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PROPOSAL:

Execute Contract for Security Guard Services at Diamond Bar Headquarters

SYNOPSIS:

On April 10, 1998 the Board approved the release of an RFQ for security guard services at Diamond Bar Headquarters. This action is to execute a three-year contract with Elite Security Services for a total amount not to exceed $681,445.44. Funding has been included in the FY 1998-99 Budget and will be requested in successive fiscal years for this contract.

COMMITTEE:

Administrative, July 24, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a three-year contract with Elite Security Services for the total sum not to exceed $681,445.44.

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

Background

On July 14, 1995, the Board authorized a three-year contract with Wells Fargo Guard Service to provide security guard services at Diamond Bar Headquarters, and this contract expires September 9, 1998. On April 14, 1998, the AQMD released RFQ #2020 for Security Guard Services at Diamond Bar Headquarters.

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 and MTA 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 bidder’s 24-hour telephone message line (909) 396-2724

Bid Evaluation

One hundred and seven (107) copies of the RFQ were mailed out and 49 vendors attended the mandatory bidders conference held on April 29, 1998. Twenty-seven (27) bids were received in response to the RFQ when final bidding closed at 2:00 p.m. on May 14, 1998. Of the 27 bids, none were from disabled veteran-owned business enterprises, one (1) was from a certified women-owned business enterprise, two (2) were from non-certified women-owned business enterprises, five (5) were from certified minority owned business enterprises, (one (1) African American, one (1) Asian Pacific Islander, and three (3) Hispanic), and one (1) was from a non-certified minority-owned business enterprise (ethnicity unknown) and three (3) non-certified small business enterprises.

AQMD staff evaluated bids to achieve competitive pricing and comparison. The evaluation process included consideration for security guard wages and benefits paid. Each bidder was required to submit their proposals with and without the RFQ-specified "living wage rate." The technical and financial qualifications of the bidder were evaluated based on their response to the RFQ’s References, Cost Proposal, and Company Information Questionnaire. Out of the 27 bids, 11 were determined to be responsive bids. A list was prepared in lowest to highest bid order for both "living wage" and without "living wage" bids.

Attachment 1 reflects the list of qualified bidders with the "living wage rate." Although the first three lowest bidders are qualified to perform the scope of work, their bids included health benefits that were less than the required $1.25 per hour as described in the definition for "living wage rate" in the RFQ. The fourth lowest bidder with the "living wage rate," United International Investigative Services, Inc., would meet the requirements for this category for an annual cost of $284,347.84.

Attachment 2 reflects the list of qualified bidders "without the living wage rate." Although the first four lowest bidders were also qualified to perform the scope of work, the wage paid to their guard was either minimum wage and /or no co-payment for health benefits. The fifth lowest bidder, Elite Security Services, provides a wage of $6.25/hr. to the guard and $7.25/hr. for the Post Commander and co-pays health benefits for an annual cost of $227,148.48.

The evaluators concluded that best value to the District would be achieved by selecting a bidder from the list "without the living wage rate" which includes security guard wages that are higher than minimum wage and offer co-payment of health benefits. Past experience has shown that providing a wage higher than minimum wage provides a better quality and consistency of staff. Therefore, staff is recommending that a contract be awarded to Elite Security Services.

Panel Composition

The proposals were evaluated and scored by a panel of four AQMD staff members, as follows: a Business Services Manager, an Affirmative Action Officer, a Building Maintenance Supervisor, and a Worker Compensation/Safety Analyst. The panel was made up of one (1) African American, two (2) Caucasians and one (1) Hispanic; two female and two male.

Resource Impacts

Sufficient funds are available in the approved FY 1998-99 Budget for the remainder of this fiscal year. Since this will be a three-year contract, continuing funds will need to be included in the budgets for each of the remaining fiscal years of the contract

Attachments

Attachment 1 - Security Guard Proposals With "Living Wage Rate"

Attachment 2 - Security Guard Proposals Without "Living Wage Rate"

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