Monday, October 25, 1999
Report: Ohio lax in seeking bids
Contract amounts reach $2.3 billion
The Associated Press
COLUMBUS — The state has awarded $2.3 billion in contracts without competitive bidding in the past year, raising questions about spending, the Columbus Dispatch reported on Sunday.
The State Controlling Board awarded the contracts from October 1998 through September, the newspaper reported, based on a computer analysis.
That compares to $1.96 billion awarded with competitive bidding, or modified forms of competition, for the fiscal year that ended in June, the newspaper said.
Ray Cadwallader, head of the public-interest group Common Cause Ohio, said competitive bidding is pre ferred, but not always necessary. For example, he does not see a problem with waiving competitive bidding for professional services.
Taft wants review
However, he said “it becomes suspect” when an agency such as the Controlling Board waives bids regularly.
Gov. Bob Taft has said he is concerned about the amount approved without competition and has ordered a review of how contracts are awarded.
“Given the amount of contracts and the amount of money the state puts out in a given year, we need to make sure our contract processes are the best they can be,” said Brian Hicks, Mr. Taft's chief of staff.
State Sen. Gregory DiDonato,
D-New Philadelphia, a Controlling Board member for 10 months, said approval of unbid contracts is “totally out of control.”
“I think it's incredible,” he said. “We would hammer local government for this behavior. We're not following our own laws.
“You open the door for sweetheart deals and corruption in government.”
The agency with the largest amount of unbid contracts in the past year is the Administrative Services Department, the state's primary purchasing agency. It spent $928.9 million, the newspaper said.
Many of the contracts were for two-year property leases for other state agencies or were extensions of existing contracts.
Scott Johnson, director of administrative services, said the system needs to be refined.
“Not long ago, it seemed like a pretty simple process,” he said. “For some goods and services, you could do a simple bidding process. The best bidder was usually the lowest bid der.”
The state no longer seeks competitive bids for professional services, such as architects and engineers. Instead, contracts are awarded based on qualifications and negotiations.
Electronic bids possible
Mr. Johnson said state laws should accommodate electronic bidding, which currently is not permitted. The update is needed as electronic commerce grows, he said.
Competitively bid contracts are subject to public scrutiny through a sealed bidding process, so they do not require Controlling Board approval.
The board is designed to provide a check on state agency spending for goods, professional services, leases and some construction contracts. The board is made up of three Republican and three Democratic legislators and a president appointed by the governor.
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Report: Ohio lax in seeking bids
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