Eliminate No Bid Contracts and Sweetheart Deals

By Susan F. Rzucidlo

Money may make the world go around but it shouldn't be what makes state policy. Pennsylvania law allows government to award no-bid contracts or to make no-bid purchases under a number of circumstances. From 2003 + 2008 more than 1 BILLION in no-bid contracts were awarded in Pennsylvania. Eliminating no-bid contracts will save millions of dollars, build needed transparency, and create a more ethical government.

• Professional Services
• When federal or state law specifically exempts the contract
• When only a single supplier is capable of providing the product or service.
• When it's "in the best interest of the commonwealth,"
• When there is an "emergency"

Source: State records

Opinion

Barry Kauffman, executive director of Common Cause Pennsylvania, said his organization has always encouraged "to the greatest degree possible" that contracts be bid, including those for professional services and I fully agree with that. I also would endorse a Bill that would make businesses ineligible for no-bid state contracts if they contribute more than $10,000 a year to any state officials campaign.

When public officials award non-competitive work to friends, associates or campaign contributors, it raises the specter of a quid pro quo, even if the recipients ultimately are the most qualified or offer best prices, he said. "You have to wonder if the taxpayers are getting the best bang for their bucks or is this just a reward for a campaign contribution," Mr. Kauffman said.

Competition always brings the best price but sometimes even when contracts are publicly bid the requirements are so narrow that only ONE bidder can be qualified OR the cost for bidding is so high that small businesses with a good record but who are not as well funded are unable to participate in the bidding process. The bidding process needs to be cleaned up and costs to put in a bid need to be held down so that more may participate.

There are also situations and contracts for services that are paid at an inflated rate because the contract was arranged by public officials for friends and donors that are paid at 4 and 5 times the going rate. This is a breech of public trust and must be stopped. The waste and cost is in the 10's of millions per year. Those dollars could be used to balance the budget and reduce the tax burden to the residents of Pennsylvania.

Suggested solutions

• *We can require that all state contracts over a set and reasonable amount be awarded by open bid only.
• We can require that all professional services be openly bid.
• We can impose a one-month waiting period so that the "emergency provision" is not used to skirt the no-bid contract policy.
• We can limit the number of contracts valued at under that amount that any company or person can receive.
• We can require contractors to justify their charges if they exceed the norm in their county by more than 10%. A panel consisting of an auditor from the Auditor General's Office, a representative from the Attorney Generals Office, a professional in the field and a private citizen will make the final determination of appropriate charges.
• We can require that businesses that donate above $10,000 to any campaign be exempt from receiving no-bid contracts for a period of 2 years.