Okaloosa County BOCC — October 5, 2013 — County Administrator Bid Protest recommendation with exhibits — reading text

State of Florida County Administrator’s Office MEMORANDUM TO: Members of the Board of County Commissioners FROM: John Hofstad, Interim County Administrator DATE: September 23, 2013 RE: Bid Protest - Bid # TDD 56-13 Beach Cleaning Services for Okaloosa Island & Destin, Florida Okaloosa County previously issued Bid # TDD 56-13 (the “Bid”), which sought proposals to provide beach cleaning services for Okaloosa Island & Destin, Florida, for a three-year period. That Bid was opened on or about August 29, 2013. In response to the Bid, three submittals were received: 1) Sand Raker, LLC (“Sand Raker”) in the amount of $1,244,855; 2) The Sandman, LLC (“Sandman”) in the amount of $1,263,358; and 3) Hemphill Const. Co. in the amount of $2,238,031. Pursuant to County policies, the Tabulating Committee met and reviewed the bid submittals. On September 6, 2013, the County mailed a letter to Sandman notifying them that the Tabulating Committee intended to recommend award of the Bid to Sand Raker as the lowest, responsible and responsive bidder. On September 10, 2013, Sandman filed a notice of intent to challenge the award of the Bid. A copy of the notice is attached hereto as Exhibit “1”. On September 12, 2013, Sand Raker submitted a response to Sandman’s notice of intent to challenge. A copy of the response is attached hereto as Exhibit “2”. On September 16, 2013, Sandman’s formal written challenge was submitted to the County. A copy of the formal challenge is attached hereto as Exhibit “3”. Pursuant to County policies, in order to challenge a bid award recommendation, the challenger must deliver a notice of intent to challenge to the County Administrator within 72 hours after posting of the intended recommendation of award. Thereafter, a formal written challenge must be filed with the County Administrator within 5 business days after the date on which the notice of intent has been submitted. The bid protest filed by Sandman was timely submitted. Okaloosa County Administration Building 1804 Lewis Turner Blvd., Suite 400 Fort Walton Beach, FL 32547 (850) 651-7515 * FAX: (850) 651-7551 e-mail: epadgett@co.okaloosa.fl.us Under the policies of the County, a challenge to a bid award recommendation is submitted to the County Administrator who shall review the merits of each timely challenge and issue a recommendation to the Board of County Commissioners. Pursuant to the requirements of policy, the Interim County Administrator reviewed the various materials submitted by Sandman and Sand Raker, the Bid, and the County Purchasing Manual. Some additional materials were also reviewed. After consideration of this material, the following constitutes the recommendation of the Interim County Administrator. In reviewing the protest, Sandman contends that Sand Raker did not meet bid specifications, was not responsive in all material aspects, and is not a qualified or responsive bidder. Specifically, Sandman asserts that Sand Raker’s bid submittal is materially non-responsive in the following aspects: 1) failure to disclose the local preference applicable in the jurisdiction where Sand Raker is located; 2) lack of proper licensing in Okaloosa County; 3) failure to attach a proper financial statement; and 4) failure to provide pictures of equipment older than three years. Further, Sandman contends that Sand Raker is not a responsible bidder based on the experience and equipment listed in its bid submittal. Both Section A, paragraph 9, of the bid specifications and Section K, paragraph 2, of the County’s Purchasing Manual provide as follows: Okaloosa County grants a preference to in-county bidders only when bids are received from firms located in states, counties, municipalities or other political subdivisions which offer preference to bidders located in such political subdivisions. The amount of preference given to local bidders will be the same as that given by the state, county, municipality or other political subdivision in which the out-of-county bidder is located. If the political subdivision in which a bidder is located offers a preference to its local firms, that bidder must plainly state the extent of such preference to include the amount and type preference offered. Any bidder failing to indicate such preference will be removed from the County list and any and all bids from that firm will be rejected. (Emphasis added). Sand Raker is located in Manatee County, Florida. In its bid submittal Sand Raker stated that it is not located in a state, county, or municipality that offers a preference to its local bidders. However, an independent review of the Manatee County Code of Ordinance revealed that Manatee County has a local preference contained in Section 2-26-6. A copy of the local preference provision is attached hereto as Exhibit “4”. Manatee County’s 2 local preference is limited in scope and only applies when there is a tie bid between a local bidder and a non-local bidder. Nevertheless, the plain language of the County’s Purchasing Manual and bid specifications required Sand Raker to disclose the existence of a local preference in the county where it is located. Failure to do so would subject Sand Raker to be removed from the County list and its bid rejected. Pursuant to the County’s Purchasing Manual and bid specifications, Sand Raker was required to disclose Manatee County’s local preference and the extent of such preference. The other issues raised by Sandman need not be addressed as failure to disclose a local preference is a material omission which deems Sand Raker’s bid submittal as non- responsive. Accordingly, Sand Raker’s bid submittal should be rejected. CONCLUSION Based upon an independent review of the materials, it is the recommendation of the below signed that Sand Raker’s bid submittal be rejected and the Bid be awarded to Sandman as the lowest, responsible and responsive bidder. DATE Gov 3 NOTICE OF