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C7N-Accept Revised Recommendation Unarmed Security Guard Servicesl..:UMMI:S:SIUN II tM :SUMMAKY Condensed Title: A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida Accepting The Recommendation Of The City Manager To Reject All Proposals Received Pursuant To Request For Proposals (RFP) No. 01-2013ME For Unarmed Security Guard Services; Authorizing A Month· To-Month E-xtension With The Current Contractor; And Requesting The Administration To Submit A New RFP For_~proval To Issue On December 11, 2013. Ke Intended Outcome Su orted: Increase resident rating of public safety services; and maintain crime rates at or below national rates. Since April2, 2007, the City has been under contract agreement No.34-05/06 with Security Alliance LLC (Security Alliance), to provide Unarmed Security-Guard Services at locations around the City, as shown in Appendix "A". The-current contract also allows for as-needed security guard services City-wide. The provision of security guard services City-wide is managed by the Police Department. The contract was set to expire on April 30, 2012. However, at its July 18, 2012, the City Commission approved a month-to-month extension of the contract to allow for time to rebid the services. On December24, 2012, RFP No. 01-2013ME was issued with an opening date of March 1, 2013. The Evaluation Committee convened on May 17, 2013 to evaluate proposals received and shortlist the proposers forfurtherconsideration in accordance with the criteria set forth in the RFP. The Committee shortlisted five (5) top-ranked companies for further consideration through presentations and interviews: G4S Secure Solutions, McRoberts Protective Agency, 50 State Security, Allied Barton, and Kent Security. On June 24, 2-Q13, the Evaluation Committee met to receive presentations from the short-listed firms. Details of the Evaluation Committee recommendation are included in the attached memo. However, after carefully reviewing the RFP requirements and the results of the Committee evaluation process, the City Manager finds that the Committee may have acted outside of its authority {as dictated by the RFP). Additionally, the City Manager also finds as follows: 1. Cost. The costs proposed .by the top-ranked proposers exceed the City's current rates, as well as the rates paid by Miami-Dade County. 2. RFP. The RFP released may have contained some irregularities and lack of clarity in the minimum requirements, which may have caused confusion, prevented some bidders from participating, or prevented a thorough evaluation of respondents. For example, addendums had to be issued clarify licensure requirements which, at one point, listed Class D Licenses issued by the State of Florida, which are only required by armed security guards, although the RFP was clearly for unarmed security guards. Additionally, the RFP asked that proposers submit their Standard & Poor's (S & P) or Moody's ratings, which are only available for publically traded companies. For non-publically traded companies, the RFP required financial statements to be submitted, which had to be evaluated by City staff and represent only a small, somewhat subjective, perspective of financial capacity rather than the more comprehensive and objective perspective available through a D & B Supplier Qualifier Report (currently utilized by the City for evaluating, in part, financial capacity). 3. Scoring of Costs. The City has moved to an objective methodology for evaluating cost proposals that removes subjectivity and inconsistencies by Evaluation Committee members. However, this RFP was issued prior to those changes. As a result, it appears that certain inconsistencies may have arisen from a subjective evaluation of cost by Evaluation Committee members. Based on the aforementioned, the City Manager believes it is in the best interest of the City to reject all proposals received and release a subsequent RFP for security guard services after considering revisions to the solicitation for the issues noted above, including possible reasons for the higher rates. RECOMMENDATION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida accept the revised recommendation of the City Manager to reject all proposals received pursuant to request for proposals (RFP) No. 01-2013ME for unarmed security guard services; further authorizing a month-to-month extension with the current contractor; and submit a revised RFP for a roval to issue on December 11, 2013. Advisory Board Recommendation: INA Financial Information· Source of Funds: Amount 1 N/A OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Alex Denis, Extension 6641 Sign-Offs: ,-~partment Director N/A Assistant C~Manager KGB .