Labels and Tags

Accountability (71) Adequate documentation (7) ADR in procurement (4) Allocation of risks (6) Best interest of government (11) Best practices (19) Best value (15) Bidder prejudice (11) Blanket purchase agreement (1) Bridge contract (2) Bundling (6) Cancellation and rejection (2) Centralized procurement structure (12) Changes during bid process (14) Clarifications vs Discussions (1) Competence (9) Competition vs Efficiency (29) Competitive position (3) Compliance (35) Conflict of interest (32) Contract administration (26) Contract disputes (4) Contract extension or modification (9) Contract formation (1) Contract interpretation (1) Contract terms (3) Contract types (6) Contract vs solicitation dispute (2) Contractor responsibility (20) Conviction (4) Cooperative purchasing (3) Corrective action (1) Cost and pricing (13) Debarment (4) Determinations (8) Determining responsibility (37) Disclosure requirements (7) Discussions during solicitation (10) Disposal of surplus property (3) Effective enforcement requirement (35) Effective procurement management (5) Effective specifications (36) Emergency procurement (14) eProcurement (5) Equitable tolling (2) Evaluation of submissions (22) Fair and equitable treatment (14) Fair and reasonable value (23) Fiscal effect of procurement (14) Frivolous protest (1) Good governance (12) Governmental functions (27) Guam (14) Guam procurement law (12) Improper influence (11) Incumbency (13) Integrity of system (31) Interested party (7) Jurisdiction (1) Justification (1) Life-cycle cost (1) Limits of government contracting (5) Lore vs Law (4) market research (7) Materiality (3) Methods of source selection (33) Mistakes (4) Models of Procurement (1) Needs assessment (11) No harm no foul? (8) Offer & acceptance (1) Other procurement links (14) Outsourcing (34) Past performance (12) Planning policy (34) Politics of procurement (52) PPPs (6) Prequalification (1) Principle of competition (95) Principles of procurement (25) Private vs public contract (17) Procurement authority (5) Procurement controversies series (79) Procurement ethics (19) Procurement fraud (31) Procurement lifecycle (9) Procurement philosophy (17) Procurement procedures (30) Procurement reform (63) Procurement theory (11) Procurement workforce (2) Procurment philosophy (6) Professionalism (17) Protest - formality (2) Protest - timing (12) Protests - general (37) Purposes and policies of procurement (11) Recusal (1) Remedies (17) Requirement for new procurement (4) Resolution of protests (4) Responsiveness (14) Restrictive specifications (5) Review procedures (13) RFQ vs RFP (1) Scope of contract (16) Settlement (2) Social preference provisions (60) Sole source (48) Sovereign immunity (3) Staffing (8) Standard commercial products (3) Standards of review (2) Standing (6) Stays and injunctions (6) Structure of procurement (1) Substantiation (9) Surety (1) Suspension (6) The procurement record (1) The role of price (10) The subject matter of procurement (23) Trade agreements vs procurement (1) Training (33) Transparency (63) Uniformity (6) Unsolicited proposals (3)

Monday, April 12, 2010

Procurement controversies -- New Orleans, La., USA

Recovery oversight firm is channel for no-bid contracts, inspector general reports
The city of New Orleans is using a controversial recovery management contract with MWH Americas to dole out no-bid deals to other firms, according to a recent draft report by the city's inspector general.

"In at least two instances, the city procured services from other firms by instructing MWH to enter into subcontracts with the firms and act as a pass-through for billing purposes," Inspector General Ed Quatrevaux wrote in a March 4 draft report.

"This practice circumvents the requirement for competitive procurement of services through an advertised request for proposals."

MWH Americas' president, Dan McConville, was in New Orleans last week to meet with City Council members who are concerned with the report's findings. But company spokeswoman Meg VanderLaan said the company will not address the inspector general's findings publicly until it does so formally within the 30 business days granted to the subjects of such reports to respond.

The city's deadline to respond is Thursday.

New Orleans' city charter requires competitive, properly advertised procurement for all contracts worth more than $15,000, but it's unclear whether the alleged violation of that local law would lead to the rejection of any federal assistance.

Ironically, the city's main adviser for complying with FEMA's complex reimbursement rules is one of two companies the inspector general says was hired improperly through the MWH contract.

The inspector general said the city put out a solicitation for competitive bids in March 2008 for a consultant on FEMA reimbursement.

But soon, the city canceled it and instead "instructed MWH" in February 2009 to hire Integrated Disaster Solutions as a subcontractor to do the job. Integrated Disaster Solutions is a joint venture with Louis Berger Group, one of the world's largest construction management firms.

The inspector general's report said a similar "pass-through" contract was arranged for Wink Design Group in June 2009 so that firm could do a facility condition assessment for the Chevron Building


COMMENT: It seems the oft-used retort to allegations of improper procurement is that the contractor did a damned fine job, so what's the problem? The problem is that the ends are not meant to justify the means. Both must be justified, independently.

No comments: