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City Won't Outsource Website Design to California...Yet


by: Phillip Martin, Progress Texas

Thu Mar 26, 2009 at 10:38 AM CDT


Key Point: I'm curious to see what happens with the delay. Is the City of Austin going to use the new communications director and chief information officer to really get at the heart of the problem? Or will the new attention just lead to everyone trying to pull wool over everyone's eyes, so that everyone can "Shut Up and Calm Down" so the Council can re-focus on their elections and stop worrying about this bothersome thing called "governance?"

Yesterday I asked the question, "Will the City of Austin Outsource Its Website Design to California?" The discussion centered around the fact that the City of Austin was going to have a California based company do a large share of the website re-design work, instead of keeping the project local in Austin. Yesterday, via Twitter, we learned that the city will delay the vote. From the @keyetv update:

RT @katherinestolp: City Council just decided to defer any action on Austin web design contract. NO vote tomorrow!

The Statesman followed up with the following min-story today:

But the vote will be delayed because the city’s new communications director and new chief information officer need more time to review options for the project, city spokesman Reyne Telles said. Council members also had raised several questions about the contract, including what the city will get for the money and why more Austin firms didn’t bid on the project.

The contract also caused a stir online this week, with bloggers and Twitter-ers irked that the city might send Web business to California.

I was so irked. I was wallowing in full on irk-dom. (Eye roll).

This is the basic problem that needs to be addressed:

The city currently uses 13-year-old technology to publish Web content. The Web site has over 80,000 pages and hasn’t had a major upgrade since 2002.

Here's what is not a problem: funding. From an older News 8 Austin report:

Leffingwell pointed out that most of the $700,000 will come from city departments that actually make the city money, like Austin Energy.

Finally, BOR reader Kedron Touvell -- who clearly knows more about this than I do -- raises the point that, "hey -- maybe the companies are the ones to blame for this whole process" in a well-informed discussion of facts:

1. 228 notices were sent out to prospective companies.  Advertisements were placed in the Statesman as well as online.  3 bids were received, 2 of which were valid.  The winning bid was $704k, the other two were $1.3 million and $3.1 million.  In addition, The AustinGo project was also heavily publicized beginning in 2007 with a community-wide survey and six public Town Hall meetings. Perhaps more could have been done, but what was done was significant. At some point, we have to hope that entrepreneurial companies go out in search of business rather than waiting for a project to fall into their lap.

Would you support paying an additional $600k for a local provider for the same work?  [emphasis added]

There are essentially two questions that remain:

  1. Why were so few bids returned on such an important project?

  2. Should the city support paying an additional $600k (though that could, with any common sense of the two parties, easily be negotiated/structured downwards) for a local provider for the same work?
I provide my thoughts/answers to those questions below the fold.
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1) Why were so few bids returned on such an important project?

Again, Kedron provides some great information about this question in the comments to the other post. I wanted to summarize his points:

  • City tried to do this in-house, but realized the project was too big
  • Over the summer, both heads of the coordinating departments were fired
  • "The first attempts to RFP" received no qualified bidders
  • In November, they tweaked the requirements to get some bidders -- which netted the three they received
So, first and foremost, let's dispell with the myth -- proposed by Omar Gallaga, who mixed a valiant effort to collect the facts with a horrendous attack on the people who wanted to raise issue with the project -- that the City of Austin isn't to blame. Gallaga wrote:

Why rail about it after the fact? Somebody dropped the ball. And it’s not clear that it was the city.

[snip]

If you don’t step up to the plate, you don’t get to complain that you didn’t hit a home run.

Rally if you like. Storm tomorrow’s City Council. Get all up in that Facebook group and decry the continued Californication of Austin. Sign a vague Twitter petition.

But unless you are willing to look at the factors at work and see what the city has to work with, you might want to run to the drugstore and quickly dose yourself with a heaping tablespoon of Shut Up and Calm Down (available without a prescription).

Gallaga's argument placed blame squarely on the companies, creating a huge wall of defense (he later announced the vote delay with the flippant, "Yay, Austin?") for the City of Austin. In doing so, he missed the opportunity to make a much better and more appropriate analysis:

Austinites and Austin City Council members and staff need to be more engaged in the process.

