Category Archives: Oversight/Contract.Management

Inmates removed from OKC halfway house, contract ended

Source: Dale Denwalt, NewsOK, December 5, 2017

The Department of Corrections has abruptly ended a contract with Catalyst Behavioral Services after years of issues at a downtown Oklahoma City halfway house and the death of an inmate who walked away from the work-release residential site last month. … The Corrections Department paid Catalyst $32.50 per inmate, per day. Expenditures last budget year totaled more than $1.5 million and the average bed count was 126. The decision to move inmates from the Walker and NW 8 Street site comes after the death of an inmate who walked away from the site Nov. 11. Ardmore police found the remains of Justin Sullivan and a woman inside a burned vehicle 16 hours before Catalyst staff discovered he was missing, the Corrections Department said. … Catalyst reportedly did not keep an accurate head count and at one point, Allbaugh noted, staff did not have a master key to get into inmate rooms. Non-inmates were able to freely enter the facility without security’s knowledge. … In response, the Corrections Department posted its own security staff on site since Nov. 23. It has ongoing concerns with Catalyst Behavioral Services’ staff training, their experience and ability to conduct proper inmate counts, as well as contraband control and proper searches. … The state oversees nine other halfway houses that are maintained by contracts with private businesses, including another site in Enid operated by Catalyst Behavioral Services that was not affected by Monday’s shuffle. …

Tennessee Lawmakers Give Correction Department A Short Leash To Fix Troubled Private Prisons

Source: Julieta Martinelli, Nashville Public Radio, December 12, 2017
 
The Tennessee Department of Correction is getting another year to show improvement. Officials voted to reauthorize the state agency for 12 more months after a scathing audit last month highlighted severe staffing and safety concerns at several private prisons.  The state agency oversees more than 20,000 inmates. About one third of them are housed in facilities managed by CoreCivic, a private contractor formerly known as Corrections Corporation of America.  Inmates, family members and even former employees have publicly called out conditions inside prisons like Trousdale Turner Correctional Center in Hartsville. The allegations came shortly after it opened last year. …

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State Audit Reveals Serious Staffing Concerns In Tennessee’s Largest Private Prison
Source: Julieta Martinelli, Nashville Public Radio, November 14, 2017

A state audit of the Department of Correction released on Tuesday highlights a number of issues plaguing prisons in Tennessee. The biggest issue is a shortage of correctional officers, which could put inmates and other prison staff at risk. The CoreCivic-managed Trousdale Turner Correctional Center, northeast of Nashville, and Whiteville Correctional Facility, near Memphis, operated with fewer than approved correctional officers and did not follow staffing guidelines required by the state. At Trousdale, which is the state’s largest prison, the audit found critical posts were even left unstaffed on multiple occasions. …

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Better data, oversight needed to boost diversity in tech

Source: Bloomberg Government, Chris Cornillie, December 7, 2017

Federal technology contractors may soon need to meet higher standards for diversity or risk losing government business, according to new recommendations from the Government Accountability Office (GAO). In a report released Nov. 30, the government’s top watchdog calls on two government offices, the Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance Programs (OFCCP), to overhaul their efforts to, “combat discrimination and support equal employment opportunity for U.S. workers” in the technology industry. … According to the government’s top watchdog, deficiencies in EEOC and OFCCP data reporting processes challenged their ability to hold companies accountable for meeting employment targets for traditionally underrepresented groups. However, most of GAO’s criticism was aimed at OFCCP, which is responsible for enforcing nondiscrimination among federal contractors. The study found that OFCCP regulations allow contractors to report employment of racial and ethnic minorities using a single, combined metric, rather than reporting figures for each group individually. … Given the national debate on diversity in the technology industry — and in the workplace in general — GAO’s findings could have a significant impact on federal contracting. GAO called on OFCCP’s director to take steps toward requiring contractors to disaggregate employment data by racial and ethnic group. … Perhaps most significantly, GAO’s report may catalyze support for expanding diversity in federal contracting, especially in the IT space. … Perhaps most significantly, GAO’s report may catalyze support for expanding diversity in federal contracting, especially in the IT space. …