#If) v Account JLM / ~ I T:\AGEI llf1A\2013\0ctober 16\Procurement\RFP-01-2013 ME Unarmed Security -Summary.doc MIAMI BEACH 378 AGENDA ITEM C 7 f./ DATE /0-/6-/3 ----------------------- MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Me bers of th4kity Commission FROM: Jimmy L Morales, City Manager .J;:sa-- DATE: October 16, 2013 SUBJECT:A RESOLUTION OF THE MAY AND CITY ..COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCE TING THE REVISED RECOMMENDATION OF THE CITY MANAGER PURSUAN TO REQUEST FOR PROPOSALS (RFP) NO. 01-2013ME, FOR UNARMED SECURITY GUARD SERVICES. ADMINISTRATION RECOMMENDATION Adopt the Resolution. KEY INTENDED OUTCOME SUPPORTED Increase resident rating of public safety services; and maintain crime rates at or below national rates FUNDING The annual cost associated with City-wide security guard services is subject to funds availability approved through the annual budgeting process. The funding and accounts for the FY 2014 are appr-oximately $3,153,000.00. BACKGROUND Since April 2, 2007, the City has been under contract agreement No.34-05/06 with Security Alliance LLC (Security Alliance), to provide Unarmed Security Guard Services at locations around the City, as shown in Appendix "A". The current contract also allows for as-needed security guard services City-wide. The provision of security guard services City-wide is managed by the Police Department. The contract was set to expire on April 30, 2012. However, at its July 18, 2012, the City Commission approved a month-to-month extension of the contract to allow for time to rebid the services. On December 24, 2012, RfP No. 01-2013ME was issued with an opening date of March 1, 2013. The RfP resulted in the receipt of the following twelve proposals: 1. 50 State Security Service, Inc 2. Allied Barton Security Services 3. FPI Security Services 4. G4S Secure Solutions (USA) Inc. 5. Kent Security 6. McRoberts Protective Agency, Inc. 7. Navarm Group Lld. Inc. 8. Ocasa Logistics Solutions 9. Platinum Group Security 10. Responsible Security Inc. 11. SFM Security 12. US Security On April 18, 2013, the City Manager via Letter to Commission {LTC) No. 135-2013, appointed an Evaluation Committee (the "Committee") for the purpose of evaluating the proposals 379 Commission Memorandum -RFP # 01-2013 Unarmed Security Guards October 16, 2013 Page2 received in accordance with the criteria established in the RFP. Subsequent to the appointment of the Committee and resulting from scheduling and other conflicts experienced by certain Committee members, changes to the Committee composition were required which resulted in the final list of Committee members: • Mickey Minagorri, Committee Chair, Resident and Leadership Academy Graduate • John Bowes, Resident and Leadership Academy Graduate • Tony Kanieswski, Director, Property Management, City of Miami Beach • Julio Magrisso, Assistant Director, Parks and Recreation Department, City of Miami Beach • Michael Silverman, Resident and Leadership Academy Graduate The Committee convened on May 17, 2013 to evaluate proposals received and shortlist the proposers for further consideration in accordance with the criteria set forth in the RFP as follows: ·~~~~~~~~~~~~~~========~~~~==~~~=-~~~ ;iJff6ta 1 :,;~oints: ~ • ·~~,;~2•i;~J1~~!~1~1tiii;!!Iitlii:fUlt,!,l!l3jl~IJ!ili\19rH¢tJtitiil!/i1iBH;xJ:;;f:~ist~i~;:: :~, 'i: ,:::;>2': ;:; 35 20 10 10 Experience and qualifications of the Contractor Experience and qualifications of the Management Team Past performance based on Performance Evaluation Surveys Financial Strength as evidenced by the CPA reviewed/audited financial statements, third-party reports. 25 Cost Additional points, over the aforementioned potential points were to be allocated, if applicable and in accordance to following ordinances. LOCAL PREFERENCE: The Procurement personnel assigned an additional five (5) points to Proposers, which are, or include as part of their proposal team, a Miami Beach-based vendor as defined in the City's Local Preference Ordinance. Two (2) proposers, G4S Secure Solutions and SFM Security, were eligible for Local preference. VETERANS PREFERENCE: The Procurement personnel assigned an additional five (5) points to Proposers, which are, or include as part of their proposal team, a small business concern owned and controlled by a veteran(s) or a service-disabled veteran business enterprise, as defined in the City's Veterans Preference Ordinance. Two (2) proposers, 50 State Security Service, Inc. and McRoberts Protective Agency, Inc., were eligible for Veterans preference. 380 Commission Memorandum -RFP # 01-2013 Unarmed Security Guards October 16, 2013 Page3 The Committee individually evaluated the proposers' qualifications, experience, and competence, and further scored and ranked the proposers accordingly. The Committee's preliminary rankings pursuant to the proposal evaluation short-listing phase were as follows: Following the initial evaluation of proposals, the Committee recommended shortlisting the five (5) top-ranked companies for further consideration through presentations and interviews: G4S Secure Solutions, McRoberts Protective Agency, 50 State Security, Allied Barton, and Kent Security. On June 24, 2013, the Committee met to receive presentations from the short-listed firms. After presentations and question and answer sessions with each firm, the Committee individually scored each firm on the criteria outlined in the RFP as a basis for deliberations. The Committee's preliminary rankings after the presentations