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“We cannot protect people from making bad decisions in their lives.”

–Sen. Elbert Guillory (D-Opelousas), commenting on the possibility that retirees may spend all of their lump-sum pension benefits being proposed as part of Gov. Piyush Jindal’s retirement reform package. He went on to say that retirees may have to apply for food stamps, welfare and other government programs. Still, he somehow managed to insist that the retirement reforms would save the state money.

For sheer audacity, it’s hard to top the performance of State Sen. Elbert Guillory (D-Opelousas) last week.

Guillory, the poster boy for ALEC and Piyush Jindal lapdogs, was the lead author of the gaggle of state retirement bills, including Senate Bill 740 which assures state retirees they will not be getting a cost of living adjustment for 10-15 years.

Despite Guillory’s efforts to put the best spin on the retirements which wound up being a general hodgepodge, he was trumped by Jindal Deputy Chief of Staff Kristy Nichols who insisted the administration “got what we wanted.” It was a classic example of mutual one-upsmanship in an effort by both to save face.

The only part of the retirement package to be approved in its original form was a provision to base retirement incomes on employees’ best five years income instead of three years as is presently done.

Jindal’s effort—through Guillory—to force state civil service employees to work to age 67 before qualifying for retirement—was amended drastically. Only employees with zero to five years experience would be required to work to 67 while those with six to ten years will be required to work to age 62. All others will remain the same.

Guillory in a particularly self-serving email to Capitol News Service, said, “Now that you have had an opportunity to review the Senate Retirement Committee’s work, I’m sure you appreciate the hard work and responsible outcomes produced by those seven men. No “fix,” no “buyout” by ALEC (American Legislative Exchange Council). No underhanded tactics. Just hard work addressing a serious fiscal problem in careful responsible manner.”

Perhaps. But it would have been nice if the legislator had been working that hard the past 25 years to live up to its self-imposed requirement to pay down the unfunded accrued liability (UAL) of the state’s four retirement systems. Because of typically bad political policy, the legislature, in its infinite stupidity, decided to use those funds for other things, in the process allowing the UAL to grow unabated.

Now, though, state employees are being called on to make good on the legislature’s promise a quarter-century later. What’s more, the onus of the entire amount has been placed on the Louisiana State Employees’ Retirement System (LASERS) and higher education members of TRSL even though the LASERS share of the UAL is only about $6.3 billion. The balance of the UAL belongs to the Teachers Retirement System of Louisiana (TRSL), the Louisiana School Employees Retirement System (LSERS) and the Louisiana State Police Retirement System (LSPRS).

Guillory was asked why the pension reform changes are only being applied to LASERS and higher education employees in TRSL, he said state police and hazardous duty workers, who are exempted (fo far), “put their lives on the line. They face bullets every day. They have special disability issues. They have special survivorship issues, so they are in a special category. Their situation is more special. The same is true with K through 12 teachers. I’m not sure I want to see a teacher at age 67 still trying to handle the young students of today. There are just some special circumstances for teachers.

Two things are somewhat revealing in those comments. First of all, what he said about “young students of today” would seem to refute Jindal’s blanket condemnation of teachers while ignoring discipline problems and uninvolved parents as the root of most of public education’s current problems.

Second, as a reader recently wrote, if we are to believe Sen. Guillory, rank and file employees are not “special” or any particular value or importance. “We are also to believe that rank and file jobs do not involve any hazardous duties.

“Try telling that to employees of state psychiatric hospitals who are injured in the line of duty on a regular basis. Or tell that to Department of Transportation and Development (DOTD) employees who are struck by vehicles while repairing our highways. Or worse yet, try telling that to the families of the two Department of Insurance employees who were murdered recently while doing nothing more than gather routine regulatory information from an insurance broker.

“The simple lesson here is that Gov. Jindal has employed a very old and frequently successful ploy of divide and conquer with his so-called pension reform,” the reader said.

But Guillory’s most unabashed display of arrogance came during Senate debate over House Bill 61, which would create a new “cash balance” retirement plan for new hires, beginning July 1, 2013. Guillory said the plan would reduce state costs while containing the growth in long-term liabilities of the pension systems involved.

Sen. Sherri Smith Buffington (R-Keithville) said she was concerned over the provision for retirees to take a lump-sum pension benefit. She asked what would happen if a retiree spends the pension income to which Guillory incredulously replied, “We cannot protect people from making bad decisions in their lives.”

Guillory went on to say that a retiree might then have to apply for food stamps, welfare and other government programs.

Right. That’s going to save the state a boatload of money, right Senator?

That prompted one person to refer to Guillory’s plan as the “Cat Food Retirement Plan.”

