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Archive for the ‘Contract, Contracts’ Category

Like the muddy waters of the Mississippi River that flow right past the Claiborne Building, operations in the Louisiana Department of Education (DOE) just seem to get murkier and murkier and its bureaucracy more and more difficult to navigate.

There is Teach for America (TFA), the cluster of TFA alumni awarded administrative positions in the department and the financial manipulations that go with that program; the controversy over charters and course choice; the ongoing courtroom battles over the funding of vouchers, the questionable appointments of out-of-state commuters, the agreement to feed student personal information into a data bank controlled by Rupert Murdoch, and the ever-daunting challenge of obtaining public records from the department, to name only a few.

Easily the most secretive of any state agency, DOE is supported by a governor who, ironically enough, likes to boast of his administration’s openness and transparency. DOE and Superintendent of Education John White operate with virtual autonomy—mostly because there is no system of checks and balances to ensure that the agency is answerable.

Requests for public records are ignored, The Board of Elementary and Secondary Education (BESE), with the exception of two members, rubber-stamps anything Jindal and White suggest, be it ripping funding away from local school boards to pay for vouchers to approving applications for course choice (online) programs to burdening the department with costly six-figure positions filled by itinerates with little to no classroom experience.

White recently received his annual performance evaluation from BESE and predictably received high marks from nine of the board’s 11 members. The truth of the matter, however, is that White is woefully ill-qualified to lead even a local school system, much less a statewide system of 700,000 public school students.

Unfortunately, his six-weekend course (spread out over 10 months) at the Eli Broad Superintendents Academy does not qualify him to lead a Cub Scout troop. Yet, Gov. Bobby Jindal considered him more qualified than any other candidate to preside over the demolition of public education in Louisiana.

The Eli Broad Academy, by the way, has come under criticism for turning out superintendents who use corporate-management techniques to consolidate power, weaken teachers’ job protections, cut parents out of the decision-making process and introduce unproven reform measures.

The latest audit of the Recovery School District is evidence enough of White’s inability to run a statewide system.

The audit, released on March 27, revealed that for the sixth consecutive year, RSD continued to experience problems keeping track of millions of dollars in movable property.

Why does that reflect on White when Patrick Dobard is the RSD superintendent?

Well, for openers, the latest audit is for the fiscal year ended June 30, 2012 and White did not become state superintendent until January of 2012.

Prior to that, he was superintendent of the Recovery School District.

The audit says, “For the sixth consecutive year, RSD did not ensure that movable property was safeguarded against loss, including loss arising from unauthorized use and misappropriation. Our review of RSD’s movable property activity disclosed the following:”

• RSD’s annual certification of property inventory, which the Louisiana Property Assistance Agency did not approve, disclosed $26,664,976 in total movable property, which included 1,633 items with a total acquisition cost of $2,738,016 that have been identified as unlocated during the past four-year period. Of the 1,633 unlocated items, 1,380 items were computers or computer-related equipment. The 2012 annual certification also identified 908 items with a total acquisition cost of $1,482,060 (54 percent) as unlocated for the current period.

• RSD reported 10 incidents at six separate schools involving 97 movable property items with an acquisition cost of $73,667 as missing/stolen to the legislative auditor and the local district attorney. Of the 97 movable property items, 70 were computers. Management has represented that seven items with an acquisition cost of $6,118 have been recovered.

• The 10 reported incidents involved computers being stolen from four RSD direct-run schools and one charter school. There was no sign of forced entry in three instances that resulted in a loss of 48 items with an acquisition cost of $20,064. In one instance, 26 Dell laptop computers and 20 Apple I-Pod Nano media devices with an acquisition cost of $17,031 were stolen from an RSD direct-run school’s storage room.

• RSD’s movable property function is hampered by the decentralization of movable property at the various custodians (schools) and a lack of accountability and training of the custodians for RSD property. Failure to safeguard movable property increases the risk that assets may be misreported, lost or stolen. In addition, the year-to-year cost of replacing lost or stolen movable items could reduce the availability of funds (federal or state) for other educational objectives.

• During FY 2012, RSD did not ensure that employee separation dates were accurate or timely. Not recording separation dates accurately and timely could result in overpayments for terminated employees. This is the sixth consecutive year that we have cited RSD for inadequate controls over its payroll process.

White apparently is far more focused on insulating himself with fellow Teach for America (TFA) and Eli Broad Academy alumni by appointing them to top administrative positions.

Take Chief of Staff Kunjan Narechania and Deputy Superintendent Michael Rounds, for instance.

Rounds, like White, is a 2010 alumnus of Eli Broad and was brought in by White as Deputy Superintendent at $170,000 per year.

Rounds resigned his position as Chief Operating Officer for Kansas City Public Schools a year ago following an investigation into bid irregularities involving a $32 million renovation project for Kansas City schools and a month later the contract was cancelled by Kansas City Public Schools Superintendent Stephen Green (can you say Bruce Greenstein and CNSI?).