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Pennsylvania lurches from one software boondoggle to another

Source: Joseph N. Distefano, Philly.com, December 1, 2017

The phones stopped working again at Pennsylvania’s unemployment-compensation offices Tuesday. “Due to vendor-related technical issues,” the state Department of Labor and Industry said. The same department has had to rely on what state auditors in May called “antiquated” software, written in the COBOL language used by punch-card programmers in the 1970s, since spending more than $160 million on a replacement system that failed. Elsewhere in Harrisburg, the Department of Human Services paid benefits to a couple of thousand dead people after computer systems failed to flag them as ineligible, auditors found last year. At the Department of Environmental Protection, the last full audit found water-quality reviews used “decades-old” data updated by hand. And after contractors were paid $800 million over the years, more than four times its projected cost since the 1990s, the Pennsylvania Statewide Radio Network still doesn’t work as designed.

… So Mr. Grove is sponsoring House Bill 1704, which would combine most state departmental IT offices and their short- and long-term planning, procurement, and cyber-security protection into a single Office of Technology. It would be part of the governor’s Office of Administration, under a director with the power to kill or suspend projects that run over budget or below standards. Pennsylvania IT contracts need “better controls” and “stronger clawback mechanisms” (performance bonds), so taxpayers can get their money back when the systems they buy don’t work, elected Auditor General Eugene DePasquale, a Democrat like Gov. Tom Wolf, said at a Nov. 14 hearing on the bill. … But Mr. Wolf’s appointees worry that the new office could “duplicate” and “conflict with” current procurement rules, Curt Topper, Mr. Wolf’s Department of General Services chief, told Mr. Grove at the hearing before Rep. Daryl Metcalfe’s Government Affairs Committee. …

Kansas’s ravaged economy a cautionary tale as Trump plans huge tax cuts for rich

Source: Dominic Rushe, The Guardian, December 10, 2017
 
Is Donald Trump about to turn America into Kansas? It’s a question some worried people who live in the state are asking as the Republican party pushes through the biggest tax overhaul in a generation – an overhaul that, they claim, bears an uncanny resemblance to a tax plan that left their midwestern home in disarray. After a failed economic experiment meant to boost economic growth blew a hole in the Kansas budget as big as a prairie sky (a $350m deficit in the current fiscal year and nearly $600m in the next) state jobs and services have been slashed.

… Sarah LaFrenz Falk, president of the Kansas Organization of State Employees ,who recently spoke to Congress about her fears about the Republican tax plan, said she sees an agenda in the Brownback plan – one that is mirrored in Trump’s plan: give huge tax breaks to super-rich donors [the rightwing, union-bashing Koch brothers are Kansas’s richest residents], then hand them a second win by cutting services, waiting for those services to buckle under the strain and then argue the private sector can do it better. … Kansas has already had one horrific example of private enterprise failure. In October lawmakers were “flabbergasted” to learn that the companies that now run Kansan foster homes had “lost” more than 70 children. Revelations about the unaccounted children came after it was revealed children had been left to sleep in local contractors’ offices because there were no places for them. The state is currently looking to privatise its largest prison, at Lansing, near Kansas City. CoreCivic, the company overseeing construction of the new prison, is subject to lawsuits in six states and was accused by state officials of grossly under-staffing facilities in Tennessee. …

… The details of Trump’s tax plan are still being worked out, but it looks certain to pass, and the fixed positions are big corporate tax breaks and a massive reduction for pass-through entities. … The bill looks set to add $1tn to the national debt. Republicans are already discussing paying for the plan by cutting social security and gutting Medicare and Medicaid, the two federally funded health insurance schemes. But, worryingly for Trump, Brownback’s tax plan proved not just disastrous for the state but also for Brownback and his supporters. … Brownback’s plan led to electoral defeat for his supporters in 2016, and the election of moderate Republicans he had fought with to pass his plan. His political career is now in limbo. …

