City rejects claim Motorola cheated

The city of Memphis will proceed with a multimillion dollar radio replacement contract with Motorola Solutions Inc., dismissing a claim the technology company cheated in the bidding process.

By scrapping runner-up Harris Corp.’s challenge of the contract award, the city settles a dispute that threatened to overturn the contract to replace the radios and infrastructure used by the Memphis Police Department and Shelby County Sheriff’s Office, along with other city and county divisions.

Harris decided against appealing the city’s decision to city Chief Financial Officer Brian Collins, according to emails released by the city.

The two governments and Schaumberg, Illinois-based Motorola are still negotiating the options of the multiyear project to replace the 800 MHz P25 Public Safety Radio Network, which could include long-term maintenance and new radio towers. The city would shoulder 75 percent of the total cost, leaving the county with 25 percent.

The original estimate for the project cost, based on retail prices, was $85 million. But factoring in group discounts, and depending on the options, the actual contract could come in at closer to $55 million.

Harris, based in Melbourne, Florida, challenged the award after learning Motorola hired away a city consultant on the project, Timothy Henneman, who had knowledge of Harris’ bid as a non-voting member of the city’s project evaluation committee. Harris has challenged awards in other cities and was embroiled in a controversy that delayed installation of a Knox County digital radio system for three years.

But in his response to the complaint, City Purchasing Agent Eric Mayse said Henneman didn’t determine “directly or indirectly” who was awarded the contract, and signed a non-disclosure and conflict of interest agreement shortly after the city was made aware of his hiring by Motorola. Mayse also said the “primary, if not the sole factor,” Motorola won the contract was due to Harris’ failure to give additional choices in system design and pricing options, as required in the city’s request for proposals, even after the city informed company representatives that their bid didn’t include the required information. The information was used in scoring the bids.

Of the 12 categories used to score the bids, Motorola beat out Harris in all but two. “We are disappointed with the process and ultimately, the selection,” Harris spokeswoman Pam Cowan said in a statement.

Motorola provided and maintains the city and county’s current radio system, which will become outdated in 2018 when the company stops offering parts and maintenance on the system.

Reach Ryan Poe at poe@commercial appeal.com or on Twitter at @ryanpoe.