Category Archives: Oversight/Contract.Management

Are charter school building leases fleecing Ohio taxpayers?

Source: Jim Siegel, The Columbus Dispatch, January 21, 2019

For-profit management companies are receiving rents from the Ohio charter schools they operate that are significantly higher than rents of comparable buildings in the same area, according to a report released by former state auditor Dave Yost. Cincinnati charter school Orion Academy paid $867,000 more to lease its facilities in 2016 than what was paid for comparable buildings in the area, according to a recent state auditor’s report. In 2015, Cleveland-based Harvard Avenue Performance Academy paid about $516,000 above market value for its facilities. That taxpayer money went to subsidiaries of the schools’ for-profit management companies, National Heritage Academies and Imagine Schools. Imagine became non-profit in mid-2015, and the numbers account for only one year of multiyear leases. The payments were highlighted by former state Auditor Dave Yost who, in one of his last acts before switching offices to become Ohio attorney general, issued a 30-page, public-interest report examining problems with the way charter schools obtain and pay for their facilities. …

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A New Report Says Oregon Woefully Underfunds Public Defense Services And Fails To Monitor Its Contractors

Source: Katie Shepherd, Willamette Week, December 13 2018

In a presentation at the state capitol this morning, experts on the right to legal counsel told lawmakers and criminal justice stakeholders that Oregon is failing to comply with the U.S. Constitution because it has significantly underfunded public defense services.

In U.S. courts, defendants are guaranteed the right to an adequate defense under the Sixth Amendment, but a study authored by the nonpartisan nonprofit found several shortcomings in Oregon’s public defense system.

David Carroll, the executive director of the Sixth Amendment Center, presented the report’s findings Thursday morning. Carroll said his team heard a repeated message from the public defenders they talked to: “We are being asked to do more and more with less and less.”

High case loads, low pay rates and a complex, bureaucratic method for assigning cases led the Sixth Amendment Center to conclude that Oregon’s public defense system is not passing constitutional muster.

The report, which was first obtained Wednesday by OPB, highlights a lack of oversight over contracts that outsource public defense services to private attorneys and nonprofit public defenders offices across Oregon. ….

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Oregon’s Public Defense System ‘Is Not Constitutional’ Report Finds
Source: Conrad Wilson, OPB, December 12, 2018

State public defense systems are supposed to provide effective counsel for indigent clients — a requirement of the U.S. Constitution. But a draft report obtained by OPB concludes that Oregon’s system is so bureaucratic and structurally flawed that it can’t guarantee clients are getting the defense they’re owed. …. The Legislature authorized the money for the report, which cost $193,990. Carroll’s group got to work in March, studying nine counties in depth that ranged from Harney to Multnomah. The findings are bleak. The state lacks oversight of attorneys with whom it contracts to provide public defense services. And the way it pays attorneys encourages them to deal with cases as quickly as possible…..

He’s Built an Empire, With Detained Migrant Children as the Bricks

Source: Kim Barker, Nicholas Kulish and Rebecca R. Ruiz, New York Times, December 2, 2018

The founder of Southwest Key made millions from housing migrant children. His nonprofit has stockpiled taxpayer dollars and possibly engaged in self-dealing with top executives. … Mr. Sanchez has built an empire on the back of a crisis. His organization, Southwest Key Programs, now houses more migrant children than any other in the nation. Casting himself as a social-justice warrior, he calls himself El Presidente, a title inscribed outside his office and on the government contracts that helped make him rich. Southwest Key has collected $1.7 billion in federal grants in the past decade, including $626 million in the past year alone. But as it has grown, tripling its revenue in three years, the organization has left a record of sloppy management and possible financial improprieties, according to dozens of interviews and an examination of documents. It has stockpiled tens of millions of taxpayer dollars with little government oversight and possibly engaged in self-dealing with top executives. …Southwest Key has created a web of for-profit companies — construction, maintenance, food services and even a florist — that has funneled money back to the charity through high management fees and helps it circumvent government limits on executive pay. …

