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

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. Honored to be recommended, Thank you! We won't let you down! 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. Yes this is correct. The Sand Raker is the low bidder. b. 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. ! am certain that all parties knew this process was coming well in advance. 2. Sandraker’s bid was not responsive in all material respects in that: Exhibit Wott 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. No sense in securing storage and trash transferring facilities until we are formally awarded the contract. We have 2 appropriate facilities ready to go upon award. We inquired in the spring if we needed licensing prior and was told by county purchasing personal that it would be required before the commencement of the contract. We will satisfy all licensing requirements prior to start date. 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 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. We provided our financials for 2013. 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. We are in good standing utilizing proper business procedures. 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. Cynthia is a woman (minority) and | am a retired US Navy veteran. | don’t think it matters either way anyway. Sandraker’s bid was not responsible in that: 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. Inadequate? Brand new state of the art Barber Surf Rakes and Kubota Tractors will be delivered onsite by October 1°. 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. / will be onsite daily plus my lead man here in Sarasota has agreed to move back to Destin to be a tractor operator. All employees go through a thorough training process. . 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. We are a drug free workplace and meet standards. . 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. Assumption! I've removed and disposed of trash for years. In addition | have made a site visit to the Waste Management transfer station and was given of tour of the facility and a walk through of the procedures and protocols of the beach trash operation. The Sand Raker is very comfortable in the successful execution and completion of this portion of the contract. 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. Another assumption! The Sand Raker removed over 100+ tons of seaweed in 3 days for the city of Treasure Island. That is just one example. We are fully capable of handling any situation that may arise. We work every day consistently now. We have all the equipment, manpower and experience necessary to get the job done right the 1° time! 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. The Sand Raker is more than qualified for this award. You'll find us to be professional in all of our endeavors. We handle situations that may arise in a timely manner and with integrity. We fully understand the scope of work and the importance of that for the residents and visitors alike. We look forward to working and partnering with Okaloosa County. Sincerely, Taylor Ward Sandman, LLC CAO Acwel 4-6-3 FORMAL CHALLENGE TO STAFF RECOMMENDATION TO AWARD BID ON BEACH CLEANING SERVICES To: Ernie Padgett Okaloosa County Administrator 1804 Lewis Turner Blvd., Ste. 400 Fort Walton Beach, FL 32547 Date: September 16, 2013 Challenger: Sandman, LLC Physical Address: 326 Mountain Dr., Destin, FL Mailing Address: 762 Benning Dr., Destin, FL 32541 Phone: 850-654-7710 Email: sandman@beachcleaning.com Notices to: Karen Powell Ward, Esq. Ward & Ketchersid, P.A. 1241 Airport Rd., Suite H Destin, FL 32541 Phone: 850-837-5507 - Fax: 850-650-9659 Email: kward@flaattorney.com Bid: Beach Cleaning Services for Okaloosa Island & Destin Bid #: TDD 56-13 Basis of the Challenge Sandman, LLC (“Sandman”), by and through its undersigned attorneys, and pursuant to Okaloosa County Purchasing Manual Paragraph M. BID/PROPOSAL PROTESTS, challenges the recommendation and protests any award of the bid to Sand Raker, LLC (“Sand Raker’) on the grounds of irregularities in the evaluation of the bid/proposal, because Sandman is the lowest, responsive and responsible bidder, and Sand Raker’s bid must be rejected because it did not meet bid specifications, was not responsive in all material aspects, and it is not a qualified or responsible bidder, and in support thereof states: 1. The Okaloosa County Purchasing Department notified the Challenger (Sandman, LLC) by letter dated September 6, 2013, that it would recommend award of the bid Page | of 8 Exhibit "3" by The Sand Raker, LLC as being the “lowest responsive bidder meeting specifications.” A copy of the letter is attached as Exhibit A. Sandman received this letter on Saturday, September 7, 2013 and timely delivered to the County Administrator’s office its Notice of Intent to Challenge the recommendation on Tuesday, September 10, 2013 as evidenced by the Receipt for Documents attached as Exhibit B. Sandman has standing to make this challenge in that it is the second lowest bidder, and its bid was fully responsive, and Sandman is a fully responsible bidder. The difference in the dollar amount of Sandman’s and Sand Raker’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 Sand Raker and $1,263,358 for Sandman. This equates to only a one-percent (1%) difference in amount. Sand Raker’s Bid is Fatally Non-responsive “The Purchasing Director and the Department Director involved shall review the bids and recommend to the Board the recommended vendor(s) on a basis of the lowest and best bid meeting specifications.” Okaloosa County Purchasing Manual (hereinafter “OCPM”) K.(1.)(g.). “The Purchasing Director and Department director shall determine the lowest responsible and responsive bidder.” OCPM Q. (IV.)(h.). “The Purchasing Director shall obtain Board approval and authorization for the Board to execute the agreement to the lowest, responsible and responsive bidder. OCPM Q.(IV.)(.). Consequently, the recommendation must be to award the contract to Sandman as the lowest and best bid meeting specifications and as the lowest, responsive and responsible bidder. The Bid Specifications, Section A, paragraph 9, Local Preference under Invitation to Bid states in part: If the political subdivision in which the 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 bid list and any and all bids from that firm will be rejected. (Emphasis added). Page 2 of 8 a. The above statement is also contained in the Okaloosa County Purchasing Manual Paragraph K.(2.). Sand Raker indicated on the Local Preference Data Sheet that there was no preference offered to bidders where it is located. See Exhibit C attached. Sand Raker is located at 5827 28" Lane Fast, Brandenton, FL 34203, according to its bid submission and the Florida Department of State. Bradenton is located in Manatee County, Florida which does have a local preference pursuant to Manatee County Purchasing Ordinance 2-26-6. b. Sand Raker’s failure to state Manatee County’s local preference renders its bid fatally non-responsive, and its bid does not meet the bid specifications. According to Okaloosa County’s bid specifications for the subject contract and the Okaloosa County Purchasing Manual,