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Archive for the ‘RFP, Request for Proposals’ Category

You have to love the Division of Administration (DOA) and the Office of Group Benefits (OGB). Their concern for the 230,000 state employees, retirees and dependents is surpassed only by their arrogance.

Saying “We heard the financial concerns of our members and Legislators,” Commissioner of Administration Kristy Nichols made the self-serving announcement that OGB has decided to delay the effective date of changes arbitrarily (and illegally) implemented to medical and pharmacy plans from Aug. 1 to Sept. 30. OGB RELEASE

Here is the information provided on the OGB web site: https://www.groupbenefits.org/portal/pls/portal30/ogbweb.get_latest_news_file?p_doc_name=4D7A4D344D6A45794E533551524559334E6A4D32

Never mind that State Rep. John Bel Edwards (D-Amite) told Nichols and OGB CEO Susan West back on Sept. 25 that they were flirting with major litigation and the threat of having to refund millions of dollars to OGB members who were hit with benefits changes which were illegal until such time as a rule could be adopted. Here is the link to video clips of that hearing: http://youtu.be/ct652tBa8Mc.

Except for Edwards who said the move was illegal. He requested and obtained an Attorney General’s opinion that agreed with him.

            Nichols, as is her custom, was not going to promulgate rules at all in implementing the new rates members would have to pay for prescriptions even though the law requires advertisement and public hearings on such changes. Instead, the administration, facing a shrinking OGB reserve fund because of its repeated premium cuts, plunged ahead, the law and state employees be damned.

The premiums were reduced so that the state would enjoy a similar reduction in the 75 percent of premiums it is required to pay for health coverage of OGB members. Gov. Bobby Jindal and Nichols cut the rates by nearly 9 percent despite a report from Buck Consultants which stated flatly that it never made such actuarial advice.

Pursuant to testimony given in the Sept. 25 hearing by the Joint Legislative Committee on the Budget (JLCB) in which Kristy said Buck Consultants had recommended a premium reduction, Edwards requested a copy of the actuarial recommendations.

            “I still have not received any actuarial recommendations for the 2013 and 2014 premium reductions at OGB,” Edwards said Tuesday. “Nor have they told me that such recommendations do not exist. Clearly, they do not.”

The OGB web site does contain a request for proposals (RFP) for an actuarial that is dated Sept. 26: https://www.groupbenefits.org/portal/pls/portal30/ogbweb.get_latest_news_file?p_doc_name=4D7A4D774E4445794D793551524559334E444531

The Baton Rouge Advocate said the refunds the state must now make to OGB members who were overcharged in the form of out-of-pocket expenses will come to nearly $4.5 million and is expected to be refunded within 60 days.

http://theadvocate.com/news/10718472-123/group-benefits-change-announced

Getting the refunds for the overcharges won’t be a walk in the park if past experience with the OGB pharmaceutical benefits administrator is any indication. “Members who incurred increased pharmacy costs between Aug. 1 and Sept. 29 based on exclusions must submit an appeals form to MedImpact,” said the news release from OGB, adding that Blue Cross and Blue Shield of Louisiana (BCBS) will reprocess claims for members who incurred increased medical costs through their providers during that time period. There is an appeals form for MedImpact on the OGB web page, but it appears to apply only to prescriptions that were rejected or denied by pharmacies in August and September: https://www.groupbenefits.org/portal/pls/portal30/ogbweb.get_latest_news_file?p_doc_name=4D7A4D344D6A45794E693551524559334E6A4D33

If members incurred costs that were not submitted through a provider, they must submit an appeal request form to Blue Cross and Blue Shield,” the release said. “The forms can be found on the OGB website at www.groupbenefits.org.”

Edwards said the burden should not be placed on state employees and retirees to file appeals on overpayments. “Group Benefits has the claims information and they should be required to make the determination of who is owed what and it should be Group Benefits that takes the initiative on this,” he said.

Of course, by placing the onus on employees and retirees, DOA is counting on members being unfamiliar with the process or uninformed about the refund program altogether. If they do not file appeals for refunds, no refund will be made and the state will not have to repay victims of the overcharges. “That’s why Group Benefits should be the one responsible for seeing to it that everyone who was overcharged because of its illegal actions in implementing the changes in the first place should get those overcharges refunded,” Edwards said. “The members should not be held responsible for the illegal actions of Group Benefits and DOA.”

Here are links to the after-the-fact DOA Emergency Rule declaration: http://www.doa.louisiana.gov/doa/Presentations/Emergency_Rules_-_Office_of_Group_Benefits_9-30-2014.pdf and DOA’s Notice of Intent: http://www.doa.louisiana.gov/doa/Presentations/Ordinary_Rule_-_Office_of_Group_Benefits_10-01-2014.pdf

The clumsy attempt at circumventing the law is just another in a long line of embarrassing episodes perpetrated by the Jindal administration as the governor pays less and less attention to the home front in his quest for the Republican presidential nomination, leaving the job of running the state to appointees equally unqualified as he to run so much as a snow cone stand.

Nichols typically ignored the threat of litigation in making the announcement just as the administration ignored the law in implementing the changes, even disagreeing in that Sept. 25 hearing on the necessity of publishing the proposed changes and conducting public hearings.