and Q&A session were as follows: Following the preliminary scoring of presentations and Q&A session, the Committee deliberated extensively on individual perceptions of the proposers' qualifications, experience, and competence. In deliberating the Committee discussed, in general, the following advantages and disadvantages of each proposal. The Committee discussed that G4S Security Solution offered the highest quality proposal overall, but had submitted the highest cost out of the five (5) shortlisted proposers. The Committee discussed that Kent Security offered cutting- edge technology that would be beneficial to the City, including point of view cameras on the guards and installation of cameras in all supervisor patrol vehicles which will report images via internet to the dispatch command center. However, the Committee discussed that Kent Security did not offer uniforms and guard appearance at the same level of quality as had other proposers. Finally, the Committee discussed that 50 State Security Service offered a good proposal, but offered less technological innovation and a higher cost than Kent Security. 381 Commission Memorandum-RFP # 01-2013 Unarmed Security Guards October 1u, 2013 Page4 Following the deliberation process, a motion was presented by Julio Magrisso, seconded by Michael Silverman, and unanimously approved by all Committee members, to recommend the following final ranking of proposers: The Committee recommended that Administration engage in negotiations with G4S Security Solutions, as the top-ranked firm, providing that G4S Security Solution was willing to lower its costs to the City by 10%. In the event that the Administration was unable to negotiate an agreement with G4S Security Solution, the Committee recommended that the Administration engage in negotiations with Kent Security, as the second-ranked firm, providing that Kent Security included the proposed technological innovations and improved the quality and appearance of its uniforms .. In the event that the Administration was unable to negotiate an agreement with Kent Security, the Committee recommended that the Administration engage in negotiations with 50 State Security Service, as the third-ranked firm, providing that 50 State Security Service lowered its costs to the City. MANAGER'S DUE DILIGENCE AND REVISED RECOMMENDATION After carefully reviewing the RFP requirements and the results of the Committee evaluation process, the City Manager finds that the Evaluation Committee may have acted outside of its authority (as dictated by the RFP). Additionally, the City Manager also finds as follows: 1. Cost. The costs proposed by the top-ranked proposers exceed the City's current rates, as well as the rates paid by Miami-Dade County. 2. RFP. The RFP released may have contained some irregularities and lack of clarity in the minimum requirements which may have caused confusion, prevented some bidders from participating, or prevented a thorough evaluation of respondents. For example, addendums had to be issued clarify licensure requirements which, at one point, listed Class D Licenses issued by the State of Florida, which are only required by armed security guards, although the RFP was clearly for unarmed security guards. Additionally, the RFP asked that proposers submit their Standard & Poor's (S & P) or Moody's ratings, which are only available for publically traded companies. For non- publically traded companies, the RFP required financial statements to be submitted, which had to be evaluated by City staff and represent only a small, somewhat subjective, perspective of financial capacity rather than the more comprehensive and objective perspective available through a D & B Supplier Qualifier Report {currently utilized by the City for evaluating, in part, financial capacity). 3. Scoring of Costs. The City has moved to an objective methodology for evaluating cost proposals that removes subjectivity and inconsistencies by Evaluation Committee members. However, this RFP was issued prior to those changes. As a result, it appears that certain inconsistencies may have arisen from a subjective evaluation of cost by Evaluation Committee members. 382 Commission Memorandum -RFP # 01-2013 Unarmed Security Guards October 16, 2013 PageS Based on the aforementioned, the City Manager believes it is in the best interest of the City to reject all proposals received and release a subsequent RFP for security guard services after considering revisions to the solicitation for the issues noted above, including possible reasons for the higher rates. RECOMMENDATION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida accept the revised recommendation of the City Manager to reject all proposals received pursuant to request for proposals (RfP) No" 01-2013ME for unarmed security guard services; further authorizing a month-to-month extension with the current contractor; and submit a revised RfP for approval to issue on December 11, 2013. T:\AGENDA\2013\0ctober 16\Procurement\RFP-01-2013 ME Unanned Security Guards -Memo-FINAL.doc 383 RESOLUTION TO BE SUBMITTED 384 THIS PAGE INTENTIONALLY LEFT BLANK 385