Repository: UIHistories Project: Board of Trustees Minutes - 1964 [PAGE 492]

EXTRACTED TEXT FROM PAGE:

1963]

UNIVERSITY OF ILLINOIS

447

The University received sealed bids from two companies: T h e Harwald Company, Inc., and Paulmar, Incorporated. The lower bid submitted by the Harwald Company was evaluated by the staff of the Visual Aids Service and the Purchasing Division and it was concluded by them that the equipment offered by the Harwald Company did not meet the bid specifications and the needs of the Visual Aids Service. Accordingly, a recommendation for purchase of the two Paulmar units was then presented to the Board of Trustees. The Board took no action on the recommendation because of objections raised by Mr. Grunwald, President of the Harwald Company, and a special committee of the Board of Trustees was appointed to consider the matter further. Subsequently the recommendation for the purchase was withdrawn. An analytical report on the equipment offered by the Paulmar Company and the Harwald Company in response to the bids was prepared and presented to the special committee by two members of the staff of the College of Engineering: Professor H . N. Hayward, of the Measurement Service Program of the College of Engineering, and Professor George F. Schrader, an expert in the field of timemotion study. The special committee thereafter concluded that the specifications issued for the purchase of the equipment included some requirements which were not essential to the performance of the intended function and that, while the equipment offered by the Harwald Company did not meet the specifications as listed, bids should be taken on broader specifications. Before new bids were invited, the film inspection industry offered a new type of machine which provided for the simultaneous review of more than one reel of film. It appeared that the advancement in the design might offer further savings in the operation of the film inspection function, and that the new machine should be studied. For this purpose, Mr. John R. Miles, a consulting engineer, was employed to make an independent study to determine whether the use of the new "stacked unit" type of film inspection equipment was desirable, and to compare the merits of such equipment produced by the Harwald Company and the Paulmar Company. Mr. Miles submitted his report which indicated that, in his opinion, the purchase of the stacked unit was desirable, and recommended that the equipment manufactured by the Paulmar Company be acquired. A copy of this report was submitted to both vendors. Mr. Grunwald of the Harwald Company objected to the conclusions in the Miles report and requested a further hearing before the special committee of the Board, which was held on October 17, 1962. In the course of the original bidding process, the Supervisor of the Visual Aids Service of the University reported that Mr. Grunwald had offered him a sum of money if he would submit a favorable report on the Harwald equipment. The offer was made in a private conversation and was not brought before the Board in view of the fact that at that time there was no substantiating evidence. During the hearing before the special committee of the Board on October 17, 1962, Mr. Grunwald was asked whether or not he had made such an offer and he admitted doing so, although he stated it was for the purpose of "testing" the University employee. On the basis of Mr. Grunwald's statements to the Committee, it is concluded that he offered to give a University employee something of value with an intent to influence such employee within the meaning of the University's regulations which provide that "No person on a bidders' list or who submits or intends to submit a bid shall give or offer to give, directly or indirectly, any money, article, or other things of value to any officer or employee of the University of Illinois, with an intent to influence said officer or employee of the University of Illinois." The regulations further provide that if any person makes such an offer, "all bids, submitted by him, will be rejected and the bidder will be barred from further bidding for a period of time fixed by the Purchasing or Physical Plant Department." It is recommended that the University notify Mr. Grunwald and the Harwald Company that they are barred from bidding on University business for a period of one year and that the University proceed to secure sealed bids for stacked unit film inspection equipment.

At the conclusion of the presentation, and following discussion, on motion of Mr. Swain, the report was accepted and the recommendation of the Committee was adopted without dissent.