And West even attempted to justify the changes by pointing out to retirees and active members that she must pay the same premiums as they. She apparently failed to consider the fact that most state employees and certainly most retirees do not make her $170,000 per year salary.

The Retired State Employees Association (RSEA) threatened a lawsuit, challenging the administration’s contention that it could use the emergency rule (employed repeatedly by the administration during Jindal’s nearly seven years in office) to make changes in the medical and pharmacy plans.

Nichols was not even around for the conclusion of that Sept. 25 JLCB meeting, having stepped out of the committee room ostensibly to take an “important” phone call. In reality, it turned out she stepped out permanently to take her daughter to a boy band concert in New Orleans where she watched from the comfort of the governor’s luxury box at the Smoothie King Arena (see the snow cone stand reference above).

“Let’s hope that the legislature will continue to exercise oversight on this issue to drive more changes in the plans whereby the out-of-pocket cost increases of OGB members are reduced and (so that) the state will share in the cost of restoring the system’s soundness,” Edwards said in a prepared statement.

 

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Even as the Jindal administration was announcing that it was capitulating to the desires of the attorney general and state legislators to delay implementation of new proposed health coverage plans for state employees and retirees, the Office of Group Benefits (OGB) was quietly issuing a request for proposals (RFP) for actuarial services beginning Jan. 1, 2015.

https://www.groupbenefits.org/portal/pls/portal30/ogbweb.get_latest_news_file?p_doc_name=4D7A4D774E4445794D793551524559334E444531

Greg Cromer (R-Slidell) and John Bel Edwards (D-Amite) asked several times during the hearing the identity of the actuary who recommended three consecutive years of premium reductions in the face of rising health care costs and it wasn’t until the fourth time the question was asked that an answer was forthcoming.

“In fiscal year 2012 there was a 3 percent erosion of the fund balance,” Edwards said. “Yet, in fiscal 2013, there was a 7.11 percent reduction in premiums followed by 1.8 percent even though health care costs were going up by 6 percent. What actuary told you those reductions were sound?”

“Buck Consulting recommended a 2.25 decrease for calendar 2012,” Commissioner of Administration Kristy Nichols said.

Edwards then asked if Buck Consulting was still under contract to the state.

“That contract is being bid,” Nichols said.

“I would hope so,” Edwards responded.

State records indicate Buck had a $2.1 million contract with OGB to provide actuary and consulting services. That contract ran from Dec. 1, 2009 through Jan. 1, 2012. Additionally, Buck had another $600,000 contract from June 1, 2011, to June 1, 2013, “to assist in advising the Division of Administration with regard to public retirement systems and insurance benefits for public employees, actuarial services” at $250 per hour and per diem payments of $165.

Buck Consultants is a subsidiary of Affiliated Computer Services which in turn was purchased by Xerox in 2009. Jan Cassidy, sister-in-law of 6th District Congressman and U.S. Senate candidate Dr. Bill Cassidy, worked as Regional Vice President of Business Development for ACS and Xerox for nearly four and one-half years before going to work for DOA in December of 2012 as Assistant Commissioner in Procurement and Technology at a salary of $150,000 per year. A search of state contract records in March of 2013 by LouisianaVoice turned up four contracts with ACS totaling $45.55 million.

ACS contributed $10,000 to the campaign of Gov. Bobby Jindal (R-Iowa, R-New Hampshire and R-Anywhere but Louisiana) in 2003 ($5,000), 2008 ($4,000), and 2009 ($1,000), Jindal’s campaign records show.

LouisianaVoice, in March of 2013, noted several contracts between ACS and other states, cities, and even the federal government which drew sharp criticism over problems experienced by the company as well as questionable contracts in Texas and Alabama.

http://louisianavoice.com/2013/03/15/doa-hires-jan-cassidy-sister-in-law-of-cong-bill-cassidy-at-150000-previous-employers-records-are-less-than-stellar/

But ACS wasn’t the only entity in that organization with problems. Buck Consultants was sued by Providence, Rhode Island in 2013 because, the city claimed, Buck miscalculated $700,000 per year in savings the city anticipated through pension reform. Instead, Mayor Angel Taveras said, the cost to the city was expected to be $10.8 million over the next 28 years.

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&ved=0CB4QFjAA&url=http%3A%2F%2Fwww.pionline.com%2Farticle%2F20130226%2FONLINE%2F130229899%2Fprovidence-ri-sues-buck-consultants-over-pension-savings-calculations&ei=0sIsVMTAE4OOyASQpIKIBQ&usg=AFQjCNEiIVz3kvxYoTszpqnKeonAQGq_-A&bvm=bv.76477589,d.b2U

In California, Buck Consultants was also accused of making several mistakes in its actuary for the Mendocino County retirement system, prompting the county to cancel its contract with the firm in March of 2011. Buck Consultants paid the county nearly $600,000 as a settlement of its dispute in September of that same year. http://www.ukiahdailyjournal.com/ci_17656902

http://www.ukiahdailyjournal.com/ci_18951388

In a case that should sound familiar to OGB members who have been following events since the privatization of the agency, retirees in Stanislaus County, California, in 2009 sued the county retirement board over its decision to shift $60 million in reserves to ease the county’s pension obligations for fiscal year 2009-10. http://www.modbee.com/2009/12/24/984878/retirees-challenge-stancera-over.html

And now OGB “is seeking proposals from actuarial and consulting (actuary) providers for a contract that will allow for benefit design, rate development, RFP scoring, and other analytical and financial support activities for the state health insurance plan,” the RFP says.

