CA: Lawmakers probe pay-to-play in governor's donor's big contract

Bakersfield Californian ^ | 3/29/05 | Tom Chorneau - AP

[NormsRevenge]

SACRAMENTO (AP) - On the eve of hearings into a troubled state purchasing contract, legislative investigators said Tuesday they want to know more about how an inexperienced Virginia-based firm got hired after its only competitor was disqualified and the company gave $25,000 to one of Gov. Arnold Schwarzenegger's political campaigns.

Last June, the Schwarzenegger administration hired CGI-AMS to help the state cut its near-$5 billion annual purchasing bill. But so far, the company has failed to deliver on its goal of trimming $96 million in spending this fiscal year.

Questions surrounding how the contract was awarded, the company's lack of experience and its trail of legal problems with past government work have prompted a Senate committee hearing Wednesday into the "strategic sourcing" contract to be led by Sens. Joe Dunn, D-Garden Grove, and Liz Figueroa, D-Sunol.

Meanwhile, Assemblyman Mark Leno, D-San Francisco, said he will also ask the Legislature's audit committee Wednesday to approve a formal audit of the CGI-AMS contract and related activities at the Department of General Services.

Leno said he has several concerns prompted by the fact the contract isn't saving the money it was meant to.

The attention on the procurement program comes in the wake of reports by The Associated Press about the company's lack of experience, past legal troubles and struggles to reach the contract's cost-cutting goals.

The AP also reported that CGI-AMS has since hired two of the Capitol's most influential consultants: the Flanigan Law firm, well-known GOP lobbyists with close ties to Schwarzenegger's senior staff; and a public relations firm partly owned by the governor's chief fund-raiser, Marty Wilson.

Wilson has said his partner Beth Miller is advising the company, with which he's not involved.

Schwarzenegger is "always focused on what's best for California," said press secretary Margita Thompson, and never with any regard to campaign contributors. She said the Department of General Services hired CGI-AMS without the governor's involvement.

The governor, however, did announce the company's hiring last June as part of his plan to restructure state government, the California Performance Review.

Administration officials said the state could use its buying power to save more than $1 billion over five years, although an analysis by Senate investigators showed the contract has only saved $8.5 million.

CGI-AMS spokeswoman Angela Morris said the company did give money to Schwarzenegger's California Recovery Team - an umbrella group that supports the governor's political agenda - the company intended the money to help pass Propositions 57 and 58 on last March's primary ballot.

Gary Lambert, a CGI-AMS vice president, said his team was awarded the California contract on merits only. He also noted that many CGI-AMS staff members have experience in procurement and strategic sourcing.

DGS spokesman Matt Bender said the company was hired through a standard bidding process free from political pressure. The firm's competitor for the contract, Accenture, was disqualified for not meeting all of the bid requirements.

In a report to the Senate subcommittee, analysts said Accenture lost the bid on a technicality, specifically "due to defects in Accenture's cover letter," and that DGS didn't ask for clarification and apparently never read the company's proposal.

Leno said his interest in the contract started when constituents told him small businesses have been summarily excluded from bidding on state contracts. The state's attempts to maximize its buying power makes it all but impossible for small companies to compete, Leno said.

One of the only two contracts successfully negotiated by CGI-AMS so far - a deal that will save about $9 million through July 2006 - went to Boise, Idaho-based Boise/Office Max.

Leno said Schwarzenegger talks about buying products from California, but "the state itself is contracting with an out-of-state company for office supplies" and ignoring California small businesses.

Bender said the state is encouraging partnerships between small businesses and bigger companies on future state contracts.

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On the Net:

http://report.cpr.ca.gov/cprrpt/issrec/stops/proc/so72.htm

California Performance Review report on strategic sourcing

http://www.cgi.com/web/en/home.htm

CGI-AMS Home page

http://www.governor.ca.gov/state/govsite/gov-homepage.jsp

Gov.'s home page

http://www.sen.ca.gov/

California Senate

http://www.assembly.ca.gov/acs/defaulttext.asp

California Assembly

[The Spirit Of Allegiance]

Corner the 'Rats, the 'Rats get vicious. Nothing really new here....

Let's make sure they investigate Senator BaBoxer too....

[NormsRevenge]

I wish they would bring Shmelley back and make him testify.

[The Spirit Of Allegiance]

Yes, a subpoena of Kevin Shelley and his appearance in a court as State's Witness etc. would just make my day too.

and ALL the 'RAT FINK SWINDLING FRAUDULENT ELECTION THIEVES!!!!