If the search for this was begun years ago, and then basically had to completely restart last November, then the City of Austin is clearly having troubles in their RFP process. At the same time, companies shouldn't wait for "torpedos fire!" mode to engage the citizenry about an issue like this. So to answer Gallaga's question:

Would it be heresy for me to suggest that if an Austin company wasn’t able to put in a competitive bid and that the city only had three bids to work with and is choosing the one that’s most cost-effective for them, that maybe Austin deserves to lose that business?

Yes. Yes it is heresy -- because he's placed the blame squarely on the shoulders of companies and forgiven the City of Austin for an RFP process they left to die then, realizing its horrendous nature, resurrected just a few months ago.

There's plenty of blame to go around. Let's not become apologists for those whose jobs it is to govern. If bloggers and twitterers become "irked" it's because we -- I guess foolishly -- still have some faith that we can live our lives and focus on our own jobs and trust that the City will get the job done right.

When it doesn't get done right -- and I don't think anyone thinks this project has been handled right, which is why the city is bringing in new people to examine the process -- I think it's entirely acceptable for a citzenry that is engaged (even if it's late, because there is no timeline on when we can talk to our City Council) to get irked, get mad, and demand something better.

If others want to tell us to "Shut Up and Calm Down," by all means. I love frisbee golf, too, Omar -- I played every course in the city one day, over 100 holes from 6am to 8pm -- but I also am going to act when I think something isn't being done right.

2) Should the city support paying an additional $600k (though that could, with any common sense of the two parties, easily be negotiated/structured downwards) for a local provider for the same work?

My response is: yes. Here's why.

As I argued yesterday, if most of the funding is going to come out of existing groups that make the city money, then we're really not passing anything along to taxpayers at all. Therefore, the decision that has to be made when evaluating bids is, "how much do we value local business, and how does that weigh against procuring a contract at a low cost?"

My main points are:

  •  We have failed to label this contract as a "tax incentive" -- which normally is the term used to justify favoritism across any number of other business. If this were a "tax incentive" then it would be much more politically palpable to spend the extra dollars on a local company.

  • An RFP process that begins by requiring a bond is flawed from the outset. I'm all for creating a smart capital investment plan on projects...but the default shouldn't be, "let's 100%, at all costs, protect the budget."  I'm sorry, that's just not what I believe -- but I know others disagree about that. Which side you fall down on, to me, determines what kind of a leader you are.

  • This isn't about "Keep Austin Weird." It's about acknowledging that the tech sector in Austin is, along with state government, music, and Barton Springs, part of the core identity of the city. Anyone that spent any time at the SXSW Interactive Technology Conference last weekend understands that point.

The creation/design of an RFP process begins with a set of perspectives and assumptions. If those perspectives/assumptions begin with, "let us figure out how we can make the best process that will allow us to use local businesses" then we can solicit cost-competitive contracts for that.

But if the perspectives/assumptions from the outset of any time of contracting process are defined as, "we want to make everyone happy -- we want to save money and maybe try to use local contacts, but let's also do this and this and then, wait, we have to redo this and now it's been a year and we haven't gotten any bids oh crap let's see what we can change oh no we only got 3 bids well whatever let's just get this over with because I'm tired of working on this"....

Well, that's not leadership. That's looking for a technical solution to an adaptive challenge. 

I'm curious to see what happens with the delay. Is the City of Austin going to use the new communications director and chief information officer to really get at the heart of the problem? Or will the new attention just lead to everyone trying to pull wool over everyone's eyes, so that everyone can "Shut Up and Calm Down" so the Council can re-focus on their elections and stop worrying about this bothersome thing called "governance."

I'll be sure to right about it once I've learned more...

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Calm Down Dosage (0.00 / 0)
Philip -- thanks for the great post.  The blog I wrote was posted around noon yesterday and as the day progressed, the story developed and more facts about the bids and the RFP process came to light.

What I was responding to initially was the outrage spreading on Twitter/Facebook, much of it uninformed and a lot of it rallying around keeping business in Austin without making the facts of the situation clear.  Those were the people I was telling to calm down, not the companies involved with the bids (or those who were not notified of the RFP), who have every right to ask questions and complain about the process.

The first call I made before writing the post was to Steve Golab at FG Squared, one of the bidding companies, who gave me background on the situation that had, at that point, not been widely made public. You fail to mention that I quote him extensively in the post to support the point of view that the city did not give face time to the bidding companies and that the RFP itself was daunting even for an established company like FG. My central question was why were there only three bids? If there are so many Austin companies qualified to do this, as many commenters and Facebook posters keep suggesting, why didn't they submit a bid? I think Steve answered some of those questions in his quotes on my post.

