A project to allow JEA to track its staff, vehicles and machinery via GPS has been slowed by protests of the bid process.
In an attempt to better coordinate staff and a fleet of 1,200 vehicles and 370 pieces of non-motorized equipment serving more than 360,000 customers in Jacksonville and parts of three other counties, JEA is seeking a company to develop a GPS system that would allow it to monitor staff and equipment.
JEA awarded the contract to Mississippi-based SkyGuard on June 28 because it was the low bidder with a $1,419,090 base bid and, following the bid opening, the company provided a demonstration of the system that proved it met the requirements of the bid package, according to a JEA team of experts. But two of the four companies are protesting the award and a response to the initial protests was released Tuesday.
“JEA received protest letters from two of the bidders and a public meeting was held (Sept. 7) to review the issues with all interested parties. The next step in JEA’s process is for JEA’s Chief Purchasing Officer to issue a written determination in response to the requested remedies submitted by the protests,” said John McCarthy, who is the JEA chief purchasing officer.
Both runner up SageQuest, an Ohio-based company which bid $1,841,514, and Utility Associates, of Georgia which bid $1,992,930, filed protests with JEA. The fourth company is Wireless Matrix of Herndon, Va., which bid $2,054,320.
“We are looking to push (JEA) to follow their own purchasing regulations and we are hoping they will play fairly and do the right thing,” said Ted Davis, president of Utility Associates.
Runner up SageQuest was also frustrated with the bid process.
“I fail to see how the product from a bankrupt company had so much R&D that went into it that suddenly they are the magic tool,” said Stuart Kerr, vice president of sales and marketing at SageQuest.
“It’s clear that this process is so not fair. It ceases to make sense to spend genuine commercial efforts on something that is not an honest commercial evaluation,” said Kerr, when responding to questions about whether his company will continue to pursue the contract. “It’s incredibly distressing. I’ve been selling for 30 years and this is the first time I’ve ever experienced anything like this.”
SkyGuard has been working with JEA since late 2009 on a separate GPS pilot project with approximately 250 units installed in JEA vehicles to date. SkyGuard provided 80 percent of the equipment at no cost to JEA.
Along with complaints about SkyGuard’s ability to meet some of the base functional requirements, SageQuest and Utility Associates stated that SkyGuard was not a financially responsible bidder because it was in bankruptcy at the time of the application.
“While SkyGuard may have previously been in bankruptcy, JEA engaged outside counsel to review SkyGuard’s current status. SkyGuard has emerged from bankruptcy and has been deemed a responsible proposer for this solicitation,” stated McCarthy in a letter in response to the protest.
SkyGuard, LLC filed for Chapter 11 Bankruptcy on April 10, 2009 at the United States Bankruptcy Court for the Central District of California and is currently awaiting the closing of the case. Businesses and individuals can propose a plan of reorganization to keep its business alive and pay creditors over time through Chapter 11.
In another twist to the bid review process, Wireless Matrix announced Wednesday that it signed an agreement to acquire certain assets of SkyGuard, LLC. JEA is looking into the transaction and what it means to the project.
“To clarify, SkyGuard itself is not being acquired. (Wireless Matrix) is only acquiring certain assets,” said Geri Boyce, media relations coordinator for JEA. “It appears that SkyGuard is still a viable company. What we need to determine is whether the solution that SkyGuard proposed is one of the acquired assets.”
The contract will be reviewed by the JEA awards committee, which will make a recommendation to the board of directors. Davis stated that Utility Associates plans to pursue an appeal with the Awards Committee. SageQuest did not respond to inquiries about its efforts in pursuing the contract.
The project will allow the JEA to track a variety of factors, including location of vehicles, daily mileage, track average and max speeds, track ignition off time, provide alerts and reports noting proximity of vehicles to other vehicles, and provide an alert when system loses communication with the vehicle user.
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JEA GPS implementation project
Base Bid price
SkyGuard- $1,419,090
SageQuest- $1,841,514
Utility Associates- $1,992,930
Wireless Matrix- $2,054,320