Free Bonding Education Program Workshop

Many public agencies have policies that encourage the use of small, socio-economically disadvantaged businesses and those owned by women and minorities. On public works construction projects, one of the long-standing impediments for these businesses to participate on public projects is the inability to obtain a payment and performance bond. 

Target audience:  

• Small and Emerging Contractors:  This workshop will provide tools for small and emerging contractors to get to the point where they can obtain the required bonding.

• Transportation Contractors:  The program is tailored to contractors competing for transportation related contracts, but is open to all contractors seeking to expand their business and run their operation more effectively.  

• Public Agencies:  The workshop will also be valuable for public agencies seeking to understand better some of the challenges faced by small contractors in obtaining bonding.  

When: 5 classes on the following dates from 5:00 pm to 8:30 pm (attendance at all five classes is required).  Includes a free dinner.

• October 16, 2014
• October 23, 2014
• October 30, 2014
• November 4, 2014
• November 18, 2014

Where:  New Holly Gathering Hall, 7054 32nd Ave. South, Seattle, WA 98118

Agenda:

• Bonding Fundamentals & Managing Growth
• Banking and Financing for Contractors
• Loan Application Package
• Construction Accounting and Financial Management
• Estimating and Bidding
• Credit Repair
• Prevailing Wage Law
• Contracts and Clauses

Questions:  Call (425) 248-4222

Sponsored by:

• Surety & Fidelity Association of America (SFAA)

• U.S. Department of Transportation, Northwest Small Business Transportation Resource Center

• Sound Transit   

Registration:  Click here to register online.

Mike Purdy's Public Contracting Blog
© 2014 by Michael E. Purdy Associates, LLC
http://PublicContracting.blogspot.com

NJ Prohibits Financial Statements in Bid/Proposal Processes

The New Jersey legislature has approved a bill that would prohibit public agencies from requiring bidders and proposers from submitting a financial statement if a bid guaranty (bid bond, cashier's check, certified check) is submitted. A bid guaranty is a measure of protection for the public on the financial viability of the bidder/proposer.

Unanimous support:  A-1794 passed both the New Jersey Senate and Assembly unanimously in June 2014.  

Purpose of bill:  The bill was promoted as a means to encourage small businesses to participate in public contracting, and not impose on businesses an often onerous, costly, and time-consuming process of obtaining and providing a financial statement to demonstrate financial viability.

Exception:  The bill includes an exception for any federally funded project that requires submission of a financial statement by bidders or proposers as a condition of a public agency receiving a grant.

Public records:  Prohibiting submission of financial statements also eliminates the situation in which confidential information must sometimes be disclosed under public records laws.

Mike Purdy's Public Contracting Blog
© 2014 by Michael E. Purdy Associates, LLC
http://PublicContracting.blogspot.com

Training: Tools for Contractors to Obtain Bonding

Tools for Contractors to Obtain Bonding:  One of the difficulties that small contractors on public works projects often face is the ability to obtain required payment and performance bonds. When making bonding decisions, sureties often evaluate a contractor's business development strategies and plans, including their approach to marketing, sales, and identification of market segment. This workshop is designed to provide small contractors with an overview of what bonding companies look for in a business development plan.

When:  September 26, 2013 (5:00 p.m. to 7:30 p.m.)

Where:  Shoreline, Washington (WSDOT Shoreline Facility, 15700 Dayton Avenue North)

Speaker:  Darryl Russell

Cost:  No cost, prior registration required.

Sponsored by:  Small Business Transportation Resource Center (SBTRC) of the U.S. Department of Transportation

Information and registration:  Click here.

Mike Purdy's Public Contracting Blog
© 2013 by Michael E. Purdy Associates, LLC
http://PublicContracting.blogspot.com 

Small Business Outreach Event at University of Washington

Small, Minority, and Women-Owned Subcontractor Outreach Event for University of Washington's Maple and Terry Halls Project

When:  Thursday, September 12, 2013 (8:00 a.m. to 10:00 a.m.)

Where:  Alder Hall, Room 107 (1310 NE 40th Street, Seattle, WA)

Cost:  Free

Description:  The University of Washington and W.G. Clark Construction Company (the GC/CM contractor for the Maple and Terry Halls Project) will describe the $83 million project, discuss upcoming subcontract bidding opportunities, and answer questions.  There will be a chance for subcontractors to meet one-on-one with representatives of the UW and W.G. Clark Construction Company.

