30 November 2016

$10.65 Million 3-Year Contract Awarded for Police "Radios" at Nov 21 City Council Metting

City Council Report
Date: November 21, 2016 
To: City Council
Through: From: :   Mike Kennington, Chief Financial Officer Edward Quedens, MPA, C.P.M., CPPO, Business Services Director Matt Bauer, MBA, CPPO, CPPB, CPSM, Procurement Administrator

Subject:Three-Year Term Contract for Replacement Portable and Mobile Two-Way Radios for the Police Department (Citywide)
Purpose and Recommendation Council is requested to approve the Term Contract for Replacement Portable and Mobile Two-Way Radios as recommended.
A committee representing the Police and Communications Departments and Purchasing evaluated responses.
The evaluation committee recommends awarding the contract to the highest scored proposal from Motorola Solutions, Inc. at $3,550,000.00 annually, based on estimated requirements.
The Police Department will lease-to-purchase an initial quantity of 1,793 radios and will make additional equipment purchases as needed.  

Background / Discussion
These portable and mobile two-way radios and related accessories and equipment will replace the current radios being used by Mesa Police. The radios currently in use are up to 14 years old and have reached the end of their useful life. They are no longer guaranteed support from the manufacturer and users have been experiencing increasing radio failures. The new radios will allow for GPS tracking and Wi-Fi reprogramming. 
Staff from the Police and Communications Departments evaluated the proposals based on the evaluation criteria as stated in the solicitation.
The highest scored proposal, Motorola Solutions, Inc., is being recommended for award. The evaluation committee unanimously agreed on the recommendation.

Council may choose not to authorize the purchase and new responses will be solicited. Motorola has offered a savings of $400,000.00 and an interest rate of zero percent for the life of the lease-to-purchase. 
If approval of this purchase is postponed, this savings will be forfeited.

Fiscal Impact
The Police Department will lease-to-purchase an initial quantity of 1,793 radios and related equipment. 

The cost of this purchase will be $8,492,324 and will be paid over three years. 

These payments will be funded by General Fund Capital.  

Additionally, throughout each contract year, the Police Department requests additional capacity to purchase equipment as needed for new hires and expanded programs requiring the need for radio communication. 
The additional capacity requested is $713,130.00 annually. 

As these purchases are needed, funding sources will be identified.  
Coordinated With Police Department, Communications Department, and Purchasing

Action:  Initial Award Procurement
Type:  Request for Proposals Solicitation Number: 2016167 Vendors Registered:  ProcureAZ (354) and Vendor Self Service (20) Advertising:  Arizona Republic, Bid Net, ProcureAZ and Purchasing Website Downloads: 
85 Responses:  2 Local Consideration: 
Not applicable as there were no Mesa responses.
Protests Received:  None
Initial Contract Term:  Three years
Possible Renewals:  Two, one-year renewals subject to future Council consideration

Prices:  Future price increases are capped by the Consumer Price Index Pricing Available to Other Cooperative Agencies:  No
June 16, 2016 Proposals Received  Motorola Solutions, Inc. – Schaumburg, IL RELM Wireless Corporation – West Melbourne, FL
Proposal Scoring Results Evaluation Criteria / Points Possible Motorola (Recommended) Ability to Meet Minimum Technical Specifications / 1000 RELM 730 Qualifications & Experience / 500 234 500 Pricing / 1000 100 1000 Total / 2500 860 2230 1194

AWARD RECOMMENDATION Motorola Solutions, Inc.  Schaumburg, IL 
Description Portable and Mobile Two-Way Radios per Agreement No. 2016167;
Exhibits – Scope of Work, Technical Specifications, Pricing and Mesa Standard Terms and Conditions; Other Exhibits; Solicitation including any addenda; and Contractor Response   Annual Lease-to Purchase Contract Amount:  $2,830,774.67
Annual Capacity for Equipment Purchases $719,225.33

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