I also say in the same article, "If the city has handled this badly by not making enough of an effort to reach out to local companies or not doing a face-to-face meeting with the bidding firms, that's one thing."

I did raise these issues and was rewarded with some great posts from many different perspectives (and phone calls and e-mails) from Digital Savant readers, some who are directly involved with what's happening.  I'm sorry points from that discussion (which is still ongoing) were left out of this BOR post. I think those comments are much more valuable than anything I wrote to kickstart the discussion.


Thanks for the note (0.00 / 0)
I appreciate you defending the other remarks you've made, and I certainly am glad you took the opportunity to leave them here for us.

Obviously you said everything you just mentioned in your comment; but I'm not going to re-post your entire article (I link to it for that), and the thrust of your post was clearly telling the general public who were outraged without much information -- which I am proudly one of -- to calm down. I think kickstarting a discussion is valuable, and I'm glad you did. Your writing was clear, passionate, and articulated many of the concerns I'd heard in a better way than I'd read elsewhere.

I, in my own way, want to kick back against the idea that outrage on Twitter/Facebook/BOR or elsewhere is not of value. I won't speak for others, but I don't believe that just because I don't have all the facts I have to abandon all hopes of an opinion. I also was relatively well-informed about the idea, continued seeking out new information, and today -- having read almost everything I could find -- am, surprise surprise, more or less in the same place and of the same opinion, which I laid out in more detail in the post and I don't intend to repeat here since you didn't address any of the merits of my argument.

Quick outrage and signing a petition does not equal uninformed. It means I don't like what someone I've elected to serve in government is doing, and I'm trying to raise disequilibrium to shake some answers loose of the system. And when I read a reporter that is kickstarting a discussion not by taking on the system, but by defending it and suggesting that, because I don't have all the access to information that he does --- which I'm not supposed to have; that's not my role in this system --- then yeah, I'm going to try and kickstart a counter-discussion.

If you want to do just facts, then just do just facts. But that's not what you did -- and frankly, I'm glad you didn't. We need a more vibrant conversation. We need to have strong opinions so that we can learn how we are wrong and how we are right. If we just focus on the facts when it comes to government, we've neutered the very passion that should be motivating government along. (And a neutered government is sure what this RFP process is looking like).

"Shut Up and Calm Down" -- whether mitigated with CYA clauses or not -- is over-the top and I certainly don't like it, but I think it's a great way to kickstart a discussion. Be proud of the rabble you've roused! It made me think more, it made me write a better post, and it helped shape the larger discussion in a way that I or any other individual alone never could have.

If you want to shy away from that part of the conversation, then don't write it in the first place. But I'm glad you did, and hope you do again in the future.

Now, a very great man once said that some people rob you with a fountain pen.


[ Parent ]
thanks for the thoughts (0.00 / 0)
This is why I supported a short-term delay, so we can begin this reasoned conversation.  I have to leave shortly for a bike ride, so I'll keep this short for now.

I have spoken at length with 3 council offices the last few days to try to help them make sense of this project.  I can report that they are earnestly working hard to understand all of the issues involved.  This is not a "postpone until after the election" delay, they actually want to get the policy right (and Leffingwell spoke to that today in his comments).  The political heat did serve one purpose in that it will give them more time to analyze the policy, so that is a net positive.

The city had some trouble with the RFP, it is true. I have submitted some questions to Council that I'd like to get answered with regards to that, and I await the response from staff.  But the movement from the first RFP to the last was to get more participation and qualifying bids from small to medium sized firms, so it's hard to fault staff for that.  From speaking with various folks at the city, 3 responses from a pool of over 200 isn't necessarily atypical for this size of contract.  That's news to me, but if true, it should calm us a little. As for negotiating down the local firm's bid, I'm not sure if that is allowed with the RFP process.  I'm also not sure to what extent the City is constrained by State procurement laws or its own.  

Obviously, I disagree with your position on spending the extra $600k, if indeed the amount of work is the same.  I don't think many would agree with that and I don't think you'd get a single vote on Council for that either.

