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untanglingwebs
El Supremo
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Tue Apr 28, 2015 8:01 am |
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untanglingwebs
El Supremo
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Why Political Corruption Matters
By Jay Cost - February 10, 2015
s
(The following is excerpted from the Conclusion of A Republic No More: Big Government and the Rise of American Political Corruption.)
Critical histories such as this must inevitably confront a simple question: so what? If one is going to criticize the practices of government, there must be some kind of net harm that this behavior creates. And, in the case of political corruption, it is fair to wonder if maybe this is all just the necessary cost of doing business.
That was basically Alexander Hamilton’s point to Thomas Jefferson and John Adams when he said of the British Constitution: “purge it of it’s corruption, and give to it’s popular branch equality of representation, & it would become an impracticable government: as it stands at present, with all it’s supposed defects, it is the most perfect government which ever existed.” Hamilton had in mind the use of corruption as a tool for great leaders to induce the self-interested to act on behalf of the public good, but maybe there is a larger point implicit in the background: this is just the way things work. If we want a government that does bold, important things, we must suffer a little corruption.
One also could argue further that, on balance, life has dramatically improved in the United States even as corruption has persisted. To begin, the economy has grown by leaps and bounds since the earliest days of the country; the Industrial Revolution changed everything, raising standards of living for everybody, in due course. So, why should we be so upset about corruption? It does not seem to have inhibited our prosperity; maybe it is in fact a good feature of government. The wheels need to be greased to make things better, under this line of thinking. Furthermore, the country has become much more liberal than the earliest days of the Founding. The Framers talked a boastful game about freedom and equality, but it was only subsequent, “corrupt” generations that ended slavery, granted women the right to vote, put an end to Jim Crow, and finally guaranteed civil and voting rights to African Americans. Why should we celebrate a republican vision that would systematically exclude such a large percentage of the country? And how bad can corruption be with all these groups now welcomed into the body politic?
Take all this together, and one might say that corruption is a problem— in the third world. Here, it is at most a nuisance. The United States is prosperous and open. Corruption has not impeded this, and indeed maybe it has helped.
This rejoinder may at first glance appear persuasive, but it has some serious problems. For starters, economic growth could have happened just as easily with a more republican form of government, and it probably would have been more equitable. So, the real debate is not whether we should have wanted the government to promote industrial development, for instance, but how it should have gone about doing that. And it did not do it terribly well. Consider the economic problems of the late 19th century; yes, the economy was developing on the whole, but there were widespread regional disparities that governmental policy exacerbated. A truly republican form of government would have implemented an updated version of Clay’s American System, something that facilitated growth while also creating a balance between regions and interests.
A similar argument applies to contemporary political economy. While we gladly admit that the country is extremely wealthy, it still suffers from resource constraints. There are a multitude of public problems that go unaddressed or underaddressed because there simply is not the money to do anything about them. Meanwhile, how much does the government waste every year on Medicare or farm subsidies? How many worthwhile development projects were shunted aside so politicians could use earmarks to provide kickbacks to their wealthy supporters? How much did their indulgence of Fannie Mae and Freddie Mac contribute to the economic collapse in 2008? How wasteful is the politically inspired design of the tax code? Corruption too often engenders gross inefficiency in public expenditures, and as long as the country faces resource constraints, it is indeed a problem, regardless of the size of the gross domestic product.
As for the liberalization of the body politic, there is no doubt that this has been a positive development. And indeed, a truly republican government depends foremost upon the republican principle, which cannot be realized without the full and open participation of all interests in society. So, excluding women and minorities diminished the quality of republican governance for generations. Even in its ideal form, the republic outlined by Jefferson and Madison would have thus been sorely lacking because so many citizens would have been on the outside looking in.
