Tag Archives: outsourcing

Memo Raises Lack of Competition Question in Two State Contracts

A memo prepared for Sen. Bill Ketron, chairman of the Legislature’s Fiscal Review Committee, says that the Department of General Service’s “emphasis on expeditiously completing procurements” may have limited competition for two state outsourcing contracts, reports WTVF-TV’s Phil Williams.
An excerpt:
A recent meeting of the legislature’s Fiscal Review Committee, called to consider three questionable state contracts, ended up being a highly orchestrated endorsement of the Haslam administration.
The governor’s chief of staff, Mark Cate, had met privately with members of the contracts watchdog committee prior to the public session. And, by and large, committee members responded with effusive praise. Some suggested that, in this case, the media had got it wrong.
But a staff report, not shared with the full committee, told a more complicated story regarding at least two of the three state contracts.
Read the memo (HERE).
“Staff did not find evidence in the documentation reviewed that any violation of state law occurred,” the Fiscal Review Committee’s executive director, Lucian Geise, wrote in a July 15 memo to the committee’s chairman, Sen. Bill Ketron, R-Murfreesboro.
“However,” Geise concluded, “an emphasis on expeditiously completing procurements resulted in actions that may have reduced competition.”
And that was what our NewsChannel 5 investigation had suggested in the case of contracts awarded to Enterprise Rent-A-Car and Bridgestone Retail Operations.
Ketron never shared the staff memo with the rest of the committee.
A spokesperson for the Senate Republican Caucus said that the memo was written for Ketron’s “personal” benefit because he had been out of the country.
“He was not asking for information as chairman of the committee,” she said. “Rather, he asked for information in light of the fact that the stories appeared during his absence.”

Sunday column: Louie Lobbyist’s Privatization Plan

Louie Lobbyist came by the cubicle the other day and, after making a couple of insulting remarks about the clutter, asked if we could speak privately for a moment. Sure, I said, and we walked across the hall to an empty legislative committee room.
“What’s the governor paying Tom Ingram?” he asked as we settled into the staff seats in the center of the room.
An undisclosed sum, I replied. How should I know? Tom was paid out of the governor’s own pocket until July 1, when he went on campaign payroll. That will be reported next Jan. 31 or so. But the governor tells us media types none-ya (none of your business) when his own money is involved.
“Yeah,” Louie said, “but you looked at those campaign reports back in 2010. So what was he paid then? I figure Haslam would pay about the same thing now as he did then.”
Well, not necessarily. The governor has explained that he speaks with Tom about governmental matters mostly — “organizational” was one of his words — and political stuff comes up only on the periphery, and so it would be very difficult for him to parse that out and report it as a political expenditure.

Haslam: Public Interest His Only Concern in Outsourcing

Gov. Bill Haslam fielded several questions about state government outsourcing contracts Monday, insisting that a few mistakes might have occurred but that the public’s interest was his only motivation.
From WTVF’s report:
Surrounded by reporters, the governor was emphatic about his administration decision to outsource large chunks of state government — the most recent being a $330 million contract to manage all state buildings.
“This is a contract that’s going to save the state a hundred million dollars over the next years,” Haslam said.
That contract went to Jones Lang Lasalle — a company that candidate Bill Haslam listed among his investments.
“Is there any sense in which you stand to gain personally from that contract?” NewsChannel 5 Investigates asked.
“Absolutely zero,” the governor answered.
…The governor did acknowledge that a meeting with JLL officials at the Governor’s Residence in April 2012 was about more than just the $1 million consulting contract they had at the time to study the condition of the state’s buildings.
After that meeting, the administration began pushing a string of amendments to extend the JLL contract — without any bidding.
“Were you involved in those conversations about those extensions?” NewsChannel 5 Investigates asked.
“No,” the governor said.
“We had the dinner because at this point in time we were thinking about them obviously managing a big chunk of the state’s business, and I wanted to have a face-to-face conversation just like I was if I going out to hire an individual to do something. To me, there’s nothing extraordinary about that at all.”
But when the facilities management contract was put up for bids, two of the three members of the selection committee came from the governor’s own staff.
“Did you interview any of their competitors?” we asked.
“I didn’t,” the governor admitted, “because I wasn’t part of the selection process.”
Still, Haslam insisted that he believes taxpayers will be the winners.
“Look, anytime you make a big change in state government, does everything in the process go about properly? No. This is new territory we’re in. There’s literally no other states who have done what we’ve done.”


See also the Commercial Appeal, HERE