Lexington, KY - Lexington city officials say a clerical error made by a new employee led to confusion over how the city advertised for bids on a contract to produce and install Lexington's new wayfinding signs.
The contract to both produce and install the green and white signs bearing the city's new "Big Blue Horse" logo was awarded to Architectural Graphics, Inc. (AGI) of Virginia Beach, Virginia after only one central Kentucky company submitted a bid, and at $170,000 higher than that of the Virginia company.
"The installation will definitely be done by a local company," said AGI Sales V.P. Phil Morgan. Noting that AGI bills over $60 million annually for its sign fabrication services, Morgan said "We do these kinds of wayfinding projects all over the U.S. There's no way we can do our own installations. There are just too many places to be, too many people for room and board, per diem, etc. So, we always subcontract the installation locally."
Morgan emphasized that local companies vying to qualify for and win the installation subcontract must be able to meet his company's criteria.
Approval of the contract is pending a final vote next Tuesday by the Urban County Council.
The project's manager, Kevin Wente, had stated that information about the contract was submitted "to all local sign companies, about 50 companies in central Kentucky." Today, Wente clarified that the information was sent only to 50 contractors - as distinguished from sign makers - companies that would install the signs and that have registered with the city to receive such notices.
Susan Straub, spokeswoman for Mayor Jim Newberry said that in addition to the 50 contractors, information about the project should have been sent to the 82 businesses appearing on the city's Kentucky sign company list, as well. That approach would've enabled sign makers and installers to bid for the contract and then subcontract with one another for either signage or installation. The notice did not go directly to sign companies due to an error by a new employee in the city's purchasing department, although it was available to them through public notices, Straub said.
The Lexington Convention and Visitors Bureau (LCVB) last year hired the international graphic design firm Pentagram (offices in London, Berlin, New York, San Francisco and Austin) to offer design options for an iconic logo for Lexington. The firm chose the likeness of "Lexington," a famed racehorse of the mid-19th century immortalized in a painting by portrait artist Edward Troye. The painting's owners approved the use of the image.
Plans call for the installation of a large version of the signs at interstate exits and along major corridors leading into the city. Those signs will direct visitors to such major local sites as the University of Kentucky, Blue Grass Airport, Rupp Arena, Keeneland and the Kentucky Horse Park. Smaller signs to be posted throughout downtown Lexington would point the way to other attractions such as local parks, theaters and museums. Many, but not all of the signs are to be installed prior to the Alltech FEI World Equestrian Games.
The issue over the city's bid process has, in the meantime, sparked discussion among local business owners. "There is a larger issue, however, than this one contract," said Howard Stovall, owner of the Lexington SignsNow franchise. "Any entity funded by taxpayer dollars, including LFUCG, universities and public schools owes it to those who pay the taxes to make every effort to include local businesses when awarding contracts for goods and services. It just makes good economic sense to increase the tax base. I might ask why the contract to design the "blue horse" logo also went out of state. Are Lexington area designers not considered good enough?"
Steve Baron, president of Local First Lexington, which represents the interests of local businesses, said "anytime that a city contract goes to an out-of-state company, Lexington loses out. I would encourage the city to try to find ways to ensure that local companies have a fair shot at getting these contracts and keeping the money here at home." Baron, owner of CD Central, said his organization wants to work with the city to modify the bidding process.
"Right now we're studying what's happening in other cities, including Louisville, to see how they're handling it. Other cities have successfully implemented local bidder preference systems that would help in this area," Baron said.
"This has been one of my pet peeves," said councilmember Beard, a former LFUCG economic development director. "I think we ought to be giving Fayette County people 5-percent leeway over anybody outside the county. A 5-percent boost isn't a whole lot, but it does show that your heart's in the right place." Beard said he hoped council will pursue the issue in the near future.
Businesses that have not registered with the city to be notified of bidding opportunities can do so by visiting https://lfucg.economicengine.com, according to Director of Purchasing, Brian Marcum. You can also go to http://www.lexingtonky.gov, click on eNews Sign Up at the top of the page and be taken to a page where you can register to be notified not only about purchasing bids, but also public meetings, construction updates and other updated information from the Urban County Government.