And then there is Narechania, a TFA alumnus who, while officially serving as White’s chief of staff, in reality performed functions normally handled only by a deputy or assistant superintendent.

Narechania oversaw all expenditures in the department; no one purchased anything—not a computer, not even a ball point pen without first obtaining authority from Narechania. All assistant superintendents and directors were required to report to her. No one was hired by the department without her stamp of approval—even when no one was quite sure what the new hire would actually be doing. That was evidenced only days before David Lefkowith was hired last June when she emailed White that there needed to be a decision about what to do about Lefkowith. As late as September and December of 2012, she was still signing off on contract amendments, a duty that did not fall within the job description of a chief of staff.

On Sept. 21, she signed off on an amendment to the department’s 15-year, $65.6 million contract with Data Recognition Corp. for administration of the statewide iLEAP testing program. The amendment added three additional years (to June 30, 2015) and $20.96 million to the existing contract.

Beneath her signature was the crossed through printed title “Assistant Superintendent.”

The other contract amendment had the proper title of Chief of Staff beneath her signature that approved a $3.5 million amendment to a $17.5 million contract with Pacific Metrics Corp. for the replenishing of materials for science, social studies and math.

So why didn’t White simply have Narechania confirmed as deputy or assistant superintendent?

One source within the department said it was because when White appeared before the Senate and Governmental Affairs Committee for approval of the appointments of several other administrators last June, he knew he could not obtain Narechania’s confirmation because she was already acting as his number two, sighing all personnel paperwork, contracts, etc., on his behalf.

It would have been awkward to explain that to the committee.

That could be the reason he asked BESE to petition the legislature to approve a reorganization of DOE and has proceeded with that reorganization—without either BESE or legislative approval.

The problem, however, is that he has been operating outside the law for more than a year now by allowing her to sign off on personnel matters and on DOE contracts.

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“If the contract is 8(g) funded, all provisions of this ownership clause apply except that upon termination or at the completion of 8(g) funding for a project/program, (BESE) may approve a contractor’s (TFA) request to retain equipment purchased with 8(g) funds based on the contractor’s assurance that the equipment will be used for educational enhancement.”

—Clause in a Louisiana Department of Education (DOE) contract with Teach for America (TFA) that would appear to allow TFA to maintain possession of equipment purchased with state funds should its contract with DOE be cancelled for any reason—even though, with a contract cancellation, TFA would no longer be teaching in Louisiana.

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When it comes to finding ways to waste taxpayer money, the Louisiana Department of Education (DOE) appears to own franchise rights.

It’s not enough that Superintendent of Education John White has loaded down the department with top-heavy, six-figure administrative positions filled largely by out-of-state modern-day carpetbaggers—some of whom had to be compelled by state law enforcement authorities to purchase Louisiana license plates for their vehicles.

But a peek at the three contracts totaling nearly $1.6 million awarded to Teach for America (TFA) reveals built-in hidden costs about which White most probably would just as soon the paying public did not know.

A few weeks ago we did a story about TFA’s request for a state allocation of $5 million this year. In that story we revealed that local school districts are required to pay TFA a negotiated fee that ranges from $2,000 to $5,000—and then pay the TFA teachers’ salaries over and above those fees. Louisiana school districts, in addition to the salaries, pay a fee of $3,000 per teacher recruited—unless they are recruited by the Recovery School District (RSD).

Because the RSD is overseen by White and a compliant Board of Elementary and Secondary Education (BESE), it is able to be more generous with its fees to TFA—a lot more generous.

Contract No. 718050, a $382,500 TFA contract that began on June 1, 2012 and continues through June 30, 2014, calls for TFA to recruit 40 new first-year teachers for RSD at a fee of $4,500 per teacher, or 50 percent higher than the rate paid by other Louisiana school districts.

But wait. The contract requires the $4,500 per teacher payment not only for the first year, but for the second year as well, or $9,000 per teacher—three times that paid by other school districts.

Moreover, the contract calls for a $4,500 per teacher fee for five second-year teachers, bringing the total fee payment to $382,500

That represents a healthy bump from the fees paid under contract no. 718049, which runs from July 1, 2012, to June 30, 2014 for a contract amount of $234,500. That contract calls for the recruitment fee payment of $3,000 each for 25 first-year teachers and $3,000 each for 26 second-year teachers. Additionally, it calls for a fee of $3,250 each for the second year of those 25 teachers.

And then there is contract no. 717968 in the amount of $968,468 that calls for the recruitment of 520 TFA teachers to work in the parishes of East Baton Rouge, Jefferson, St. James. St. John the Baptist, St. Bernard, Orleans, Plaquemines, East Feliciana, Pointe Coupee, Ascension, Avoyelles, East Carroll, Madison, Tensas, Concordia, St. Helena and RSD.

