Committee on Finance
RESOLUTION
WHEREAS, in 2003, the City of Chicago, through its Department of Procurement Services issued a Request for Proposals (RFP) to implement a pilot of what was to be known as the Digital Automated Red Light Enforcement Program (DARLEP); and
WHEREAS, the RFP specified that the first project phase would require the selected respondents to install one full service red light enforcement system at a designated intersection, the second phase would require the installation of 19 systems by the respondent selected after first phase, and indicated a possible third phase that could "include, but not be limited to, additional intersections..."; and
WHEREAS, a contract was awarded in January 2004 to Redflex Traffic Systems, Inc. (Redflex) for $1,940,000, an amount needed to purchase 10 systems during the first year of the contract; and
WHEREAS, a December 2004 contract "modification" consisting of $1,080,000 increased the City's total commitment to Redflex to $3,020,000 and, with a required purchase of 20 systems, it represented a 100% increase from the 10 systems that the original contract specified; and
WHEREAS, a second "modification" awarded in November 2005 added $10,429,000 to the value of Redflex's contracts with the City for a total City obligation of $13,449,000, thereby committing the City to purchase 14 additional systems for a total of 34 systems; and
WHEREAS, a third "modification" was awarded in January 2007; increasing the Redflex contract price by $23,500,000 for a total of $36,949,000 and provided for the purchase of 100 additional systems; and
WHEREAS, the dramatic and material changes in the scope and value of the City's contracts with Redflex without pause to employ the procedures required by laws and principles mandating free and open competitive procurement processes evidence a distinct appearance of impropriety; and
WHEREAS, at the time of the third and largest contract "modification" for this project -one that quite li...
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