SUPPORTS ITEM NO. 2 CS&B COMMITTEE AGENDA JUNE 27, 1996 ADMINISTRATIVE REPORT Date: June 13, 1996 File No. Crep055.cov TO: Standing Committee on City Services and Budgets FROM: City Clerk and Manager of Purchasing Services SUBJECT: Tender No. 28-96-03 - Optical Scan Vote Tabulation System RECOMMENDATION THAT Council approve the award of a contract to Global Election Systems Inc. for the supply of 160 Optical Scan Voting machines, related equipment and software, at a cost of $798,000, plus the 7% Goods and Services Tax (less any municipal rebate received) and the Provincial Sales Tax. Source of funds to be a loan from the Capital Financing Fund, with repayment from the City Clerk's Department future operating budgets, beginning in 1997. COUNCIL POLICY The policy of Council is to award contracts for the purchase of equipment, supplies and services that will give the highest value based on quality, service and price. Contracts with a value over $200,000 are referred to Council for award. PURPOSE The purpose of this report is to recommend the purchase of a new Optical Scan Voting System from Global Election Systems Inc. to replace the City's existing voting equipment, for use in the 1996 General Local Elections. BACKGROUND In a report dated February 7, 1996, the City Clerk advised Council of concerns related to the poor reliability record of the City's existing automated voting equipment, based on the experience of its use during the last three general local elections (1988, 1990 and 1993). The City Clerk recommended, and Council approved, that the existing system be replaced for use in the 1996 General Local Elections. The City Clerk and General Manager, Corporate Services were instructed to report back to Council to seek final approval of the proposed vendor, acquisition costs and financing of the recommended purchase. There are currently only two major companies which market and support optical scan voting equipment in Canada: Business Records Corporation, based in Dallas, Texas; and Global Election Systems Inc., based in Vancouver, BC. Both companies were contacted and invited to submit bids to replace the City's existing equipment. DISCUSSION Tenders were received from the above noted companies by the Manager of Purchasing Services on May 1, 1996. Bids were submitted as follows: Business Records Corporation: $761,760.00 Global Election Systems Inc.: $790,120.00 (Plus $7,800 for related optional equipment) Both bids provide for the acceptance of the City's existing automated voting equipment in trade. A copy of the tabulation of bids is on file in the Purchasing Services Division. The Goods & Services Tax (less any municipal rebate received) and the Provincial Sales Tax are in addition to prices quoted in this report and in the tabulation. A committee, consisting of a Buyer from the Purchasing Services Division, Deputy City Clerk, Senior Elections Clerk and a Senior Technical Specialist from the Information Services Division evaluated the bids and respective equipment based on the criteria set out in the original bid documents. The evaluation criteria considered were as follows: - the equipment: reliability, design, ease of preparation, maintenance and testing, ease of operation, ease of transport and storage, ease of software set-up, ease and flexibility of ballot design, report feature and adapt-ability to future needs; - the company: reputation and experience, technical credibility, after sales service and support, financial resources and stability, and environmental responsibility; and - costs: initial purchase and on-going support costs. The ratings of the criteria were based on a 1 to 5 scale, 1 being unacceptable and 5 being superior, for a maximum of 100 points. In the final evaluation, Global Election Systems received 83 points, Business Records Corporation received 64.5 points. The Evaluation Committee rated the Global Elections Systems equal or superior to the Business Record Corporation system in all areas considered. While both systems were determined to be equally reliable, the Global Elections System was considered to be superior in the areas of unit design, ease of preparation, maintenance and testing, ease of operation by election staff and adaptability to future needs. Reference Checks An extensive and detailed reference check was conducted of the references provided by the two bidders, as well as other cities known to have had experience working with the proposed equipment. All references contacted regarding the Global Elections System were positive, for both equipment and support services. Responses from the BRC references were mixed, with some indicating they were dissatisfied with the service and equipment provided. Some references currently using the Global Elections Systems equipment had previously used BRC equipment and had chosen to switch to the Global Election Systems due to design considerations. The evaluation documents are on file in the Purchasing Services Division Office. Conclusions Although the price to purchase the Global Elections Systems equipment is approximately $28,000 higher than the bid submitted by Business Records Corporation, the Evaluation Committee has concluded that the Global bid provides the highest value to the City and will better meet the City's current and future election administration needs. The Committee therefore recommends the acceptance of the bid from Global Elections Systems Inc. for the supply, installation and support of their Optical Scan Voting Equipment for use in the City's 1996 General Local Election, at a cost of $798,000, plus applicable taxes. The Comptroller of Budgets and Research advises that the funds for this purchase, if approved by Council, will be provided in the form of a loan from the Capital Financing Fund (Solid Waste Capital Reserve). Repayment will be made from future City Clerk's Department operating budgets starting in 1997, at a rate of approximately $111,000 per year (dependent upon prevailing interest rates). * * * * *