Ige appoints new director for troubled state tax department

Source: Kevin Dayton, Honolulu Star Advertiser, December 6, 2017
 
Gov. David Ige today named Linda Chu Takayama as the new director of the state Department of Taxation in an effort to quickly replace outgoing director Maria Zielinski in what has emerged as a pivotal position in Ige’s administration.  Takayama is a lawyer who now serves as Ige’s director of the state Department of Labor and Industrial Relations, and previously served as state insurance commissioner. Zielinski abruptly resigned effective Tuesday in the wake of a report that revealed state tax officials instructed a supposedly independent consultant on which subjects it should address in its monitoring reports on the progress of a new $60 million tax computer system. … Ige is under intense pressure to efficiently execute the $60 million contract to replace the tax department’s old computer system. State government has had an embarrassing history of botched computer projects dating back to previous administrations, and the computer system for collecting state taxes is a critical piece of state infrastructure.  The project has already stirred controversy. Randy Perreira, executive director of the Hawaii Government Employees Association, wrote to Gov. David Ige on Oct. 31 to object to the decision to take control of the project away from Zielinski and TSM Program Manager Robert Su earlier this year. …

Report on immigration detention centers raises questions of ‘perverse financial incentive’

Source: Esther Yu Hsi Lee, ThinkProgress, November 30, 2017

An analysis of the nation’s 201 immigration detention facilities contracted through the U.S. Immigration and Customs Enforcement (ICE) agency is raising concerns about inadequate standards, contracting practices, and limited accountability. … A spreadsheet analysis by the nonprofits Detention Watch Network and the Center for Constitutional Rights found that an average of 35,929 people per day were detained in immigration detention centers nationwide during the 2017 fiscal year through July 10, a number that does not include family detention centers or women detained at Hutto, an all-women detention center in Texas. Of that total number, 73 percent (or 26,240 people) were held in facilities contracted to private prison operators, the documents show. The two major private prison operators are GEO Group and CoreCivic, which charge the federal government a per diem rate anywhere between $30 per bed to detain immigrants for a short-stay facility to $168.64 per day, according to Transactional Records Access Clearinghouse data from 2016.

… The experts said that the findings suggest an “irresponsible” ICE agency, which requested increased congressional funding this year in part on claims of a cost increase in detainees’ chronic health care needs, while at the same time, lowering levels of detention standards. Advocates previously alleged that lowered detention standards contributed to repeated violations of ICE’s own standards of care. That meant detainees routinely received unsanitary food and substandard health and mental care. … What’s more, the spreadsheet outlined 159 out of the 201 detention centers that do not have a contract expiration date, drawing attention to the process of renewing a contract that would require facilities to undergo reviews that address chronic problems at facilities. Already, 12 immigrant detainees have died after being held in immigrant detention facilities during the 2017 fiscal year. … Findings from the spreadsheet also suggest detention facilities are increasingly cropping up in localities that have a “perverse financial incentive” to participate in two federal programs that solicit local law enforcement to detain immigrants. ….

Whitefish stops work on Puerto Rico power grid over payment dispute

Source: Brandon Carter, The Hill, November 20, 2017
 
Whitefish Energy, which is under scrutiny over how it was selected for work in Puerto Rico, is halting its efforts on the island’s power grid because it says the local power authority owes it millions of dollars.  In an interview with CNN published Monday, Whitefish CEO Andy Techmanski said the company is owed more than $83 million by the Puerto Rico Electric Power Authority (PREPA) and is stopping work because its repeated requests for payment were not fulfilled.  “We stopped because of the financial situation, lack of payment with PREPA has gotten beyond its maximum threshold and what we can sustain as a business,” Techmankski said.  The company’s CEO said that it has employed more than 500 contractors and subcontractors on its work to restore the island’s power grid following the devastation caused by Hurricane Maria. …

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Ricardo Ramos, embattled head of Puerto Rico’s power utility, resigns
Source: Phil McCausland, NBC News, November 17, 2017
 
The embattled head of Puerto Rico’s power utility resigned on Friday, the latest controversy to hit the island as it struggles to bring its electric grid back online. Ricardo Ramos, the executive director of the Puerto Rico Electric Power Agency, submitted his resignation to Puerto Rico’s governor’s office only a few days after he testified before the Senate Energy and Natural Resource Committee over the controversial contract he approved with Whitefish Energy Holdings, a small Montana firm to rebuild Puerto Rico’s electric grid.  A few hours after Ramos resigned, Puerto Rico Governor Ricardo Rosselló recommended the appointment of engineer Justo González as interim director of the public utility.

