PRESS RELEASE: Mayoral Candidate Daysog Urges Return to Previous $25,000 No-Bid Contract Limit June 1, 2010
"I am deeply concerned by recent news posted on the local blog called 'Blogging Bayport,' which has documented two no-bid contracts for similar work amounting to $125,000 extended to two non-Alameda firms.
"Given the magnitude of the two no-bid contracts cumulatively amounting to $125,000 for somewhat similar work, local business owners should have been given a chance to compete to provide services. I urge the Interim City Manager and City Council to issue new guidelines governing conditions under which the City Manager can enter into no-bid contracts.
"The first contract I am referring to is a $74,000 March 2010 no-bid contract extended to Brisbane-based "180 Marketing." This company will assist local officials in web-site services and creating a brand to better market the City of Alameda. The second no-bid contract was entered into on January 2010 with Indian Wells-based Rips Consulting for $51,000. This company will devise a "green" brand for Alameda.
"When I was on City Council, we required the City Manager to bring all contracts above $25,000 to the Council for discussion and a vote. The City Manager was allowed to enter into no-bid contracts for contracts below $25,000. Some time after I left Council, the threshold was increased to $75,000.
"I urge City Council to return to the previous $25,000 threshold. When then-City Manager Jim Flint sought to increase the threshold, I argued that, in my line of work, it is not unusual for consulting companies like the one I work for to have to compete for contracts as low as $25,000 to $50,000. I opposed Flint's request, and the limit stayed at $25,000, which I believe it should be today.
"While it would be informative to see the cumulative amount of contracts extended under the current $75,000 and previous $25,000 no-bid limits, I am convinced that the most important and most pressing issue is to return to the lower threshold, which will allow the public to better monitor contracts extended by City Hall. If the previous $25,000 threshold was in place, local business owners would have known about and could have competed for two contracts amounting to $125,000 that two non-local firms obtained under the current no-bid policy."