budget estimates accordingly. This makes bidders apprehensive about bidding when they are aware that their bids will significantly exceed the published budget estimates. The Procurement Division will continue to explore additional methods to Increase vendor participation. If you require any additional information, please contact me. SR:rAB:~