Still, return to Madison’s take on the principle of majority rule, which he thought was a necessary, but insufficient condition of true republicanism. The state governments of the 1780s were some of the most democratized and liberal that the world had ever seen up until that point, and yet they were hotbeds of corruption. Madison understood that good political institutions were necessary to channel public opinion in the appropriate directions. Without them, the body politic was susceptible to corrupt rule by a fractious majority, even if the franchise was as liberal as it had ever been
These insights have relevance today. Yes, the right to vote has been offered to every nonfelonious citizen eighteen and over. Yes, civil rights are protected today. Yes, society is more open than ever. But has this made the common good easier to achieve? Based on our analysis in the second half of this work, it is hard to argue that politicians now steer the government with an eye toward an enhanced and comprehensive vision of the public interest. Instead, it looks more and more like the massive policy logroll has simply been expanded to ensnare more factions. Everybody can vote, sure; everybody can organize, yes; but the end result is not so much an opportunity to inform the public good, but rather a chance to lobby for your own slice of the pie. Indeed, former Michigan governor George Romney may have put it best when he said:
What did we have originally when the Constitution was written? They asked (Benjamin) Franklin, “What have you given us?” He said, “We’ve given you a republic, if you can keep it.” Now, we didn’t keep it. . . . We’ve got a special interest democracy—a political process that is dominated by the special interests.
That is a very apt phrase: “special interest democracy.” The political process may be more open than ever before, but the payoff to the new invitees is an opportunity to mobilize into interest groups to get a piece of the action. A true republic, on the other hand, would bring all viewpoints into the body politic, and from these diverse views find the policies that benefit the citizenry as a whole. Our system does not do that.
And this is not what the people want; for all of the openness of our system of government today, confidence in it is at an all-time low. Consider the following public opinion data from the American National Elections Study (ANES). For decades, the ANES has asked respondents whether they trust the federal government to do what is right. In 1958, 73 percent answered “most of the time” or “just about always,” whereas only 23 percent said “some of the time” or “never.” By 1980, the numbers had shifted dramatically: only 25 percent said they trusted it most of the time or just about always. In 2012, just 12 percent of the public expressed such confidence. The Gallup poll finds an even more disturbing trend. In 1972, 70 percent of respondents said they trusted the government to solve domestic problems either a “great deal” or a “fair amount.” By 2013, those numbers had fallen to just 43 percent. Per Gallup, Congress’s reputation has suffered the most: in 1972, 71 percent trusted it a great deal or a fair amount, but by 2013, just 34 percent did.
More often than not, people are wont to blame particular politicians in office for the nation’s troubles, but this decline in public consent of the government has occurred across generations. That suggests a systemic, rather than a personal problem. What could that be? Why is it that, with so much democracy, the people think the government still does not serve the interests of the governed? The answers are surely many and varied, but it seems indubitable that this is, at least in part, a public acknowledgment of the problem of corruption.
And so we return to one of the earliest metaphors we used to define corruption: it is like cancer or wood rot. It does not stay in one place in the government; it spreads throughout the system. When a faction succeeds in getting what it wants at the expense of the public good, it is only encouraged to push its advantage. By the same token, politicians who aid them and reap rewards for it have an incentive to do it some more, and to improve their methods to maximize their payoffs. Moreover, these successes inspire other politicians and factions to try their hands at raiding the treasury to see if they can do it, too. Thus, a vicious cycle is created that erodes public faith in government, which further contributes to the cycle. When people stop believing that anything can be done to keep the government in line, they stop paying attention carefully or maybe cease participating altogether. Ultimately, the public is supposed to be the steward of the government, but how well can it perform that task when it no longer believes doing so is worth its while? How does a democratic government prosper over the long term if the citizenry does not trust the government to represent its interests? How will that not result in anything but the triumph of factionalism over the common good?
The Declaration of Independence opens with this bold statement:
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain inalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness.—That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed.
This idea infuses the Constitution itself, which eschews the concept of mixed estates. The legitimacy of our government is supposed to derive from the people, and the people alone, who consent to the government because, they believe, it represents their interests. In its ultimate form, corruption eviscerates that sacred notion. The people stop believing that the government represents their interests, and the government in turn begins to operate based upon something other than consent.
Put simply, corruption strikes at the heart of our most cherished beliefs and assumptions about republican government. That makes it extremely dangerous to the body politic, regardless of what the Bureau of Economic Analysis says about the rate of GDP growth.
Jay Cost is a staff writer at The Weekly Standard and author of the new book, A Republic No More: Big Government and the Rise of American Political Corruption, from Encounter Books. |
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Tue Apr 28, 2015 8:02 am |
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untanglingwebs
El Supremo
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Corporation Counsel advised the County Commissioners on the laxity of state law on bids. As a result commissioners are making decisions of major consequence without bids. Insiders call it more cronyism than actual quid pro quo. While the county has policies on procurement, the commissions enter into contracts over $100,000 without bids.