The actuary chosen for the contract “will provide methods for, and calculation of, health plan premiums for OGB health plans and other support services.”

So while Kristy Kreme continues to insist that the current plans for OGB do not call for increased premiums, only higher co-pays and deductibles, it’s interesting to note that the contract being sought by OGB certainly leaves the door open for premium adjustments down the road and it isn’t difficult to guess which way those adjustments will go.

The RFP says that OGB projects medical plan expenditures of almost $1.284 billion in fiscal year 2015, which begins next June 1. Of that amount $56.9 million will be in administrative costs, the RFP says, adding that OGB will require “ongoing consulting and assistance with benefit development, rate setting, risk adjustment determinations, financial analysis, analysis of claims and encounters, evaluation of expenditures, budget projections, trend calculations, causes and discovery of trend, evaluation of multiple benefit options, and financial and other reporting requirements as may be necessary to administer” the health plan.

Should Buck Consultants submit a proposal and should it be the low bidder, someone other than Kristy Nichols might wish to talk to the folks in Providence, R.I., Mendocino or Stanislaus counties in California to do a little vetting before a contract is awarded.

This consultant-happy administration has made a horrible mess of things with OGB since 2011. There’s no need to continue down that same road of bad decisions.

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A directive to craft a request for proposals (RFP) in such a way as to favor a specific vendor during a meeting of top administrative officials in 2010 may have violated the state’s bid laws and opened the door to charges of bid-rigging, according to a former State Senator who spoke with LouisianaVoice on Wednesday.

That meeting may also have been instrumental in the decision by then-Commissioner of Administration Angéle Davis to resign her position in early August of 2010.

Former State Sen. Butch Gautreaux (D-Morgan City), who was the State Senate’s representative on the Office of Group Benefits (OGB) Board of Directors, told LouisianaVoice that the meeting was held to discuss an RFP from vendors to provide health care coverage to state workers in northeast Louisiana.

Gautreaux said he was told by then-OGB Executive Director Tommy Teague that he (Teague) was directed by Timmy Teepell to “write a tightly-written RFP” so that only one company could meet the bidding criteria.

Teepell was Gov. Bobby Jindal’s Chief of Staff at the time of that meeting. Besides Teague and Teepell, also in attendance at that meeting were Jindal’s Executive Counsel Steve Waguespack who would succeed Teepell as Chief of Staff, and Davis.

Teague, contacted Wednesday by LouisianaVoice, confirmed the substance of Gautreaux’s story, though he said he was by now somewhat vague as to who was in attendance. “That happened so long ago,” he said, “but the gist of what he says is correct.”

Davis announced her resignation on June 24, 2010, though she stayed on until Aug. 8 when she was succeeded by Paul Rainwater. Teepell resigned in October of 2011.

The vendor that Teepell was most likely referring to was Vantage Health Plan of Monroe which currently holds two separate contracts with OGM worth a combined $53 million.

One of those contracts, for $45 million, is a one-year contract to provide a health maintenance organization (HMO) and hospitalization provider network plan and runs from Jan. 1, 2013 through Dec. 31 of this year. The second, for the same time period, is for $8 million to provide a Medicare Advantage plan for eligible OGB retirees. That plan, similar to ones offered by Peoples Health and Humana in South Louisiana, would be available only to those retirees eligible for Medicare. Retirees hired prior to 1986 and who have never worked in the private sector long enough to qualify for Social Security would not be eligible for the latter plan.

Vantage Health Plan has held 11 state contracts in all, totaling nearly $325 million at least as far back as former Gov. Mike Foster’s second term. The first, for $6.7 million, was for three years, from July 1, 2000, to June 30, 2003, to provide medical services for active and retired plan members.

Under Foster and into former Gov. Kathleen Blanco’s term, Vantage held two contracts: one for $46 million that ran three years, from July 1, 2003, to June 30, 2006 to provide an HMO program, physician and hospital provider network, and a one-year contract, from July 1, 2006 to June 30, 2007, was for $30 million to provide HMO services for state employees.

In Jindal’s first year in office, 2008, OGB issued a $9.925 million contract that ran for 30 months, from July 1, 2008, through Dec. 31, 2010, for Vantage to provide a Medicare Advantage plan for eligible retirees.

The following year, a $20 million contract for only 10 months—from Sept. 1, 2009, to June 30, 2010—was awarded to Vantage to provide an HMO plan to OGB members.

In 2010, Vantage received its biggest contract for $70 million for only 22 months, to run from July 1, 2010 to Aug. 31, 2012 for an HMO plan. That contract was one of four contracts with Vantage totaling $161 million that overlapped between July 1, 2010 and June 30, 2013.

Other contracts included:

  • One running from Jan. 1, 2011 to Dec. 31, 2012 for $14 million for Medicare Advantage plan for eligible retirees;
  • One for $10 million for only three months, from Sept. 1, 2012 to Dec. 31, 2012 for a medical home HMO plan for members;
  • One for $65 million for two years, from July 1, 2011 to June 30, 2013 for an HMO plan.

The obvious question is: Why Vantage?

For openers, Vantage and its officers have been active in writing checks for state politicians.

