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CA: Patrol car auction protested and draws McClintock's concerns
Bakersfield Californian ^ | 2/7/05 | Tom Chorneau - AP

Posted on 02/07/2005 6:29:54 PM PST by NormsRevenge

SACRAMENTO (AP) - With state Senate hearings scheduled to analyze a struggling procurement program, a Sacramento-based auto dealer accused the Department of General Services Monday of improperly awarding a $21 million police car contract.

An attorney representing Downtown Ford, which is filing a formal protest, said state officials violated their own bid policies in giving the contract last month to a rival dealer after Downtown Ford won an initial auction to sell the state up to 1,000 police cars.

The protest comes as lawmakers and other officials are paying more attention to the state's "strategic sourcing" program, which has delivered only a small percentage of the $96 million in savings expected by June 30. Using private sector bargaining methods to save money, the program is a key part of Gov. Arnold Schwarzenegger's government-reorganizing California Performance Review.

Last June the administration hired Virginia-based CGI-AMS to help handle purchasing; the company's fee would be a cut of the savings. But the company has finished just one other deal, a new office supply contract the department said will save the state $9 million through June 2006.

The state has traditionally bought its patrol vehicles for the California Highway Patrol each year by accepting sealed bids on paper from car dealers, with the lowest bidder winning the contract.

This year, however, CGI-AMS and its partner, Texas-based A.T. Kearney, created a "reverse auction" to find the best price. That auction took place online, as potential sellers bid aimed to make each successive bid lower than the previous one. It lasted 12 hours because offers could be made in as little as $10 increments.

Downtown Ford won the bidding marathon, but with a low bid higher than what the state paid last year for the same cars. So, the auction provided no net savings to the state.

State officials then opened another round of bids, this time on paper, and eventually got a better price from a new winner, Folsom Lake Ford.

Downtown Ford claimed it should have received the contract because it won the first auction and the state improperly opened the new round of bidding.

But Department of General Services spokesman Matt Bender said the state violated no rules by seeking new bids and giving the contract to Folsom Lake Ford. A Folsom Lake Ford spokesman declined to comment.

Complaints about the auction attracted the interest of Sen. Tom McClintock, R-Northridge, who wrote General Services Director Ron Joseph about whether the process is fair and protects taxpayers.

Noted as one of the Legislature's toughest watchdogs on state spending, McClintock said it's good the department is "trying something new" but that "reopening negotiations after the bidding has concluded adds an additional incentive to bid high, knowing that there will be a second bite at the apple when negotiations are reopened. The concern is that what they are doing in the short-term might cause the costs to the state to be higher in the longer term because bidders will say they are not playing that game."

Also, McClintock wrote, companies may "have a perverse incentive to maximize savings on a contract for immediate reward," which hurts the state in the future if dealers don't bid as actively.

Other officials seeking more information on the purchasing contract are Treasurer Phil Angelides and Sen. Liz Figueroa, a Democrat from Sunol who leads a Senate committee that will conduct hearings into the program.

A spokeswoman for CGI-AMS declined comment on either the bid protest or McClintock's letter.

---

On the Net:

http://www.dgs.ca.gov/default.htm

Department of General Services

http://www.governor.ca.gov/state/govsite/gov-homepage.jsp

Gov.'s home page

http://cpr.ca.gov/

California Performance Review


TOPICS: Crime/Corruption; Politics/Elections; US: California
KEYWORDS: auction; calgov2002; california; cardealers; concerns; draws; mcclintock; patrolcar; protested

1 posted on 02/07/2005 6:29:55 PM PST by NormsRevenge
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To: NormsRevenge

McClintock Bump!


2 posted on 02/07/2005 6:50:32 PM PST by kellynla (U.S.M.C. 1st Battalion,5th Marine Regiment, 1st Marine Div. Viet Nam 69&70 Semper Fi)
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To: NormsRevenge

Any request for public bids I've ever seen reserves the right to reject any & all bids, so what is the legal basis for Downtown Ford's complaint?


3 posted on 02/07/2005 7:56:18 PM PST by ApplegateRanch (The world needs more horses, and fewer Jackasses!)
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To: NormsRevenge; Grampa Dave; SierraWasp
Sounds like a bunch of amateurs running this show...
4 posted on 02/07/2005 8:19:31 PM PST by tubebender (Can someone remind me what my Near Years resolutions were...)
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To: NormsRevenge; little jeremiah; SierraWasp; EdReform; MeekOneGOP; Liz; tubebender

Tom Chorneau is probably a Girly Boy AP reporter who normally writes articles pushing the gay agenda. When they aren't doing that, they write articles taking swipes at GW, Arnold or someother Republican.

Below is a search on his articles pushing the gay agenda:

http://search.yahoo.com/bin/search?p=Tom%20Chorneau%20Gay


5 posted on 02/07/2005 10:24:01 PM PST by Grampa Dave (The MSM has been a weapon of mass disinformation for the Rats for at least 4 decades.)
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To: Grampa Dave
Well he sure is a lot more shorthanded that most writers!!!

Where have you been all evening? Watchin CSI Miami, I'll bet!

6 posted on 02/07/2005 10:30:38 PM PST by SierraWasp (al-Najr, 38, after casting a ballot for the first time in his life. "I get to say I'm human now.")
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To: SierraWasp

Watching 24 and cheering when the terrorists get whacked or exposed.

CSI Miami can be so damn PC in its shows. So I seldom watch it.


7 posted on 02/07/2005 10:41:10 PM PST by Grampa Dave (The MSM has been a weapon of mass disinformation for the Rats for at least 4 decades.)
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To: Grampa Dave

I agree, but Mrs. Waspman's hooked on it. I think she likes the redheaded woodpecker!


8 posted on 02/07/2005 11:32:30 PM PST by SierraWasp (al-Najr, 38, after casting a ballot for the first time in his life. "I get to say I'm human now.")
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To: Grampa Dave
Girly Boy AP reporter ....pushing the gay agenda..... taking swipes at GW, Arnold or some other Republican.

Hate crime.......better call the thought police.

And thanks for the link.

9 posted on 02/08/2005 4:02:07 AM PST by Liz (Wise men are instructed by reason; lesser men, by experience; the ignorant, by necessity. Cicero)
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