Who should attend:

• Subcontractors
• Public agencies interested in learning how to sponsor outreach events

Information and Registration:  Click here.

Questions:

• Doug Jennings at (206) 221-4219 or by email at djenning@uw.edu
• Ericka Bean at (206) 340-6654 or by email at ebean@wgclark.com

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Meet the Prime Contractor Event for Subcontractors

Small contractors face unique challenges in breaking into government contracting which come with a variety of regulations and reporting requirements.  Some federal and local public agencies have responded to the concerns faced by small businesses by providing workshops to help educate subcontractors and build networking opportunities for them.  

Event:  Meet the Primes

When:  Wednesday, August 28, 2013 (5:00 p.m. to 8:30 p.m.)

Where:  Seattle, Washington (Filipino Community Center, 5740 Martin Luther King Jr. Way)

Cost:  Free.

Sponsored by:  

• US DOT - Small Business Transportation Resource Center (SBTRC)
• Filipino Chamber of Commerce of the Pacific Northwest

Agenda:  Subcontractors are invited to meet with three major contractors (Hoffman Construction, Mortenson Construction, and Howard S. Wright) to learn about how to effectively build relationships and communicate, and about upcoming contract opportunities.  Subcontractors are encouraged to come with their questions.

Who should attend:  

• Subcontractors
• Small contractors
• Public agencies interested in getting ideas for sponsoring their own small business outreach events

Information and registration:  Click here.

Questions:  Call (206) 227-3449 or email filchamberpnw@gmail.com

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Bonding Education Program for Small Contractors

Bonding Education Program - 4 Week Workshop

What:  One of the biggest challenges for small contractors and subcontractors of entering the public works construction arena is their inability to obtain payment and performance bonds from a surety - something often required by prime contractors and almost always required by public agencies.  This workshop will help small contractors and subcontractors take the necessary advance steps to position themselves to be able to obtain bonds.

When: (5:00 p.m. to 8:30 p.m.)

• May 8, 2013 (Bonding Fundamentals, Managing Growth)
• May 16, 2013 (Construction Accounting and Financial Management)
• May 23, 2013 (Estimating and Bidding, Banking and Financing for Contractors)
• May 30, 2013 (Project Management and Field Operations, Claims and Dispute Resolution)

Cost:  Free (includes free parking and dinner)

Where:  Seattle, Washington (King County Chinook Building, 401 Fifth Ave.)

Sponsored by:

• U.S. Department of Transportation
• Surety and Fidelity Association of America
• Other co-sponsors

Information and registration:  Click here.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Upcoming Training, Networking, and Legislative Events

Bid Schedules and Bid Forms:  Free training sponsored by MRSC and APWA's Contract Administration Subcommittee.  In four locations around Washington state: Renton (May 2, 2013), Yakima (May 9, 2013), Camas (May 16, 2013), Everett (May 23, 2013).  10:00 a.m. to 3:00 p.m.  The workshop will explore the varying methods used by public agencies in developing bid schedules and bid forms, and determining the basis of award on public works construction projects.  Click here for more information and registration.

New Design-Build Legislation in Washington State:  Whether you're a public agency thinking about using Design-Build, or a contractor working in or interested in this market, you'll benefit from this timely update from a panel of experts involved in drafting and negotiating the changes in the Design-Build law - RCW 39.10 (Robynne Parkinson, Eric Smith, Bob Maruska, and Dan Absher).  DBIA Seattle breakfast meeting.  May 8, 2013 from 7:15 a.m. to 9:00 a.m. at the Harbor Club (801 Second Avenue). Cost: $65 for DBIA members; $90 for non-DBIA members.  Click here for more information and registration.
  
Business Opportunities Workshop:  Designed for consultants interested in doing business with Seattle Public Utilities.  Thursday, April 18, 2013, 2:30 p.m. to 5:00 p.m., Seattle Municipal Tower (Rooms 4050/4060).  Information about projects and upcoming consultant contract opportunities to do business with SPU.  Network with other consultants.  More information and questions, contact Vicky Schiantarelli at (206) 684-7821 or by email at vicky.schiantarelli@seattle.gov.  Space is limited.  Click here to register for this free event.

Capital Projects Advisory Review Board (CPARB):  May 9, 2013 from 9:00 a.m. to noon in Olympia.  Open to the public. Click here for more information about CPARB.  The agenda for the meeting will be posted soon.