Gary Jones, president of Vantage, has personally contributed at least $20,000 to state politicians since 2003, including $10,000 to Jindal and $5,000 to former Gov. Blanco.

Michael Ferguson, a director of Vantage Holdings, Vantage Health Plan’s predecessor, gave $4,000 to state office holders, including $1,500 to Rep. Frank Hoffman (R-West Monroe) who serves as vice chairman of the House Health and Welfare Committee; Matthew Debnam, also a director of Vantage Holdings, $1,000 to Hoffman, and Terri Odom, also a Vantage Holdings director, $500 to Hoffman.

But it is Vantage Health Plan itself that is the biggest player in lining the pockets of state politicians.

Vantage, since Jan. 1, 2003, has kicked in no less than $61,900 to candidates. These include $1,000 to Jindal, $2,000 to former legislator Troy Hebert who now serves as director of the Office of Alcohol and Tobacco Control (AGC), $1,500 to House Speaker Chuck Kleckley (R-Lake Charles), $16,000 to Insurance Commissioner Jim Donelon and $5,000 to Sen. Mike Walsworth (R-West Monroe), among others.

While these contributions are all legal, they do raise the recurring issue of influence buying at all levels of government. And it is the $70 million contract in 2010 that raises the issue of possible bid-rigging. And while there may well have been no such attempt, if Teepell did indeed issue instructions to Teague to craft the RFP in such a way that only Vantage would meet the bid criteria, then the administration crossed a serious legal line for which it must be held accountable.

It was subsequent to that 2010 meeting and only weeks before the contract was awarded that Davis submitted her resignation and Teague was gone the following year on April 15, 2011.

This claim should spark investigations by the Inspector General’s office, the Attorney General, the East Baton Rouge District Attorney’s office and the U.S. Attorney’s office—the latter because federal Medicare funds were involved in several other Vantage contracts.

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Former Department of Health and Hospitals (DHH) Secretary Bruce Greenstein has been indicted by the Louisiana Attorney General’s Office on nine counts of perjury stemming from a lengthy investigation of his involvement in the awarding of a $183 million contract to a company for which he once worked.

Greenstein is accused in four counts of lying under oath to the Senate and Governmental Affairs Committee during his confirmation hearings of June 8 and June 17, 2011 and five counts of lying to an East Baton Rouge Parish Grand Jury on June 3 of this year.

Greenstein was appointed head of DHH in September of 2010 and was terminated by the governor’s office on May 1, 2013 when it was learned that the FBI had begun an investigation of the state’s contract with Client Network Services, Inc. (CNSI) as far back as January, 2013 when records of the state’s contract with the company were subpoenaed.

When the FBI probe became known in late March, Jindal immediately cancelled the CNSI contract and Greenstein announced his “resignation” a short time later, though he was allowed to remain on the job until May 1.

The indictment that came down on Tuesday (Sept. 23) is the first time that it was revealed that Greenstein did not resign, but was terminated and apparently allowed to announced that he had resigned.

There was no immediate word of the status of the federal investigation of CNSI and Greenstein but legal observers said Tuesday that pressure will most likely be applied to Greenstein to cooperate with the investigation.

Assistant Attorney General David Caldwell said that while the indictment is for perjury, “it really stems from the entirety of the activity in the awarding of this contract” and the grand jury will remain empaneled to do additional work on the case.

At his confirmation hearings, Greenstein first refused to tell legislators who had won the contract to provide Medicaid billing services for the state but under unrelenting pressure and scolding from legislators, as well as threats of his not being confirmed, he finally admitted that CNSI, his old employer from Washington State, was awarded the contract.

Greenstein, however, insisted that he had built a “firewall” between himself and the selection process and had not intervened in the deliberations, nor had he had any contact with CNSI officials.

It was subsequently learned from emails and text messages subpoenaed by the committee that he had had thousands of text messages and hundreds of phone calls from CNSI officials during the bidding and selection processes.

It was also learned that Greenstein had learned that CNSI was initially not qualified to bid on the contract and that he had added addendums to the bid requirements that made the company eligible.

Counts 1and 2 of the indictment cited his testimony under oath in a response to a question from Sen. Rob Marionneaux that he did not know if CNSI was unqualified under the original request for proposals and became eligible only after the addendum was added to the bid specifications.

Counts 3 and 4 involved his responses to Sen. Karen Carter Peterson about his emails to and from CNSI founder Adnan Ahmed relative to the addendum that made CNSI bid eligible.

The remaining five counts, all for lying to the grand jury, involved charges that he lied about email communications with CNSI, about a directive to DHH personnel forbidding contact with bidders and whether or not the directive applied to Greenstein himself, about his false testimony regarding legal advice he said he received from DHH staff attorney Stephen Russo, and his false testimony regarding his confrontation with DHH and administration officials prior to his June 17 Senate testimony and their efforts to learn the truth about his contacts with CNSI.

Interestingly, none of the counts was for bid-rigging or public corruption, leaving observers to speculate while waiting to see what other charges might be forthcoming as the grand jury continues its investigation.

For the full text of the indictment, go here: INDICTMENT

Of course, he has not been convicted of any of the charges as yet but if prosecutors are able to flip Greenstein, things are going to get pretty interesting around the State Capitol and in Washington State in the coming weeks and months.

And it’s not very likely that he will take the full brunt of the charges if he has committed any wrongdoing. That is, if he can implicate others further up the line.

