City Purchasing Leaning Toward Less Bidding for City Purchases?

In the city language they use “sole source” purchases when they want to avoid a bidding process. This used to be highly unique . . . but it seems to be becoming less and less unique. So, a blog about sweetheart deals in honor of Valentines Day. Where does this slippery slope end?

This is just one of those things you notice after looking at all the city agendas every week for years and years and years.  It’a also one of those things you notice when you’ve been screwed over by government purchasing practices (county, not city).  It’s also one of those things that when you believe fairness in government is important makes you raise an eyebrow.  It’s also one of those things that makes you wonder if this is just more changes as government tries to act more like a business and you believe that it shouldn’t.

In concrete terms, if Tenant Resource Center has to apply for a “tenant services” grant, why don’t these other folks have to apply or bid for their funding? Don’t get me wrong, I think TRC should have to apply. So should Porchlight and Commmonwealth and Wisconsin Council on Families and Children and Operation Fresh Start and Nehemiah and 4Cs and all the businesses listed below. I’m actually more concerned on the for-profit side, but I know less about that so its harder to critique. But it seems like the trend is moving away from open bidding for services.  Why?  What’s different?  Is our government wanting to be more like a business and play favorites?  Or are they opting out of the the open and transparent bidding process in favor of acting more quickly?  If this trend continues, where does it end?

Let’s take a look.

MGO 4.26 outlines the exceptions to when the city has to go to a Request for Proposals process:
(4) Exceptions to RFP Process . The City may enter into negotiated contracts without a competitive bidding process for the purchase of services if the following are met:

(a) One or more of the following criteria are present as found by the Finance Director:
1. Public exigency will not permit the delay incident to advertising or other competitive processes;
2. The service required is available from only one person or firm;
3. The services are for professional services to be provided by attorneys;
4. The services are to be rendered by a university, college, or other educational institution;
5. No acceptable bids have been received after formal advertising;
6. Service fees are established by law or professional code;
7. A particular consultant has provided services to the City on a similar or continuing project in the recent past, and it would be economical to the City on the basis of time and money to retain the same consultant;
8. The contract is for twenty-five thousand dollars ($25,000) or less; or
9. Otherwise authorized by law, rule, resolution, or regulation.

A quick search of legistar for “sole source” purchases reveals the following trend:

Here’s the details.  2018 already has 15 pieces of legislation that show up. I really am curious about what has changed and why?

2005 – zero pieces of legislation (but legistar was still new)

2006 – 1 item (Fleet division purchasing 21 automated refuse collection vehicles)

2007 – there were 8 items (trees, trash carts, software maintenance and upgrades – Progress Software, Daystar Computer Systems & System X Design, video surveillance for water utility, financial services continued and the Applied Pop Lab)

2008 – 8 items, 4 were running the golf courses. Mark Rechlicz to run Yahara Hills, RJM Pro Golf Inc to run Monona golf course, Bill Sheer to run Glenway and Thomas F Benson to run Odana Hills. The other 4 items were firefighter safety gear, garbage truck purchase, Zeag harware and software for parking utility equipment and New World Systems software for police department.

2009 – 4 items, 2 of them are repeats from previous years. More Zeag equipment (Parking Utility), Trapeze Software (Metro), Applied Pop Lab and Xiocom Wireless/MadCity Broadband for wireless mesh network services.

2010 – 7 itemsApplied Pop Lab, software support and maintenance from Environmental Systems Research Institute, Sustainable Engineering Group for LEED certification for Library, Professor James Undcoffer for “focus model” at Overture, Mortenson Construction for Overture, State DOJ training for police, software support and maintenance.

2011 – 8 items Applied Pop Lab, Safe Communities Coalition, Wisconsin Survey Center, B-cycle, OrangeBoy Inc strategic planning for Library, Driving Simulator for police, Trapeze software for Metro, software generally, Fire Department software, purchase and Safe Communities Coalition again.

2012 – 8 itemsBaker Tilly Virchow Krause for solar systems analysis, Eppstein Uhen for Fire Station 1, DOJ for police training, Leadership in Energy for LEED certification for Monona Terrace, Northwestern for training for the Police Department, Socrata for open source software, Madison Community Foundation/Operation Fresh Start for restoration projects in parks and UW for diagnosis and treatment of sexually transmitted infections.

