More trouble at Philadelphia School District, exec accused of bid-rigging

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The Philadelphia School District’s chief procurement officer, John J. Byars, has been accused of bid-rigging by a lawyer representing the firm that lost out on a lucrative contract to maintain the district’s Board Street headquarters, and the PHA’s senior management apparently agrees.

Byars was accused of steering a multimillion dollar management contract to U.S. Facilities, Inc. a subsidiary of a minority-owned company run by Willie F. Johnson, a former state and city official, according to a story in the Philadelphia Inquirer.

Former City Solicitor, Carl E. Singley, who represents the firm currently handling the contract, Elliot-Lewis Corp., said that Byars interfered with the competitive bidding process, causing the contract to be awarded to U. S Facilities, Inc. The contract is valued at $2.4 million each year and covers operations, maintenance, and food service at the facility.

Singley’s claims were backed up in a memo written by Jeffrey D. Cardwell, the PSD’s senior vice president for facilities management. The memo called the process “biased” and read in part “the Procurement Office made comments about who they should select.” It said that the intent was clear that U.S. Facilities was the favored vendor.

The school district’s general counsel issued a statement in response to information requests by The Inquirer, saying that PHA lawyers had reviewed the bidding process and “determined that there were anomalies present. Based upon this information and as part of our continued commitment to fairness and transparency in our contracting and procurement efforts, we decided to . . . start the process over.”

A source knowledgeable with the parties said that prior to the bidding process for the contract, Byars made it known that “it was his mission to make sure that Elliott-Lewis did not get the contract. That was a firm statement from him on numerous occasions.”

When Elliot-Lewis made their presentation, Byars was present, which was not typical for such a meeting. The source said that Byars asked “some mean-spirited questions that Elliot-Lewis couldn’t answer. That’s the telltale sign. He was meddling.”

The source went on to say that Byars was making “smart-ass, offhand remarks for the purpose of undermining the process, …and shuffling through (PowerPoint) slides on paper, muttering in an audible voice, ‘Well, this doesn’t make any sense.’ He was definitely there to disrupt things.”

Based on the chain of events, Cardwell suggested that the School Reform Commission, which oversees the district, extend the Elliot-Lewis contract through June, and start over with the bidding process.

The parent company of U.S. Facilities, PRWT Services, Inc. is a politically connected operation that was formed in 1988 by Johnson, a former regional commissioner of the State Office of Social Service. A lobbyist currently under contract with the PSD, Melonease Shaw, was an executive at PRWT for 15 years.

On Dec. 13, Byars and five other PSD executives were suspended over a controversial $7.5 million contract involving the installation of surveillance cameras at 19 of the district’s high schools. The district’s superintendent Arlene C. Ackerman abruptly fired a contractor that had already started services on the project, and awarded it to a little-known minority firm that was not on the state-approved list to handle the work.

The matter is currently under investigation by the state attorney general’s office and the Pa. Department of Education.

The Philadelphia Inquirer

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