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2017-30061 Resolution RESOLUTION NO. 2017-30061 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE FINANCIAL TERMS OF THE AGREEMENT WITH HARRIS CORPORATION, PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 2017-006-AK, FOR A PUBLIC SAFETY RADIO NETWORK, AS SET FORTH IN EXHIBIT "A" TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO FINALIZE THE AGREEMENT WITH HARRIS CORPORATION, INCORPORATING THE TERMS APPROVED HEREIN; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED AGREEMENT WITH HARRIS CORPORATION, SUBJECT TO REVIEW AND FORM APPROVAL BY THE CITY ATTORNEY. WHEREAS, on October 19, 2016, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 2017-006-AK, for Public Safety Radio Network (the "RFP"); and WHEREAS, on October 24, 2016, the RFP was issued, with an opening date of February 15, 2017; and WHEREAS, on February 15, 2017, the City received proposals from Harris Corporation and Motorola Solutions, Inc.; and WHEREAS, on March 1, 2017, the City Manager via Letter to Commission (LTC) No. 119-2017, appointed an Evaluation Committee, which convened on March 13, 2017 to review and score the proposals received; and WHEREAS, the Evaluation Committee's evaluation of qualifications and scope resulted in the unanimous initial recommendation of Harris, as the top-ranked proposer, and Motorola as the second-ranked proposer; and WHEREAS, when cost points were added to the Committee's evaluation scores, the final ranking and recommendation resulted in a tie between Harris Corporation and Motorola Solutions, Inc.; and WHEREAS, the City Manager, having considered the recommendation of the Evaluation Committee and having further conducted his own due diligence with respect to the two proposals recommended that the Mayor and City Commission authorize the Administration to enter into negotiations with Harris Corporation, as the first recommended proposer; and WHEREAS, on June 7, 2017, the Mayor and City Commission approved Resolution 2017-29900, accepting the recommendation of the City Manager, pursuant to Request for Proposals (RFP) No. 2017-006-AK, for a Public Safety Radio Network; and authorized the Administration to enter into negotiations with Harris Corporation, as the City Manager's first recommended proposer; and further, should negotiations with Harris Corporation be unsuccessful, authorized the Administration to enter into negotiations with Motorola Solutions, Inc., as the second recommended proposer; and WHEREAS, pursuant to the City Commission's direction, as provided in Resolution No. 2017-29900, the Administration has successfully negotiated cost reductions from Harris Corporation's original proposal, for a total system cost of $15,500,001.00, including 15 years of maintenance, as more fully set forth in Exhibit "A" to the Commission Memorandum accompanying this Resolution; and WHEREAS, the City Manager, after consulting with the Chiefs of the Police and Fire Departments, considers the negotiated proposal from Harris Corporation, as outlined in Exhibit A, to provide the City with the best overall combination of functionality and value to serve the needs of the City's first responders; and WHEREAS, based on the foregoing, the City Manager recommends that the Mayor and City Commission approve the financial terms of the agreement with Harris Corporation, as set forth in Exhibit "A" hereto; authorize the City Manager and City Attorney to finalize the agreement with Harris Corporation, incorporating the terms approved herein; and further authorize the Mayor and City Clerk to execute a final negotiated agreement, subject to form approval by the City Attorney. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve the financial terms of the agreement with Harris Corporation, pursuant to Request for Proposals (RFP) No. 2017-006-AK, for a Public Safety Radio Network, as set forth in Exhibit "A" to the Commission Memorandum accompanying this Resolution; authorize the City Manager and City Attorney to finalize the agreement with Harris Corporation, incorporating the terms approved herein; and further authorize the Mayor and City Clerk to execute the final negotiated agreement with Harris Corporation, subject to review and form approval by the City Attorney. PASSED AND ADOPTED this ) day of OCIdbAr 2017 .' Philip Levine y•,/; ATTEST: 24 jam '1'1 APPROVED AS TO Raf el E. Granado, City Clerk .ram, FORM&LANGUAGE B ,4 &FOR EXECUTION 'ger r ; , k)LOA'1-- 2(3° 1( 1;77City Attorney 14i) Date Resolutions-R7 D MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: October 18, 2017 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE FINANCIAL TERMS OF THE AGREEMENT WITH HARRIS CORPORATION, PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 2017-006-AK, FOR A PUBLIC SAFETY RADIO NETWORK, AS SET FORTH IN EXHIBIT "A" TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO FINALIZE THE AGREEMENT WITH HARRIS CORPORATION, INCORPORATING THE TERMS APPROVED HEREIN; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED AGREEMENT WITH HARRIS CORPORATION, SUBJECT TO REVIEW AND FORM APPROVAL BY THE CITY ATTORNEY. RECOMMENDATION Adopt the Resolution. ANALYSIS To seek proposals from qualified firms to replace the City's aging public safety radio system, on October 24, 2016, the'- Administration released Request for Proposals (RFP) No. 