Michigan contractor could get $280K more from Poplar Bluff

POPLAR BLUFF, Mo. -- More money soon will be headed to a Michigan company that already has received nearly $2 million in government contracts from the city of Poplar Bluff, without ever going through a competitive bidding process.

The city expects to spend almost $280,000 more on software product licenses for a technology upgrade, servers and equipment for police vehicles, among other items, according to city council documents released late last week after an open meetings request by The Daily American Republic.

The matter will go before the council as a workshop item at today's meeting.

City manager Heath Kaplan will recommend spending the money with Information Systems Intelligence for "continuity purposes and to prevent any delays in rolling out the product to departments," the council documents state.

"Staff has secured informal quotes for the remaining equipment needed to finish the IT Network Refresh Project," a council request states. "ISI has agreed to match the low quote secured for the remaining items."

Officials signed a contract with ISI in October for approximately $1.8 million to upgrade the city's technology infrastructure. At that time, Kaplan said time constraints prevented the city from going through a competitive bidding process. Council documents from October say the contract was approved under a state law that allows cities to purchase equipment without bidding if the price is equal to or better than state contract prices.

Kaplan did not answer a message left for him by press time.

Kaplan worked with ISI in his last position as director of finance and management services for Muskegon County, Michigan.

ISI provided technology upgrades there, including a virtual desktop system.

Though a competitive bid process was not used, documents obtained from Poplar Bluff provide some information on ISI's pricing strategies.

In a series of email exchanges, ISI owner Ryan Leetsma discussed how much the city should be charged for a change order for additional fiber optics work.

The work was not included in the initial quote, according to the email dated Nov. 14.

"You would have to get a quote from the vendor and then give it to Heath so he can approve it, OR take the quote, mark it up 15 percent and put it on our paper and present that to the customer as a change order.

"Obviously, there is an advantage to the latter," Leestma wrote to an ISI employee in an email that was later forwarded to Kaplan.

ISI also provided a quote in October for some of the items included in the city's newest purchase.

Unit prices for equipment to be installed in police vehicles has seen a markup of 40 percent to 120 percent, between an Oct. 10 quote from ISI to its Dec. 9 quote, which is included in council documents for today.

Two months ago, ISI was prepared to charge $100 each for 27 telescoping poles. ISI is now charging the city $220 for these items.

The cost for 27 Dell docking stations was $749 each in October. It will now be $1,100.

Six line items from the October quote, including the docking stations and telescoping poles, equaled a purchase of about $33,000. After the December quote from ISI, the city will now pay nearly $52,000 for the same equipment, a more than 56 percent markup.

Pertinent address:

Poplar Bluff, Mo.