2003-25101 Reso RESOLUTION NO. 2003-25101
A RESOLUTION OF THE MAYOR AND CiTY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS
RECEIVED PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 41-
01102, FOR E-PROCUREMENT SERVICES; AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-
RANKED FIRM OF BIDNET; AND FURTHER AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE AN AGREEMENT WITH BIDNET TO
PROVIDE E-PROCUREMENT SERVICES.
WHEREAS, 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; and
WHEREAS, 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 City's current vendors to provide for a more competitive
environment. The results reflect that 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; and
WHEREAS, On May 29, 2002, the City Commission adopted a resolution which
authorized the issuance of an RFP for the establishment of an e-Procurement system of
solicitation announcements and document fulfillment services; and
WHEREAS, On June 13, 2002, DemandStar by Onvia ("DemandStar") issued
notices to 505 individuals/firms. Additionally, the Procurement Division supplemented
DemandStar's broadcast list that resulted in 100 firms obtaining a copy of the RFP.
Proposals were received from 8 firms: 1) e-Bid Systems; 2) DemandStar by Onvia; 3)
BidNet; 4) Netsoft Creations; 5) Prime; 6) Maximus; 7) Pomeroy Computer; and 8) Radiant
Systems, Inc.; and
WHEREAS, an Evaluation Committee was appointed by the City Manager
consisting of the following individuals:
· Tony Arroyo, Division Director, Miami-Dade County
· Pamela Bums, Sr. Contracts Officer, City of Miami
· Elliot Grossman, Resident, IT Consultant
· Gus Lopez, Procurement Director
· Oscar Santiesteban, Database Administrator, City of Miami Beach; and
WHEREAS, after thorough evaluation and discussion of the proposals received, the
Committee unanimously agreed to shortlist the following four (4) firms for presentations:
· e-Bid Systems
· DemandStar by Onvia
· BidNet
· Maximus; and
WHEREAS, On October 7, 2002, the Committee convened and all members were in
attendance except for Mr. Tony Arroyo. The Committee listened to 15-minute
presentations from the four (4) firms, and participated in 15-minute question and answer
sessions and arrived at the following Committee ranking:
First: BidNet
Second: DemandStar
· Third: e-Bid Systems
· Fourth: Maximus; and
WHEREAS, the City Manager has reviewed the Evaluation Committee's
recommendation, and herein recommends that the Mayor and City Commission enter into
negotiations with the top-ranked firm of BidNet; and further authorizing the Mayor and City
Clerk to execute an Agreement with BidNet to provide E-Procurement services.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission herein accept the recommendation of the City Manager pertaining to the
proposals received pursuant to Request for Proposals (RFP) No. 41-01/02 for E-
Procurement Services; authorizing the Administration to enter into negotiations with the
top-ranked firm of BidNet; and further authorizing the Mayor and City Clerk to execute an
Agreement with BidNet to provide E-Procurement Services.
PASSED and ADOPTED this a=tt, day~i~03.
ATTEST:
CITY CLERK
T:V~GEN DA~003\jan0803\consent\RFP41 E-PROCUREMENTReso.doc
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
Accepting the Recommendation of the City Manager Pertaining to the Ranking of Proposals Received
Pursuant to Request For Proposals (RFP) No. 41-01/02, for e-Procurement Services; Authorizing the
Administration to Enter Into Negotiations with the Top-Ranked Firm of BidNet; and Further Authorizing the
Ma}or And City Clerk to Execute an Agreement with BidNet to Provide e-Procurement Services.
issue:
I Shall the City Manager's recommendation be approved?
Item Summary/Recommendation:
During deliberations, the evaluation committee members discussed their individual ranking of the eight (8)
firms and determined unanimously, that BidNet was the top-ranked firm.
BidNet has provided bid information services to both government agencies and government vendors for
over 15 years. Specifically, BidNet provides a service that receives bid information from several government
agencies from across the United States and matches that information with the agencies database of
vendors. BidNet provides both fax and e-mail services to notify our vendors of new bid opportunities (and
amendments/addenda); coupled with an internet service that allows them to view or print the actual bid
notices, bid documents and addenda online.
The costs for vendor registrations facilitated by BidNet for the City of Miami Beach includes our standard
three (3) registration options (e-mail, fax and free). All vendors that wish to do business with the City of
Miami Beach would be required to register in the system. BidNet will derive its revenue to support this
system by charging an annual fee ($29.95) to those vendors who choose to register for fax or e-mail
notification.
ADOPT THE RESOLUTION.
Advisory Board Recommendation:
On December 20, 2002, the Community Affairs Committee (CAC), recommended that the e-Procurement
system be implemented.