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The more we look at that contract between the Louisiana Department of Economic Development (DED) and LR3 Consulting, the more unanswered questions arise.

LR3, you may remember from our Feb. 5 post, is run by Lionel Rainey, III, who also happens to be the PR spokesperson retained by those who wish to form their own city of the St. George area of East Baton Rouge Parish, separate and apart from the city of Baton Rouge.

If one didn’t know better (and we truly did not initially), Rainey could easily be taken as the leader of the movement since local television news reports on the pullout efforts invariably feature him reciting the proponents’ talking points. Turns out he’s just a hired gun.

(Proponents, by the way, don’t like the term pullout because, they say, the St. George area is not within the Baton Rouge city corporate limits in the first place, so technically, it is not a pullout or secession; it’s simply a movement to incorporate the currently unincorporated area as a city of its very own.)

Before LR3, there was 3 Lions Consulting which was awarded a three-year contract (July 1, 2012, through June 30, 2015) by DED to “establish a database of potential trainees for continued pre-hire training using a customized assessment instrument to determine skills proficiencies based on individual company requirements” for DED’s Louisiana FastStart program (LFS) at a contract cost of $699,999.

In other words, Contract No. 713974 called for 3 Lions to compile a data base of potential employees for Louisiana plants and businesses—the same thing that the Louisiana Workforce Commission had been doing and which it still does.

But barely three months into the contract and after being paid just under $31,000, Jeff Lynn, LFS executive director, sent a one-paragraph letter of termination to 3 Lions partner Stanley Levy, III. “In accordance with the terms of our contract…Louisiana FastStart hereby provides you with the required five (5) day written notice to terminate our agreement, effective Oct. 19, 2012…”

The reason given for the termination was a two-word message scribbled on DED’s performance evaluation: “Ownership change.”

Levy apparently had parted company with his partner, precipitating the contract cancellation. His 3 Lions partner? Lionel Rainey, III, who had incorporated his new business, LR3, only a month before. LR3 was subsequently awarded an even bigger three-year contract ($717,204) on Oct. 20, 2012, just one day following the termination date of the 3 Lions contract.

The LR3 contract, to run from Oct. 20, 2012 through Sept. 30, 2015, again calls for the “development, establishment and/or delivery of a database of potential trainees for continued pre-hire training using a customized assessment instrument to determine skills proficiencies based on individual company requirements.”

Through January 13 of this year, DED had paid LR3 $186,880.

But the LR3 contract, like that of 3 Lions before it, is broken into three yearly maximums of $217,204 the first year and $249,999 in each of the second and third years.

For 3 Lions, the payment maximums were $169,999 the first year and $249,999 in each of the second and third years.

This was done, according to DED Communications Director Gary Perilloux, so as to avoid the necessity of issuing a request for proposals (RFP) and thus avoid “competitive bidding or competitive negotiation.”

The issuing of service contracts is permissible so long as the “total contract amount is less than $250,000 per twelve-month period,” according to Title 39, Section 1494.1 of the Louisiana Revised Statutes which then goes on to say, “Service requirements shall not be artificially divided so as to exempt contracts from the request for proposal process.”

Section 1499 of the same title says, “The head of the using agency or the agency procurement officer shall negotiate with the highest qualified persons for all contracts for professional, personal, or those consulting services for less than fifty thousand dollars, or those social services qualifying under R.S. 39:1494.1(A) at compensation which the head of the using agency determines in writing to be fair and reasonable to the state (emphasis DED’s). In making this determination, the head of the using agency shall take into account, in the following order of importance, the professional or technical competence of offerers, the technical merits of offers, and the compensation for which the services are to be rendered, including fee. Negotiation of consulting services for $50,000 or more or social services not qualifying under R.S. 39:1494.1(A) shall be conducted in accordance with Part II, Subpart B hereof. [RFP]

To justify the contract, an undated letter was sent to Sandra Gillen, since retired as the Director of the Office of Contractual Review, by DED contracts reviewer Chris Stewart which certified that “The services (being contracted for) are not available as a product or a prior or existing professional, personal, consulting, or social services contract.”

But wait. Not so fast.

LouisianaVoice has found yet a third contract with Covalent, LLC, for an even larger amount–$749,997—awarded more than a month after the LR3 contract.

That contract, divided into three equal maximum payments of, wait for it… $249,999, calls for the “development, establishment, and/or delivery of a database of potential trainees for continued pre-hire training using a customized assessment instrument to determine skills proficiencies based on individual company requirements.”

In other words, Covalent’s contract calls for it to perform services which are identical to those of first 3 Lions and then of LR3.

And yes, there is that same letter from Chris Steward to Gillen’s successor, Pamela Rice which certifies that “The services (being contracted for) are not available as a product or a prior or existing professional, personal, consulting, or social services contract.”

But…but…what about the LR3 contract?

Good question. It looks as though someone misrepresented the facts with that certification. DED now has two firms performing services that appear to be duplications of work being done by LWC—and neither of the contracts which combine for almost $1.5 million, was awarded on a competitive bid basis.

Apparently, Covalent is performing some work, though not nearly as much as LR3. From Jan. 3, 2013 through May 30, 2013, Covalent has been paid a grand sum of $35,465—and nothing since May 30. That’s a far cry from the $249,999 allowed under its contract.