2013- 8.5 itemsElections equipment, planning and technical services for Monona Terrace, mural conservation services (public library), design services for Meadowridge Library, northside marketing and feasibilty analysis (had an option of RFP or sole source), IT Help Desk Software, NetMotion Wireless to connect police and fire to city network, Dean Clinic medical services for Fire Dept and Porchlight to run bus pass program. (yeah, cuz no non-profit wants $80,000 of free bus passes for their clients . . . )

2014 – 12 itemsForward Community Investments to develop Gardens for Empowerment, Isthmus Architecture for Theresa Terrace Neighborhood Center, Progress Software Corporation, MSA Professional Services for sanitary sewer design for interstate bridges, Corporation for Supportive Housing planning services for the Homeless Consortium, Trapeze software for Metro, C.D.L. electric for Quiet Zones, GT viewer and software, Madison Dental Initiative, Kronos and FrontRange Solutions software, Johnson’s Nursery for trees and chemicals for Parks pools and splash parks.

2015 – 14 items Fire safety gear, Tasers, Calthorpe Analytics for Urban Footprint for transit planning, Rapid Improvement Associates to enable and support tools for energy management, Destree Architects for Park Restroom prototype, Isthmus Architecture for rehab of Olin Terrace, C.D.L. Electric for quiet zones, Corporation for Supportive Housing for more homeless services planning, Trapeze software for Metro, Corporation for Supportive Housing for public process for Community Plan to Prevent and End Homelessness, Simon and Company for federal lobbying, more Trapeze Software for Metro, Roy Elkins for the Madison Songwriting Conference and Commonwealth Development and Kimberly Hassell for a grant written with the Madison Police Department.

2016 – 21 itemsTitan Public Safety Solutions for municipal court software, General Communications Inc for police department vehicle equipment, SiteOne Landscape Supply for EAB mitigation, repair of truck by Lakeside International, HUB Parking Technology (formerly Zeag), Cool Choices for energy benchmarking, Winscribe USA for police dictation software, Trimble Navigation Limited for survey tool and hardware for the Water Utility, for HAZMAT equipment, Communications Engineering Company for a video wall for the fire department, Sustaining Natural Circles safety planning, Cummins Inc, Gillig and Trapeze for bus parts, Accela software for licensing and permitting, Stepp Equiment Company for vehicle repairs (police department if I recall), E.J. Ward for fuel data reporting and billing system, UW Madison for paid leave analysis, AVA Civic Enterprises (George Austin) for Judge Doyle Square (there should have been several more of these in previous years), Applied Pop Lab, TargetSolutions for fire department training tracking, UW for the MARI grant and Wisconsin Council on Families and Children for community planning for MARI grant.