INTENT TO CHALLENGE PURCHASING DEPARTMENT Date: Challenger: Notices to: RECOMMENDATION September 10, 2013 Sandman, LLC 762 Benning Dr. Destin, FL 32541 Phone: 850-654-7710 Email: sandman@beachcleaning.com Taylor Ward - contact information above Bid: Beach Cleaning Services for Okaloosa Island & Destin Bid #: TDD 56-13 Brief Factual Summary of the Basis of the Intended Challenge 1. The Okaloosa County Purchasing Department notified the Challenger (Sandman, LLC) by letter dated September 6, 2013, that it intended to recommend award of a bid by The Sandraker, LLC. a. The difference in the dollar amount of Sandman’s and Sandraker’s bid is only $16.89 per day or $6,167.66 per year on a total three-year contract amount of $1,244,855 for Sandraker and $1,263,358 for Sandman. This equates to only a one-percent (1%) difference in amount. None of the directly affected stake holders or the TDD Board of Directors are aware of this critical decision being contemplated. The requesting department’s board was not consulted and allowed to provide input. This closed-door approach and lack of communication between these members does not meet the spirit of our sunshine laws. It would be appropriate to inform and ask for input from this board and beach resort partners regarding the critical decision before it’s made in haste. 2. Sandraker’s bid was not responsive in all material respects in that: a. It failed to furnish with its bid the satisfaction of proper licensing in Okaloosa County as required under 3.D. - Preparation and Submission of Proposal. This is a material omission. The nature of the work under the contract requires operations that may only be located in certain zoning districts. These operations require storing and use of heavy industrial equipment, trash and garbage storage and transfer. No business location or licensing to operate from any business location was included in its bid. It failed to attach a financial statement as required. This is a material omission and fatal to the adequacy and responsiveness of its bid. Bidder shall attach a financial Exhibit "1" statement to bid. (Page 7, Bidder Supplemental Information). Bidder attached a profit and loss statement for the period of January 1, 2013 through August 28, 2013 for operations that have no relevance to the contract up for bid and shows a lack of understanding of critical financial business matters. A financial statement shows the assets, liabilities, and net worth of the bidder, and whether or not the bidder is solvent. It is a critical document in determining whether or not the bidder is financially qualified to carry out the obligations and complete the work required under the contract. It is not possible to compare bids and determine qualifications of bidders without a financial statement. Sandraker is a Florida Limited Liability Company (LLC). As such, it must be managed by its members or a manager. Its formation documents indicate that it has managing members. However, the bid documents are signed by one of its members as CEO. This indicates a lack of basic understanding of proper business procedures and a misunderstanding of the legal requirements of Florida business entities. Therefore, the bid documents are not properly executed. Sandraker states it is a minority and veteran owned company. Whether this statement is relevant or not, it should be determined that the company legally qualifies for such designation. If it does not, it would be a misrepresentation of fact in its bid. Sandraker’s bid was not responsible in that: a. The equipment list furnished with its bid is woefully inadequate to perform the work under the contract. The lack of a financial statement makes it impossible to determine whether it owns or can even acquire the actual equipment proposed. The trained manpower proposed is questionable. Sandraker’s profit & loss statement indicates only $120.00 of payroll expense for eight months of operation leading one to believe they do not have any legal employees or trained employees with experience in the field. Sandraker certified in its bid it meets the criteria for a drug free workplace. The lack of real employees would indicate that it has no policy meeting the definition of a drug free program in place. By indicating they qualify and have this program in place at the time of bid submission is a material misrepresentation. It has NO experience in the removal, transfer, and disposal of garbage and trash. The amount of trash and garbage that must be removed, transferred, and disposed is in excess of 300 tons per year and requires an in-depth understanding of the unique processes needed for beach related trash and garbage removal, transfer, and disposal. Its beach cleaning experience indicated in its bid consists of only light duty, small machine work. The contract requires significantly larger equipment capable of running consistently every day. It requires almost double the amount of trucks. It requires larger trucks for the legal transport of the equipment and material to properly carry out the duties. Acceptance of Sandraker’s bid should not be recommended and should be rejected on the basis that it is not responsive in all material aspects and that Sandraker is not properly qualified to carry out the obligations of the contract and to complete the work contemplated therein. Sandman, LLC requests the Purchasing Department and the County Administrator to reconsider the evaluation of the bids and recommend to the Board of County Commissioners that it should award the bid to Sandman, LLC as being fully responsive and responsible and in the best interest of the County and the TDD. Sincerely, Taylor Ward Sandman, LLC NOTICE OF INTENT TO CHALLENGE PURCHASING DEPARTMENT RECOMMENDATION Date: September 10, 2013 Challenger: Sandman, LLC 762 Benning Dr. Destin, FL 32541 Phone: 850-654-7710 Email: sandman@beachcleaning.com Notices to: Taylor Ward - contact information above Bid: Beach Cleaning Services for Okaloosa Island & Destin Bid #: TDD 56-13 Brief