Two independent audits have cleared Peel Region staff accused of unfair business practices in a telecommunications deal worth nearly $5 million.
"The Avaya system met the region's requirements for growth and contingency and also met the implementation, equipment and support needs required over the next two plus years," said Regional Chair Emil Kolb, referring to the decision to award Avaya Canada the job of installing a new telephone system in Peel offices. "The Region of Peel's senior management and staff worked closely with the executive management team, regional council and vendors throughout the Request for Information and Request for Proposal processes."
Region staff was called upon to defend the way Peel tenders out contracts after several unsuccessful bidders expressed concern over the decision to give the $4.7 million contract to Avaya.
Avaya, a global leader in communications systems, got the nod to install Voice-over-Internet-Protocol (VoIP) telephone technology in Peel buildings, including the new facility currently being constructed at region headquarters in Brampton.
VoIP is an emerging technology that allows telephone calls, faxes, or overhead paging to be transported over the Internet.
But complainants, among them Nortel reseller Black Box Networks, argued although the system uses different technology, it is comparable to the Nortel Network system variety already in use by the region.
Black Box Network account manager Ken Harrison claimed Avaya's price was about $2 million more than what his company proposed for basically the same installation and service job.
Peel commissioner of business Laura Nashman refuted that claim stating the gap in price was much smaller.
She said the difference between the two bids was more along the lines of $200,000 when factoring in other aspects of the deal like tech support.
Ultimately, Nashman told councillors at the time said Avaya offered "a superior package."
Harrison also claimed that during the short-list interview and presentation process Nortel partners were denied the right to have any manufacturers (Nortel) representation or presence.
He said there was no regional executive representation on hand at any of the Nortel presentations- a move perceived to be a snub on the part of senior region staff.
Losing bidders questioned the validity of the Request for Proposal (RFP) process and selection of Avaya as the preferred choice.
Complaints prompted Peel to initiate two audits, one done internally and the other by consulting firm Deloitte.
Peel's Internal Audit of the procurement process determined region staff complied with the municipality's Purchasing By-law, policies, procedures and practices.
Deloitte's report, which cost taxpayers $29,000, also determined that the deal was aboveboard.
"The Region of Peel conducted a reasonable technical and pricing evaluation of telephony service vendors based on published requirements against the submitted proposals and resulting interviews and demonstrations," the report concluded. "The selection of Avaya was appropriate."
There was concern during the audit process that the construction schedule of the new Peel headquarters, which is just about complete, would be delayed.