2017 – 32 items (I left the full detail for the most recent ones since there was such a huge increase)
– Authorizing the City to purchase IT Service Management (HEAT Classic-Service Desk) and Ivanti Management Suite-LANDesk software applications and ongoing support/maintenance from Ivanti, Inc. on a sole source basis.
– Authorizing the Mayor and City Clerk to Execute a contract with AVA Civic Enterprises, Inc. for Project Director Services for the construction phase of the Judge Doyle Project and as Sole Source to act as City Agent for the Development of Judge Doyle Project.
– Authorizing the sole source purchase of materials from Gerber Leisure Products, Inc. for playground border timbers to maintain playground surfacing within the parks system.
– Authorizing the sole source purchase of services by the Community Development Division from Community Coordinated Child Care (4-Cs) for surveying, data analysis, and research services associated with early childhood and school-age care in Madison.
– Authorizing the Mayor and Chief of Police to accept a 2017 COPS Community Policing Development grant of $39,231 for officer resiliency training; and amend budgets accordingly
– SUBSTITUTE – Strengthening and Expanding Community Empowerment through Placemaking in Key Neighborhoods and Authorizing a Contract with Project for Public Spaces for Placemaking Training and Assistance in the Implementation of Short-Term Improvements in Neighborhood Community Places.
– Authorizing the Mayor and City Clerk to execute a sole contract with the Board of Regents for the University of Wisconsin System, on behalf of the University of Wisconsin’s Department of Community and Environmental Sociology, Applied Population Laboratory to maintain, update and refine the Neighborhood Indicators Project and related website and procure additional services as needed, from 2017-2022.
– Authorizing the Mayor and City Clerk to execute a sole source contract with West Publishing Corporation, a Thomson Reuters business (West) for online legal research services through 2020.
– Authorizing a sole source agreement between the City of Madison Water Utility and API Outsourcing Inc. and authorizing the Mayor and City Clerk to enter into a POS contract with API Outsourcing Inc. for printing and mailing services for the Madison Water Utility.
Family Child Care Accreditation RFP and data sole source
– Authorizing the City of Madison to enter into a sole source purchase of services contract with CORRE, Inc. for relocation assistance and property management services for the tenants and improvements remaining on land purchased for the expansion of Central Park, located at 202 S. Baldwin Street, 212 S. Baldwin Street, and 1130 E. Wilson Street.
– Authorizing, on behalf of the Madison Area Transportation Planning Board – An MPO, the sole source purchase of transportation planning services from Fehr & Peers to develop a strategic plan for improving the MPO’s travel model and other planning analysis tools
– Authorizing the Mayor and the City Clerk to enter into an agreement with Destree Design Architects Inc, in the amount of $34,500.00 for additional architectural and engineering design services to complete the construction documents for a Park Restroom Prototype Building and the Walter Street Restroom Replacement.
– Authorizing the sole source purchase of services contract with Controlworks for low voltage HVAC controls for the installation and programming of upgrades at various city buildings to the building automation system.
– A Resolution authorizing the sole source purchase of services from GHD, Inc. for strategic and tactical asset management planning purposes for Madison Water Utility.
– Approval to Sole Source the repairs of the Peterson grinder with Peterson Pacific Corp.
– Accepting a contribution from Madison Gas & Electric (MGE) in the amount of $22,655; amending the 2017 adopted Operating Budgets of Metro Transit and the Water Utility and amending the 2017 adopted Capital Budget of Fleet Services to appropriate the revenue and make expenditures associated with the grant; authorizing the sole source purchase of 3 electric cars; authorizing the replacement and disabling of 3 gasoline-powered vehicles; and, authorizing the Mayor and City Clerk to sign an agreement with MGE to receive and use these funds.
– Authorizing the City to enter into a sole source contract with SCS Engineers for professional environmental engineering services for the Garver Feed Mill site.
– Authorizing the Mayor and City Clerk to enter into a sole source agreement with StageRight, Inc., in an amount not to exceed $155,300 for the purchase of “Fold & Roll Risers”, for use by Monona Terrace.
– SUBSTITUTE – Authorizing the Mayor and City Clerk to enter into a $50,000 contract with Nehemiah Community Development Corporation for short term peer support and crisis response services, who shall subcontract with Focused Interruption Coalition, with Boys and Girls Club of Dane County, Inc. as fiscal agent for the subcontractor; and transfer $25,000 from supplies to purchased services to be used for peer support services.
– Authorizing the Mayor and Clerk to enter into a three-year sole source agreement with Municipal Code Corporation for an upgraded version of the City’s online ordinance service, Municode.
– Approval to Sole Source the purchase and refurbishment of City of Madison ambulances with North Central Ambulance, dba Jerry’s Transmission.
– Authorizing the sole source purchase of services contract with Controlworks for low voltage HVAC controls for the installation and programming of a new building automation system at Warner Park Community Recreation Center and Amending the 2017 Adopted Capital Budget to transfer $10,000 of existing GO borrowing budget authority from the Engineering-Facility Management’s Sustainability Imrovements capital program to Parks Division’s Park Facility Improvements capital program.
– SUBSTITUTE-Authorizing the Mayor and the City Clerk to enter into a sole source agreement with the National Transit Institute to provide Transit Leadership Training in Madison for Wisconsin transit systems; and amending the adopted 2017 Metro Transit operating budget to accept the revenue for the estimated cost of this training of $50,000. The 80% federal share of the cost will be reimbursed by the Wisconsin Department of Transportation and the 20% local share will be reimbursed by Transit Mutual Insurance company.The cost of this training will be covered by funding from Transit Mutual Insura
– SUBSTITUTE – Amending the 2017 Parks Capital Budget to create a new project “Golf Course Equipment” and appropriate $250,000 in non-General Fund general obligation borrowing that will be repaid by the Golf Enterprise Fund to purchase new mowers for the City’s golf courses, and authorizing the City to enter into an sole source agreement with Burris Equipment to purchase mowers.
– To authorize the City to enter into an agreement with either one or both of two Wisconsin nurseries, McKay Nursery and Johnson Nursery, to purchase trees until January 1, 2027.
– Authorizing the Mayor and City Clerk to enter into a 5 year sole source agreement with L.W. Allen to provide professional services in updating, maintaining, and providing emergency services for Madison Water Utility’s Supervisory Control and Data Acquisition (SCADA) system.
– Authorizing the sole source purchase of services contract with OPN Architects, Inc. for professional architectural and engineering services for the design of Fire Station 14.
– Authorizing the Mayor and the City Clerk to enter into an agreement with Destree Design Architects Inc, in the amount of $29,890 for additional architectural and engineering design services to complete the construction documents for a Park Restroom Prototype Building and the Penn Park Restroom.
– Authorization for the Madison Police Department to use General Communications, Inc. as a sole source provider of Setina vehicle equipment.
– Authorizing the sole source purchase of services from CTC Technology & Energy (CTC) for developing an implementation plan for Fiber-to-the-Premise project, supporting enactment number RES-16-00829.
– To authorize the City to enter into an agreement with SiteOne Landscape Supply Holding LLC for chemicals and supplies to be used for EAB mitigation in 2017.