Last edited by untanglingwebs on Tue Apr 28, 2015 8:41 am; edited 1 time in total |
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Tue Apr 28, 2015 8:11 am |
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untanglingwebs
El Supremo
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https://www.mml.org/pdf/hmo/22.pdfPurchasing
Introduction
Purchasing departments exist to help governments
manage their finances by making
the best expenditure decisions possible.
Elected officials have an important responsibility
to monitor the finances of their organizations,
part of which includes approving
purchase transactions. There are several
ways that the legislative body can support
purchasing activity. First, the council establishes
the vision for the organization, setting
the tone for the day to day activities, as well
as the ethical standards for the organization.
Elected officials can set meaningful rules
regarding fairness and open competition and
work to keep these rules current. Finally,
councils can support professional development
and technological improvements.
This chapter will provide an understanding
of the public purchase process through a
review of enabling legislation and a discussion
of the day to day aspects of the operation.
State statute
There are no longer any state statutes requiring
public bids on municipal contracts. 1993
PAs 167 & 168 which required municipalities
to seek competitive bids for purchases
over $20,000 in order to receive state shared
revenue money, were repealed in 1996. The
state has relegated the task of developing
public purchasing guidelines to local governments.
Charter provisions
Local government officials must look to
their charter for purchasing guidelines and
restrictions. A charter may establish who is
responsible for purchasing (such as the manager
or administrator) and also include the
maximum dollar amount that can be appropriated
before advertising for competitive
bids. Other local control mechanisms for the
allocation of municipal funds are through
ordinances and policies. In recent years, in
order to set more realistic spending limits,
some municipalities have amended their
charters (which requires review by the governor
and a vote of the electors) to allow the
purchasing function to be legislated by local
ordinance.
Local ordinances
Legislation has a major impact on the services
that can be provided to residents. The
activities conducted in public procurement
are restricted to those authorized by law.
Therefore, many public entities have an ordinance
that defines important parameters of
the purchasing process. Well-written legislation
will allow the purchasing department
flexibility in using criteria in addition to
price as evaluation tools (Public Procurement
Management First Edition, NIGP,
Herndon, VA, 2000). This ordinance may
discuss how responsibility for the purchasing
function flows. For example, the ordinance
may state that the organization’s
executive branch (manager, mayor, administrator,
etc.) may enter into contracts based
on the recommendation of the purchasing
director with approval of the legislative
body for certain dollar limits.
Ordinances will vary in the level of detail
included. Some will establish a dollar
amount for obtaining both written bids and
legislative approval for purchase transactions;
advertising requirements; and outlining
the circumstances in which competitive
bidding is not required. Ordinances may further
detail specific responsibilities of the
purchasing function such as encouraging
competition; promoting standardization in
the use of like products throughout the organization;
barring vendors from bidding
opportunities; and disposal of obsolete property.
Some organizations have socially motivated
buying policies, such as local preferences
or disadvantaged business programs.
(Section IV/Chapter 22)
110 Handbook for Municipal Officials
Published by the Michigan Municipal League, July 2004
In these cases, authorization for such
programs will often be addressed within this
enabling legislation.
Cradle to grave philosophy
Professionally staffed purchasing departments
follow the “cradle to grave” philosophy.
In other words, a purchasing department
is responsible for obtaining all of the
products and services needed by the organization
at the right time, for the right price
and in the right quantity (cradle). Purchasing
should redistribute property, equipment
and other resources among departments
when necessary (mid-life). Finally, purchasing
is responsible for disposing of the organizations’
assets once they have become
obsolete and of no further use (grave).
The purchasing process begins with the
adoption of the budget, which is the organization’s
fiscal plan for the year. The budget
document provides purchasing with information
about upcoming capital projects,
equipment and service needs, as well as
daily operating supply item needs. Purchasing
uses this financial perspective to plan the
timing of purchase transactions and to combine
the needs of several departments with
the overall goal of taking advantage of quantity
discounts.
The budget document can be used by
purchasing to prepare a procurement calendar.
This calendar is a plan for bidding all
capital and recurring operating supply needs.
The calendar helps purchasing meet the entity’s
needs using an organized approach.
The purchasing calendar, in conjunction
with the budget, permits the organization to
spread its expenditures throughout the fiscal
year.