Editorial: The Pentagon Doesn’t Know Where Its Money Goes

Source: Editorial Board, New York Times, December 1, 2018

After decades of ducking the legal requirement that it undergo a thorough financial audit, the Pentagon finally opened up its books to 1,200 outside accountants and analysts. The report was recently completed, and here’s the good news: The Army Corps of Engineers (most of it, anyway) and the Military Retirement Fund passed the audit. The bad news: The Army, Navy, Air Force and Marines and most other divisions failed, which means they were unable to show that they were properly keeping track of their finances and assets. … The Pentagon failed the audit largely because there are serious gaps in the financial controls that guide it, the world’s largest military organization. Basically, the auditors couldn’t account for where all the money went because of flaws in information technology systems. That laxity — and the prospect of tax dollars flowing to boondoggles — would be concerning at any time. But it is especially worrisome when the federal budget deficit has skyrocketed to $779 billion — and the military is insisting it needs more money. …

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Pittsburgh mayor Bill Peduto says PWSA at financial crossroads

Source: Bob Bauder, TribLive, September 4, 2018

The Pittsburgh Water and Sewer Authority has two choices: squeeze more than $2 billion needed for replacing outdated and failing infrastructure from 80,000 ratepayers, or partner with a private company to defray some of those costs, Mayor Bill Peduto said Tuesday. Peduto is adamant about maintaining PWSA as a publicly owned system, but he’s open to suggestions from private enterprise on a partnership that would generate additional revenue. The mayor said he’s received more than a dozen offers from companies interested in providing the city with water, including Peoples Gas and Pennsylvania American Water. Peduto said Pennsylvania American, which provides water to the city’s South Hills residents, has offered to purchase the authority outright, but the company said it has not offered an official proposal. …

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From Pittsburgh to Flint, the Dire Consequences of Giving Private Companies Responsibility for Ailing Public Water Systems
Source: Sharon Lerner and Leana Hosea, The Intercept, May 20, 2018
 
The lead crises in Flint and Pittsburgh have many unfortunate parallels. Residents of both cities unknowingly drank water with high levels of the potent neurotoxin, which has long-term health consequences. The rise in lead levels was preceded in both cases by a miscalculation related to chemicals used to control corrosion in water pipes. And in both places, officials have faced criticism for their inaction and failure to alert the public. The two lead crises have another important thing in common: a private water company named Veolia. The world’s largest supplier of water services, Veolia had contracts with both Flint and Pittsburgh around the time that lead levels rose in their drinking water. And in both places, Veolia wound up in legal disputes over its role in the crises. …

Pittsburgh’s Water System Is Why We Shouldn’t Run America Like a Business
Source: Jordana Rosenfeld, The Nation, November 30, 2017

Pittsburgh, in an attempt to deal with entrenched infrastructure problems, turned to the private sector in 2012 when it partnered with the French management firm Veolia North America, the same water-management company that would fail to disclose Flint’s lead-contamination problem in 2015. … The organization lauded Veolia for identifying $2.3 million in new PWSA revenue and $3 million more in operating savings, a move incentivized by their contract that stipulated the company could keep 40 percent of every dollar it saved the city. The Pittsburgh Post-Gazette published a glowing account of PWSA’s partnership with Veolia, despite reports that it laid off 23 employees, many of whom were longtime employees with critical institutional knowledge. … But this August, a consulting group hired to assess the organization’s current state announced in a public meeting that PWSA was “a failed organization atop a dangerous and crumbling structure” with “an aging system in demonstrably worse condition than any water utility of its size in the country.” Not only that, water tests showed that since the partnership began, Pittsburgh’s water had been tainted with dangerously high levels of lead. …

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POGO Identifies Defense Contractors Recently Sanctioned for Human Trafficking Abuses

Source: Neil Gordon, Project on Government Oversight, August 21, 2018

POGO has identified two companies that were recently sanctioned by the government for violating U.S. restrictions on human trafficking. An official in the Pentagon’s watchdog told POGO that Tamimi Global Company and Texas Gulf Global General Trading & Contracting Company were the two of the companies referred to, although not by name, in a recent State Department report. The State Department’s Trafficking in Persons Report 2018 released in June reported: [The Department of Justice] and other federal law enforcement agencies continued to investigate allegations of debt bondage and excessive recruitment fees required of third-country nationals working on certain U.S. government contracts abroad, but no federal criminal prosecutions of employers or labor contractors resulted from these investigations in FY 2017. [The Department of Defense] took action against noncompliant employers or labor contractors from U.S. programs resulting in 22 suspensions, six debarments, one job termination, and one compliance agreement. …