National pension law expert Robert Klausner, representing LASERS and TRSL attempted to warn legislators against the bill’s passage, saying the proposed bill breaks employee contracts. “There’s no reason to pass an unconstitutional law,” he said. “All it does is create a field day for lawyers.”

Several weeks ago, with the Legislative Auditor hired a Dallas law firm to analyze the proposed retirement bills, the law firm came up with much the same response as Klausner.

To counter the auditor’s expert, the Division of Administration hired Buck Consultants of Boston at a cost of $400,000.

A LouisianaVoice public records request for a copy of the Buck report resulted in the release of a six-page document—about $66,667 per page. That report had just a three-paragraph narrative at the end. The rest consisted only of actuarial notes which projected a reduction of annual state contributions (the portion the state contributes to employee retirement funds) to LASERS and TRSL if enacted.

Jindal’s proposal—through Guillory’s bills—to move from a defined benefit to a defined contribution pension plan was a virtual clone of the “Defined-Contribution Retirement Act” model bill as drafted by ALEC at its New Orleans national convention last August, Guillory’s claims in his email to LouisianaVoice notwithstanding.

But that was just one of the bills proposed by ALEC.

A copy of ALEC’s complete proposed retirement reform legislation was obtained by Common Cause of Washington, D.C., which filed Freedom of Information Act requests for ALEC records.

The ALEC proposals and those of Guillory in the Senate and Rep. Kevin Pearson (R-Slidell) in the House are nearly identical in most aspects.

So, all things considered, it’s a little difficult to buy into Guillory’s braggadocio about his committee’s “hard work, no buyout by ALEC.” Nor do we agree that a “serious fiscal problem” was addressed in a “careful, responsible manner.”

“Samples of successful bidder will be retained at the purchasing office or the using agency…Any other samples received, if not destroyed in testing, may be returned at the bidder’s expense.”

–from bid specifications contained in Louisiana Division of Administration’s invitation for bids on the purchase of condoms by the state.

BATON ROUGE (CNS)—A cursory review of requests for proposals (RFP) and bid advertisements by the State of Louisiana occasionally turns up some interesting reading for those who are prone to such mundane literature. But it is rare that an advertisement or RFP is as curious as a recent posting for bids that were opened on May 9.

It seems that the Division of Administration recently solicited bids for the purchase of condoms. In retrospect, the word “solicited” in the previous sentence could understandably be misconstrued, considering the fact that there was no clear-cut explanation as to how the condoms would be distributed and to whom.

Normally, it might be said there was no explanation as to the proposed use of the merchandise, but that might elicit unnecessary snickers and giggles, if not chortles and guffaws.

Nor is the quantity exactly clear. The invitation to bid asked for “52MM” of lubricated latex, reservoir end, smooth surface, assorted colors and “52MM” of non-lubricated latex, reservoir end, smooth surface, transparent color condoms.

The term 52MM is normally considered to mean 52 thousand-thousand, or 52 million. Using that standard definition, that would mean the state solicited (there’s that word again) bids on 52 million condoms of assorted colors and another 52 million of transparent color. That’s 104 million condoms.

If the MM had been in lower case, that would have been a completely different definition. If the bid had been for 52mm, that would have meant 52 millimeters. At approximately 25.4 millimeters per inch, 52 millimeters would convert to a little more than two inches. But again, that prompts the question of length, diameter, or circumference.

A more likely definition would be 520,000 because of a paragraph in the bid specifications that said, “Condoms are to be shipped to various sites throughout Louisiana [approximately 250 (sites)]. Minimum order shipped to any single location shall be two cases of 1,000 condoms per site. That would be 2,000 condoms shipped to each of 250 sites, or 500,000 condoms total.

The contract for the purchase of the condoms is for one year but at the option of the state, “may be extended” [stop laughing] for two additional twelve month periods at the same price.

The unintended humor doesn’t end there, however.

“The bidder must submit samples of each of the products to be supplied under the contract along with product literature for each of the types of products bid,” the bid specs said. “Samples of successful bidder will be retained at the purchasing office of the using agency. Any part of merchandise received that does not meet the quality standards and construction of the sample will be rejected and returned at vendor’s expense.”

Finally, the crowning punch line: “Any other samples received, if not destroyed in testing, may be returned at the bidder’s expense.”

Destroyed in testing?

Who wants to open that package?

No word, by the way, on the identity of the winning bidder.

From 2005 through 2010, public entities in Louisiana spent more than $595 million – more than $99 million per year – for computers, computer equipment and peripherals from Dell Computers of Round Rock, Texas, often paying considerably more than the online price for which the same equipment could be purchased.

The expenditure of more than half a billion dollars is never inconsequential, but in times of budget crunches necessitating deep cuts in health care and higher education, such waste takes on even greater significance.