All of which raises the obvious question: Why do these firms require such massive contracts and why did DED find it necessary to break them up in apparent violation of state statutes just so it could make the contract awards to whom it wanted?

And why did DED desire the services of Rainey over Levy to the point of cancelling the 3 Lions contract so it could award a second no-bid contract to Rainey’s new company? And why, only six weeks after awarding Rainey a $717,000 contract did DED contract with Covalent for $749,997 to perform the same services as Rainey?

What were the backgrounds of Levy and Rainey? And why did they terminate their partnership, especially when it cost Levy a nice, fat state contract?

For openers, LouisianaVoice found records that show LR3 was on the payroll of State Rep. John Schroder (R-Covington) since November of 2012 and has received $16,250 in 11 monthly payments of $1,250, one payment of $1,875 and another of $625. All payments were made at least a year after the 2011 elections.

3 Lions, before the dissolution, also appears have spread its services around. The firm received $5,600 from John Conroy in 2012 before Conroy dropped out of the Baton Rouge mayor’s race; $8,000 from State Treasurer John Kennedy, $34,000 from Board of Elementary and Secondary Education President Chas Roemer during Roemer’s campaign for re-election in 2011, and $52,600 from Secretary of State Tom Schedler during his 2011 campaign for re-election.

While Rainey and LR3 got the $717,000 contract with DED and a $20,000 contract with the Secretary of State’s office, Levy, with his new company, Fuse Media, has only managed a modest $49,825 post-LR3 contract to “develop a strategic communications plan, video series and animated PowerPoint slides for the Governor’s Office of Coastal Restoration.”

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Between the lies, former supporters separating themselves from him and promises of opposition by appointees, things aren’t looking up for Gov. Bobby Jindal.

Even some legislators who formerly were loyal lapdogs for the governor have learned that they have teeth and they are beginning to growl.

And from our perspective, it’s a beautiful day when Jindal and his misrepresentations are finally be called out for what they are: lies.

Commissioner of Administration Kristy Nichols was too busy to address a questioning reporter but her mouthpiece, Greg Dupuis, said she misspoke (a euphemism for lied) when she told legislators that a $500 million minimum savings was included in the verbiage of the 80-page request for proposals (RFP) for a contract was subsequently awarded to the consulting firm of Alvarez & Marsal at a price of $4.2 million. dt.common.streams.StreamServer

Instead, it turns out, the only mention of $500 million was contained only in the firm’s cover letter, which is not legally binding.

Now Nichols, apparently holding the fort down alone while her boss is on an industry-seeking trip to Asia, says the contract will be amended. http://theadvocate.com/home/8138286-125/jindal-administration-promises-to-amend

She said it, however, only after a barrage of criticism from legislators who expressed everything from disappointment to outright doubt to rare criticism—by Senate President John Alario (R-Westwego), no less—of Jindal’s secrecy in awarding the contract without informing lawmakers. http://theadvocate.com/home/8131113-125/much-vaunted-savings-not-included

Sometimes you need a fresh set of eyes,” said Ruth Johnson, assistant commissioner for statewide services.

Chief skeptic in residence C.B. Forgotston, however, dredged up some old Jindal campaign promises which tend to fly in the face of such logic.

Forgotston cited this Jindal utterance taken from his campaign brochure on state finances:

  • “Government spending is not just about writing checks to anyone and everyone. It is about being a responsible steward of the public’s money. It is about holding public officials and recipients accountable for the financial decisions they make on our behalf. It is about making sound fiscal priorities and sticking to them.

And extracted from that same brochure:

  • “RESPONSIBLY MANAGE AND ACCOUNT FOR SPENDING OF HARD-EARNED TAXPAYER DOLLARS:”
  • “Identify and recruit top-caliber cabinet secretaries.”
  • “All appointments must be talented, articulate, experienced managers that can consistently deliver desired outcomes while reducing costs wherever possible.”

The question then becomes, Forgotston said, “If the consulting report finds savings in the state departments under Jindal’s jurisdiction…we will hold Jindal accountable?

C.B. has a refreshing way of cutting through all the bureaucratic gooneybabble and getting right to the heart of an issue. http://forgotston.com/

Carrying his not-so-rhetorical question even further, should we hold Nichols accountable for the supposed oversight and subsequent lying…er, misstatement to the legislature about a mythical $500 million savings?

One former supporter of Jindal—both from a philosophical and financial perspective—seems to think so.

A funeral certainly is an unusual, if not inappropriate, place to discuss politics but with so many current and former elected officials on hand for the services of Wiley Hilburn, the retired former head of the Louisiana Tech journalism department, it was almost inevitable that the subject of Jindal would find its way into the idle conversation. Funerals and weddings are, after all, major social functions at which, if only in passing, acquaintances are renewed, ideas are exchanged and common ground is explored.

After the services Sunday, as guests were milling around in front of the Presbyterian Church of Ruston, one former supporter, in a brief but revealing conversation, was unrestrained in his disgust with Jindal. There was no subtlety or coyness, no mincing of words.

Without identifying the person, let it suffice to say that considerable money made its way from his bank account—and that of his company and family members (all legal, in case anyone wonders) into the campaign coffers of Jindal and now the good governor won’t even take his phone calls.

