Our PD use a MTB from Giant and Cannondale. considering they are riding heavyish bikes they are actually pretty damn fast when they need to be. They can take them anyplace and are very effective on the MUP. they can go where the motorcycles can't and are also a great PR tool.
Another thing is they can get through events and such with ease that a person of foot/car/motorcycle can't. Bikes are a great tool in very urban high population settings.
Also they buy their bikes on the bidding process so who ever can give them the best deal wins. Our local shop sells our PD their bikes and I know for a fact it must also include free service except for the parts. Labor is part of the contract.
I just added to keep this kind of ridicules thread going