Blue Book Network Showcase:  Free networking and educational event for the design and construction community.  May 9, 2013 (3:00 p.m. to 7:00 p.m.) in Seattle, Washington at the Bell Harbor International Conference Center.  Click here for more information and registration.

GC/CM Training Workshop:   Whether you're a public agency interested in exploring use of GC/CM or a contractor or designer, this two day training event will outline the basics and best practices of GC/CM (General Contractor/Construction Manager) as authorized by RCW 39.10.  May 30-31, 2013 in Seattle at the AGC Building.  8:00 a.m. to 5:00 p.m.  Cost: $350.  Sponsored by AGC Education Foundation, University of Washington, and Mechanical Contractors Association of Washington.  Click here for more information and registration.

Construction Owners Association of America (COAA) - Washington State Chapter Workshop:   June 5, 2013.  9:00 a.m. to noon at the University of Washington's Waterfront Activities Center (3900 Montlake Blvd.).  Presentations on a) Coyote Ridge LEED Gold Prison Performance Comparison with David Jensen and b) COBie (Construction Operations Building Information Exchange), BIM, GIS and other Digital Adventures at the University of Washington with Eric Smith.  Cost: $30 for COAA members; $35 for non-COAA members.  Click here for more information and to register.

City of Seattle Reverse Vendor Trade Show:  Companies interested in doing business with the City of Seattle can learn about upcoming solicitations, sustainable purchasing, and business-to-business opportunities for Goods and Services, Consulting, and Construction.  July 30, 2013, 10:00 a.m. to 2:00 p.m. at Seattle Center Fisher Pavilion (305 Harrison Street).    Click here for more information and registration.

Institute for Supply Management (ISM) Conference:  98th Annual International Supply Management Conference in Dallas/Ft. Worth, Texas.  April 28-May 1, 2013. Keynote speaker: Condoleezza Rice.  Click here for more information.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Subcontracting Opportunities Workshop

Subcontracting Opportunities Workshop for Sound Transit's Northgate Link Extension

Contractor outreach:  Workshops like this one are a good tool that some government agencies are using to make the subcontracting community aware of upcoming construction projects.  They can also be an effective tool to help agencies meet various subcontracting goals for different types of businesses (small, minority, women, disadvantaged, etc.).

When:  Wednesday, March 13, 2013 (6:00 p.m. to 7:30 p.m.)

Where:  Everett, Washington (Workforce Development Council/EASC, 728 134th St. SW, Suite 128)

What:  Sound Transit's Northgate Link Extension will extend from the University of Washington to Northgate, adding 4.3 miles of light rail, including stations in the University District, Roosevelt neighborhood, and Northgate.  Hear from Sound Transit about subcontracting opportunities for this upcoming work.

More information about the workshop:  Click here.

More information about Northgate Link Extension:  Click here.

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Obtaining Qualified Consultants

How do public agencies find and obtain qualified consultants and service providers for their work?

3 tools:  There are a number of different tools available to help agencies with obtaining qualified consultants: 

• Advertise:  Public agencies generally rely upon advertising RFPs or RFQs in the local newspaper to solicit interest from the consultant community.  

• Rosters:  Sometimes, consultants are selected from rosters that have been previously advertised to develop a list of qualified consultants.

• Outreach events:  Some agencies are becoming more proactive in developing interest from the consultant community by hosting business opportunity outreach events.  At these events, a public agency shares about upcoming projects, the agency's processes and values, and often provides free training seminars.  These events are also a good opportunity for consultants to connect with smaller businesses who may be potential sub-consultants on upcoming projects.

Seattle Public Utilities event:  Seattle Public Utilities (SPU) has scheduled a Business Opportunities Workshop that will provide information about upcoming projects and contract opportunities for consultants.  Businesses will also have the opportunity to network with SPU staff and other consultants.

• When:  Tuesday, February 26, 2013 (9:30 a.m. to 12:30 p.m.)

• Where:  Seattle City Hall (Bertha Knight Landes Room)

• Registration:  Advanced registration is required.  Click here to register.  

• Questions:  Contact Vicky Schiantarelli at Vicky.Schiantarello@Seattle.gov for more information.

