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PROPOSAL:

Execute Contract to Lease Radio/Cellular Telephones for AQMD Field Staff and Authorize Surplus and Disposal of Obsolete Radio Communications Equipment

SYNOPSIS:

On December 12, 1997 the AQMD released an RFQ to replace its outdated radio communications system with state-of-the-art radio/cellular or cellular telephones. This action is to execute a two-year contract with Nextel Communications, Inc. to lease and operate a maximum of 85 radio/cellular or cellular telephones to support field communications at a cost not to exceed $112,640 per year. Funds for this item are included in the FY 1997-98 Budget. In addition, this action is to declare as surplus the AQMD’s obsolete radio communications equipment and to dispose of these fixed assets, pursuant to AQMD Policy and Procedure #20.

COMMITTEE:

Administrative, March 20, 1998, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a two-year contract with Nextel Communications, Inc. to lease radio/cellular or cellular telephones for field staff communication at a cost not to exceed $112,640 per year.

2. Declare AQMD’s obsolete radio communications equipment as surplus and authorize its deletion from the AQMD fixed asset inventory; and authorize the Purchasing Manager to dispose of these fixed assets by direct sales, public auction, or donation.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

AQMD’s radio communications system once played a critical role in the activity of this agency, enabling staff to transmit air quality information to facilities with specialized receivers and to provide a "lifeline" to field inspectors. The existing system has now outlived its usefulness. As amended, Regulation VII no longer requires AQMD to broadcast air quality information by radio. In addition, current needs for more sophisticated communications support in the field have eclipsed the limited capability of AQMD’s 18-year-old outmoded tube-based radio hardware system.

On December 12, 1997 the Board authorized the release of RFQ #2012 to replace AQMD’s outdated radio communications system with state-of-the-art radio/cellular or cellular telephones, consistent with the use of modern advances in technology for enhanced field inspection purposes.

AQMD’s obsolete radio communications equipment will be replaced upon the acquisition of radio/cellular or cellular telephones. Staff recommends that AQMD’s obsolete radio communications equipment be declared as surplus and disposed of through an auction process or donation to a nonprofit and charitable organization, consistent with the provisions of AQMD Administrative Policy and Procedure #20.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFQ and inviting bids was published in the following publications:

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential bidders were identified using the Los Angeles County MTA, and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFQ were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s 24-hour telephone message line for bidders (909) 396-2724.

Bid Evaluation

Fifteen (15) copies of the RFQ were mailed out and five vendors attended the bidders conference on December 23, 1997. Six bids were received in response to the RFQ when final bidding closed at 2:00 p.m. on January 15, 1998. Of the six bids, none were from minority- and/or woman-owned or disabled veteran-owned business enterprises.

The technical qualifications of the bidders were evaluated based on their response to the criteria specified in the RFQ and the field test evaluation/acceptance testing of the proposed equipment. The evaluation panel scored Nextel Communications, Inc. the highest based on their ability to provide equipment and services in conformity with requirements stated in the RFQ at the lowest cost.

The bids and their respective evaluations were as follows:

Of the six bids, four were deemed not technically qualified, based on the technical criteria specified in the RFQ. Proposals submitted by BearCom Wireless Worldwide, Metro Mobile Communications, Pacific Bell Mobile Services, and Prime Matrix Wireless Communications were excluded from consideration and determined unresponsive to the RFQ. The remaining bids from Nextel Communications, Inc. and L.A. Cellular, which passed the technical criteria, proceeded to the next step for scoring points for cost (Attachment 1).

Fifteen of the sixteen field test participants rated pre-purchase demonstration equipment supplied by Nextel Communications, Inc. as having superior geographic range of coverage and network reliability over that submitted by L.A. Cellular. Cost proposals were specifically conditioned upon a two-year lease period.

Pricing complexities in the telecommunications industry posed a substantial challenge to the ability of the panel to determine the most cost-effective bid. Unique bundling of equipment and services made comparisons difficult. To facilitate the evaluation process, probable user profiles were developed to reflect estimated patterns of use and demands for specific features afforded by both vendors. Based on the information available, the evaluation panel rated Nextel Communications, Inc. the highest based on their ability to provide equipment and services in conformity with requirements stated in the RFQ at the lowest cost.

Staff recommends that the Board award a two-year lease contract for a maximum number of 85 radio/cellular or cellular telephones and related airtime in support of field staff to Nextel Communications, Inc. Information Management staff will monitor the use of the equipment to ensure that use is restricted to AQMD-related activities.

Panel Composition

Quotations were evaluated and scored by a five-member evaluation panel, consisting of an AQMD Telecommunications Supervisor, Financial Analyst, Supervising Air Quality Inspector assigned to AQMD’s Emergency Response Team, Air Quality Inspector II assigned to field duty, and Radio Telephone Operator from AQMD’s Communications Center. Of these five panelists, two are female and three are male; one panelist is Hispanic American, two are Asian-Pacific, and two are Caucasian.

Equipment demonstration provided by vendors was evaluated by sixteen AQMD staff assigned to field duty or the Communications Center. Of these, three were Supervising Air Quality Inspectors, twelve were Air Quality Inspectors II, and one was a Supervising Radio Telephone Operator. Fourteen are male and two female; one panelist is Asian-Pacific, three are Hispanic American, five are Black American, six are Caucasian, and one is East Indian.

Retiring Obsolete Radio Communications Equipment as Surplus

Because of the age of AQMD’s radio communications equipment, its current value is materially less than the original cost. This obsolete equipment is being replaced by radio/cellular or cellular telephone equipment, and is no longer of use to AQMD. Staff therefore recommends that the following AQMD radio communications equipment be declared surplus pursuant to AQMD’s Policy and Procedure No. 20:

Resource Impacts

A total of $112,640 is available in the FY 1997-98 Budget for both leasing and operating a maximum of 85 radio/cellular or cellular telephones to support field communications. Of this total, $30,000 has been allocated through the Rents & Leases Equipment Account for the instruments, while the remaining $82,640 has been allocated through the Communications Account for usage costs. Funds from the FY 1998-99 Budget will be allocated for leasing and operating radio/cellular telephone equipment during the second year of the contract.

Retiring AQMD’s obsolete radio communications equipment will supplement the General Funds only to the extent that these equipment are sold at auction.

Attachments

Attachment 1 – Evaluation of Respondents to RFQ #2012, Digital Radio/Cellular
or Cellular Telephones

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