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

Pennsylvania Increases Bid Limit Threshold

Pennsylvania recently approved legislation that will increase the bid limit for purchases made by townships from $10,000 to $18,500, effective January 1, 2012.

Efficiency in Purchasing:  The legislation is seen as an efficiency measure to make it easier for townships to solicit and obtain services for smaller dollar value contracts without as much administrative effort.

Summary of Requirements:  Here's a summary of its impact on dollar thresholds of purchases:

• Less than $10,000:  Not subject to the state's advertising requirements

• Between $10,000 and $18,500:  Telephone quotes required

• Over $18,500: Advertising required

More Information:  Click here to read an article from the Norristown Patch.

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Washington State Seeks to Streamline Procurement

The Washington State Department of Enterprise Services (DES) has been charged by the State Legislature with developing recommendations for changes in how it procures goods and services. 

Legislation Directing Streamlining:  Here's what Section 105 of ESSB 5931, approved this year, directed DES to do:

In order to effect reform and consolidation of procurement practices, the department shall review current state procurement practices, not including public works, and provide a report to the governor with procurement reform recommendations. The department should review national best practices and the procedures used in other states and by the federal government. The department may also review private sector procedures and model codes such as the American bar association model procurement code. The department shall seek input from stakeholders and interested parties. The department shall submit a report to the governor and the office of financial management by December 31, 2011. The report shall include any draft legislation needed to accomplish the report's recommendations.

Recommendations Developed by DES:  After reviewing the various sources mentioned in the legislation, DES has developed a number of recommendations.  Those recommendations will be sent to the governor by the end of the year.

DES Seeks Opinions in Online Survey:  DES is now seeking input on the recommendations by conducting an online survey, seeking input from state and local agencies, public and private sector stakeholders.

Survey Closes November 10, 2011:  The survey, which closes on Thursday, November 10, 2011, can be accessed at the following link:  http://www.surveymonkey.com/s/85MQW6H.

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Turning a Good Contract into a Good Project

I spoke this afternoon in downtown Seattle at a seminar entitled "Public Works Contracting: How to Get the Best Value from a Weak Economy."  

It was sponsored by the law firm of Foster Pepper PLLC and was attended by almost 50 people from government agencies across the state (plus another more than 30 by webinar).

My topic was "Project Management: Turning a Good Contract into a Good Project."  Here's an outline of my speech:

4 Foundations for a Good Contract

• Work with the Designer
• Pick the Right Delivery Method
• Tune-up Your Bidding and Contract Documents
• Allocate and Manage Risk

5 Foundations for a Good Project

• Pick the Right Contractor
• Evaluate if a Bid is Too Low 
• Manage the Contract and Project
• Negotiate Change Orders
• Document for Audits 

Other Topics and Speakers:  Here are the other topics and speakers:

• Low Price - Good Value?  Establishing Bidder Responsibility and Performance Capacity (Steve DiJulio)

• When Low Price is Not Enough - Utilizing Alternative Procurement Methods (Greg Guedel)

• The View from the Other Side - Contractor Perspectives on Facilitating Project Success (Tom Peterson)

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Port of Seattle Cited for Improper Use of Agency Credit Cards

According to an independent ethics investigator hired by the Port of Seattle, all five elected port commissioners improperly charged personal expenses to a Port issued credit card.   Eventually, they each paid the Port back, although some of their payments were delayed by months. 

Apparently, the commissioners were not clear about whether their charges were reimbursable as part of the commission duties.  Most of the items charged were for food, drink, and travel they thought were related to Port business but that were deemed improper.   

More Information:  Click here to read a November 1, 2011 Seattle Times article on the subject.  Also note the citizen comments on the article.

Lessons Learned:

• Clear Policies:  Have clear policies related to what are reimbursable expenses for elected officials and public employees, and what may be charged to government issued credit cards.

• Ask Questions:  If you have been issued a government credit card and are unclear about what it may be used for, ask for clarification.

• Monitor Credit Cards:   If you have agency credit cards, make sure that someone is monitoring their use to ensure that all charges are appropriate and for official business.

• Training:  All public agencies, including elected officials and employees, should attend required ethics training on an annual basis.  It is critical that public agencies be made aware of and be sensitized to a variety of ethical issues related to their work.  The state of North Carolina requires this type of training.

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Minority Business of the Year Awards

The University of Washington's Business and Economic Development Center (BEDC), part of the Foster School of Business, will hold their 2011 Annual Minority Business of the Year Awards dinner in December.

When:  Thursday, December 8, 2011 (5:30 p.m. to 9:00 p.m.)

Scott Armstrong

Where:  Seattle, Washington (Sheraton Seattle Hotel, 1400 6th Avenue)

Cost:  $100 per individual

Keynote Speaker:  Scott Armstrong, CEO of Group Health Cooperative

Information and Registration:  Click here.

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com

Survey on Cost Estimates for Public Works Projects

One of the questions that often comes up when I provide training on public works contracting issues is how construction cost estimates are developed and made known to contractors.  

I have developed a survey with just five questions to collect responses from various public agencies on what their practices are.

• Fast and Easy:  It should take you just a few minutes to complete the survey. 

• Closing Date:  The survey will close at 5:00 p.m. on Friday, November 18, 2011.

• Survey Results:  I will aggregate the results of the survey and share them on my blog.

• Take Survey Now:  Please click on the following link to go to the survey:  http://www.surveymonkey.com/s/M2W7QKF

Thanks for participating!

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

http://PublicContracting.blogspot.com