Financial Information:
Source of Amount Account Approved
Funds: I · $0
2
3
4
Finance Dept. Total
City Clerk's Office Legislative Tracking:
I Gus Lopez, ext. 6641.
Sign-Offs:
Department Director
GL:
Assistant City Manager
MDB:
T:~AG E N DA~2003~Jan0803\consent~S ummaryE-Pro.doc
City Manager
I JMG:~,~ .-.
AGENDA ITEM
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 · ~
www.ci.miami-beach .fi.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and Date: January 8, 2003
Members of the City Commission
Jorge M. Gonzalez ~
City Manager /'1 --O
A RESOLUTION OP'THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER
PERTAINING TO THE RANKING OF PROPOSALS RECEIVED PURSUANT TO
REQUEST FOR PROPOSALS {RFP) NO. 41-01/02, FOR E-PROCUREMENT
SERVICES; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP-RANKED FIRM OF BIDNET; AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT
WITH BIDNET TO PROVIDE E.PROCUREMENT SERVICES.
ADMINISTRATIVE RECOMMENDATION
Adopt the Resolution.
ANALYSIS
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, Information on Demand changed its name to
DemandStar.com, subsequently; DemandStar.com was purchased by Onvia, and
changed their name to DemandStar by Onvia CDemandSta¢').
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, 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 City's current vendors to provide for a more competitive environment. The
results reflect that 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.
Commission Memo
RFP 41-01/02 - e-Procurement Services
January 8, 2003
Page 2 of 6
On May 29, 2002, the City Commission adopted a resolution which authorized the
issuance of an RFP for the establishment of an e-Procurement system of solicitation
announcements and document fulfillment services.
The scope of services in RFP No. 41-01/02 included the following two minimum
requirements:
1. Publish solicitations on-line. Solicitations include Invitation for Bids (Bids),
Request for Proposals (RFPs), Request for Qualifications (RFQs), Request for Letters
of Interest (RFLIs), and Invitation to Quote (ITQ).
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.
In addition to the minimum requirements stated above, the scope of services stated that
the City might consider the following list of enhanced services:
1. Issue solicitation/bid announcements electronically. Vendors who are registered
receive e-mail notification of procurement opportunities for the commodity codes which
they have registered for.
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.
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.
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.
5. Accommodate online bidding and proposal submissions. Establish interactive
reverse online auctions and make bid tabulations available for real-time online viewing.
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.
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.
Commission Memo
RFP 41-01/02 - e-Procurement Services
January 8, 2003
Page 3 of 6
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.
9. Publish a list of current City contracts online including standard details. This
option should include information on current contract status, expiration date, and any
options for renewal.
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.
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 te,,inology, 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.
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).
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 (i.e. "How To Do
Business with the City", "Understanding Public Sector Procurement", "Understanding
City Ordinances and Regulations", targeting both City employees and vendors.
RFP PROCESS
On June 13, 2002, DemandStar by Onvia ('DemandStar") issued notices to 505
individuals/firms. Additionally, the Procurement Division supplemented DemandStar's
broadcast list that resulted in 100 firms obtaining a copy of the RFP. Proposals were
received from 8 firms: 1) e-Bid Systems; 2) DemandStar by Onvia; 3) BidNet; 4) Netsoft
Creations; 5) Prime; 6) Maximus; 7) Pomeroy Computer; and 8) Radiant Systems, Inc.
The City Manager via Letter to Commission (LTC), appointed an Evaluation Committee
("the Committee") consisting of the following individuals:
Commission Memo
RFP 41-01/02 - e-Procurement Services
January 8, 2003
Page 4 of 6
· Tony Arroyo, Division Director, Miami-Dade County
· Pamela Burns, Sr. Contracts Officer, City of Miami
· Elliot Grossman, Resident, IT Consultant
· Gus Lopez, Procurement Director
· Oscar Santiesteban, Database Administrator, City of Miami Beach
The Committee evaluated the proposals based on the criteria reflected in the RFP and
as listed below:
Evaluation Criteria
WEIGHT
Past/Current Performance Relative to e-Procurement system(s):
30%
Experience and Qualifications of the Firm and its Staff members
in implementing successful e-Procurement system(s):
Cost to Either the City and/or the City's Suppliers of Goods and Services:
2O%
20%
Approach and Methodology for Implementation and Maintenance
of e-Procurement system: 20%
Ability to increase the number of responses to the City's solicitations: 10%
After thorough evaluation and discussion of the proposals received, the Committee
unanimously agreed to shortlist the following four (4) firms for presentations:
· e-Bid Systems;
· DemandStar by Onvia
· BidNet
· Maximus
On October 7, 2002, the Committee convened and all members were in attendance
except for Mr. Tony Arroyo. The Committee listened to 15-minute presentations and
participated in 15-minute question and answer sessions.