The next step involves developing specifications
or an exact description of the product
or service needed. This may be done by
the end user, the purchasing department, an
outside consultant if the item is complex in
nature, or it may be a group effort. Purchasing
reviews the specifications for completeness
and clarity, and makes sure this description
is open to competition and not
restrictive in nature. Competitive bidding
has long been recognized as one of the best
avenues to insure a healthy and equitable
public purchasing process (Public Procurement
Management, First Edition, NIGP,
Herndon, VA 2000).
The specifications are combined with
the appropriate terms and conditions into a
bid document and are advertised in the local
press and distributed to suppliers that are
able to respond. Advertising is an expense,
which in lean economic environments, may
be considered expendable. It is important to
note that posting public notices of purchase
transactions is an essential component of
maintaining an exemplary and inclusive
process.
Bidders are informed of the date, the exact
location, and the time of day responses
must be submitted (often referred to as the
bid due date or bid opening date). This is
critical information in that if this deadline is
missed, bidders run the risk of their bids not
being accepted. In general, bids are submitted
to the clerk’s office or some other area
independent of the purchasing or requesting
department. They are time-stamped and held
in a secure location until the time of the
scheduled bid opening. Such precautions
help protect the integrity of the bid process
by reducing the possibility of bid tampering.
Bid openings are conducted in public and
vendors are encouraged to attend and take
advantage of the opportunity to review the
responses submitted by their competitors.
Companies and their respective responses
are evaluated to determine the lowest
responsive and responsible bidder. This
allows for a review of the product, its pricing
and compliance with the specifications
(responsive), as well as the offering firm’s
financial standing, references and experience
(responsible). Although price is always
of primary concern, a vendor that delivers a
quality product on time may prove to offer a
lower overall product cost.
After the evaluation process, the purchasing
transaction will be submitted to the
legislative body for approval in accordance
with the dollar limits set within the charter,
ordinance, or policy. Transactions below the
specified limit will be approved administratively.
Purchasing
Handbook for Municipal Officials 111
Published by the Michigan Municipal League, July 2004
Purchasing departments are typically responsible
for disposing of the organization’s
obsolete assets. Property disposal can be
handled as a trade-in allowance toward the
purchase of a new piece of equipment, using
a sealed bid process or by conducting a live
auction often with a professional auctioneer.
The evaluation standards work in reverse of
the purchase process, i.e., the highest bidder
is selected.
Purchasing as a corporate citizen
Purchasing has a responsibility to and relationship
with both internal and external customers.
It often functions as an ambassador
to the business community while at the same
time working to protect the organization’s
interests. The purchasing department has
a responsibility to its suppliers to be fair,
accessible and to conduct its business with
integrity.
Its internal customers are the employees
that rely on purchasing to acquire the products
and services needed to carry out their
work. Purchasing works closely with the
corporation counsel to make sure that policies,
procedures, contracts, etc. properly
protect the organization while being fair to
vendors. The department has an impact on
the municipality’s financial health by fostering
competition and making sure it pays a
fair price for products and services. These
efforts serve to instill behaviors that project
the organization as business-friendly and
well managed.
Trends
As with other areas, the impact of technology
on the public purchasing arena has been
substantial. Purchasing has incorporated
technology into its processes in several
ways. First, it is common for purchase orders
to be generated using a software package
specifically designed for this purpose,
automatically routed through the approval
process, and sent to the vendor electronically.
Another example is the use of the internet.
Purchasing professionals can research
products, locate distributors and receive
timely information online. Many public organizations
have a website which can be
used as a mechanism to reach a wider pool
of vendors. Information can be posted to the
internet on doing business with the organization
as well as a list of currently available
bid opportunities. Websites can be used as
an alternative bid document distribution
method. Rather than incurring duplicating,
envelope insertion, and postage costs, bids
can be generated electronically and posted to
the website. Interested vendors can print
these documents as needed.
Some advanced technology applications
allow vendors to submit bid responses to the
organization electronically while still following
the established bid security procedures.
Some departments are moving away
from the practice of maintaining vendor databases
and are placing the responsibility of
researching opportunities on the business
community.
Cooperative purchasing arrangements
are another emerging trend. The concept
behind cooperative buying is to seek and
obtain the best deal possible by buying in
volume (Detroit News, Tuesday, May 7,
2002, page 4D, “Co-op saves cities
money”). These arrangements cover the
spectrum from being formal, dues paying
groups to having informal alliances that
meet on an as-needed basis. In order to be
successful, members must agree on the types
of products that can be of use to the group
and incorporate the flexibility for each organization
to fine tune its needs into the
specifications.
