Exhibit,Appendix: MICROCHECK SYSTEMS INC (TEXAS CORPORATION) vs. ZIGROSSI & MURPHY L L C (TEXAS CORPORATION) (IND A

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Tempe-tinion
HIGH SCHOOL DISTRICT
500 WEST GUADALUPE ROAD © TEMPE, ARIZONA 88283-3699(489) 830-0292 + TDD (480) 345.3799

Stewen R. Adotph James T. Denton
Suparhiendont Asscolate Supernizadont

November 2, 2007

Atfn: John Manning, President
MicroCheck Sotutions

9777 W Gulf Bank

Houston, TX 77040

Subject Bid Protest Reeponse

Reference: Request for Proposal No. 08-022, Integrated School Food Sarvice
Accountability System (Point of Sale System)

Dear Mr. Manning,

in reference to your company's letter dated October 9, 2007, protesting tha award of tha
district's solicitation referenced above.

Arizona Administrative Code (A.A.C.) R7-2-1045A states "Tha district representative shall
issue a written decision within 14 days after a protest has been fled pursuant to R7-2-
1142, The district representative extended the time in writing until November 5, 2007,

As the District Representative, a thorough review of your protest has been considered and
the following decision was made based on two parts es follows:

1. Regarding the issue of the scope of work (specifications) being written specifically |
for ona software firm to limit competition is not an accurate statement. tin
accordance with AAC. R7-2-1102.A.1 wheroin it states; “A material, service or |
Constructicn item is used repeatedly by the school district, and tha charactaristice of
the material, service, or construction item, 88 commercially produced or provided,
remaln relatively stable while the frequency or volume of procurements are

‘The District's current POS system is currently 18 yeara old and the last upgrade
was made in 1989. A determination was made by the Distict to issue a request for
proposal based on the District's need for a new point of sale software system. The
District's scope of work stated the preferred method of approach for implementing
a new system as follows; “The District intends to phase in a new systam, one school, 11/12/2007 12:58 = 71346¢™%a wicHorceteane’” Nes PAGE 19

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TempexUnion
HIGH SCHOOL DISTRICT
500 WEST GUADALUPE ROAD « TEMPE, ARIZONA 89283-3890(480) 839-0202 « TDD (480) 345-3799
Staven R. Adolph Jemes T, Denton
Sopertiandent Axxcolehe Supainiandent

at a time and It wil be insperative for ihe new systsm to be able to import (axport)
the data dally from the current MicoCheck Systems database and integrate it Into
the proposed system daily reports, thus allowing both systems to run paralial.”

The protest claims the only way this could he “legitimately accomplished’ woutd
requir use of “proprietary data format and source code": This is not an accurate
statement. 'tis common for different software companies to import and export data
through “comma delimiter text flles" which does not require propristary source code.
Rwas never the intent of the District to limit competition by requesting this in the
scope of

2 Based on the information pressnted In the protest, the District discovered thare Is
the awarded vendor MiChoice. The Purchasing Director,

  

      

States; “Inde 2 Paten i
pemnitted by A.R.S. § 41-621 and § 35-154, Contractor shall indemndy and hold
harmless the School District against any Rabifty, including costs and expences, for

performed
under this Contract. The Schoo! District shail reasonably notify the Contractor of any
ctalm for which it may be Hable under this paragraph.”

it Is the decision of the distict representative; that the award stays with MiChoice as the
most advantageous offer for the school district that most closely met all evatiation erfteria

requirements of the District.

This decision is based on AAC. R7-2-1148,B wherein it states: “In determining an
appropriate remedy, the district representative shal conalder all the circumstances
surrounding the procurement or proposed procurement including, but not limited ta, the
serlousness of the procurament deficiency, the degraa of prejudice to other Intarested
Parties or to the integrity of the procurement system, the good faith of tha parties, the

Robin Denakd P. Raed Mitre | Hobn dary Loo Teyter
Arredondo-Sevage Zia Johnson 2.
* Sonoer Member Morber Miatobet Mendes
Page 2 of 3<11/12/2087 12:58 713462“ MICHOIGETEGHNY IES PAGE 121

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TempexUnion
HIGH SCHOOL DISTRICT
$00 WEST GUADALUPE ROAD + TENPE, ARIZONA 88283-3599(480) 839-0292 » TDD (480) 248-3780
Stavan R. Adoiph James T. Denton
‘Superintondent Azecciety Superiteniont

extent of performance, costs tp the schoo! district, the urgency of the procurement and the
impact of the refief on the mission of the school district” and A.A.C, R7-2-1148.C.6 wherein
it states; “Such other rellef as Is determined necessary to ensure compilanca with this

Article".

This Is the decision of the district representative of the Tempe Union High Schocl District.
The decision may be appealed to the goveming board of this school distict. If you appeal,
you must file a written notice of appeal with the district representative within 10 days from

the dats of the decision.

Sincerely, Af ) .
Ate

Loratei Poo :

Director of Purchasing

$00 W Guadalupe Rd

Tempe, AZ 85283

{poli@tuhsd.k12.a2.us

Phone (480) 345-3725

Fax (480) 345-3797

Ce: ‘MiCholce Technology System
Atin: Mike Smith
11260 West Rd. Suite C
Houston, TX 77085

| F, Kemstty Miche2e L Hol» Mery Low Taytor
Arredondo-Savege Za Jonson Donn#d P,
eh Se Member Mambor ‘Membar Montbar

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