2002-24866 Reso
RESOLUTION NO. 2002...,24866
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ISSUANCE
OF A REQUEST FOR PROPOSALS (RFP) FOR THE
ESTABLISHMENT OF AN E-PROCUREMENT SYSTEM OF
SOLICITATION ANNOUNCEMENTS AND DOCUMENT
FULFILLMENT SERVICES.
WHEREAS, an e-Procurement solution will allow the City to re-deploy staff
from manual paper process such as the small purchase orders procedures
(utilized for purchases less than $1,000) and invitation for quotes (utilized for
purchases less than $25,000), to on-line, electronically driven market
research, contract analysis, analysis of commodity usages, production of bids
and solicitations; and
WHEREAS, with the rapid advance of the Internet, the City seeks to utilize
e-Procurement solutions which will provide better service to the ordering
departments and to the City's suppliers, while decreasing the cost of doing
business to the City and to our suppliers; and
WHEREAS, the City intends to utilize an electronic "on-line" environment
to operate and manage its procurement activities; and
WHEREAS, electronic technology helps streamline and expedite the
procurement process, and maximizes participation and competition in the City
purchases and contracts; and
WHEREAS, the e-Procurement system should offer a high degree of
availability (24 hours/day, 7 days/week), and performance to support the level
of service required by the City; and
WHEREAS, the e-Procurement system will allow at a minimum for the
publishing of solicitations and bid awards on-line.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, authorize the
issuance of a Request for Proposals (RFP) for the establishment of an e-
Procurement system of solicitation announcements and document fulfillment
services.
,2002.
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CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
Issuance of a Request for Proposals (RFP) for the Establishment of an E-Procurement System.
Issue:
Whether to authorize the issuance of the RFP.
I
Item Summary/Recommendation:
Inasmuch as the number of requests and projects handled by the Procurement Division has
increased both in depth and volume, it is of the utmost importance that this Division be supported
by an efficient and effective notification system. At the time the City entered into an agreement with
DemandStar, there were only a few firms that provided an e-Procurement solution relative to bid
notification and vendor database management. But over the past several years, there are
numerous firms that specialize in e-Govemment applications, especially in establishing e-
Procurement systems. With the rapid advance of the Internet, the City seeks to utilize e-
Procurement solutions which will provide better service to the ordering departments (Procurement's
customers) and to the City's suppliers, while decreasing the cost of doing business to the City and
to our suppliers. The City intends to utilize an electronic "on-line" environment to operate and
manage its procurement activities. Electronic teChnology helps streamline and expedite the
procurement process, and maximizes participation and competition in the City purchases
and contracts.
AUTHORIZE THE ISSUANCE OF THE RFP.
Advisory Board Recommendation:
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Financial Information:
Amount to be expended:
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Finance Dept.
Source of
Funds:
Gl MOB ...
AGENDA ITEM C 7 L
DATE 5...;J.9~
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
COMMISSION MEMORANDUM
From:
Mayor David Dermer and Date: May 29, 2002
Members of the City Commission
Jorge M. Gonzalez \ ~
City Manager OJ"'V'O
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS
(RFP) FOR THE ESTABLISHMENT OF AN E.PROCUREMENT SYSTEM OF
SOLICITATION ANNOUNCEMENTS AND DOCUMENT FULFILLMENT SERVICES.
To:
Subject:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANAL YSIS
The City Commission on December 19, 1999, approved a contract award to Information on
Demand, pursuant to St. Johns County Contract No. 99/93, to manage the City's vendor
database and to issue solicitation announcements for the City's Procurement Division.
Subsequent to the City's contract award, and during the "dot com" explosion, Information
on Demand changed its name to DemandStar.com, and after the failure of many "dot com"
companies, DemandStar.com was purchased by Onvia, and changed their name to
DemandStar by Onvia (hereinafter referred to as ICDemandStar").
The City of Miami Beach was the first governmental entity within Miami-Dade County to
contract with DemandStar. At the time of award, it was anticipated that Miami-Dade
County, the City of Miami and the City of North Miami would subscribe to DemandStar's
service. As of today's date, neither the City of Miami nor Miami-Dade County have
contracted with DemandStar, and the City of North Miami has only recently (6 or 7 months
ago) implemented the DemandStar system.
Vendors desiring to subscribe to the DemandStar service are paying a $30 annual
subscription fee, which enables them to download solicitation announcements issued by
the City of Miami Beach. Prior to DemandStar, vendors paid a $20 annual subscription fee
to the City, which enabled them to receive via mail, facsimile or in person, at no additional
cost, upon request, any and all solicitations.