2018 – 15 items in the first month and a half of this year . . . think we’ll double last year’s numbers?
– SUBSTITUTE – Authorizing the Mayor and City Clerk to enter into a sole source agreement with StageRight, Inc., in an amount not to exceed $106,100 for the purchase of “stage decking, base supports, stairs and an ADA ramp”, for use by Monona Terrace.
– Authorizing the sole source purchase of services by the Employee Assistance Program (EAP) Office from FEI Behavioral Health, Inc. for external EAP services contract beginning on June 1, 2018.
– Authorizing a 5-year sole source agreement for the purchase of goods (Toshiba magnetic flow meters) from J & W Instruments, Inc.
– To authorize the City to enter into an agreement with SiteOne Landscape Supply Holding LLC for chemicals and supplies to be used for EAB mitigation in 2018.
– Authorizing Madison Water Utility to use N Harris Computer Corporation as a sole source provider of Customer Information System (CIS) software and Meter Data Management (MDM) software.
– Authorizing Madison Water Utility to use Badger Meter Inc. as a sole source provider of water meters and meter equipment.
– Authorizing Madison Water Utility to use Itron Inc. as the sole source provider of Advanced Metering Infrastructure (AMI) fixed network hardware (endpoints, repeaters, collectors) and software.
– SUBSTITUTE-Authorizing an amendment to the purchasing agreement with Pierce Manufacturing, Inc. to reflect Reliant Fire Apparatus as the authorized dealer through which purchases will be conducted.
– Authorizing the Mayor and City Clerk or the Designee of the Finance Director to execute a sole source Purchase of Services Contract with Roy Elkins, doing business as RGE Music Company, LLC
– Authorizing the Mayor and the City Clerk to enter into a sole source contract with Budget Truck and Auto, Inc. for five years, January 1, 2018 – December 31, 2022 for repair of Gillig buses. The contract amount would be not to exceed $200,000 per year.
– Authorizing the sole source purchase of services from Affiliated Engineers, Inc. for planning, designing and incorporating water main replacement into the proposed South Campus Utility Improvements Project (State of WI DFD Project) for Madison Water Utility
– Authorizing the Mayor and City Clerk to execute a Sole Source purchase of services contract with LMRL Consulting, LLC, dba Tactical Athlete Health & Performance Institute (TAPHI) for the coordination of health services for injured employees and development of rehabilitation case management.
– Authorization for the Madison Police Department to use General Communications, Inc. as a sole source provider of Setina vehicle equipment.
– CDA Resolution 4252 – Authorizing the Chair and Secretary of the Community Development Authority (“CDA”) to hire Kevin Barney at the law firm of Kutak Rock under a sole source purchase of services agreement to serve as Bond Council for the refinancing of the CDA Taxable Redevelopment Lease Revenue Bonds, Series 1999C (the “Lease Revenue Bonds”) issued to finance parking for the Hilton Hotel.
– Authorizing the Transit General Manager to file an application for a Section 5339 Low-No Emission Grant with U.S. Department of Transportation and authorizing the Mayor and the City Clerk to execute the associated grant agreement with USDOT, the associated sole source agreements with the project partners, Center for Transportation and the Environment (CTE) and Proterra and execute the required 13 (c) agreement with Teamsters Local No. 695, and accepting the grant award and amending the 2018 adopted capital budget to add $1,278,950 of federal funding and $31,000 of private contribution funds to

So, why does all this matter? What if we think Municode sucks and want the city attorney to look for another service? What if there are other places we can buy lawn mowers for the Parks Department? Is there only one agency that can provide behavior health services for the city? What if another nonprofit besides Nehemiah wants to apply for that funding? Can no other architect design a parks bathroom? Are our elected officials asking these questions or are these things slipping through on consent agendas with no one reading them? They’re now entering into 5 year contracts – will there be no other business that develops in 5 years that can perform these services?

Form your own questions . . . when its 4 or 8 purchases a year, its one thing . . . but this is a wholesale change in the way the city does business and I don’t think it was a conscious decision by anyone. There was no policy change voted on by the common council, there was no public discussion or committee that voted on this. It just happened, the way things do. But is it the right thing to do? I don’t think so.

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