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Tuesday, April 17, 2007

ON TAX DAY HERE IS A STORY THAT WILL MAKE YOU WANT TO CRY

April 17, 2007

One of the big untold and unreported stories in local government is the ACS contract with the City of Memphis. This contract allows the City of Memphis to give their special friends millions of dollars in contracts without competitive bids at a price above the market price that is undetermined. It is costing the taxpayers millions of dollars in the name of helping minorities. It is in fact helping friends of the Administration, not the general minority community. Watchdog has no problem in helping minority firms learn good business practices and learning to compete in the business world. But the taxpaying public is entitled to know what it costs above and beyond the competitive market price and which individuals are getting the benefits.

We list below a recent update under the ACS cover contract for four of the most favored firms, Lesure Computer Services, Integrate Technologies, Mitchell Technology Group and Thomas Consultants. Lesure is Paul Rogers, Integrate is Reginald French, Mitchell is Marvel Mitchell and Thomas is Darrell K Thomas. (Shelby County, to their credit, have finally cut off Darrell K. Thomas in a recent computer purchase RFP as his price was 30% above the Dell State Contract from which the County, City and the MLGW can buy). From July 2002 through March 2006 these four firms received $7.38 million dollars in non competitive contracts and for the eight months from July 2006 through February 2007 they received another $1.15 million. At 30% above the market price this is $2.5 million dollars of extra taxpayers money wasted. The ACS contract is a big deal with a total amount spent from August 2001 to May 2006 of $69.4 million. It is illegal to require minority firms be used to the exclusion of other competitive firms but that is in fact what is happening. Watchdog will be reporting more on this in the next few weeks.

Click here to see the latest updates on who is benefiting from the ACS contract with the City of Memphis

Click here to see who benefited from July 02 to March 06 under the stealth ACS contract with the City of Memphis

Click here to see the size of the ACS contract payments, nearly $70 million dollars from August 2001 through June 2004

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