That will turn an ally into an enemy faster than just about anything else. No benefactor takes being ignored lightly and this man said as much on Sunday. “I thought (Mike) Foster was flaky and (Kathleen) Blanco had her moments,” he said. “But this guy….he forgot why he was elected the moment he walked through those doors. He’s completely turned his back on this state while he pursues something else, whatever that might be.”

This from a one-time staunch supporter.

One doesn’t have to consider long and hard what Jindal’s other options might be as he flits across the breadth and depth of the country in an attempt to line up support for a presidential run—a run that has about as much chance as a one-legged man in a tap dancing contest. Jindal would be far more appealing in a twerking marathon than a presidential campaign. New Jersey Gov. Chris Christie would have a better chance trying to cut in on commuters en route to Fort Lee during morning rush hour on the George Washington Bridge.

Of course, he is so obsessed with his quixotic quest that he doesn’t have a clue and those sycophants with whom he surrounds himself don’t have the stones to tell him. That or they are even more unrealistic in their rose colored glasses than he.

That arrogance could also prove to be a shocking lead-up to unpleasant surprises during his final two years in office as even some of his appointees—those from whom he demands unconditional loyalty and subservience—are muttering to themselves about a possible coup d’état.

Commenting on State Treasurer John Kennedy’s observation on last Friday’s Jim Engster Show on Baton Rouge’s public radio station that Jindal has gutted the budgets of higher education 67 percent since entering office, another attendee at Sunday’s funeral said, “We’re going to have to stand up against this guy. Higher ed can’t take any more hits.”

Of course, it remains to be seen if there will be follow through on the part of appointees and legislators.

But while they may have once been talking among themselves behind closed doors and never openly, they now are airing their complaints in a more public manner.

Like sharks circling in the waters, they may finally smell blood.

That could make the next two years both turbulent and interesting.

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A company holding two state contracts worth $32.8 million was the lead IT contractor of the ill-fated Affordable Health Care enrollment web page rollout late last year, LouisianaVoice has learned.

CGI Technologies and Solutions, headquartered in Quebec Province, has experienced problems with other contracts in Canada and the U.S. even before the Obamacare debacle.

The largest tech firm in Canada, CGI also has offices in the Washington, D.C. area—Fairfax and Manassas, VA., Washington and Baltimore, and is part of the CGI Group which has 72,000 employees in 400 offices worldwide—many of those in India.

CGI Technologies and Solutions was awarded a $32.5 million contract with the Office of Community Development’s (OCD) Disaster Recovery Unit (DRU) on March 2, 2012 to provide computer software hosting, support and training for OCD’s Hazard Mitigation Grant Program (HMGP), small rental programs.

That contract is scheduled to run out on March 1, 2015.

CGI also has a $300,000 contract with the Office of Information Services to provide technical support for the Division of Administration’s (DOA) advanced financial system (AFS). That contract is set to expire on June 30.

The state also has a $20 million contract with Hunt Guillot & Associates of Ruston through OCD and DRU for grant management activities for infrastructure and other projects undertaken as a result of damages resulting from hurricanes Katrina, Rita in 2005 and Gustav and Ike in 2008.

The Hunt, Guillot contract was first issued for $18.2 million on Oct. 31, 2007—just 10 months after Gov. Bobby Jindal took office, and called for the firm to work in program design, the pre-application and application process, pre-construction and construction of projects related to hurricane recovery. That contract expired on Oct. 30, 2010, but the company was awarded a subsequent contract of $1 million on Dec. 1, 2009 which called for it to review applications for grant funds pursuant to the hazard mitigation grant.

It was not immediately clear how much, if any, overlap there might be between the CGI and Hunt, Guillot contracts, if one was intended to augment the other, or if the two are completely separate, unrelated contracts.

What is clear is that in April of 2013, less than a year ago, the Legislative Auditor issued a report which indicated the state could be on the hook for a minimum of $116 million and possibly as much as $600 million in improperly received or misspent disaster aid following Katrina and Rita.

http://www.nola.com/politics/index.ssf/2013/04/louisiana_on_for_misspent_road.html.

State auditors reviewed 24 loans to property owners through the state’s Small Rental Property Program. The state had allocated $663 million to the program and of the 24 cases reviewed, none had been flagged as problematic by OCD. Though only 24 cases were reviewed, more than 8,000 properties benefitted from the assistance program—increasing the likelihood that the total number and amount of improper payments could go significantly higher.

OCD Executive Director Patrick Forbes said rather than attempt to chase down homeowners to retrieve the misspent funds, he intends to change OCD regulations to provide more assistance to homeowners before “triggering the recapture of funds.”

Despite that statement of intent, a month after that audit report, on May 21, the administration issued a $600,000 contract to the Baton Rouge law firm of Shows, Cali & Walsh to “review and analyze Road Home files for overpayments, ineligible grantees, etc., (and to) negotiate and collect funds due to the state.”

Shows, Cali & Wash, meanwhile, has its own problems stemming from a federal judge’s findings that it manipulated evidence in a federal lawsuit by three death row inmates at the Louisiana State Penitentiary at Angola. http://louisianavoice.com/2014/01/03/baton-rouge-law-firm-with-3-million-in-state-contracts-faces-legal-sanctions-over-evidence-manipulation-in-angola-lawsuit/.

Meanwhile, the ObamaCare project—healthcare.com—disaster appears to have had caused a negative impact on employee morale at CGI, according to a staff worker who asked not to be identified. “There’s a lot of frustration,” he said. “People are getting sick, fainting in conference calls.”

