Favoritism

Here are some specifics about the buy-board contracting that the City of El Paso has been involved in lately.

You will recall that they recently issued a $4 million dollar contract through a Houston based purchasing organization.  This money looks like it is going to be used to remodel the building the city is going to move into.

Some at the city claim that it was competitive bidding:

Decide for yourself:

  • The request for proposals (RFP) was what is commonly called a “beauty contest”.  The evaluation criteria used gave points to each bidder for such things as the bidder’s references (15%), reputation (10%), ability (35%), ownership (underutilized businesses could get 5%), and price (25%).  References and reputation add up to 25% and sound like the same thing to me.  Ability must have been judged subjectively.  With those subjective judgments we are at 60% of the evaluation and it comes down to who looks prettier to the judge.  10% was awarded for something called “Value Add”, whatever that is.  I would think that “Value Add” is in the eye of the beholder.
  • The bidder;s price only accounted for 25% of the evaluation factors.  Price is 25% — how can that be a bid?
  • Pricing was based on what portion the bidder would charge of a nationally published price estimating book (the Oxford Dictionaries define estimate as “roughly calculate or judge the value”).  The book does not reflect current market conditions, it lists historical values that are gathered from survey respondents, in other words what something used to cost on average.   The prices do not reflect current market conditions in El Paso.  When times are tough construction prices go down after all.  Bidding is supposed to use market price to determine the lowest offer.

There are several buy boards in Texas that offer these kinds of contracts.  The city only uses the Houston based one for this work.  The board charges 4% for its services while other buy-boards charge less.

The company that the city chooses each time from this buy-board is only one of twenty or so eligible contractors that are listed for this area.  Other contractors are available.  Why does the city only choose this one?

Staff at the City of El Paso claims that this purchasing method saves time because detailed specifications do not have to be drawn up.  For $4 million dollars, why not?  The point is moot however.  The $648 thousand the city awarded the other day had plans drawn up by an architectural firm.  The $694 thousand they spent with this same firm for a new roof for our soon to be destroyed city hall had plans drawn by an architectural firm.  If the city has plans, why not take it to bid?  You can’t tell me that the city did not know about this need a month ago.  After you advertise for the legally required two weeks and perform your evaluation you can process a bid in one month.  That is tight, but it can be done and done fairly.

The sad fact is that this is favoritism.

  • Other buy-boards that are less expensive are available
  • Other firms are available — even on this buy board
  • The city keeps choosing the same firm from a field of many qualified firms

We deserve better

2 Responses to Favoritism

  1. Javier Roque's avatar Javier Roque says:

    I am sorry to say that many don’t even read or care what is going on at the city. As an owner of an architectural which i had to put on hold and now working at one of these firms who is favored, it saddens me to see and to know how the system works has not helped me in my own endeavors. yes we do deserve better, if not me then others is OK by me.

    Like

  2. Unknown's avatar anomymous says:

    Mr. Roque
    I heard the same thing from Joe Gomez before he left us. What is wrong with this city. They complain about brain drain but they encourage it. Talent is leaves us because of lack of oppurtunity.
    One must play their game to make a living.

    Like

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