Conclusion
The public purchasing process is conducted
in accordance with the organization’s enabling
legislation, in an open, accessible, and
competitive manner. Technology should be
used to expedite the process, enhance the
routine aspects of the operation and to conduct
research.
A well run, professional purchasing operation
reflects positively on the entire organization.
As an elected official, you can
encourage suppliers to contact the purchasing
department knowing they will be treated
(Section IV/Chapter 22)
112fairly. Taxpayers can be informed that their
money is being handled responsibly.
About the author . . .
Rae Townsel, C.P.P.B., joined the purchasing
department in the City of Southfield,
Michigan in October 1987 as a purchasing
analyst. She was appointed to the position of
purchasing agent in February 2000. Ms.
Townsel earned her B.A. from the University
of Michigan, majoring in Business Administration.
She has more than 18 years of
public purchasing experience including three
years with the City of Detroit and two years
with the Wayne County purchasing departments.
She has served as an instructor in
public purchasing procedures for and earned
the Certified Professional Public Buyer
(C.P.P.B) designation from the National Institute
of Governmental Purchasing. Ms.
Townsel is a member and past president of
the Michigan Public Purchasing Officers
Association and received that organization’s
top recognition, the Klang Award, in 1999. |
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Tue Apr 28, 2015 8:16 am |
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untanglingwebs
El Supremo
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There are no longer any state statutes requiring
public bids on municipal contracts. 1993
PAs 167 & 168 which required municipalities
to seek competitive bids for purchases
over $20,000 in order to receive state shared
revenue money, were repealed in 1996. The
state has relegated the task of developing
public purchasing guidelines to local governments. |
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Tue Apr 28, 2015 8:18 am |
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untanglingwebs
El Supremo
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The public purchasing process is conducted
in accordance with the organization’s enabling
legislation, in an open, accessible, and
competitive manner. Technology should be
used to expedite the process, enhance the
routine aspects of the operation and to conduct
research.
A well run, professional purchasing operation
reflects positively on the entire organization.
As an elected official, you can
encourage suppliers to contact the purchasing
department knowing they will be treated
(Section IV/Chapter 22)
112fairly. Taxpayers can be informed that their
money is being handled responsibly. |
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Tue Apr 28, 2015 8:19 am |
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untanglingwebs
El Supremo
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As a cost saving mechanism, the county commissioners reduced the number of people to provide services to less than 2 people. Isn't this setting the department up for failure?
The next move was to criticize the purchasing department and establish a committee to study the department. Then despite the formation of the group the commissioners make a proposal to enter into a contract that greatly exceeds the limits of their own purchasing policy, Ted Henry, a member of the committee formed to explore the options, objected because the reasons for the contract were no different than what had been explored in committee.
Thus a no-bid $200,000 six month contract was made although the county had no money to pay for these services. The payment had to be deferred until the county started their new fiscal year! The contract has since continues at a cost of $12,000 a month and a new contract is being debated.
Wouldn't a better decision (and a cost saving decision) be to enhance the purchasing department and quit wasting money on crony bids? |
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Tue Apr 28, 2015 8:30 am |
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untanglingwebs
El Supremo
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In a conversation with Jamie Curtis, Commission Chair, he stated some department heads and even other county commissioners were circumventing the purchasing policies.
I once filed a FOIA request for the county ethics policy and was told it did not exist. That would be a start. Then a board could be appointed to investigate instances of alleged unethical behaviors. There would need to be a penalty.
Curtis indicated he and the commissioners did not need to bid as the state did not require them to. Thus his theory is the county is not privatizing purchasing as they are not violating state law. The dangers of this premise are far reaching. "Pay to Play" is much more likely and the public looses faith in their public officials.
The cost of the contract far exceeds the cost of an efficient and adequately funded purchasing department. |
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Tue Apr 28, 2015 8:39 am |
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untanglingwebs
El Supremo
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"Local government officials must look to
their charter for purchasing guidelines and
restrictions. A charter may establish who is
responsible for purchasing (such as the manager
or administrator) and also include the
maximum dollar amount that can be appropriated
before advertising for competitive
bids. Other local control mechanisms for the
allocation of municipal funds are through
ordinances and policies. In recent years, in
order to set more realistic spending limits,
some municipalities have amended their
charters (which requires review by the governor
and a vote of the electors) to allow the
purchasing function to be legislated by local
ordinance." (MML)
Does this change require a vote by the citizens or a review by the Governors office? I once requested information on how the county was formed and no one in the administration knew. I got no response from my FOIA. |
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Tue Apr 28, 2015 8:52 am |
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untanglingwebs
El Supremo
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In my opinion, this whole endeavor to give large no-bid contracts to the Flint-Genesee Chamber of Commerce is politically incestuous. This group has been known for their long term planning for downtown. Will a preference be given to those companies seeking procurement if they are a member of the chamber?