After Doomed Whitefish Deal, Puerto Rico Asks Congress for $94 Billion
Source: Frances Robles, New York Times, November 14, 2017

The governor of Puerto Rico and the chief executive of its beleaguered electric company faced hours of questioning on Tuesday in Congress, where skeptical legislators questioned whether to give the island an enormous aid package on the heels of a botched high-priced contract to fix its power grid.
Gov. Ricardo A. Rosselló came to Senate and House committees with a huge ask: $94.4 billion to help Puerto Rico “build back better” after Hurricane Maria destroyed or damaged 472,000 homes and knocked out the island’s electricity. He also said that Puerto Rico should have more authority over its own fiscal affairs, and that he had “zero role” in awarding a highly criticized $300 million deal to a small Montana firm to help restore power. …

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MT special legislative session works late into night to finalize budget deal

Source: Mike Dennison, KRTV, November 16, 2017
 
Montana lawmakers worked into the early-morning hours Thursday to fashion a deal to fill the state’s $227 million budget hole, agreeing to a package of spending cuts, fund transfers and one, big charge on the state workers’ compensation fund.  The plan also includes at least $15 million from a fund controlled by the company that operates Montana’s only private prison – and that can be accessed only if Gov. Steve Bullock negotiates a new contract to extend the prison contract with CoreCivic. … The 600-bed private prison near Shelby is in Jones’ district, and CoreCivic’s contract expires in 2019.  The special session, called by Bullock to balance the state’s budget, started Tuesday and wrapped up after two long days of back-and-forth negotiating primarily between the Democratic governor and the Republican majority at the Legislature. …

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MT Republicans plan to expand special session agenda
Source: Mike Dennison, KXLH, November 8, 2017
 
Legislative Republicans plan to expand next week’s special session agenda, to include more options to fill Montana’s $227 million budget hole, MTN News has learned – including $32 million from an account controlled by the owner of the private prison in Shelby. … GOP leaders are drafting a proposed expansion with nine new items, including: Using $32 million from a fund set up to help the state buy the privately run prison at Shelby. The owner of the prison – CoreCivic – controls the money, but has offered to give it to the state — if the state agrees to extend the company’s contract, for another 10 years.  …

Corrections pledges to increase private prison oversight
Source: Associated Press, November 30, 2016

The Montana Department of Corrections has pledged to strengthen its oversight of a private prison in Shelby after auditors recently found weaknesses in the agency’s monitoring of guard staffing levels, health care services and food service. Department officials said checks have already been increased to ensure mandatory security staffing levels are being met, and they will build more comprehensive checks in the other areas. The Legislative Audit Division did not find any major violations at the Crossroads Correctional Center when auditors conducted surprise visits, analyzed prison data and spoke to former inmates. However, the auditors did report that the department’s on-site contractor assigned to monitor the prison’s health services does not verify that inmates receive timely access to medical care. The department also has not defined the level of review it expects from the contractor and conducts only limited reviews of health services data from the prison, the November report found. … But DOC director Mike Batista said in his written response that the department has already set up reviews of shift rosters, payroll logs, video reviews of staff and other checks as a result of past violations discovered in audits. Batista pledged to increase the review of shift rosters each month. The department also “will build a more comprehensive reporting and compliance check for medical access and timeliness requirements” for its health care monitoring contractor, Batista said. He added that the department’s dietician will review the prison’s menu annually. DOC spokeswoman Judy Beck said Wednesday she did not have further comment beyond Batista’s response to the audit.

