DPS Corruption Still in Motion?

**Meddle** · August-11-09, 05:39 AM

Bobb's old firm gets big contract with DPS
Financial manager defends no-bid consulting deal

BY CHASTITY PRATT DAWSEY • FREE PRESS EDUCATION WRITER • August 11, 2009

Robert Bobb, the emergency financial manager for the Detroit Public Schools, has given a no-bid consulting contract to a firm where he worked as a senior manager, a move that some say is a conflict of interest.
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Public Financial Management Inc., headquartered in Philadelphia, has a $972,000 contract with DPS to help create a deficit-elimination plan, plus budgeting and accounting systems. Of that amount, $450,000 is being paid by the Eli and Edythe Broad Foundation.

Bobb said he quit working part-time as a senior managing consultant for PFM prior to starting work at DPS and told Gov. Jennifer Granholm, who appointed him in January, that he intended to hire the company. The governor's office did not respond immediately to requests for comment.

On Monday, the company's Web site removed a page listing Bobb as the senior managing consultant for its Washington, D.C., office after a reporter called to inquire. Bobb's name and voice were heard on the answering service.

"I was in a rented office suite and therefore I can see where that office still hasn't changed. Obviously, I still shouldn't be on their Web site," Bobb said. "I don't see this as a conflict of interest. What it is, is a firm that has deep financial experience."

PFM has worked for Philadelphia's public schools; Nassau County, N.Y.; the City of New Orleans, and the State of Pennsylvania, according to its Web site.

School board members contend that the PFM contract illustrates the transparency problems with having a takeover that leaves one person in charge of the district's $1.2-billion budget. The board plans to file suit against Bobb this week in Wayne County Circuit Court in an effort to force Bobb to consult with the board before making financial decisions.

"Part of the problem with the statute behind the emergency financial manager is the types of disclosure requirements needed to maintain transparency simply don't exist," said board member Anthony Adams, a former general counsel for DPS.

http://freep.com/article/20090811/NE...tract-with-DPS

has a $972,000 contract with DPS to help create a deficit-elimination plan, plus budgeting and accounting systems.

Wouldn't it help to eliminate a deficit if you didn't blow $1M on figuring out how to do it?

**7andkelly** · August-11-09, 06:50 AM

Seems fishy ... and wasteful.

DPS is broken beyond repair.

**daddeeo** · August-11-09, 07:06 AM

Well, they don't seem to have a budget or any type of accounting at DPS that they stick to anyways.
Getting one in place now might be too late.
At least someone is trying to get their house in order.

**Detwa** · August-11-09, 07:53 AM

I don't think its an issue, if he disclosed this to the Governor as stated, and he cut ties with the company completely. If its the best company in the country to do the job, and it might be the best BECAUSE he used to work there and knows them well, then why bypass them for a lesser qualified company just because he was a former contractor?

You'd have to be extremely stupid to be in Bobb's position and pull a stunt that has the appearance of corruption, and Bobb is certainly NOT a stupid man. He knows all eyes are on him and the school board members are watching him for every little thing to use against him, he can't even run a stop sign or it'll be on the front page.

**MrCrush1914** · August-11-09, 01:55 PM

Now... before everyone jumps to conclusion, is this one of the no performance/ no pay contracts he spoke of before? I know he mentioned that contracts would be given to companies and they wouldn't be paid unless certain benchmarks were met etc.

**Meddle** · August-11-09, 02:09 PM

Originally Posted by Detwa

I don't think its an issue

It's an issue because it was a no-bid contract in a city with a substantial history of corruption. If they were truly the best for the job, they would have won a competitive bid.

**DetroitTeacher** · August-11-09, 11:00 PM

MrCrush: I don't think this is one of the no performance/no pay contracts. Those were for the "management teams" that are working with the high schools.

**mwilbert** · August-12-09, 07:01 AM

When you are in a hurry, doing a good bid process can be a problem--it is a lot of work to prepare the solicitation and for the bidders to respond to it. Then you have to evaluate the responses. It can easily take months, and you need competent people to do it. All that costs money, and so there are often good reasons to avoid it. On the other hand, I don't know how quickly this needed to be done, and if a no-bid contract was going to be awarded, it would have been more seemly to award it to someone he didn't have any connection with. PFM obviously has experience in the area, but they can't be the only people with that experience.

**firstandten** · August-12-09, 10:50 AM

Originally Posted by mwilbert

When you are in a hurry, doing a good bid process can be a problem--it is a lot of work to prepare the solicitation and for the bidders to respond to it. Then you have to evaluate the responses. It can easily take months, and you need competent people to do it. All that costs money, and so there are often good reasons to avoid it. On the other hand, I don't know how quickly this needed to be done, and if a no-bid contract was going to be awarded, it would have been more seemly to award it to someone he didn't have any connection with. PFM obviously has experience in the area, but they can't be the only people with that experience.

He work for and knew the company. He felt he needed to hit the ground running. Remember his contract was only for a year. Having this company aboard was a condition of his employment, besides the Broad foundation was paying almost half of the contract. I don't have a problem with this. I have more of a problem with the managment companies he brought in to manage certain schools. I believe that is more of a problem than PFM

48302 · August-12-09, 10:27 PM

Originally Posted by Meddle

http://freep.com/article/20090811/NE...tract-with-DPS

has a $972,000 contract with DPS to help create a deficit-elimination plan, plus budgeting and accounting systems.

Wouldn't it help to eliminate a deficit if you didn't blow $1M on figuring out how to do it?

this is a total non issue.

The company in question is the right company to uncover this stuff. The fact that he worked for the company only shows that his background is in uncovering the bullshit that has been going on in the DPS.

The governor knew he was hiring them.

The only people who even give a crap are

a. people who dont understand how these thigns actually work OR
b. people who just want to derail his efforts.