Saturday, February 23, 2013

State halts radio-buying effort

Iowa’s Department of Administrative Services has abandoned its latest effort to purchase law enforcement radio equipment and network infrastructure amid criticism from suppliers and lawmakers that its procurement process isn’t giving vendors a fair shake.

The department, which manages equipment purchases for agencies across state government, issued the request for proposal to purchase about $7 million in radio equipment last fall, and since then has issued two more for the development of a statewide radio network potentially costing tens of millions of dollars.

The cancellation of all three was announced in a terse notice from the department.

“DAS will be restructuring these RFPs and consolidating them into a single RFP in an effort to maximize economies of scale and to ensure the most efficient possible use of taxpayer dollars,” the announcement said. “DAS remains committed to a process that ensures fairness for the vendor community and competitiveness on behalf of Iowa taxpayers.”

State Sen. Matt McCoy, who’s been a leading critic of the department’s handling of the radio contracting for months, cheered the announcement.

“It’s a huge win for the taxpayers and the state,” he said.

The cancellation, he added, “was a clear admission on the part of DAS that this thing was mishandled and poorly executed from the word ‘go.’ ”

In an interview, however, department spokesman Caleb Hunter said the RFPs’ cancellations had less to do with the controversy that has erupted than with a feeling among officials that a new RFP could make the process more efficient.

“We were comfortable with the legality of these RFPs; we just think we can do it a little bit better this time,” he said.

Friday’s announcement was the third time the department canceled bids for the purchase of radios. Two previous RFPs, in late 2011 and spring 2012, were canceled after vendors and lawmakers pointed out specifications that seemed to disqualify all radios except those manufactured by industry leader Motorola Solutions Inc.

The questions of bias were explored in a story by The Des Moines Register earlier this month.

The latest equipment RFP, issued last September, sought to purchase hand-held radios, in-car mobile units, and other devices for use by the departments of public safety, transportation, natural resources and corrections. Marshalltown-based vendor Racom Corp. and another firm challenged it again, however, arguing that the department ignored recently passed state laws governing the procurement of radio equipment and skewed the request to sideline potential bidders.

Lawmakers lined up behind Racom: Several lawmakers wrote letters questioning the RFP, and a Senate committee grilled DAS Director Mike Carroll on the matter earlier this month. The Government Oversight Committee was scheduled to query him again Thursday, but the hearing was canceled because of the snowstorm.

Racom President and CEO Michael Miller said Friday he was “pleased” by the department’s reversal. A spokesman for Motorola said the firm was “surprised and disappointed” by the announcement.

Going forward, the department’s statement said, the state will “work with an independent consultant to generate a new RFP to complete the purchase of radios and a radio network.”

Developing a statewide network for law enforcement communications could be far more costly than the radio purchases. Estimates for various systems range from around $20 million to more than $100 million.

Lawmakers, meanwhile, promised to remain involved.

Senate Government Oversight Committee Chairwoman Janet Petersen, D-Des Moines, called the 16-month ordeal an “embarrassment” and said her concerns over state procurement go further than just radios.

“We cannot continue to let people within state government deliberately take care of their favorite vendors, rigging the process at the expense of Iowa taxpayers,” she said.

Her committee will continue to engage with Carroll on reforms — “even if that means cleaning house with certain employees,” she said.

McCoy, the state senator, referred to the agency’s procurement process as “amateur hour,” and said he would propose legislation this year seeking reforms.

“We’ve got to get a level of professionalism and competency relating to multimillion-dollar deals that doesn’t make the state look like a bunch of monkeys,” he said.

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