FOLLOW UP: ROCKWOOD HASN'T SAID MUCH ABOUT THE QUESTIONABLE, NO-BID CONTRACTS DISCOVERED LAST YEAR. BUT NOW, THE DISTRICT IS REQUIRING A NEW FORM TO PREVENT THE SAME THING FROM HAPPENING AGAIN
Rockwood didn't quite use these words, but, this new form is the district's way of saying we need to be more careful before we allow
administrators to use "single source" vendors (and only get one bid) for purchases they want to make.
"Single source" = the only one that can provide a particular good or service.
The new form is pretty significant in that it comes after our previous reports exposed apparent abuses of the "single source" rules:
Records show Rockwood administrators avoided getting multiple bids, for years, by saying the vendors they wanted to hire were the only ones that provide that good or service.
In reality, they were not the only vendors that do that type of work.
In reality, they were not the only vendors that do that type of work.
This occurred on hundreds of thousands of dollars worth of contracts, combined.
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When administrators ask for permission to call a company single source, they are asking for permission to only get one bid, or price quote, for a good or service they want to purchase.
They are also asking for an exception allowed by Rockwood policy, which normally requires three bids for purchases that are $1,000 or more.
BEFORE: SINGLE SOURCE NOT DOCUMENTED
Brenda Kirchhoefer, Rockwood's Coordinator of Purchasing, tells us, prior to the new form, when administrators requested and received approval for that exception, it was done verbally or through email.
TOO EASY
That, effectively, allowed administrators to contract with whoever they wanted without much scrutiny. They could SAY a company was the only one that does xyz, without proving it was the only one.
Records show, that opened the door to the questionable purchases made by Dr. Terry Harris, and others in the diversity and equity department. Harris is Rockwood's former Executive Director of Student Services.
As we previously reported, Harris resigned last December after his history of submitting questionable single source contract proposals caught up to him. A more detailed explanation is below, with links to all our previous reports on this topic.
MORE TRANSPARENCY
The new form, called the "Single/Sole Source Procurement Justification" form, requires district administrators, in all departments, to prove, in writing, that they researched multiple companies and did not only research just one.
The document says, near the bottom, "List other brands that were evaluated and why they were deemed to be unacceptable."
THE FORM:
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| This form is now part of Rockwood Purchasing Policy Regulation 3170. |
TO LOOK GOOD?
The new form was approved in September, weeks before voters will decide whether to trust that Rockwood will appropriately manage the tens of millions of dollars it will bring in every year with a permanent tax, otherwise known as Prop 3. You can read what the district says about Prop 3, here. Voting is November 7th.
SINGLE SOURCE SPOTLIGHT
Although "single source" is otherwise a dry accounting term, it was part of the reason Rockwood was in the spotlight a year ago, when a controversial school board vote and resignations made news headlines.
THE VOTE
As we previously reported, the controversial vote came from Rockwood's Board of Education in October, 2022.
The 4-3 vote rejected the attempted renewal of three student empowerment programs. Although board members didn't mention it at that meeting, the programs all provided similar services, yet they were all called single source vendors.
As we previously reported, the controversial vote came from Rockwood's Board of Education in October, 2022.
The 4-3 vote rejected the attempted renewal of three student empowerment programs. Although board members didn't mention it at that meeting, the programs all provided similar services, yet they were all called single source vendors.
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| The rejected contracts. Source: Rockwood BoardDocs. Each of these vendors had previous single source, no-bid contracts with Rockwood. Some date back to 2016. |
Dr. Terry Harris, the then-Executive Director of Rockwood's Student Services Department, is the one who submitted the rejected contracts.
The contract rejections, coupled with a spotlight on his repeated use of "single source" vendors, ultimately led to Harris's very public resignation.
ATTEMPTED TOTAL $424,050
In total, records show, Harris and his department repeatedly hired at least six questionable single source vendors between 2016 and 2021, before failing to rehire three of them, after that school board vote in 2022.
The companies got contracts or checks from Rockwood worth a combined $250,950.00. They were questionable, in part, because they did not appear to be truly single source. They provided services that are also provided by other companies, such as painted wall murals, yoga classes, and then also those rejected student empowerment sessions.
Documents also showed Rockwood almost paid another $173,100 for additional proposed agreements with those companies, but they were either rejected by the the school board vote in 2022, or were no longer pursued for other reasons, such as requesting too much money up front, which the purchasing department said it could not do.
You can see details and documents here, in our previous report.
SINGLE SOURCE ISSUES NOT IN THE NEWS
You may have seen news reports about the rejected contracts. They centered on the fact that the programs were intended to help Black students, rather than that they were "single source," no-bid, contracts that Harris and his department had been submitting for years.
You may have also seen news reports about Harris' resignation, which again cited reasons other than the questionable nature of the contracts he'd been submitting.
Here's one:
In total, records show, Harris and his department repeatedly hired at least six questionable single source vendors between 2016 and 2021, before failing to rehire three of them, after that school board vote in 2022.