It was anticipated that by contracting with DemandStar, the City would receive a greater
number of responses to solicitations, as vendors from across the State will be merged with
the Citys current vendors to provide for a more competitive environment. The results
however, reflect that there has not been any improvement by contracting with DemandStar.
Commission Memo
e-Procurement RFP
May 29, 2002
Page 2 of 6
The number of responses received on solicitations prior to DemandStar, when compared
to the number of responses received since the implementation of DemandStar, remains
unchanged.
PROCUREMENT STAFF DEMANDSTAR
10/98 - 3/00 4/00 - Present
Number of solicitations 54 46
Notices Sent 5,158 37,411
Avg. Number of Notices/Solicitation 95.5 813
Responses Received 218 183
Avg. Responses/Solicitation 4.04 3.98
Inasmuch as the number of requests and projects handled by the Procurement Division
has increased both in depth and volume, it is of the utmost importance that this Division be
supported by an efficient and effective notification system. At the time the City entered into
an agreement with DemandStar, there were only a few firms that provided an e-
Procurement solution relative to bid notification and vendor database management. But
over the past several years, there are numerous firms that specialize in e-Government
applications, especially in establishing e-Procurement systems. Therefore, the following
proposed scope of service and evaluation criteria will be incorporated into an RFP for the
establishment of an e-Procurement system of solicitation announcements and document
fulfillment services:
The willingness of our suppliers to participate is a major factor in the success of the
implementation of any e-Procurement solution. Suppliers must believe that costs can be
reduced by reducing paper work, expediting order processing, expedited payment
processing, tracking of transactions, and exposure to broader markets. The ability to
access broader markets is particularly important for small businesses that otherwise would
not be able to compete outside the local marketplace. Many e-Procurement vendors
provide suppliers the opportunity to display their catalogs on the vendors commerce
network, thereby making a local suppliers product visible to potential customers in other
geographic areas.
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Commission Memo
e-Procurement RFP
May 29, 2002
Page 3 of 6
Scope of Services:
An e-Procurement solution will allow the City to re-deploy staff from manual paper process
such as the small purchase orders procedures (utilized for purchases less than $1,000)
and invitation for quotes (utilized for purchases less than $25,000), to on-line, electronically
driven market research, contract analysis, analysis of commodity usages, production of
bids and solicitations, and issuance of solicitations that will be efficient, effective, and
economical to the City.
The e-Procurement system should offer a high degree of availability (24 hours/day, 7
days/week), and performance to support the level of service required by the City.
The e-Procurement system must at a minimum, allow for the following two basic functions:
1. Publish solicitations on-line. Solicitations include Invitation for Bids (Bids), Request
for Proposals (RFPs), Request for Qualifications (RFQs), Request for Letters of Interest
(RFUs), and Invitation to Quote (ITQ).
In each solicitation, a scope of service will be made available for immediate viewing. The
detailed scope of service will prevent vendors from obtaining a bid package for which they
cannot supply the required services or commodities.
Benefits: Provides important information on business opportunities at no cost to the public
and businesses, and available 24 hours/day, 7 days/week.
2. Publish solicitation and bid awards on-line. Applies to bid openings as well as bid
tabulated results. Awards published online should include protest information, such as
where and how the protest should be filed.
Benefits: Provides important information relative to results available 24 hours/day, 7
days/week.
In addition to the minimum requirements stated above, the City may consider the following
list of enhanced services listed as "add alternates":
1. Issue solicitation/bid announcements electronically. Businesses receive e-mail
notification of procurement opportunities for the commodity codes which they have
registered for.
Benefits: Expedited process of issuing solicitations to the right suppliers/vendors.
Commission Memo
e-Procurement RFP
May 29, 2002
Page 4 of 6
2. Create an on-line library of relevant policies and procedures to include:
Ordinances, resolutions, sections of the City Code, Florida Statutes, and Federal law as
applied to federally funded projects.
Benefits: Provides valuable information on policies and procedures that are applicable to
all solicitations. Must be available for on-screen viewing and downloading.
3. Electronic filing of written communications. E-mail copies of prospective bidders'
written communications that fall under the County and City Cone of Silence requirements.
This feature involves providing an electronic copy of all e-mail communication between
procurement staff, proposers, or respondents to RFQs, RFPs and bids, thus satisfying the
requirements of the Cone of Silence.
Benefits: User friendly, speeds up internal processes, and ensures compliance with Cone
of Silence requirements.
4. Enable interactive completion and submission of forms on-line. Form field with
scroll-down menus with valid options, thus ensuring correct information is filled in.
Benefits: Provides an efficient and effective alternative to providing required information in
an expeditious manner, thus reducing the likelihood of disqualifying bidders on
technicalities.