Supposedly $300 million in future development is coming to the area.. That does not mean the chamber is responsible for this development. Let us not forget that under their previous name, this group was notoriously unsuccessful. |
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Tue Apr 28, 2015 9:02 am |
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untanglingwebs
El Supremo
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Topic: County-A no-bid contract to solve procurement!
Goto page 1, 2, 3, 4, 5, 6, 7, 8, 9 Next
untanglingwebs
F L I N T O I D
Genesee County moves quickly toward hiring firm to look at goverment dysfunction
Print Ron Fonger | rfonger1@mlive.com By Ron Fonger | rfonger1@mlive.com
on March 12, 2014 at 6:00 PM, updated March 12, 2014 at 6:10 PM
GENESEE COUNTY, MI -- Flint businessman Phil Shaltz says he can save taxpayers money with recommendations for fixing a dysfunctional county government purchasing system and he's close to getting that chance.
The county Board of Commissioners gave initial approval today to paying Shaltz's HSS LLC $100,000 to evaluate the county's procurement process over a six-month period and make recommendations for fixing it, potentially starting a shared purchasing service that could also be used by other municipalities.
Commissioners split over the proposal, which was added to a committee agenda just before the initial vote today, March 12, after some board members said they hadn't had the chance to review the project proposal or consider any alternatives.
"I feel like this was crammed down my throat," said Commissioner Pegge Adams, D-Richfield Twp., one of three votes against the proposal, which could get final approval next week. Commissioners Ted Henry, D-Clayton Twp., and Archie Bailey, D-Flushing, also voted against the plan.
Six remaining commissioners approved the contract with HSS, and Controller Keith Francis said the current purchasing system is unstable and being circumvented by some departments in county government, which are making purchases independently and with no accountability.
"We have an opportunity for a company -- a very successful company to come in and do an analysis of our purchasing procedures compared to best practices," Francis said. "I'm in favor of going forward with this proposal."
Shaltz, a well known civic and business leader in the county, is the president and chief executive officer of Shaltz Automation, a managing partner for a number of downtown Flint restaurants, founder of the nonprofit Flint Diaper Bank, and a member of the Hurley Board of Managers.
Shaltz formed HSS in 1998 and the company's clients include General Motors while services include inventory management.
County board Chairman Jamie Curtis said the proposal from HSS came after hours of meetings and discussions about potential shared services for local communities -- talks that began in 2011 when former Lt. Gov. John Cherry and former Flint emergency manager Michael Brown led a study called "Future Genesee" that identified potential areas of cooperation and consolidation.
A directive issued by]Gov. Rick Snyder three years ago said Michigan communities must show they're willing to share services and be more efficient in order to get a piece of future state revenue-sharing.
George Wilkinson, director of shared services for the Genesee Regional Chamber of Commerce, said proposals for developing several shared services came from the Cherry-Brown "Future Genesee" study.
Wilkinson said the county has the potential for "significant cost savings" if it pursues a joint purchasing program with other agencies such as the city of Flint, Genesee Intermediate School District and county Road Commission.
"If we collaborate, we can drive down costs," said Wilkinson, who said discussions have also focused on the potential for a shared human resource service, tax services, countywide fire department and shared police detective services.
Curtis said the county has no choice but to look for cost savings in its purchasing because its property tax revenues may never rebound to peak levels and about two-thirds of county general fund expenses are fixed -- the cost of employees and retirees.
Francis said there is the potential for the county to save $2.5 million in general fund money if the county can trim 10 percent of its purchasing costs.
But Henry, who exchanged terse words with Shaltz at one point in today's meeting, said the $100,000 contract is problematic because HSS could end up bidding on providing the very service it ends up recommending the county use and because there was no effort to look at alternatives to today's proposal.
"I don't know how you do that and sleep tonight," Henry said.
Shaltz said he's offering his company's services only because he cares about the area and knows "we can save you money."