2017-006-AK, for Public Safety Radio Network. The City received two proposals to the RFP. At its June 7, 2017, meeting, pursuant to Agenda Item R7F, the Mayor and City Commission accepted the City Manager's recommendation authorizing the Administration to negotiate with Harris Corporation ("Harris") for an agreement for a replacement to the City's current public safety radio system.As outlined in the aforementioned agenda item,the City Manager's recommendation for award to the City Commission clearly articulated the reasons why, in his opinion, Harris provided the best overall technical proposal to replace the City's aging public safety radio infrastructure. However, the City Manager also acknowledged that Harris'proposal,while technically superior to the other proposal received, was significantly higher in price. For this reason, the City Manager recommended that the Administration be authorized to negotiate a lower cost with Harris, while maintaining the technical capabilities that made Harris'proposal superior. Following the City Commission's direction, the Administration successfully negotiated with Harris to reduce the cost of a new public safety radio system. In addition to a significantly lower cost,the Administration also negotiated additional system enhancements for the City,including: • XG-25 portable radios(featuring OTAR and AES)replacing XG-15 unencrypted portable radios(Qty 25) • OTAR and AES features added to 25 Fire Dept.portables • OTAR and AES features added to 5 DEM portables • All Police Radios are full key pad(System)models • One additional Console for Traffic/Code • Microwave to reach additional Console for Traffic/Code • Microwave link for the ISSI • Extended Warranty to 3 years including NOC Monitoring The aforementioned system enhancements were negotiated as value-added items not included in the base price, therefore providing the City a savings in the amount of$406,932.00. Additionally,following the expiration of the initial coverage period for years one(1)through three(3)the parties have agreed,to the cost for optional radio maintenance plan for years four (4) and five (5), six(6) through ten (10), and eleven (11) through fifteen(15),which provides the City with a potential savings in the amount of$986,442. If the City elects to opt for the optional radio maintenance,the maintenance shall be payable in yearly installments as detailed in Exhibit"A." CONCLUSION Having considered the results of negotiations with Harris, I find that the proposal from Harris remains the overall best option for the City and the safety of our law enforcement and public safety employees,for the reasons noted below. Above any other consideration, it is essential that the City's radio system assures the highest level of safety for the City's law enforcement and public safety personnel. In order to do so, the system selected must provide full interoperability with the systems utilized by the City's neighboring public safety agencies. Given the frequent interactions between our public safety officers and theirs, interoperability has always been a primary concern. For this reason, the RFP stated its requirement to achieve seamless roanyng between the City's system and its neighboring jurisdictions (Section C-7.4, p.192). The law enforcement jurisdictions with which the City believes interoperability to be the most critical include Miami-Dade County(and the jurisdictions it services),City of Miami,City of Coral Gables, City of Aventura,and City of Hialeah. In fact,after the City of Miami finalizes its transition to a Harris system, the only jurisdictions within Miami-Dade County that would remain on a Motorola system are the cities of Hialeah and Homestead. With regard to interoperability,the City's consultant,Tusa Consulting Services, has determined that,while a Harris system can interoperate with a Motorola system, and vice versa, there are certain beneficial features that are enhanced when interfacing between Harris to Harris,or Motorola to Motorola systems. Being able to receive location(GPS)information at the Miami Beach dispatch center while radios roam into a neighboring system is one such feature.Also,the ability to change the encryption keys over the air (OTAR) from neighboring systems is another feature. Seamless roaming refers to the ability for Miami Beach personnel to extend their communication coverage beyond the geographical confines of the City's radio system while maintaining the full feature sets of the system without the cumbersome task of any manual adjustments. It is important to note that seamless roaming and interoperability is not just important to our officers when they cross the causeways(which is quite frequent),but also to the many officers from other jurisdictions that work on Miami Beach during many of our special events.With like-systems the City will achieve much better coordination on both sides of the bay. Finally, Harris submitted an original price of $21,962,508 for their public safety radio system, which included warranty and maintenance. The original base price provided by Harris did not include the following value-added items in the amount of $406,932:XG-25 portable radios(featuring OTAR and AES)replacing XG-15 unencrypted portable radios(Qty 25); OTAR and AES features added to 25 Fire Dept. portables; OTAR and AES features added to 5 DEM