Besides the potential violation of federal equal employment opportunity laws by giving stated preference to TFA teachers over more qualified applicants holding bachelor’s and master’s degrees, Plus-30s and Ph.Ds., the contract, which runs from Sept. 1, 2012 through June 30, 2013, contains a rather unusual clause which says:

• “If the contract is 8(g) funded, all provisions of this ownership clause apply except that upon termination or at the completion of 8(g) funding for a project/program, (BESE) may approve a contractor’s (TFA) request to retain equipment purchased with 8(g) funds based on the contractor’s assurance that the equipment will be used for educational enhancement.”

In 1953, the Outer Continental Shelf Lands Act was passed to regulate offshore leasing and to determine state/federal participation. The act was amended in the late 1970s to give states greater control over offshore activities.

The amendment, numbered 8(g), is what gives coastal states a “fair and equitable” share of the money from offshore development. The 1986 settlement gives Louisiana 27 percent of the money made from the 8(g) area of the continental shelf.

Louisiana voters approved a constitutional amendment to establish a trust fund for education from the 8(g) funds. The Louisiana Education Quality Trust Fund requires that the money be spent for educational purposes.

BESE is constitutionally mandated to allocate funds for any of the following purposes:

• To provide compensation to city or parish school board professional instructional employees;

• To ensure an adequate supply of superior textbooks, library books, equipment and other instructional materials;

• To fund exemplary programs in elementary or secondary schools designed to improve elementary or secondary student academic achievement or vocational-technical skills;

• To fund carefully defined research efforts, including pilot programs, designed to improve elementary or secondary student academic achievement;

• To fund school remediation programs and preschool programs;

• To fund the teaching of foreign languages in elementary and secondary schools;

• To fund an adequate supply of teachers by providing scholarships or stipends to prospective teachers in academic or vocational-technical areas where there is a critical teacher shortage.

Nowhere in those stipulations does it say that BESE or DOE may arbitrarily give contractors educational equipment purchased with 8(g) (read: public) funds. But then, the wording is sufficiently ambiguous. Maybe they can.

Of course, there is that wording that the contractor (TFA) may retain equipment purchased with 8(g) funds in the event its contract with the state is terminated only so long as TFA provides assurances “that the equipment will be used for educational enhancement.” (Emphasis ours.)

But if the TFA contract is cancelled, TFA would no longer be teaching in Louisiana.

So where would equipment purchased with Louisiana funds be used “for educational purposes?”

Mississippi?

Texas?

With this administration and this Superintendent of Education, who knows?

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“(He is) not worthy of serving the people of this state.”

—Sen. Karen Carter Peterson, D-Baton Rouge, in voting not to confirm Bruce Greenstein as Secretary of the Department of Health and Hospitals on June 22, 2011.

“He will do a great job.”

—Sen. Jack Donahue, R-Mandeville, in voting to confirm Greenstein.

“I don’t believe the secretary participated in actions that influenced the outcome (of the awarding of a $185 million contract to Greenstein’s former employer, CNSI).”

—Former Sen. Lydia Jackson, D-Shreveport, in voting in favor of confirming Greenstein.

“Mr. Greenstein was very involved in the process (of selecting CNSI).”

—Former Sen. Rob Marionneaux, D-Livonia, in voting not to confirm.

“This is not a ceremonial committee. We will be watching very closely. If things go awry, we will be the first to speak up.”

—Sen. Dan Claitor, R-Baton Rouge, in voting to confirm Greenstein.

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If one thinks we’re feeling a little smug right now or that we take any measure of self-satisfaction over the federal investigation at the Department of Health and Hospitals (DHH), or the no-show status of DHH Secretary Bruce Greenstein before the House Appropriations Committee only days after the federal probe became public knowledge, or of Greenstein’s subsequent announcement that he will resign, effective May 1, then one would be wrong.

We take no pleasure in our native state’s once again having the harsh spotlight of official corruption shone upon it for the entire nation to see. We fail to share the self-righteous satisfaction of those who would smile condescendingly and nod and agree that despite the mantle of morality and ethics with which our governor has cloaked himself, nothing has really changed in Louisiana.

As soon as word of the U.S. Attorney’s investigation became public, we knew someone would be thrown under the bus by Jindal. That’s the way he operates. Jindal’s Commissioner of Administration Kristy Nichols sniffed indignantly that wrongdoing would not be tolerated by this administration as she quickly cancelled the $185 million contract with CNSI, Greenstein’s former employer.

In making that statement, did Nichols intend to admit that the administration may well be aware of legal wrongdoing? If so, why did it take so long? The federal subpoena for all records pertaining to the CNSI contract was served on the administration way back on Jan. 7 but the contract was not cancelled until March 21 and then only after the Baton Rouge Advocate broke the story of the investigation through public records requests for the subpoena.

