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Thursday, April 02, 2009

ISSUES- ISSUES- ISSUES

Transparency, oversight, bidding procedures

Issues- Issues- Issues
January 28, 2009

I am concerned about the honor farm deal with NEK that is being considered without competitive bidding.  There are those that say NEK is willing to invest their own money to make improvements.  That may be true.  But it must be remembered that NEK is a for profit company and their motive, most likely, for making improvements is not for the benefit of the community but for their ability to increase profits. 
Might there be better qualified companies/organizations interested in operating the honor farm facilities and are willing to invest in making improvements.  We may never know, because the city was not and continues not to be willing to go out on bid for the operations of the facilities.  Secret negotiations generally seem to be the preferred way of doing business.
It is my understanding NEK has been using the honor farm facilities for some period of time for training (a profitable service).  I would like to know how long NEK has used the facility and how much they have paid the city prior to the July, 2008 agreement and since that agreement.
This brings up the problem of little or no oversight of non-departmental operations.  I believe the proposed change of the city management hierarchy, which I believe is a step in the right direction, must include well defined oversight of these operations.  The honor farm/PMI situation is an example.
There is also another example, the fixed base operations at the airport.  Recently the city issued a RFP, possibly for the second time, for the fixed base operations.  I reviewed the RFP and came to the conclusion that the requirements to update and maintain the operations at the expected high level requested versus the risks and cost for an operator did not make good business sense for any potential bidder.
I attended to the bid opening, I was the only one that did, and it was no surprise to me that only one bid was submitted.  This was from a company that was incorporated in November of 2008.  This kind of situation seems to happen on a too frequent basis.  Why?  Is it lack of long term planning, and oversight, or is the city hard to do business with.  The people need answers on how the city can provide a more efficient and cost effective government.
Ted Freeman
 

Posted by Administration at 10:07 AM in

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