portables; all Police radios are full key pad (System) models; one additional console for traffic/code; microwave to reach additional console for traffic/code; microwave link for the ISS I;and extended warranty for optional radio maintenance to three(3)years including NOC monitoring. Following months of productive negotiations, I can report that Harris and the Administration were able to reduce the original price offered by$6,462,508.The total cost for the Harris public safety radio system is$15,500,000. Therefore, after achieving the cost reduction required, and directed, by City Commission on June 7, 2017, I continue to believe that the proposal from Harris offers the overall best option for the City and the safety of our law enforcement and public safety employees.Accordingly, I recommend that the Mayor and City Commission hereby approve the financial terms of the agreement with Hams Corporation, pursuant to Request for Proposals(RFP)No.2017-006-AK,for a Public Safety Radio Network,as set forth in Exhibit "A" to the Commission Memorandum accompanying this Resolution; authorize the City Manager and City Attorney to finalize the agreement with Harris Corporation, incorporating the terms approved herein; and further authorize the Mayor and City Clerk to execute the final negotiated agreement with Harris Corporation,subject to review and form approval by the City Attorney. KEY INTENDED OUTCOMES SUPPORTED Enhance Public Safety and Emergency Preparedness FINANCIAL INFORMATION In approving the financial terms,the City is in the process of identifying financing.Additionally,execution of the agreement would be subject to identifying and acquiring funding which could include debt financing identification and availability. Legislative Tracking Police/Fire/Emergency Management/Procurement ATTACHMENTS: Description o Resolution o Exhibit"A" EXHIBIT A COMPREHENSIVE AGREEMENT TERM SHEET 2017-006-AK PUBLIC SAFETY RADIO NETWORK Tenn ... Description.. .. ... Nature of The Comprehensive Agreement will establish a contract transitioning the City of Miami Comprehensive Beach from its current public safety radio system to a new Project-25 (P25)700/800 MHz Agreement digital simulcast trunked network system.Successful implementation and completion of the public safety radio network project will include delivery, installation and integration of subscriber equipment, network and infrastructure development, software, warranty and maintenance, training, technical support and project management, throughout the term of the Agreement, in alignment toward full Project-25 compliance. The Comprehensive Agreement will be a fixed price contract, subject to adjustment only for certain events and circumstances as set forth in the Comprehensive Agreement. System Costs Group 1.Network $ 8,146,961.00 One Time Additional Discount $ (1,715,386.00) Group 1.Network Cost-Net of Discount $ 6,431,575.00 Group 2.Subscriber Equipment $ 4,868,145.00 One Time Additional Discount $ (1,568,150.00) Group 2.Subscriber Equipment Cost-Net of $ 3,299,995.00 Discount Group 3.Training Cost $ 268,430.00 *Sub-Total(Groups 1 through 3) $ 10,000,000.00 Group 4.Warranty and Maintenance(Network) Infrastructure Year 4-5 $ 600,000.00 Infrastructure Year 6—10 $ 1,600,000.00 Infrastructure Year 11 —15 $ 1,900,000.00 Hardware Refresh Year 7 and Year 12 $ 1,400,000.00 Total WarrantylMaintenance Cost $ 5,500,000.00 **GRAND TOTAL SYSTEM COST(Groups 1 through 4) $ 15,500,000.00 Negotiated Enhancements • Qty 25 XG-25 portable radios(featuring OTAR and AES)replacing XG-15 (Value of these items is unencrypted portable radios $406,932.00) • OTAR and AES features added to 25 Fire Dept.portables • OTAR and AES features added to 5 DEM portables • All Police Radios are full key pad(System)models • One additional Console for Traffic/Code • Microwave to reach additional Console for Traffic/Code • Microwave link for the ISSI • Extended Warranty to 3 years including NOC Monitoring Page 1 of 4 Optional Radio Maintenance Years 4 through 5-Radios Maintenance $ 234,258 Years 6 through 10-Radios Maintenance $ 649,974 Years 11 through 15-Radios Maintenance $ 753,498 Total Radio Warranty/Maintenance Cost $ 1,637,730.00 a.Years 1-3: No charge.Cost is included in Group 2,Subscriber Equipment Cost. b. Yearly Installments: Years 4 and 5-Radios Maintenance $117,129.00 Years 6 through 10-Radios Maintenance $129,994.80 Years 11 through 15-Radios Maintenance $150,699.60 If the City elects to opt for the subscriber units maintenance in Years 4-15, the City shall notify Harris at least 90 days prior to third anniversary date of Final System Acceptance Deadlines/Milestones The Contractor will be required to achieve certain deadlines under the Comprehensive Agreement, including deadlines for project scheduling,testing, and final completion. Major milestones are outlined in the mutually agreed upon Project Schedule to be included in Exhibit A of the final negotiated agreement and, generally, shall proceed in the following order: • Kick-off Meeting—10 days after contract signing. • Detailed Design Review—2 months after Kick-off Meeting. • Factory Staging—6 months after Kick-off Meeting. • Shipment of Equipment—7 months after Kick-off Meeting. • Installation—11 months after Kick-off Meeting. • Functional and Coverage Testing—16 months after Kick-off Meeting. • Final Acceptance—18 months