The HSS proposal says the company will "deep dive all departments" in the county, review purchasing requirements, identify areas where there are insufficient controls, evaluate vendor relationshjps, evaluate the current system, review current reporting and structure, and make recommendations.
"You guys are behind -- way, way behind. That's the cruel truth," he said.
Bailey said he might support the contract with Shaltz but asked for more time to consider the four-page document -- something Shaltz and other commissioners were opposed to.
"In government, when they say you have to do something right now, it's time to take a look (at it) from top to bottom," Bailey said.
Last edited by untanglingwebs on Wed Mar 12, 2014 7:18 pm; edited 1 time in total
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untanglingwebs
F L I N T O I D
Vendor Application
A SUPPLIER'S GUIDE TO GENESEE COUNTY
Genesee County wants to ensure that all interested suppliers are given a fair and equal opportunity to bid on County business. Our goal is to obtain the best value and service possible for public monies spent, at all times maintaining the highest standards of business ethics in our dealings with suppliers.
Contact the Purchasing Department
Supplying all departments, designated boards, and commissions of the County is the responsibility of the Genesee County Purchasing Department, located on the third floor of the Genesee County Administration Building, 1101 Beach Street, Room 343, Flint, Michigan,
(810) 257-3030, FAX (810) 257-3380.
The Purchasing Department is composed of two divisions:
Purchasing Motor Pool
The procurement function is accomplished by competitive bidding based on pre-determined specifications. This Department also handles the sale of obsolete or salvageable material, and numerous other administrative functions.
Supplier's Application Form
If you are interested in bidding with the County, you should submit a Supplier's Application Form. This may be picked up at the Department, or from the County's Website. After we receive your application, you can look forward to receiving notices for various formal solicitations.
Follow the Bidding Procedures
County Purchasing Regulations require sealed bids or proposals for contracts exceeding $30,000. Smaller purchases may be by written quote or telephone quote.
The solicitation method selected is based on the nature and importance of the contemplated purchase or service, the urgency of the requirement, general trade practices and market conditions, and the amount of the expenditure.
When submitting a sealed bid or proposal to Genesee County, be certain to follow all instructions and submit all documentation indicated in the bid documents.
Return proposals prior to closing date
Proposals must be returned to the Purchasing Department prior to the closing date and time specified on the solicitation. They are time-stamped on receipt and placed in a file, pending the prescribed closing time. Bids are opened in public normally at the time specified for closing. Representatives of firms who have submitted bids are welcome to attend. Bids and proposals received late will not be opened.
It is solely the supplier’s responsibility to see that bids/proposals are received at the Purchasing Department. Bids/Proposals reaching other County offices are considered late unless timely received in the Purchasing Department.
Check newspapers for advertised formal solicitations
Formal solicitations covering County contracts are advertised in the Legal Notices section of The Flint Journal at least fourteen (14) days prior to the closing date, usually on Sunday. Construction contracts are also advertised in the Dodge Reports.
Be prepared to adhere to Prevailing Wage Policy
Genesee County maintains a prevailing wage policy on all construction and improvements of County owned property. Suppliers bidding on County business must comply with this requirement.
Genesee County Purchasing Regulations
All procurement activities are conducted according to the Genesee County Purchasing Regulations, a copy of which is on file and available for inspection at the Genesee County Purchasing Department.
Environmentally Sound Purchasing
In order to increase the development and awareness of environmentally sound products, Genesee County Purchasing Department staff ensures that wherever possible and economical, specifications are amended to provide for expanded use of products and services that contain the maximum level of post-consumer recyclable waste and/or recyclable content, without significantly affecting the intended use of the product or service. It is recognized that cost analysis is required in order to ensure that the products are made available at competitive prices.
Professional Affiliations
In order to maintain and promote professionalism in all aspects of its mission, the Genesee County Purchasing Department maintains membership in the National Institute of Governmental Purchasing, the Michigan Public Purchasing Officers Association, and the National Association of Purchasing Management.
The Department subscribes to and supports the professional standards and ethical principles of these organizations.
Purchasing Home Page
© Copyright 2011 Genesee County. All Rights
Post Wed Mar 12, 2014 7:13 pm
untanglingwebs
F L I N T O I D
The county violates their own procurement policy to improve their procurement procedures. Perhaps the allegations of extreme corruption in county government is not far off base.