Regional Contracting Forum:  The 11th annual Regional Contracting Forum will bring together representatives from cities, counties, port districts, state and federal agencies around the Puget Sound area so contractors, consultants, and suppliers can network and meet government contracting representatives.  The event is structured as a "reverse trade show" and is designed to provide businesses with direct access to regional contracting representatives in a semi-structured setting.  Representatives from local, state, and county jurisdictions will staff exhibit booths and will be available to speak one-on-one with event attendees.  Throughout the day, there will be a variety of workshop presentations, panel discussions, and one-on-one networking sessions.

• When:  Tuesday, April 2, 2013 (8:00 a.m. to 3:30 p.m.)

• Where:  Downtown Seattle (Washington State Trade and Convention Center)

• Cost:  Free

• Information and Registration:  Click here. 
  

Mike Purdy's Public Contracting Blog 
© 2013 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Free - Washington Small Business Fair

A consortium of various public agencies, nonprofit business support organizations, and educational institutions are joining together to offer free training to small businesses on what it takes to run a business.

If you're a public agency, take note of how you might want to structure your own small business training event.  If you're a small business consider attending. 

When:  Saturday, September 29, 2012 (8:00 a.m. to 3:30 p.m.)

Where:  Renton Technical College (3000 NE 4th Street, Renton, WA)

1 hour classes include the following: 

Getting Started/Planning

• Developing a Business Plan
• Focus on Exports for Washington Businesses
• Business Trends for the Post Recession Recovery
• Starting a Business
• Which Business Entity is Best for You?

Sales & Marketing

• Benefits of Networking
• Build and Market Your Service Business - Sell the Intangible
• How to Get Government Contracts
• Marketing Tips and Advice
• Public Relations - How to Get Noticed

Web/Internet:

• Slay the Social Media Dragon
• Drive Traffic to Your Website
• Do It Yourself Web Site
• Facebook 101
• Keys to Create a Business Boosting Website
• Customers as Your Vital Sales Force

Financial/Money:

• Financing Options
• Beyond Start-Up: Avoiding Four Fatal Errors
• Boost Your Profits and Improve the Bottom Line
• Find Cash for Your Business
• How to Get the Most Out of Quickbooks
• Shaking the Money Tree:  Improve Your Loan Application
• Starting a Business (Financial Planning)
• Understand Cash Flow and Profit Improvement

Regulatory:  Taxes/Licensing:

• How to Use Intellectual Property to Grow Your Small Business
• Starting a Business:  Licensing and Registration
• Taxes and the Small Business Owner
• Tips for Keeping Your Business Out of Tax Trouble
• What About that Darn Business & Occupation Tax?
• What About that Darn Sales Tax?

Tips for Success/Avoiding Trouble Spots:

• Business Law Essentials
• How to Hire the Right Person
• Small Business Ownership: Tips for Success

More Information:  Click here.

Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Free Bonding Education Program for Contractors

Free Bonding Education Program is designed to help small contractors develop the capacity to be able to obtain required bonds on government contracts.

Program Agenda and Dates:  (6 Thursday evenings from 6:00 p.m. to 9:00 p.m. - dinner provided)

• Program Kick-Off (October 4, 2012)

• Business Planning and Management for Construction (October 11, 2012

• Banking and Financing for Contractors; Project Management and Field Operations (October 18, 2012)

• Bonding & Insurance for New and Emerging Contractors; Claims and Dispute Resolution (October 25, 2012)

• Marketing, Estimating, and Bidding; Construction Accounting & Financial Management (November 1, 2012)

• Managing Growth (November 8, 2012)

Where:  Portland, Oregon (OAME Center, 4134 N. Vancouver Ave)

Cost:  Free

Sponsored by:

• Surety & Fidelity Association of America
• U.S. Department of Transportation
• Northwest Small Business Transportation Resource Center

Information and Registration:  Click here.

Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Encouraging the Use of Small and Local Businesses

Doing business with the government can be complex.  It can be especially daunting for small businesses to sort through the requirements and regulations, all of which differ depending on the specific public agency involved.  

Business Opportunity Events:  Some public agencies have taken proactive steps to make their processes more transparent and clear, and to encourage the use of small and local businesses.  One strategy that some agencies have used is to team with other local agencies in sponsoring business opportunity events.  At these events, the business community is invited to come and talk with multiple agencies about their bidding processes, upcoming opportunities, and to establish relationships.  Sometimes, these events also include a more formal educational component.

One example:  The City of Bellingham and the Port of Bellingham (Washington) recently co-sponsored a free business forum for consultants, contractors, and vendors on how to do business with about ten government agencies. At the event on September 12, 2012, I spoke to about 40 attendees on "Doing Business with the Government: What You Need to Know."