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Secrecy inside child welfare system can kill: ‘God help the children of Kansas’

Source: Laura Bauer, Kansas City Star, November 12, 2017

… An agency charged with protecting kids instead focused on protecting itself. An agency where a former high-level DCF supervisor told The Star she was instructed not to document anything after a child’s death and to shred notes after meetings so attorneys and reporters couldn’t get them through open records requests. An agency where even lawmakers insist DCF officials are intentionally misleading them and providing information the Legislature can’t trust. In the end, Kansas children continue to die without a public review of what contact state social workers had with the families — whether they did enough and whether policies and procedures were followed. …

In a months-long investigation into the secrecy that permeates Kansas government and how it harms residents, The Star found a pervasive effort inside DCF to hide behind privacy laws and internal procedures to keep the public from knowing how it operates. Those practices are particularly acute in cases where children are seriously injured or killed by parents and guardians who were known to the agency. For the past year, DCF has refused to answer questions on topics ranging from open records and the death of specific children to runaways in foster care. During the course of The Star’s reporting on widespread problems within the agency, DCF Secretary Phyllis Gilmore announced her retirement effective Dec. 1. …

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For Kansas foster care task force, report of missing children latest concern
Source: Madeline Fox, Wyandotte Daily, October 12, 2017

The news that about 70 children are missing from the Kansas foster care system is the latest in a string of concerns for lawmakers and child welfare advocates. Concern for the safety of children, heavy caseloads for social workers and a lack of coordination in the system prompted lawmakers earlier this year to form the Child Welfare Task Force, which heard about the missing children during a meeting Tuesday in Topeka. The foster care system, overseen by the Kansas Department for Children and Families, was privatized 20 years ago after it failed court-ordered reviews. Care is now overseen by two contractors: St. Francis Community Services in western Kansas, and KVC Health Systems in eastern Kansas. …

More than 70 foster children missing in Kansas
Source: Jonathan Shorman and Hunter Woodall, Wichita Eagle, October 10, 2017
 
More than 70 foster children are missing in Kansas, the companies running the state’s foster care system said Tuesday.  Lawmakers were concerned that Kansas Department for Children and Families Secretary Phyllis Gilmore appeared unaware that three sisters have been missing from a northeast Kansas foster home since Aug. 26.  Sen. Laura Kelly, D-Topeka, told a child welfare task force meeting that when she raised the missing children with DCF on Tuesday, the agency knew nothing. … KVC Kansas, one of the foster care contractors, said it has 38 missing children. The other company, Saint Francis Community Services, said 36 are missing in its system.  Chad Anderson, chief clinical officer at KVC Kansas, one of the contractors, told a child welfare task force that the number of missing represented about 1 percent of the foster care population and is in line with the national average.  Still, he acknowledged the contractor could do a better job. …

Kansas Lawmakers Advancing Bill for Oversight of Foster Care
Source: Associated Press, May 12, 2017

 
Kansas lawmakers have advanced a bill that would increase their oversight of the state’s privatized foster care system and the contractors running it.  The House gave first-round approval to the measure Friday on a voice vote. Members planned to take another vote to determine whether the proposal goes to the Senate.  The bill would create an 18-member task force to collect data from the state Department for Children and Families on the foster care system and its contractors and to make recommendations for improvement. …

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Kansas House Committee Approves Foster Care Task Force
Source: Allison Kite, Associated Press, May 9, 2017
 
A House committee on Tuesday passed a bill that would allow Kansas lawmakers to more closely oversee the state’s privatized foster care system and the contractors that run it amid questions about how the state monitors the program.  The bill passed by the House Children and Seniors Committee would create an 18-member foster care task force to study the system.  The task force would collect data from the Kansas Department for Children and Families on the foster care system and its contractors and make recommendations for improvement. …

Audit finds problems in privatized foster care system, faults DCF for lax oversight
Source: Peter Hancock, Lawrence Journal World, April 28, 2017
 
The private nonprofit agencies that manage Kansas’ foster care system do not have the capacity in many parts of the state to handle the volume of cases they deal with, and the Kansas Department for Children and Families often does not conduct adequate oversight of those contractors.  Those are the findings of a Legislative Post Audit report on the foster care program that was delivered to lawmakers Friday.  However, auditors also said there would be enormous costs for the state if it decided to take back control and operation of the program itself. The report was the third and final part of a comprehensive audit that lawmakers ordered following two deaths in 2014 of children who were in the foster care system. …

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