The companies got contracts or checks from Rockwood worth a combined $250,950.00. They were questionable, in part, because they did not appear to be truly single source. They provided services that are also provided by other companies, such as painted wall murals, yoga classes, and then also those rejected student empowerment sessions.
Documents also showed Rockwood almost paid another $173,100 for additional proposed agreements with those companies, but they were either rejected by the the school board vote in 2022, or were no longer pursued for other reasons, such as requesting too much money up front, which the purchasing department said it could not do.
You can see details and documents here, in our previous report.
SINGLE SOURCE ISSUES NOT IN THE NEWS
You may have seen news reports about the rejected contracts. They centered on the fact that the programs were intended to help Black students, rather than that they were "single source," no-bid, contracts that Harris and his department had been submitting for years.
You may have also seen news reports about Harris' resignation, which again cited reasons other than the questionable nature of the contracts he'd been submitting.
Here's one:
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| Dec 17, 2022 article in the St. Louis Post Dispatch |
Harris isn't the only one who resigned after the single source issue was brought to light.
Another resignation in the news came from former Chief Financial Officer, Paul Northington, who oversaw the purchasing department when the questionable contracts were submitted, and when they were later approved by Rockwood's Board of Education.
The above-linked news article references multiple resignations, but does not mention questionable single source contracts. Every person who resigned either submitted questionable single source contracts, knew about them, or, in the case of Mark Miles, should have known about them.
DOMINO EFFECT
Because the single source vendor approval was not well documented, other problems also occurred, of which we have reported on extensively.
They include: school board approval of questionable single source contracts, the backdoor to getting contracts created by Rockwood procedures, and violations of purchasing procedures that were also ultimately rubber stamped by Rockwood's school board. All of it, connected to the single source contracts.
Read more with the links to our previous reports, at the bottom of this post.
WE'RE MAKING A CHANGE
Following our reports, when he was still Rockwood's Chief Financial Officer, Paul Northington told us they were making "a change." He didn't elaborate, but we now know the change is the new single source justification form.
ALL PURCHASES
Although all the questionable contracts parents found came from the Department of Educational Equity and Diversity, the new form is required for all departments in the district, and for all types of contracts, from roof repairs to professional development for teachers.
DOMINO EFFECT
Because the single source vendor approval was not well documented, other problems also occurred, of which we have reported on extensively.
They include: school board approval of questionable single source contracts, the backdoor to getting contracts created by Rockwood procedures, and violations of purchasing procedures that were also ultimately rubber stamped by Rockwood's school board. All of it, connected to the single source contracts.
Read more with the links to our previous reports, at the bottom of this post.
WE'RE MAKING A CHANGE
Following our reports, when he was still Rockwood's Chief Financial Officer, Paul Northington told us they were making "a change." He didn't elaborate, but we now know the change is the new single source justification form.
ALL PURCHASES
Although all the questionable contracts parents found came from the Department of Educational Equity and Diversity, the new form is required for all departments in the district, and for all types of contracts, from roof repairs to professional development for teachers.
NO ROOM ON THE FORM?
A Rockwood staffer, who asked not to be named, is skeptical about how effective the new form will be. "When people see those small lines, they're only going to put as much information as fits on that line."
The staffer pointed out the form should say "attach documentation" so administrators know that detailed information, about each company they checked with, is expected.
Brenda Kirchhoefer, Rockwood's Coordinator of Purchasing, tells us, "Although the form doesn't say to attach backup information, that doesn't mean the requisitioner doesn't do it. If I need additional information during the (single source) approval process, I will contact the requisitioner to request more data."
A Rockwood staffer, who asked not to be named, is skeptical about how effective the new form will be. "When people see those small lines, they're only going to put as much information as fits on that line."
The staffer pointed out the form should say "attach documentation" so administrators know that detailed information, about each company they checked with, is expected.
Brenda Kirchhoefer, Rockwood's Coordinator of Purchasing, tells us, "Although the form doesn't say to attach backup information, that doesn't mean the requisitioner doesn't do it. If I need additional information during the (single source) approval process, I will contact the requisitioner to request more data."
NO DATES
There is also no place to document dates that purchase orders are approved or dates that work will start or finish.
That matters because, according to district documents, Harris and his Student Services Department had those single source companies start work, and sometimes complete it, before getting purchase orders from the purchasing department.
Per Rockwood's purchasing department, a purchase without a purchase order is an unauthorized purchase.
That matters because, according to district documents, Harris and his Student Services Department had those single source companies start work, and sometimes complete it, before getting purchase orders from the purchasing department.
Per Rockwood's purchasing department, a purchase without a purchase order is an unauthorized purchase.