I agree with your 3rd point, that digital should be the new Barton Springs of Austin (without neglecting the value of the old Barton Springs, of course).  I wish we had more Austin companies that submitted qualifying bids.  Again, I have some questions submitted that ask for more detail on how prospective bidders were identified.  I will post this answer that was given to a similar question submitted by a Council Member:


To which Austin companies were notifications actually sent?

The list of companies and the surrounding area (Central Texas) is over 33 pages long and includes local firms such as Milkshake Design, Olive Design, Tocquigny, T3, McGarrah Jessee, Frog Design, Headspring, Sicola Martin, including every vendor registered with the City Purchasing Office.  These names were submitted to the Purchasing office to be included in the RFP notification along with several industry leaders in Plone consulting nationwide.



Thanks for your work! (0.00 / 0)
You've done a great job in shaping the discussion. Couple quick notes:

The political heat did serve one purpose in that it will give them more time to analyze the policy, so that is a net positive.

Exactly! Thank you for saying that; I hope Omar got to read that. ;)

As for the extra $600k -- I may be alone in that; that's fine. I also sincerely doubt that the contract couldn't be negotiated lower than that. What I want to know is -- does the RFP process allow for dual negotiations? Because that's how you get the best and most competitive product (provided you have competent negotiators). If an Austin company just submits a proposal then hears back, "no" do they have an opportunity to re-adjust the project? Or to learn what could change, or how to re-price something, or to arrange how to collect on payments down the line, or how to create a contingency clause so that the two groups can find added share value -- i.e., work that wasn't in the original contract that the company can additionally do that would be really cheap since they were doing other things -- that can help justify the cost?

I don't know if all of those kinds of considerations occurred in this process. Maybe they did; maybe they didn't. If they did, then I'm totally perplexed as to how we are here, and am thoroughly interested in learning what happened. If they didn't, then I think that's a change the City Council needs to make.

Now, a very great man once said that some people rob you with a fountain pen.


[ Parent ]
Well said (0.00 / 0)
Phillip -- I think we may be in disagreement on a few things on the COA Web site situation, but I think we both are certainly in favor of lots of debate back and forth, especially from the people most affected by this (the firms who put in bids, those who didn't even know they could, for instance).

Two days ago, most people didn't know this was going on, so I think it's all been very valuable. Deferring the vote certainly seems smart since this obviously needs a lot more vetting.

"Shut up" is certainly the last thing I really want people to do, but it's funny how saying it makes people talk even more. I'll keep sticking my hand in the hornet's nest if you keep doing what you're doing and bop me on the head if I get anything wrong. I think I missed saying it the first comment 'round, but I'm very glad you're here.


Thanks man (0.00 / 0)
Back at you. I'll look for you at Zilker next time I'm in town. Or if you dare brave my old stomping grounds of what is left of Bartholomew...

Now, a very great man once said that some people rob you with a fountain pen.

[ Parent ]
Scope and Engagement (3.00 / 1)
I'm left with several questions, only one of which appears to be part of the ongoing review:

- Did the City set an appropriate scope for the project?  Were they trying to do too much with one project?  This question should be answered by the review.

- Why was an RFP for a project of this import put out without review and approval from the new communications director and information officer?

- Where has the web development community been?  This project has been perculating for years.  It was one of the outstanding issues that we understood the City would address when the charter revisions on greater open government failed a few years back.  Did the City fail to reach out to the web developers?  Or, did the web developers fail to reach out to the City?


good questions (5.00 / 1)
I'll give my opinions, take them for whatever they're worth.

1. Part of the criticism by some (including Brewster) is that the scope isn't large enough. If you look at his letter, Brewster has a list of end-user feature demands which were not supposed to be implemented through this contract (I'm not sure why he hasn't engaged with this project before this week).  But this contract is geared primarily towards building the underlying CMS infrastructure and training and tailoring the city's publication workflow around it (along with some branding and general IT services work).  The end features would then be implemented by ongoing city staff using the tools built by the contractor.

2. The new CIO was just hired this January.  The project has had several RFPs in the past year, the last one going out in December.  As you mention, this project rose out of the ashes of Prop 1 nearly 3 years ago.  The interested public has been growing increasingly restless over the delay and there was a desire to deliver benefits to citizens in a reasonable time frame.

3. Good question.  The city reached out.  Some local boosters believe not far enough.  I doubt this will ever be resolved to their satisfaction.


[ Parent ]
On 3 (3.00 / 1)
Obviously they need to start putting RFPs on twitter.

[ Parent ]
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