Outline of speech:  Here's an outline of what I talked about:

• Types of Public Contracts and Solicitations
• Find Government Opportunities
• Read the Solicitation Document
• How Are Award Decisions Made?
• How Are Proposals Evaluated?
• Why Do Bids Get Thrown Out?
• Keys to Developing a Good Proposal
• Read Your Contract Before You Sign It
• Manage Your Contract's Fine Print
• Prevent Payment Disputes

If you would like a copy of my PowerPoint presentation, please contact me.

Mike Purdy's Public Contracting Blog 
© 2012 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com

Investigations Target Washington State's Minority Business Office

Washington State's Office of Minority and Women's Business Enterprises (OMWBE) is under investigation for potential fraud in how it has certified Disadvantaged Business Enterprises (DBE), which are required to be used on U.S. Department of Transportation funded projects.

Multiple investigations:  Not only did KING 5 News run a 20 minute video expose on May 20, 2012 culminating their almost one year investigation, but Governor Christine Gregoire has asked the Washington State Patrol to conduct an investigation to determine whether OMWBE was involved in any criminal abuses of power.  And because the DBE goals are used on federally funded transportation projects, the FBI is also investigating.  In response to the mounting pressure, OMWBE's Director, Cathy V. Canorro submitted her resignation letter to the Governor on May 9, 2012, with her resignation effective on June 1, 2012.

Questionable DBE certification?  KING 5 News tells the story of at least one certified DBE they claim should not have been certified because they are not really owned and operated by a disadvantaged person, and the owner apparently has no construction experience.  

Front company?  KING 5 News recounts the story of another DBE that didn't perform construction work with their own forces, but subcontracted the work to non-DBE firms, even though their participation on the project was what was used to meet the DBE requirements.

What are the facts?  It's a complicated and important issue.  If you're interested in finding out the details of the specific companies involved, what former OMWBE investigators had to say, the following are some links with additional information:

• KING 5 News Up Front, "Fraud in the DBE," May 20, 2012.  This video recounts the results of KING 5 News' investigation

• "Wash. official resigns amid allegations of fraud," by Michael Bastasch, May 16, 2012, The Daily Caller News Foundation

• Resignation letter of OMWBE Director Cathy V. Canorro, May 9, 2012 to Governor Christine O. Gregoire
  

Mike Purdy's Public Contracting Blog 

© 2012 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Seattle Hosts Business Opportunities Event

Business Opportunities Event for Seattle Public Utilities

When:  Thursday, February 16, 2012 (9:30 a.m. to 12:30 p.m.)

Where:  Seattle City Hall (Bertha Knight Landes Room)

Purpose:  The event will provide the consultant community with information about upcoming opportunities to do business with Seattle Public Utilities (SPU).  Contract Managers will present information on the following projects:

• North Transfer Station
• Morse Lake Pump Plant
• Landsburg Facilities and Chlorination

Information will also be presented on the City's contracting processes, contract requirements, and introduce business tools.  There will also be time for questions and to meet with SPU staff and other consultants.

Questions:  Contact one of the following:

• Kathy Peterson at (206) 684-5084 or by e-mail at Kathya.peterson@seattle.gov

• Vicky Schiantarelli at (206) 684-7821 or by e-mail at Vicky.schiantarelli@seattle.gov.

Registration:  Click here.

Mike Purdy's Public Contracting Blog 

© 2012 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Regional Contracting Forum Scheduled

The Seattle-based Regional Contracting Forum will hold its 10th annual event on April 4, 2012 at the Washington State Convention and Trade Center.

Reverse Trade Show:  The popular event is designed to provide small, minority, women, and veteran owned businesses direct access to regional contracting representatives in a semi-structured setting and one-on-one sessions with prime contractors, consultants, and public agency buyers.

Free Registration:  Registration is free for both businesses to attend and for public agencies to have a table to meet with businesses.

Information:  For more information about the Regional Contracting Forum, visit their website.

Mike Purdy's Public Contracting Blog 

© 2012 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Continuing Efforts to Increase Use of Minority Businesses on Public Works Projects

It's been more than a dozen years since the voters of the State of Washington approved Initiative 200 that prohibits the use of preferences in government contracting based on ethnicity or gender.