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| Source: Rockwood records request. In red: mural work was finished on January 18th, 4 days before the purchase order was issued. In green: the work was started 7 days before the purchase order was issued. Not shown: Yoga classes contracted and given to students, prior to purchase orders. Per the purchasing department, purchase orders always have to be issued before any hiring is done. Note: we added the colored boxes to make the date comparisons easier to understand. |
FORM FALLS SHORT AGAIN:
NOT ON BOARD DOCS
Kirchhoefer also told us this new form will not be publicly available on BoardDocs.
That means Rockwood's school board won't have it handy in their agenda documents, where it might otherwise prompt further questions.
It also means the form is not easily available to the public. To see how the forms have been filled out, people will have to pay money for it, through a Sunshine Law request.
Kirchhoefer reminded us, the form is only intended to "determine if a purchase qualifies as a single source."
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ADDITIONAL CONTEXT AND INFORMATION:
NOT ALL BAD
Not all single source designations are a red flag. If a contract is in its second year of a three year deal, for example, it will also show up as a single source vendor.
NO BID CLARITY: When people say no-bid contract, it's not zero bids. There is actually one bid (from the company that got the job), but the contract was awarded without an open bidding process. That one bid didn't have to compete with any other bids to get the job.
"REPEATED USE"
Note: When we said above Terry Harris "repeated use" of single source, that means: of approximately 50 contract proposals Harris and his department had submitted since 2019, only 4 were not labeled single source vendors. For more detail, see our previous report.)
LINKS TO OUR PREVIOUS REPORTS
School board Director pulls "single source" contract from agenda; vendor not allowed to do business in Missouri
School board vote rejects renewal of 3 controversial, "single source" empowerment programs
Records show backdoor to easy money from taxpayers through single source contracts and consent agenda items
Rockwood administrator resigns after submitting questionable no-bid contracts
Trust leads to "rubber stamp" approval of single source vendor contracts and misses purchasing procedure violations
THE SIX COMPANIES
The six companies for which Terry Harris and his department submitted questionable single source contracts are: Possibility of Positivity, Cbabi Bayoc Originals, Evolution Yoga STL, LLC; Sisters Helping Each Other Reach A Higher Height, Sistakeeper, Empowerment Center; and Tony Thompson, Inc. (Catalyst Leadership Academy).
It also means the form is not easily available to the public. To see how the forms have been filled out, people will have to pay money for it, through a Sunshine Law request.
Kirchhoefer reminded us, the form is only intended to "determine if a purchase qualifies as a single source."
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ADDITIONAL CONTEXT AND INFORMATION:
NOT ALL BAD
Not all single source designations are a red flag. If a contract is in its second year of a three year deal, for example, it will also show up as a single source vendor.
NO BID CLARITY: When people say no-bid contract, it's not zero bids. There is actually one bid (from the company that got the job), but the contract was awarded without an open bidding process. That one bid didn't have to compete with any other bids to get the job.
"REPEATED USE"
Note: When we said above Terry Harris "repeated use" of single source, that means: of approximately 50 contract proposals Harris and his department had submitted since 2019, only 4 were not labeled single source vendors. For more detail, see our previous report.)
LINKS TO OUR PREVIOUS REPORTS
School board Director pulls "single source" contract from agenda; vendor not allowed to do business in Missouri
School board vote rejects renewal of 3 controversial, "single source" empowerment programs
Records show backdoor to easy money from taxpayers through single source contracts and consent agenda items
Rockwood administrator resigns after submitting questionable no-bid contracts
Trust leads to "rubber stamp" approval of single source vendor contracts and misses purchasing procedure violations
THE SIX COMPANIES
The six companies for which Terry Harris and his department submitted questionable single source contracts are: Possibility of Positivity, Cbabi Bayoc Originals, Evolution Yoga STL, LLC; Sisters Helping Each Other Reach A Higher Height, Sistakeeper, Empowerment Center; and Tony Thompson, Inc. (Catalyst Leadership Academy).
This link takes you to a contract for Possibility of Positivity, which is not shown in our previous reports. Rockwood bill lists showed he was also paid during years after this 2016 contract, but for individual amounts less than $7,500, which do not require school board approval.
MORE INFO ON RESIGNATIONS:
MORE INFO ON RESIGNATIONS:
Brittany Hogan and Aisha Grace, under Harris's supervision, also submitted some of the questionable single source vendor contracts over the years.
Aisha Grace, who replaced Hogan, resigned after being charged with a DWI, which has since been removed from her court record.
Paul Northington, who oversaw the purchasing department when the questionable contracts were submitted and later approved by the school board, is now the Chief Financial Officer in the Hancock Place School District.
STATE AUDITOR'S OFFICE
We previously spoke to the state auditor's office about these single source contracts and purchasing violations. We were told by an investigator that it appears to be mismanagement of funds, but, because it's not fraud, a more local audit might be in order.
FINANCIAL AWARDS
Rockwood routinely updates the public about the finance awards it receives. Off the record, we have been told those certifications and audits don't generally consider details as specific as whether or not a company qualifies as a single source vendor, and may not look at whether a purchase order was issued in a timely manner.
You can read more about Rockwood's financial awards here.
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