Multnomah County launches investigation into mental health complaints

Source: Keaton Thomas, KATU News, August 16th, 2018

Thanks to a whistleblower and report from the Oregon Health Authority, Multnomah County officials are launching an investigation into how they review mental health complaints from the Unity Center for Behavioral Health. … Multnomah County is the local mental health authority. All complaints of abuse or neglect in the mental health system are directed to it. Last week, county leaders ordered an audit of the complaints reported to the Mental Health and Addiction Services Division. … Issues surrounding Unity Health go back to its beginning, according to Greg Monaco. … “When I started going [to Unity] I was just hearing horror stories from staff,” he said. Monaco says he heard about patients who didn’t know they were kept against their will. He heard about injuries to staff. He heard about employees at Unity who were worried about their safety because of understaffing. … Reports from earlier in the year by the Occupational Safety and Health Administration and the Oregon Health Authority back up Monaco’s claims. In March OSHA cited Unity Health for four violations. It found Unity had not properly handled and investigated injuries to staff members on the job. Last month, a report from the Oregon Health Authority looked into patient safety. It “uncovered several issues that jeopardized patient safety.” …

State launches investigation, assesses $800,000 in damages against SunPass contractor

Source: Hannah Denham, Times Staff Writer, August 14, 2018

After months of inaction, Florida Department of Transportation officials announced today that they are assessing nearly $800,000 in damages against the SunPass contractor responsible for the state’s tolling chaos. At Gov. Rick Scott’s direction, the department also has requested an investigation by the Office of the Chief Inspector General into the contractor, Conduent State and Local Solutions. Last month, the state suspended payments on its $343 million contract with Conduent to update the tolling system, which is now in its third month of dysfunction. The original contract included a clause that if Conduent didn’t provide the system within the timeline that was agreed upon, then the state had the right to collect “liquidated damages” from the company — in the form of $5,000 for each calendar day past the deadline that the system wasn’t ready. …

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SunPass Problems: State awarded contractor millions more while unprocessed tolls mounted
Source: Noah Pransky, WSTP, July 5, 2018

As problems continued to mount for the Florida Turnpike Enterprise’s SunPass system and a backlog of toll transactions grew to more than 100 million, the state didn’t hit its troubled contractor with penalties; instead, it kept awarding contractor Conduent more money, according to new documents obtained by 10Investigates. More than a dozen change orders have increased a $287 million electronic tolling contract to $343 million, including what appears to be more than $20 million for extensions and delays in getting the new, consolidated customer service system (CCSS) functional. Starting on June 12, the state also spent more than $1 million for Conduent to add customer service representatives. A frequent complaint of customers during SunPass’ month-long system outage has been about poor customer service from the Conduent-operated call centers. 10Investigates has reported how Conduent – and its former parent company, Xerox – have had major problems with its electronic tolling systems in at least five states. Yet Florida awarded the lucrative contract to the firm in 2015 anyway. The state has steadily increased the value of the deal since then. …

DeKalb ambulance provider will pay for poor service, county says

Source: Joshua Sharpe, The Atlanta Journal-Constitution, August 7, 2018

DeKalb commissioners on Tuesday voted unanimously to approve a settlement with the county’s ambulance provider after a long history of complaints. Under the agreement, American Medical Response will resolve $1.9 million in contract penalties for allegedly providing poor service — though only $600,000 will be paid in cash. The company, which has been subject to complaints of slow response time such as one in Dunwoody that took 58 minutes, previously declined to settle the fees but agreed to increase performance. Tuesday’s agreement gives $1.3 million credit to AMR for boosting staffing and adding ambulances at two DeKalb fire stations, one in Dunwoody, the other in Stonecrest. …

Contracting Models Shift Dynamics of Engineering and Construction

Source: Jean Pedley, Journal of the American Water Works Association, July 31, 2018

Whether it’s construction of a new treatment plant or a water main replacement project, successfully delivering capital projects in the water industry requires utilities, engineers, and construction experts to work together effectively. Faced with the need to address aging infrastructure and challenged by restrictive regulations, concerned citizens, and attention to budgets, the water industry needs to explore efficient and innovative models for engineering and construction now more than ever. … This article identifies some of the best practices and tools for alternative project delivery that have been tested in a variety of markets, including power generation and water. Successful alternative delivery projects always involve stakeholders who are adaptable and open to collaboration. In addition, the success of alternative project delivery often depends on integration of advanced tools and technology that create efficiencies in tracking and identifying opportunities to avoid project pitfalls. …

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