Employee turnover is said to be high at CGI, making matters more complicated when trying to assemble a web page for the health-care exchange. Despite that, the upper management mentality at CGI appears to work toward establishing relations “so intimate with the client that decoupling becomes almost impossible,” according to one company profile. http://www.washingtonpost.com/blogs/wonkblog/wp/2013/10/16/meet-cgi-federal-the-company-behind-the-botched-launch-of-healthcare-gov/.

CGI was hired by the Hawaii Health Connector, that state’s new health exchange for providing insurance options under ObamaCare, to build its website and the state portal, like HealthCare.gov, had immediate problems when it launched on Oct. 1, 2013. http://www.foxnews.com/politics/2013/10/23/red-flags-company-behind-obamacare-site-has-checkered-past/.

“The morning I heard CGI was behind (the Obamacare web page development), I said, ‘My God, no wonder that thing doesn’t work,’” said James Bagnola, a Texas corporate consultant who was hired by the Hawaii Department of Taxation in 2008. “The system is broken all the time.” Bagnola said CGI was able to continue work on the Hawaii project despite repeated managerial complaints and a “corrosive environment” in which state employees felt pitted against CGI staff.

CGI’s contract to design and execute a new $46.2 million diabetes registry for eHealth Ontario, part of the Canadian government health care system, was canceled in September of 2012 after a series of delays that rendered the system obsolete.

The state of Vermont as recently as last October, meanwhile, was considering whether or not to penalize CGI for not meeting deadlines for designing and producing that state’s health care exchange as per an $84 million contract with the company.

It may be too early to say that there is an “ominous pattern” of inferior work product from CGI as claimed by some http://www.examiner.com/article/is-cgi-and-white-house-liable-for-obamacare-massive-site-failure and http://www.renewamerica.com/columns/fobbs/131028 but there can be no denial that the failed debut of the ObamaCare web page has cost taxpayers hundreds of millions of dollars.

Which raises the obvious question: What quality of work Louisiana is receiving from the firm? Considering last April’s findings of the Legislative Auditor in its examination of the Road Home program, that’s a fair question.

Contractors are being paid tens of millions of dollars to provide oversight of the grant programs in the hurricane recovery efforts. But what oversight is being provided of the contractors themselves? And if the contractors need oversight, why are they even in the equation to begin with?

How do we know they are doing the jobs they are being paid to do?

If we are to believe the auditor’s report, they well may not be giving the state a return on its dollar.

Are contracts simply being doled out by the Jindal administration with little or no vetting? When one looks at some of the other contracts awarded since 2008, there seems to be ample cause for concern.

All one has to do is study the administration’s smarmy record of questionable contracts, beginning with the hiring of Goldman Sachs to help write the request for proposals (RFP) for the privatization of the Office of Group Benefits (OGB). Who was the sole bidder on that project at the outset before the project was re-bid? Goldman Sachs. http://louisianavoice.com/2013/12/01/jindal-and-rainwater-preoccupied-with-ogb-privatization-missed-or-chose-to-ignore-obvious-cnsi-contract-red-flags/

And then there was the infamous contract with CNSI http://www.frontpagemag.com/2013/volpe/billionaire-swindlers-line-up-for-obamacare/

and the ensuing investigation by the FBI  http://tomaswell.files.wordpress.com/2013/12/fbireportscnsi3.pdf

http://tomaswell.files.wordpress.com/2013/12/dt-common-streams-streamserver1.pdf and the Louisiana Attorney General’s office http://tomaswell.files.wordpress.com/2013/12/ldoj-interview-report-on-cnsi-from-0514121.pdf

There also is a series of contracts with Affiliated Computer Services (ACS), since absorbed by Xerox. ACS, once represented by U.S. Rep. Bill Cassidy’s sister-in-law Jan Cassidy who now works for the Division of Administration (DOA) as Assistant Commissioner in Procurement and Technology at an annual salary of $150,000). http://www.linkedin.com/pub/jan-cassidy/6/4aa/703

ACS also has its own string of problems as evidenced by stories from other states http://louisianavoice.com/2013/03/15/doa-hires-jan-cassidy-sister-in-law-of-cong-bill-cassidy-at-150000-previous-employers-records-are-less-than-stellar/ and with the Securities Exchange Commission http://www.sec.gov/litigation/litreleases/2010/lr21643.htm

Not to be outdone, Deloitte Consulting which helped the state in planning for a comprehensive consolidation of information technology (IT) services for DOA, was named winner of the state contract for “Information Technology Planning and Management Support Services,” according to an email announcement that went out to IT employees last September.

Never mind the fact that Deloitte Consulting has experienced a multitude of problems in North Carolina, California, Tennessee, and Virginia because of delays, false starts and cost overruns. http://louisianavoice.com/2013/09/05/surprise-surprise-gomer-deloitte-wins-it-contract-after-spending-year-consulting-with-state-on-consolidation-plan/

And yet this governor is so unyielding in his misguided belief that the private sector can perform any and every governmental function better than public employees that now, six years into his eight-year term, he has decided pay yet another contractor, the international consulting firm Alvarez & Marsal, $4 million to conduct an efficiency study to determine possible savings in state government.

Clueless, thy name is Jindal.

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