That’s two and one-half months that the governor knew of the investigation and chose to do nothing until he was outed by the media. So much for the sanctimonious non-toleration of wrongdoing.

And now the governor’s office tries rather unconvincingly to tell us Greenstein was not asked to resign. Sorry, but we’re not buying it. Someone had to fall on his/her sword and the first domino to topple was Greenstein. There may well be others before this little matter is concluded.

Surely Jindal must realize that cancelling a suspect contract and forcing out the man who first made it possible for his old employer to even qualify to bid on it and then remained in constant contact with CNSI management during the selection process isn’t going to convince the FBI and the U.S. Attorney’s office to fold up their tents and go home.

The Louisiana Attorney General, whose office is conducting its own investigation, maybe, but not the feds. They just don’t quit that easily.

There are, of course, several questions that will have to be addressed by the U.S. Attorney and, depending on whether or not they are satisfied with what they find, indictments may or may not be forthcoming. If there are no indictments, the matter will die a quiet death. If there are criminal indictments, however, the cheese will get binding.

Probably the most important question will be whether or not Greenstein profited monetarily from his participation in the process of first clearing the way for CNSI to submit a bid and then his potential influence in the actual selection of his old company.

On that question, we offer no opinion because matters now are in the legal system and no longer subject to public records requests. We, like everyone else, can only wait and see as the case is slowly unraveled by investigators.

A second question—only if it is determined that Greenstein did indeed profit in some way from the selection of CNSI—would be what did then-Commissioner of Administration Paul Rainwater and Gov. Jindal know and when did they know it? Again, this is not to imply that either man was complicit in any effort to steer the contract to CNSI; it’s simply one of several questions that should be explored.

If felonious wrongdoing is found and if it is expanded to include the governor’s office, then the investigation should—and most probably would—widen to include scrutiny of other state contracts issued since January of 2008.

But there is one question that will not be asked by federal investigators or the attorney general’s office but which should be asked by every voter in Louisiana.

Why was Greenstein confirmed in the first place, given his recalcitrant attitude in refusing a directive to tell a Senate committee the name of the winner of a $185 million state contract?

On June 22, 2011, the Senate and Governmental Affairs Committee voted 5-2 to confirm the appointment of Greenstein as DHH secretary despite the confrontation between Greenstein and committee members over committee demands for Greenstein to name the winner of the $185 million contract to replace the state’s 23-year-old computer system that adjudicated health care claims and case providers. https://louisianavoice.com/2013/03/21/fbi-investigation-prompts-jindal-to-cancel-controversial-cnsi-contract-but-now-who-will-be-thrown-under-the-bus/

Only Sens. Karen Carter Peterson, D-New Orleans, and Rob Marionneaux, D-Livonia, were sufficiently offended and/or concerned about Greenstein’s staunch refusal to divulge to the committee that CNSI had won the contract during his confirmation hearing.

Five other senators, Ed Murray, D-New Orleans; Mike Walsworth, R-West Monroe; Lydia Jackson, D-Shreveport; Dan Claitor, R-Baton Rouge; and Greenstein apologist Jack Donahue, R-Mandeville, all voted to confirm Greenstein. Some, like Donahue, heaped lavish praise on Greenstein.

Sen. Robert “Bob” Kostelka chairs the committee and does not vote unless there is a tie. He offered no comments during the proceedings other than to recognize fellow senators who wished to speak and to preside over the vote.

Jackson, who no longer serves in the Senate, having been defeated for re-election in 2011 by former Sen. Gregory Tarver in 2011, said she supported Greenstein even though “this incident (the standoff between Greenstein and the committee over identifying CNSI) calls into question the issue of transparency. I don’t believe the secretary participated in actions that influenced the outcome (of the awarding of the contract).”

Murray, who voted in favor of confirmation, had peppered Greenstein with questions during his initial appearance before the committee. “The secretary was not completely accurate in his responses,” he said. “But I received numerous calls from all over the country attesting to his ability and professionalism. I hope he can live up to those recommendations.”

Donahue, in supporting Greenstein, simply said, “He will do a great job.”

Peterson, who also serves as Chairperson of the Louisiana Democratic Party, said the number one priority for any appointee should be integrity. She said Greenstein was “not worthy of serving the people of this state.”

Marionneaux, who was term limited and could not run for re-election in 2011, said the confirmation procedure of the committee had been “anything but pristine. Mr. Greenstein was very involved in the process (of selecting CNSI).”

Claitor, who supported Greenstein, said, “This is not a ceremonial committee. We will be watching very closely. If things go awry, we will be the first to speak up.”

Well, Sen. Claitor, things have certainly gone awry. But so far, not a single member of the committee has uttered a peep.

Why is that?

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