5. Accommodate online bidding and proposal submissions. Establish interactive
reverse online auctions and make bid tabulations available for real-time online viewing.
Benefits: Expedited processes relative to procurement of needed goods and services.
Also, ease of obtaining documents should result in increased number of responses.
6. Online acquisition of small purchases (<$1,000). This feature allows departments to
purchase online from approved City vendors any purchase for goods or services
(equipment is prohibited), via an electronic means.
Benefits: Speeds up internal purchasing processes. Empowers Department Directors.
Reduces costs associated with manual form processes.
7. Establish on-line reference centers tailored for internal and external users. Create
a Help Desk. Make a ''Virtual Vendor Information Center." Provide departmental
instructions, staff responsibilities and contact information, and checklists. Publish
frequently asked questions (FAQs) with answers.
Benefits: Sets up a communication link for obtaining assistance. Creates an evaluation
means to learn about effectiveness and obtain suggestions for improved service. Provides
useful information and guidance 24 hours/day, 7 days/week.
Commission Memo
e-Procurement RFP
May 29,2002
Page 5 of 6
The following is a list of functions that are not part of the basic items or enhanced items,
but would be considered by the City (classified as "C" items):
8. Advertise surplus vehicle auctions online. This feature involves posting notices of
the time and place of upcoming City auctions, which includes: 1) police confiscated items;
2) City surplus items; and 3) City vehicles.
Benefits: Makes information widely available to the public and promotes electronic
business transactions with the City. Also provides the potential for increased general fund
revenue; police confiscated fund revenue, and increased revenue for the vehicle
replacement program.
9. Publish a list of current the City contracts online including standard details. This
option should include information on current contract status, expiration date, and any
options for renewal.
Benefits: Provides a business forecast tool which readily accessible to internal and
external interested parties.
10. Make available information and links to resources for businesses.
This feature involves listing upcoming events for businesses (such as seminars and
workshops), and providing links to minority and small business association websites.
Benefits: Resources for businesses are publicized and presented in a single location, thus
made more accessible to the public and business owners, with encouragement for greater
participation by small firms.
11. Publish on-line standard shells for solicitations and contracts to include
standard-clause dictionary, and definitions. This feature involves a clarification of
commonly used procurement terminology, and the publishing of contract and solicitation
templates on the website. Also involves timely posting of any revisions, additions, and
deletions to existing legislation immediately upon adoption by the City Commission.
Benefits: Assures internal consistency, currency, error reduction and makes contract
language and formats accessible to the vendors.
12. Make various databases accessible to City departments. Include databases for
registered vendors, vendor applications, A&E firms, debarred and/or suspended firms,
vendor performance information, vendors-in-arrears to the City, vendors with current
occupational licenses, State of Florida, Secretary of State (for corporate information), and
State of Florida Department of Business & Professional Regulation (for licensing
information).
Commission Memo
e-Procurement RFP
May 29, 2002
Page 6 of 6
Benefits: Aid to compliance verification and monitoring. Expands staff awareness and
empowerment. Works toward ensuring checks and balances in the procurement process.
13. Publish available procurement training information. This feature involves
announcing possible future training sessions the e-Procurement application (depending on
its features and complexity), and various other procurement issues (Le. "How To Do
Business with the City", "Understanding Public Sector Procuremenf', "Understanding City
Ordinances and Regulations", targeting both City employees and vendors.
Benefits: Identifies and provides training opportunities. Facilitates access and use of
essential Procurement-related applications and resources.
14. Credit card payments for procurement fees, if any. This feature involves the
availability of online payment options for public records requests or requests for additional
information relative to any solicitation process.
Benefits: Assures convenience for business owners to process payment for needed
materials. Reduces the internal cost of processing public records request payments or
payments for photocopying of solicitation documents.
Evaluation Criteria:
Past/Current Performance Relative to e-Procurement system(s): 30 points.
Experience and Qualifications of the Firm and its Staff members in implementing
successful e-Procurement system(s): 20 points.
Cost to Either the City and/or the City's Suppliers of Goods and Services: 20 points.
Approach and Methodology for Implementation and Maintenance of e-Procurement
system: 20 points.
Number of members in the system: 10 points.
CONCLUSION:
With the rapid advance of the Internet, the City seeks to utilize e-Procurement solutions
which will provide better service to the ordering departments (Procurement's customers)
and to the City's suppliers, while decreasing the cost of doing business to the City and to
our suppliers. The City intends to utilize an electronic "on-line" environment to operate and
manage its procurement activities. Electronic technology helps streamline and expedite the
procurement process, and maximizes participation and competition in the City purchases
and contracts.
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