Auditor general says process flawed; reform could save hundreds of millions

The state contracting process is under scrutiny in Pennsylvania, and a review has resulted in recommendations that state officials say will save the state hundreds of millions of dollars. Auditor General Jack Wagner (pictured) said there are problems throughout the state's $4 billion per year procurement process and that the system "urgently needs structural reform." 

Wagner took the commonwealth's Department of General Services (DGS) to task over many of the findings. DGS is responsible for procurement of all supplies, services and construction needs of state agencies. The state's Procurement Code specifies that contracts be competitively bid, with exceptions for some sole-source contracts and under exceptional circumstances. 

In reviewing current processes, Wagner cited examples of how flawed procurement processes cost Pennsylvania. He noted that a special investigation regarding the sale of the Pittsburgh State Office Building revealed that only one bid was received, which Wagner says cost the state almost $55 million, rather than saving money. Review of IT contracts showed the state contracted for nearly 60 contracts over four years that had a combined total payout of $592 million. More than 30 of those contracts were not competitively bid. Although the original value of the contracts was $382 million, change orders, sole source contracts and emergency contracts kicked the cost up 55 percent. The review also uncovered numerous legal contracts that were awarded throughout state government that were not competitively bid. In another instance, it was noted that $7 million in contracts for legal and other professional services were awarded through competitive, sealed bid, emergency and sole-source contracts, outside the realm of state procurement procedures and out of compliance with the Sunshine Act. 

Wagner contends that tightening the contracting process could save taxpayers at least $200 million per year. He said the state's current processes discourage competition, which means the state often pays more than it should for goods and services. "Competition is the key to American enterprise," Wagner said. "It generates new ideas and it's the best way to assure taxpayers that they are getting the best price available on goods and services." 

Wagner said from June 2008 to December 2010, the commonwealth awarded 511 sole-source contracts and 272 emergency contracts worth more than $250 million. He urged reform in the procurement process as a means of helping bridge the state's $5 billion budget deficit for next year.

Facing a $2.6 billion budget deficit over the next six years, officials of the State of Virginia are exploring every way possible to save money. One recent casualty was nearly 20 of the state's rest areas along interstate highways. Officials report that closing these rest areas will save the state $8.6 million this year alone.

Although the state appropriated $20 million for repairs of existing rest areas in 2006 and for the rebuilding of several welcome centers and rest areas, only welcome centers were exempt from consideration for closure. Although legislation was introduced to privatize the rest stops, it did not pass. The state looked at the possibility of privatization in the early 1990s, but no action was taken. As the state's transportation budget dwindles, some are seeking to bring the privatization issue back up.

Seeking new ways to improve transparency as well as save money

A city in Georgia is looking at more ways to reduce costs and sees increased competition as an easy way to achieve that goal. Dunwoody, Georgia, officials are hoping to improve their outsourcing contracts by increasing competition for them. Instead of seeking a lump-sum contract with one private sector firm, Dunwoody officials are seeking to open up the bidding process to as many companies that want to bid for the work.

Dunwoody now is expecting to receive dozens of bids for services that have become popular for municipalities to outsource - everything from trash collection to street repair. When the city's major contracts expire, local officials will put the services up for bid and be able to deal directly with subcontractors, which they feel will increase accountability. Transparency will be improved and by being able to access specific details on the services offered, officials are hopeful that, in turn, they will realize savings.

Ohio school district to put $9.75 million bond issue before voters

Voters in the United Local school district in Ohio will in May decide the fate of a bond issue intended to raise $9.75 million toward renovations and rebuilding of the K-12 campus. The total project will cost some $37 million, with the Ohio School Facilities Commission providing most of the funding. The campus is dealing with severe maintenance issues due to age, according to Superintendent RuthAnn Rinto (pictured). Rinto pointed to some of the problems as being collapsing roofs, falling walls and boilers that do not work. "When we look at the cost of replacing and repairing things, it's almost a bargain to build a whole new school for $9 million, our local share," she said. Initial plans call for a new building to be built around the newer parts of the current campus.  

Data security project at University of Maine tops $2.6 million

The University of Maine will spend approximately $2.6 million in the next three years to address data security. The purchase was stepped up after more than 4,500 students had their personal information compromised when a hacker attacked two servers at the counseling center. After spending $130,000 to fix that breach, officials decided to spend money to improve the university's data security.

Virginia governor wants part of sales tax revenue for transportation

Virginia Gov. Bob McDonnell (pictured) is hopeful to have some of the state's sales tax revenue diverted to transportation needs of the commonwealth. One of his proposals to the General Assembly is to keep a small amount of the existing discretionary sales tax in Hampton Roads and Northern Virginia for transportation projects. McDonnell has visions of putting $4 billion into transportation projects throughout the state, with nearly three-fourths of that amount from issuance of debt. He has also studied instituting a transportation investment bank, which he would set up with $150 million of surplus funds and $250 million found in an audit of the state highway department. The "bank" would provide loan funds to help local entities pay for road projects. 

