Preliminary Report to the Leon County School Board

8/10/2019 Preliminary Report to the Leon County School Board

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Preliminary Report the Leon County

School BoardNovember 10, 2014


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Henry M. Coxe, III

Brian T. Coughlin

Bedell Firm101 E. Adams St.

Jacksonville, FL 32202


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Background and

Scope


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Scope of engagement

Initially, to advise Leon County School District employeesduring law enforcement investigation to the extentnecessary, and to coordinate with government authorities

Broadened into an investigation, for the benefit of theLeon County School Board, focused primarily on theDepartment of Construction and Facilities


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The Notebook

Scope includes allegations in the notebook relatedto construction activities within the District


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Resources available

We have had cooperation from the Office of theSuperintendent and the Department of Construction andFacilities

Also from some former employees and independent

witnesses

No authority to compel information from non-Districtemployees


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Majority of investigation complet

40+ interviews

Thousands of documents,both internal and external


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Construction Contracts

Awarded based on improper considerations?

Political contributions

Personal relationships


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Division of construction projects

Why were projects divided?

Was it lawful to divide projects?


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Applicable law


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Construction Contracts

Governed by Section 287.055, Florida Statutes, alsoknown as the Consultants Competitive Negotiation Act(CCNA)

Section 255.103, Florida Statutes, provides that the

District may enter into continuing contracts, pursuantto the process required by the CCNA, for contracts that donot exceed $2 million


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Continuing Contracts

A contract for professional services between an agencyand a firm whereby the firm provides professional services

to the agency for projects in which the estimated

construction cost of each project under the contract does

not exceed $2 million or for work of a specified nature

as outlined in the contract required by the agency.

287.055(2)(g), Florida Statutes


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CCNA

Designed to provide clear procedures for governmentalagencies to follow to:

-make contracting for professional services morecompetitive

-require employment of the most qualified andcompetent individuals and firms at fair,competitive, and reasonable compensation


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CCNA

1. Public announcement

2. Competitive Selection

-only certified/prequalified individuals or firms

3. Competitive Negotiation


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Public Announcement

The government agency shall publicly announce, in auniform and consistent manner, each occasion whenprofessional services must be purchased for a constructionproject

287.055(3)(a)1., Florida Statutes


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Competitive SelectionIn determining whether a firm is qualified, the agency shall

consider such factors as:

-the ability of professional personnel

-whether a firm is a certified minority businessenterprise

-past performance

-willingness to meet time and budget requirements-location

-workloads of the firms

-volume of work previously awarded to the firms by theagency


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Competitive Selection

with the object of effecting an equitable distribution ofcontracts among qualified firms, provided suchdistribution does not violate the principle of selection ofthe most highly qualified firms.

287.055(4)(b), Florida Statutes


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Competitive Negotiation

The agency shall negotiate a contract with the mostqualified firm for professional services at compensationwhich the agency determines is fair, competitive, andreasonable.

287.055(5)(a), Florida Statutes


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Competitive Negotiation

If unable to negotiate a satisfactory contract with the mostqualified firm at a price the agency determines to be fair,competitive, and reasonable, negotiations with that firmmust be formally terminated. The agency shall thenundertake negotiations with the second most qualified

firm. (Then third, fourth, etc.)287.055(5)(b), Florida Statutes


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Preliminary Finding


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Awarding of contracts

We have not identified evidence that constructioncontracts were selected or assigned with criminalor fraudulent intent


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Political contributions andconstruction projects

Allegation in the notebook:

The appearance that the Superintendent and AssistantSuperintendent are actively lobbied and influenced bypotential contractors and consultants


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The appearance

Those involved in the compilation of the notebook told usthat they had no direct proof

No one within or connected to the Department of

Construction and Facilities has offered proof

No bid protests by contractors


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Contributions to Pons campaigns(2006 to present)

0

2

4

6

8

10

12

$Thousands

Contractor


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Assigned contracts(January 2007 to January 2014)

0

2

4

6

8

10

12

14

$Millions

Contractor


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Political Contributions

$80,849 , 9%

$776,188 , 91%

Contractors

Other


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Division of projects

Intended to divide large projects so they could be assignedto multiple firms pursuant to continuing contracts

Examples:

Griffin Middle School (2)

Killearn Lakes Elementary School (2)

Gilchrist Elementary School (2)

Kate Sullivan Elementary School (3)


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Griffin Middle School

Has drawn much attention

First divided project

Selection committee interviews nearly halted


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Last minute change

February 24, 2009:

Closing of Belle Vue Middle Schoolapproved

March 9, 2009 to April 9, 2014:

Rezoning meetings

April 14, 2009:

Selection Committee interviews


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Presentation to LCSB


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Presentation to LCSB


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Why divide?

Local economy

-recession began in late 2007, businesses hurting

-spread projects among a broad group of localcontractors

-maintain viable base for the districts future work

Timeline issues

-finite periods of time to spend and build


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Control

Stated motivation is altruistic

Superintendent is a hands-on leader

Division of projects allowed maintenance of control


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Audit recommendation

State Auditor General critical of the practice:

District records did not evidence the basis upon which the Districtseparated the CME construction and upfit services into two differentprojects. In these circumstances, the District effectively circumvented theprovisions of Section 287.055, Florida Statutes

Practice continued for a small number of projects that hadalready been approved, then was stopped


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Efforts to avoid competitive select

Gilchrist Elementary

Consent agenda

$1,999,782


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Efforts to avoid competitive select

Ghazvini CenterGym

$1,999,999


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Assignment of contractors

Talent to the task

Documentation extensive, but lacking in reasoning behindassignments


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Assignment of contractors

When asked for further insight:

A committee was not used for selection, howeverthe following factors were evaluated: pastexperience of the contractor, current workload of thecontractor, and ability to complete project on time

and within budget.

Allows criticism and skepticism to thrive


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Continuing Contracts

The continuing contract provision of 287.055, FloridaStatutes, represents an exception to the generalcompetitive bidding provisions of the act and should beread narrowly and utilized sparingly in order to avoid anappearance of circumventing the requirements of the

statute.Florida Op.Atty.Gen., 2013-28 (2013)


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Recommendations


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Selection projects

Stay true to the statutory intent of CCNA

Consider providing guidelines for who should sit on theselection committees


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Assigned projectsProcess considerations

How should the decisions get made?

By whom?

Thoroughly document analysis and factors behindassignments

Create standard documents for use

Consider threshold $ amount for assignment

($1.5 million?)


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Other issues

Explore best term length for continuing contracts

Disclosure cap for dollars spent under continuing contract

Create specific guidelines for when amendments orchange orders are appropriate, especially with GMPcontracts

Be sure to prequalify on annual basis, pursuant to SREF4.1


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Maintain public confidenceA candidate may not, in the furtherance of his or her

candidacy for nomination or election to public office in anyelection, use the services of any state, county, municipal,or district officer or employee during working hours.

106.15(3), Florida Statutes

A step further, consider keeping employees involved inelection efforts completely separate from selection andassignment of contracts


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Maintain public confidence

Consider requiring disclosure when political contributionscame from those attempting to do business with theDistrict

Designate a person or entity available to district employeeto address concerns or answer questions


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Summary

No evidence of criminal or fraudulent intent

Projects divided

Need for better documentation as to reasoning

Stay true to applicable statutes

Emphasis on transparency


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Questions?

Preliminary Report to the Leon County School Board

Documents

Transcript of Preliminary Report to the Leon County School Board