"County Purchasing Regulations require sealed bids or proposals for contracts exceeding $30,000. Smaller purchases may be by written quote |
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Tue Apr 28, 2015 9:08 am |
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untanglingwebs
El Supremo
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Genesee County wants to cut 10% in purchasing. Is the lowest bidder always the most responsive bidder? Will the alternate contractor require that companies reduce their costs and what impact would that have on potential bidders?
I spoke to a contractor that doesn't bid in this area because some companies bid so low there is no reasonable amount of profit.
I ran into Jeff Wright in the White Horse at lunchtime last week. He stated that while he may not have to bid out projects he does so because it indicates to the public that he is a good protector of their dollars. He stated he has saved many millions in the Karegondi project through competitive bidding and is way under initial estimates. |
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Tue Apr 28, 2015 9:16 am |
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untanglingwebs
El Supremo
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| John Gleason, Clerk and Register of Deeds has indicated in the past that he solicits bids for procurement because it gives his office both transparency and legitimacy. |
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Tue Apr 28, 2015 9:18 am |
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untanglingwebs
El Supremo
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Topic: County-A no-bid contract to solve procurement!
Goto page 1, 2, 3, 4, 5, 6, 7, 8, 9 Next
More information is located on the above site (Flint Talk) |
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Tue Apr 28, 2015 9:23 am |
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untanglingwebs
El Supremo
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Current Commissioners remember Ward Chapman refusing to allow commissioners to interact or vote regarding contracts of agencies in which they represented as a Board of Director. Those rules were thrown out the window under the present Board of Commissioners. The no bid contract with Phil Shaltz's company is a prime example.
Does anyone even know how this company is supposed to save us money. This is a prime example of "crony capitalism". First the commission leadership decimated the staff of the Purchasing Department. Then they gave the appearance (and probably actual) of conflicts of interest as they proceeded to allocate the responsibilities of this office with out bidding. Since the office only has a full time purchasing staff member and a part-time secretary the six month $100,000 contract would have gone a long way towards properly funding the office. Of course so would the $12,000 a month thereafter.
Recently there was a bid and only 2 bids were received. How was it bid and the bigger question is why was it bid? How is this bid to save the county $2.5 million? The arguments from Curtis were weak and adherence to the procurement policy would cure the situation. An ethics policy would go a long way to eliminate interference from the commissioners in the procurement process and does not require outsourcing.
http://www.ag.state.mi.us/opinion/datafiles/1980s/op06005.htm
Opinion #6005
Lansing, Michigan ... Lansing, Michigan ... Amendatory 1980 PA 481, supra, in
amending 1973 PA 196, supra, has imposed the ethical standards of section 2 of
page 2
(Amendatory 1980 PA 481, supra, in amending 1973 PA 196, supra, has imposed the ethical standards of section 2 of the act upon employees and officers of local units of government by providing local officers and employees with protection against job-related retaliation for 'blowing the whistle' upon local conduct in violation of the ethical standards set forth in section 2 of the act. See, also, The Whistleblowers' Protection Act, 1980 PA 469, MCLA 15.361 et seq; MSA 17.428(1) et seq. However, while amendatory 1980 PA 481, supra, extended the ethical constraints of 1973 PA 196, Sec. 2, supra, to local officials and employees, the amendatory act did not expand the jurisdiction of the State Board of Ethics to hear complaints concerning allegations of unethical conduct at the local government level. (4) With respect to the ethical constraints imposed upon local officials and employees, the ethical standards set forth in 1973 PA 196, Sec. 2, supra, pertinently provide:
'(6) A public officer or employee shall not engage in or accept employment or render services for a private or public interest when that employment or service is incompatible or in conflict with the discharge of the officer or employee's official duties or when that employment may tend to impair his or her independence of judgment or action in the performance of official duties.
'(7) A public officer or employee shall shall not participate in the negotiation or execution of contracts, making of loans, granting of subsidies, fixing of rates, issuance of permits or certificates, or other regulation or supervision relating to a business entity in which the public officer or employee has a financial or personal interest.'
As noted in OAG, 1981-1982, No 5864, supra, 'the public policy of the state, as contained in 1973 PA 196, Sec. 2(6)-(7), supra, declares it to be unethical conduct for a public officer, employee, or member of a state board to take official action on permits or other regulations relating to a a business entity in which such officer has a pecuniary or personal interest.') |
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Fri May 15, 2015 7:39 pm |
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