Contractors and Agencies Seeking Solutions:  Since the 1998 passage of Initiative 200, many minority and women owned businesses have struggled to obtain work on government contracts - especially during the Great Recession.  And many public agencies in the state are wrestling with how to provide opportunities for minority and women owned businesses on public works projects.

Two recent developments illustrate different approaches for increasing the use of women and minority businesses enterprises (WMBE) on public works projects.

City of Seattle's WMBE Inclusion Plan:  In late August 2011, the City of Seattle unveiled a new WMBE Inclusion Plan requirement for public works projects exceeding $300,000.  

Commitments with the Bid:  Bidders must make certain commitments for use of minority and women businesses with their bid.  Those commitments are evaluated through a formula to determine whether the bid is responsive or not. 

Use of WMBE Expert Required:  Bidders must also use an approved "WMBE Expert" who may be an employee of the contractor or a consultant from the list of City approved WMBE Experts. 

More Information:  For more information on Seattle's new WMBE Inclusion Plan requirements, click on the resources below:

• City of Seattle's Description of the WMBE Inclusion Plan
• Ahlers and Cressman's September 6, 2011 blog on Seattle's New and Improved WMBE Inclusion Plan
• Ahlers and Cressman's November 8, 2011 blog on Deciphering the City of Seattle's WMBE Inclusion Plan

WMBE as an Evaluation Factor on Alternative Public Works Projects:  On November 10, 2011, Washington's Capital Projects Advisory Review Board (CPARB) discussed recommendations from its Small Business Task Force.  

Small Business Task Force Recommendations:  The Task Force recommended making changes to RCW 39.10 by adding required evaluation criteria to be used by public agencies when selecting contractors for either Design-Build or GC/CM (General Contractor/Construction Manager) alternative public works projects.  The evaluation criteria would address the contractor's proposal plan for outreach and inclusion of WMBEs on the project, and demonstrate their past history in utilizing WMBEs on public works projects.

Next Steps for CPARB:  CPARB was generally supportive of the concept, but charged the Task Force with re-drafting the proposed changes in state law to address issues raised during the discussion.  The revised language will be considered by CPARB at its December 8, 2011 meeting.  If approved by CPARB, the changes would be recommended to the state legislature for their session that will convene in January 2012.

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Felony Charges and Arrest Warrant Against Former Seattle School District Employee

Silas Potter, the former manager of the Seattle School District's small business program, was charged with nine counts of felony theft by the King County Prosecutor on October 25, 2011.

Arrest Warrant Issued:  An arrest warrant was issued on Tuesday, November 8, 2011 when Potter failed to show up in court to plead guilty or not guilty.

Contracting Scandal:  Potter, who has since moved to Florida, but may have fled from there, awarded $1.8 million in questionable contracts that were uncovered by the State Auditor's Office.  The fallout from the scandal resulted in the school board firing the superintendent and chief financial officer in March.

2 Others Charged:  Two others who were part of Potter's scheme to bilk the district out of $250,000 were also charged.  They were not school district employees.

More Information:

• Seattle Times article, October 25, 2011

• Contracting Scandal and Fraud Rocks Seattle School District, February 27, 2011 blog

• Contracting Scandal Fallout:  Seattle Fires Schools Superintendent, March 2, 2011 blog

Checks and Balances:  Public agencies need to ensure they have sufficient internal checks and balances in place, not only in their policies, but in practice, to ensure that public contracting is conducted in a fair, transparent, and honest manner.  Supervisors and managers who are responsible for approving awards and contracts should actually read what they are approving, and be actively engaged in understanding their operations.

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

King County (Washington) Adopts Small Business Preference Program

Recognizing the importance of job creation in the economy by small businesses, the Metropolitan King County Council  (WA) adopted an ordinance on September 26, 2011 to encourage and promote the use of small businesses in the county's contracting. 

Competition Amongst Small Businesses:  The Small Business Accelerator program will limit competition on the purchase of certain goods and services to small businesses certified by the county, thus making it easier for small businesses to be competitive in obtaining work from the county.  

Applicability of New Program:  The new program will apply to purchases of $25,000 or more for goods purchased by the county's Wastewater Treatment and Transit divisions, and for the procurement of technical and nonprofessional services for all county departments.

Video:  To view the video of the Council's public hearing on Ordinance 2011-0380, click here.

Mike Purdy's Public Contracting Blog 
© 2011 by Michael E. Purdy Associates, LLC 
http://PublicContracting.blogspot.com