During deliberations, the Committee members discussed their individual ranking of the
four (4) firms and arrived at the following Committee ranking:
Committee Members BidNet
DemandStar e-Bid Maximus
Pamela Bums 8.4 (1) 1.9 (3) 4.7 (2) 1.0 (4)
Gus Lopez 9.0 (1) 7.0 (2) 6.5 (3) 5.0 (4)
Oscar Santiesteban 7.0 (1) 5.3 (2) 4.6 (3) 4.5 (4)
Elliot Grossman 7.9 (1) 7.5 (2) 3.3 (4) 3.4 (3)
TOTAL 32.3 (1) 21.7 (2) 19.1 (3) 13.9 (4)
Commission Memo
RFP 41-01102 - e-Procurement Services
January 8, 2003
Page 5 of 6
BidNet's Experience and qualifications
BidNet has provided bid information services to both government agencies and
government vendors for over 15 years. Specifically, BidNet provides a service that
receives bid information from government agencies across the United States and
matches that information to their national database of government vendors. BidNet
provides both fax and e-mail services to notify the City's vendors of new bid
opportunities (and amendments/addenda), coupled with an Internet service that allows
them to view or print the actual bid notices, bid documents and addenda online.
BidNet's Sub-Consultant's (Orbis Online's) Experience and Qualifications
BidNet in association with Orbis Online has offered at no cost to the City, the capability
to conduct reverse auctions. Reverse auctions are competitive bidding events that are
conducted live, via the Internet. The reverse auctions allow for suppliers to Iogin and
submit pricing information in response to request for quotations. They are similar to e-
Bay auctions, but with the complete opposite goal (hence the term reverse). E-Bay
auctions strive to obtain the highest possible bid, while reverse auctions strive to obtain
the lowest possible cost for the items being purchased. There are two standard types of
reverse auctions:
1) Sealed Bid Auctions allows suppliers to place only one price quote and all quotes
remain unavailable for viewing until the auction is closed; and
2) Real-Time Reverse Auctions occur at a predetermined date and time, generally
scheduled to last from one to two hours. Suppliers may make multiple bids
throughout the auction, and may view their competitors pricing.
References for the e.Procurement and Reverse Auction Systems in the State of
Florida
1) The Florida Panhandle System. BidNet implemented the Santa Rosa County
School Board e-procurement system on May 1, 2001. The system accommodates all
15 Counties and their respective local governments within the Florida Panhandle.
2) City of Orlando, FL.Orbis Online conducted an online real-time reverse auction for
the City of Orlando, FL for its annual service contract for janitorial supplies.
3) City of Tampa Bay, FL. Orbis Online, Inc., conducted two online real-time reverse
auctions for the City of Tampa Bay.
Commission Memo
RFP 41-01102 - e-Procurement Services
January 8, 2003
Page 6 of 6
Costs for Vendor Registrations Facilitated by BidNet for the City of Miami Beach
This includes BidNet's standard 3 registration options (e-mail, fax and free). For
automatic notification via e-mail or fax, the cost is $29.95 for one year, $49.95 for two
years, or $59.95 for three years. Vendors can also registered for free and may visit the
City's website or the Procurement Division to obtain a copy of a Bid, RFP, or RFQ.
Proposed BidNet Implementation
The City of Miami Beach provides BidNet with 2 databases; the database of registered
vendors with DemandStar and the City's database. BidNet will work with the City to
develop 2 letters; one explaining the new e-Procurement system that the vendors on the
DemandStar system should move to and a 2nd letter to those vendors in the City's
database that are not registered at all. BidNet will waive the registration fee for 6
months, to those vendors currently registered with DemandStar.
In an effort to increase the registrations on this system as quickly as possible, BidNet
will also send an announcement to its national vendors alerting them of the City's new
system and offer them the opportunity to register for the fax or e-mail service free of
charge. There would be no cost to the City for BidNet to send this announcement.
BidNet is willing to provide reasonable modifications at no charge. Examples of
reasonable modifications would include changes to existing reports, new reports, and
new searching abilities for the vendor database or the Miami Beach Bid Library.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the
attached resolution which accepts the City Manager's, the Evaluation Committee's, and
the Community Affairs Committee's recommendation; authorizes the Administration to
enter into negotiations; and if successful, authorizes the Mayor and City Clerk to
execute an agreement with BidNet, the top-ranked proposer, to implement an e-
Procurement system.
JMG:MDB:GL
T:~AG ENDA~2003~j&n0803~.onsent~e-Procurement.doc