after Kick-off Meeting. Term of Agreement The term of the Comprehensive Agreement will be fifteen (15) years from the effective date of the Comprehensive Agreement,from the date the City issues its letter of System Acceptance, subject to extension pursuant to the Comprehensive Agreement. The City, by and through its City Manager, shall have two (2) option(s) to renew this Agreement, for a period of one (1) years for each renewal term option, subject to availability and appropriation of funds, at the City's sole discretion. City shall provide Contractor with notice of renewal no later than thirty(30)days prior to the expiration of the initial term (or first renewal term,as applicable). Key Personnel and Key The Contractor will not be allowed to terminate, replace or substitute any key account Contractors manager and related personnel without the City's approval. The Comprehensive Agreement will include information regarding provisions that must be included in key contracts. Governing Law and Venue The Comprehensive Agreement shall be governed by the laws of the State of Florida. Exclusive venue shall be in Miami-Dade County(if in state court)and the U.S. District Court, Southern District of Florida (if in federal court). The parties waive a trial by jury in any civil litigation relating to the Comprehensive Agreement. Page 2 of 4 Payment Schedule The amounts outlined in the Price Schedule (Exhibit B) shall be paid by the City to the Contractor as follows: A. Infrastructure. Ten percent(10%)of the Total Agreement Price(excluding the aggregate price of the Terminal Hardware included in the Total Agreement Price)shall be due at the time of the NTP1. Twenty (20%) of the Total Agreement Price (excluding the aggregate price of the Terminal Hardware included in the Total Agreement Price)shall be due at the time of the Detailed Design Review Approval. Twenty five percent (25%) of the Total Agreement Price (excluding the aggregate price of the Terminal Hardware included in the Total Agreement Price)shall be due at the time of Infrastructure Equipment shipment. Fifteen percent(15%)of the Total Agreement Price(excluding the aggregate price of the Terminal Hardware included in the Total Agreement Price) shall be due upon substantial completion of the Hardware installation for the Police Department, EOC/Fire Station 2 and Council Tower Sites, or the first three sites installed (exclusive of the mutually agreed upon value of any punchlist items). Fifteen percent(15%)of the Total Agreement Price(excluding the aggregate price of the Terminal Hardware included in the Total Agreement Price) shall be due upon substantial completion of the Hardware Installation for Collins Condominium, Tower 41 and Park View Sites or final sites installed (exclusive of the mutually agreed upon value of any punchlist items). Fifteen percent(15%)of the Total Agreement Price(excluding the aggregate price of the Terminal Hardware included in the Total Agreement Price) plus any remaining unpaid portion of the Total Agreement Price for all Hardware, Software and Services to be provided under the terms of this Agreement (excluding the aggregate price of the Terminal Hardware included in the Total Agreement Price)shall be due upon final Acceptance of the System. B. Subscriber Hardware: 1. One Hundred percent(100%)of the purchase price of Subscriber Hardware shall be invoiced upon delivery of units on a per unit basis. Delivery of radios to be finalized during DDR. C. Maintenance: 1. Infrastructure Maintenance. a.Years 1-3:No charge.Cost is included in Group 1, Network Cost. b. Years 4-15: $5,500,000, payable in equal yearly installments (on the anniversary date of Final System Acceptance)of$458,333.33. Page 3 of 4 Contingency Allowance The amount of contingency allowance under this Agreement shall be Ten Percent (10%) of the Total Agreement Price, to be used solely at the City's discretion, and with the approval of the City Manager, to pay for any element or service that was unforeseen and not specifically required of the Contractor by the Contract Documents. Licenses, Permits,and Fees All FCC frequency coordination, license application preparation and engineering activities associated with the development of the FCC license submittal, including path surveys,as necessary,shall be the responsibility of the Contractor. The City is responsible for obtaining all Federal Communications Commission frequency licenses for the System,with the Contractor providing technical assistance and information as set forth in the Statement of Work. The City will be responsible for obtaining all FAA approvals for newly-constructed or modified towers,if applicable. Assignment This Agreement shall not be assigned, sold, conveyed, pledged, encumbered or otherwise transferred by Contractor, in whole or in part, and Contractor shall not assign any part of its operations, without the prior written consent of the City Manager, which may be withheld or conditioned, in the City Manager's sole discretion. Legal Terms and Conditions In addition to the financial and business terms contained herein,the Comprehensive Agreement shall include negotiated terms acceptable to the City Manager and City Attorney. Should the City be unable to successfully negotiate an agreement, the City,through the City Manager,reserves the right,to terminate negotiations. Page 4 of 4