The purchases were made by the state, parishes and municipalities through participation in a consortium called Western States Contracting Alliance (WSCA). WSCA was formed in 1993 by the state purchasing directors of 15 states.

Membership has since expanded to 18 states: Alaska, Arkansas, California, Colorado, Delaware, Georgia, Hawaii, Iowa, Louisiana, Minnesota, Missouri, Nebraska, Nevada, New Mexico, New Jersey, South Carolina, South Dakota, Utah and Wisconsin.

A designated lead state negotiator issues the solicitation and awards contracts based on each state’s statutory requirements and processes. WSCA receives one-twentieth of one percent of all sales to cover its administrative costs, according to WSCA Program Manager LeAnn Pope.

WSCA, however, does not participate in the actual sales but serves only to negotiate agreements with companies to serve as vendors. Since 1999, WSCA has negotiated contracts that resulted in sales totaling $18.6 billion—sales that earned $9.3 million for WSCA.

While Louisiana is a member of WSCA, purchases are not made through the consortium but instead are made directly from the computer company, in the majority of cases, Dell Computers, and without the necessity of taking competitive bids as normally required with major purchases.

While the idea of a consortium to serve as a clearinghouse for major purchases such as computers might be a good idea, it works only if the members are able to negotiate the best discounted price available.

Such does not seem to be the case with the state of Louisiana.

In October of 2010, the state purchased 640 Dell Model E6410 laptop computers directly from Dell for the State Library system at a unit price of $1640.86, or $1,050,150.40 total.

The same model was found online, available directly from Dell, for $669, a total of $428,160 for 640 laptops. That would have been a savings to the state of $621,990 or 59.2 percent.

In February, LouisianaVoice learned that a state agency requested quotes for two Dell E6420 laptop computers and received quotes from Dell of $1,448.71 each even though the same model was available from Dell online at a cost of $670.

That prompted an email to LouisianaVoice from a Baton Rouge information technology (IT) salesperson and former tech company owner that was highly critical of the manner in which the state locks out competitive bidding on computers, computer equipment and peripherals.

The content of his email is as follows:

As a local technology provider for over 20 years, I have watched this practice go on for over a decade. It’s time to take a really hard look at the millions of dollars spent each year on no-bid purchase orders for IT equipment. There is zero oversight in this area and no regulation. According to the current WSCA/NSPO contract website Louisiana spent almost $90,000,000 in 2010 on Dell computer equipment off the WSCA state contract which includes PCs, servers, and other miscellaneous equipment. This does not include networking or other types of gear either. In other states such as Mississippi, there is legislation in place that requires Dell to resell their gear through local tech firms but, not here. WSCA is not a contract it is a catalog, so basically there is no contract.

It is so frustrating to hear politicians wring their hands about why there are no technology jobs in Louisiana and come up with various ideas about how to attract business in that field. There are no jobs because even our own state government doesn’t use local tech firms to procure products from the other vendors that support local partners such as HP or Lenovo for PCs, to name a few. Dell sells direct and every single dollar goes directly to Austin, Texas to the Dell coffers. There are no jobs created and no one makes any money except the sales reps from Dell and Michael Dell in Austin. If the price is the same—or better—why wouldn’t the state buy equipment from manufacturers that use local partners as their agents?

All of this is done under the table and I hear rumors that the state of Louisiana has in place some unpublished volume pricing agreement from Dell. Personally I can’t find a copy of that agreement anywhere on the OIT website. Was there an RFP to award this contract? The answer is a big fat NO! As you can see, the so-called volume deal is no bargain. Comparable products from other major computer manufacturers are much lower and if there were there are no bids ever that go out so who knows? If there were a bid process, then it would be a win-win because it would be competitive. There are so many roadblocks to competitive bidding and Dell gets all the business, it doesn’t matter who I work for or how much I try, it is impossible to get even a small piece of the state IT business.

It would be very helpful to our economy and our future if someone would do something about this. There would be no need for layoffs or spending freezes if the state would just get bids—and I mean real bids that are published on LAPAC for PC products. At least level the playing field. I love competition so I am happy to play and I am betting so are all the PC manufacturers in the state—if given a chance.

LouisianaVoice made a public records request for a Dell price list used by the state. The Division of Administration responded with a web link to Dell’s price list, a document consisting of 30,524 pages.

Computer purchases are not the only problem; sometimes there are problems keeping track of those already purchased. At one school in the Recovery School District in New Orleans, for example, the school began the school year with 94 computers and at the end of the year, it was 94 computers short. No one could explain to state auditors what happened to the computers.

Likewise, when the Office of Public Health in New Orleans moved into the Benson Towers, nearly $1.3 million in state property turned up missing, including computers valued at nearly $400,000.