El Paso area has variety of contracting opportunities currently available

A number of contracting opportunities are now available in the El Paso area. They include:

• El Paso Water Utilities is seeking bids for sodium chlorite - 25 percent;
• CK Construction Inc., construction manager-at-risk for Project Vida Health Center is seeking rebid proposals for roofing, plumbing and mechanical;
• El Paso County Water Control and Improvement District No. 4 is seeking proposals for construction of a 12-inch sewer line replacement;
• El Paso County is seeking bids to replace floor drains (second floor) for the El Paso County Detention Facility;
• The Ysleta Independent School District is seeking proposals for reroofing at six campuses; and
• The Ysleta Independent School District is seeking proposals for instructional materials: multi-sensory structured language curricula.

An $18 million city operations complex is on the drawing board in Sioux City, Iowa, and plans for the facility were recently laid out at a capital improvements hearing. City Manager Paul Eckert (pictured) said the proposal would consolidate all field services departments on 18th Street, the sign and signals shop on Omaha Street and Sioux City Transit System operations on a 40-acre campus. To help get the proposal under way, the city has received $3 million in I-Jobs funding and has requested $4.7 million in next year's capital improvement plan budget and $4 million the following year. Officials are also hopeful to capture $5.5 million in federal transit funding to help defray costs. 

Bids released for entities in New Mexico

The City of Alamogordo, New Mexico, is seeking bids for a canopy enclosure at La Luz Filter Plan and Community Action of Southern New Mexico is seeking bids for vehicles, laptop computers, blower door systems, combustion analysis devices and infrared cameras. 

Des Moines planning $8.6 million fire department training, logistics facility

Only a public hearing stands between the Des Moines Fire Department and its new east-side training and logistics facility. The facility was recently approved by city council members, but a public hearing must first be held on Feb. 28. The proposed 54,000-square-foot facility would include training areas that can also be used as an Emergency Operations Center for the city. It would include maintenance and shop areas, parts storage, quartermaster spaces and fire department administration offices. The facility carries a price tag of approximately $8.6 million. It would replace the nearly 80-year-old maintenance shop at Fire Station No. 1. 

Fla. city approves $2.1M in improvements to wastewater treatment plant

Some $2.1 million in improvements to the Palatka City, Florida, wastewater treatment plant were approved recently by city commissioners. City Manager Woody Boynton (pictured) said the St. Johns River Water Management District would pay for the entire one-year project. The upgrades should allow the plant to serve the city until 2030. Boynton said the upgrades will allow the city to "treat every bit of its wastewater and allow it to be spent for reuse.

Port of Portland lists $4.4 billion in transportation projects on wish list

Nearly 100 projects with a combined price tag of $4.4 billion are on the priority transportation wish list for the Port of Portland, Oregon. Among the projects are the $3 billion Columbia River Crossing project and 98 more highway, terminal, airport, waterway, transit and pedestrian projects for possible development over the next 20 years. The list includes projects Port officials feel are most critical to their marine, aviation and development operations, and most relate to facilities of other entities. Among the priorities:

• I-205 improvements northbound on-ramp;
• Construction of an additional through lane and left-turn lane at Northeast 82nd and Columbia Boulevards; and
• Improvements to the Troutdale interchange on I-84. 

Fort Wayne receives more than $2 million grant for dam repairs, maintenance

The City of Fort Wayne, Indiana, has been awarded a more than $2 million state grant that will pay for most of the costs of repairs and preventative maintenance for the dam on the St. Joseph River at the city's water filtration plant. Although the dam is in good shape structurally right now, officials say work needs to be done that will keep it from deteriorating further. Some of the repairs will include sealing cracks, patching some areas on the dam, replacing rebar and patching concrete over the rebar. The walkway will get an entire new deck. The estimated cost is $2.5 million for design, construction, inspection and administration. The city will be responsible for the remaining $500,000. Although design has begun, no timetable for construction has been set yet.

Pennsylvania local 'smart transportation' projects awarded $24M in funding

Forty-one communities throughout Pennsylvania will share $24.7 million in funding from the state's Community Transportation Initiative grants. 'Smart Transportation' projects mean "partnering to build great communities for future generations of Pennsylvanians by linking transportation investments and land-use planning and decision-making," said Allen Biehler (pictured), the state's Transportation Secretary. The Pennsylvania Department of Transportation received more than 230 applications for funding, requesting a total of $175 million. The projects funded include those that support local economic development, encourage walkable, multimodal, mixed-use development, improve regional connectivity or enhance the existing transportation network. During the first round of funding, 50 projects shared $59.2 million. This round of allocations includes $74,500 to the Borough of New Oxford in Adams County to develop a plan to calm traffic and improve pedestrian access in the center square area; $1.5 million to the Borough of Lemoyne to implement the second phase of an enhancement project derived from a community-based visioning approach; $617,000 to Somerset County to construct a 20-car park and ride lot adjacent to the Route 30 and Route 219 interchange in Jenner Township; and $300,000 to Luzerne County to complete a two-mile multi-use trail between the Borough of Luzerne and the village of Trucksville.  

Adding to previous bond will upgrade reservoir filtration system

The Meriden, Connecticut, Finance Committee and Public Works, Parks and Recreation Committee have voted to provide additional funding for construction at the Broad Brook Reservoir water treatment plant and pumping station. The upgrades will be paid for by increasing a bond issued in 2006 from $1.26 million to $2.19 million. That additional money will allow engineers to design a new filtration system that will incorporate dissolved air flotation techniques that will allow for removal of 60-90 percent of the algae that is affecting the taste and odor of the city's tap water. The design phase is expected to commence within two to three months and the project is expected to be bid out early next year. Completion is expected in 2013. 

Melinda Miguel (top left), former chief inspector general to the Florida Attorney General's Office, the Florida Department of Education and the Florida Department of Elder Affairs, has been named by Florida Gov. Rick Scott as his chief inspector general. Outgoing San Francisco Mayor Gavin Newsom has chosen Police Chief George Gascon (top middle) to replace outgoing District Attorney Kamala Harris. Towson University President Robert Caret (top right), who has led colleges in Maryland and California, has been selected to be the next president of the University of Massachusetts, succeeding Jack M. Wilson as head of the five-campus university. The death of former City Manager Robert Watts has led to the appointment of Police Chief James Fullingim as the interim city manager for the city of Madill, Oklahoma, serving in both capacities until a new city manager is hired. Doug Darling, former inspector general and chief of staff in the Florida Department of Environmental Protection and who has held a variety of positions under the chief financial officer and the office of insurance commissioner, has been named by Florida Gov. Rick Scott as deputy chief of staff/director of cabinet affairs. University of Missouri System President Gary D. Forsee (upper middle left) has resigned, citing his wife's battle with cancer as his reason for leaving, with his position to be filled in the interim by Stephen J. Owens, the university's general counsel. Beth Noveck (upper middle center), federal deputy chief technology officer for open government in the Office of Science and Technology Policy in Washington, D.C., will leave the White House for New York Law School, where she will be a professor, director of the Institute of Information Law and Policy and director of the Democracy Design Workshop. Steve Rucker (upper middle right), who most recently served as executive director of Kentucky's Commonwealth Office of Technology's Office of Infrastructure Services and a 25-year veteran of the agency, has been named commissioner of the Office of Technology, with Lori Flanerly to continue service as interim state CIO. Angela Throneberry, associate vice president for administration and finance at New Mexico State University, will continue to serve as interim senior vice president as the current search to fill that position has concluded without a candidate being selected. Steve Dow, chief of the Durant, Oklahoma, Fire Department for the last 15 years and a veteran of the department since 1986, has announced he will retire, effecting Jan. 31. Dr. Phil Gunter (lower middle right), who came to Valdosta State University in 1993 as an associate professor and head of the Department of Special Education and Communications Disorders and who has been interim provost for the last year, has been appointed provost and vice president for Academic Affairs. Dr. Ben E. Hancock, Jr. (lower middle center), vice president for university advancement at Ball State University since July 2006, was recently named the fourth president of Methodist University in North Carolina, succeeding Dr. M. Elton Hendricks, who is retiring. Dr. Philip Conroy, Jr., (lower middle left) former vice president of enrollment management and marketing for Mount Ida College in Massachusetts, was recently appointed president of Vermont Technical College. Spencer Geissinger has been named director of external affairs for Florida Gov. Rick Scott and Carrie O'Rourke is the new deputy chief of staff, while Diane Moulton will remain director of executive staff while Jerry McDaniel will stay on as budget director and Erik Figlio will remain as general counsel. Glen Carbon, Illinois, Police Chief David Bradford has announced that he will retire after 33 years in law enforcement, the last 13 as police chief. Capt. Scott Silverii (bottom left), Uniform Division Commander in the Lafourche Sheriff's Office, has been nominated by Mayor Tommy Eschete to be police chief in Thibodaux, Louisiana. South Gate, California, City Manager Ron Bates (bottom middle) and former city manager of La Habra Heights and Buena Park, has been chosen as the new city manager of Pico Rivera, filling the post vacated last February by Chuck Fuentes. Glen Moore (bottom right), the St. Augustine provost for St. Johns River State College in Florida, will end a 34-year career when he retires in February from the school he joined in 1996 as the School to Work director. Paul Kozlowski, a member of the Delafield, Wisconsin, Fire Department for 18 years, has been named fire chief and has named Mark Hoppe as deputy chief. After nearly a dozen years as Fort Smith, Arkansas' deputy city administrator, Ray Gosack was recently named city administrator to replace Dennis Kelly, who was fired last November. John J. "Ski" Sygielski, president of Mount Hood Community College in the Portland area, has been named Harrisburg, Pennsylvania, Area Community College president, effective July 5, when he will replace Edna V. Baehre, who took a similar job in Napa, California.