TD Industries - The Checkbook
Submitted by Allen Gwinn on Mon, 12/01/2008 - 13:11.
WFAA: More Questionable Spending Uncovered at DISD
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Last Spring Reporter Extraordinaire Lori Stahl (DMN) raised questions about the Dallas Independent School District's somewhat cozy arrangements with companies whose leaders work for the District.
Specifically, the article questioned the District's relationship with TD Industries and its chairman, Jack Lowe, who serves as president of the School Board.
We have compiled what is, in essence, DISD's "checkbook" for payments made to TD Industries over the past 2 1/2 years.
Though information is somewhat sparse, as the District appears not to capture many details of specific transactions, some of what we found surprised us.
In a nutshell, TD Industries has been paid over $1.2 million dollars for services to the District since March 28, 2006. The vast majority of the money relates to annual fire alarm inspections and repairs at the District's campuses.
Most of the details as to what kind of work was done, and the campuses where work was performed, are apparently not available electronically. We have not been able to determine if these details exist at all in the District.
One of the rare items which did contain details immediately raised our eyebrows:
"Install one Silent Knight 5700 fire alarm panel, 7 smoke detectors, 4 pull stations, 2 A/V's [alarm horns with strobes] ceiling mounted, 7 strobes, 1 weatherproof AV, labor wire and permits for portable 5060 at Samuel High School"
DISD Spokesman Jon Dahlander did not respond to emails when we asked to see the portable.
Sources inside DISD, however, identified it as this quad-wide portable building at Samuel High School.
According to the Total Computing Life Safety Systems website, a Silent Knight model 5700 fire alarm panel retails for $755.98. "Street" price (purchase price), according to the website, starts at $697.96 and goes down.
One fire alarm installation company we talked to estimated that the job should have been worth "about $3,000 dollars."
TD Industries bill: $9,912.
In 2007, the company also installed an alarm system in the Agricultural Barn adjacent to the District's Environmental Education Center in Seagoville.
The system was apparently installed to protect interior offices in the large open metal building.
The bill for this installation: $9,139.
The database does not include payments made to other companies where TD Industries was a subcontractor. The District, apparently, does not maintain those records.
One thing is for certain however: DISD is apparently a lucrative gig for TD Industries.
And DISD's records appear to be specifically designed to make the job of finding out about these relationships a tough endeavor.
[Ed Note: When I was doing this story, and we started getting folks on record saying these were, as little as, $4,000 dollar jobs I couldn't help but think about $435 hammers, $640 toilet seats and $7,600 coffee pots--some of the things highlighted in a 1980's report on the federal government's broken acquisition system.
In spite of this, I want to reiterate that I believe, and have always believed, Jack Lowe to be an honorable and decent guy.
I don't think Jack would condone "ripping off" the District--and if he suspected something underhanded was afoot, he would intervene to quash it. I think that, given the choice, Jack would err in the District's favor any day of the week.
But I always wonder if, maybe, District employees have kept silent when they should have spoken up--just to avoid risking what they perceive might be Jack's wrath (which would never be there in the first place, but maybe they don't know that)? After all, Jack is pretty far above most of the folks in the DISD food chain--something that might be overwhelming for some.
Add to this the District's reluctance to allow light to shine in some areas, and situations like this create the basis for ongoing controversy far into the future.
By the way, there is more coming on this story, so stay tuned!]
DEVELOPING
Dahlander's Response
From Jon Dahlander, DISD Spokesman:
[Ed Note: Thanks for the update Jon. I have a few questions. I began first trying to contact you about this story on November 20. The first contact I had from you in response was on Monday--after the original story had been posted. You produced the actual invoices today, Thursday, the day WFAA announced they were running their story.
In spite of that, none of this explains why we were finding vendors who told us these jobs were worth $2,000 to $3,000.
Can you comment?]
Transfer of $20 million in DISD Bond Money - DISD 2006-07 Budget
Gwinn: Answered the first part of my question, care to opine on the second part of my question? Come to think about it, which DISD trustees, including Jack Lowe, voted to transfer $20 million in DISD construction bond money to pay for DISD day-to-day operating expenses in the DISD 2006-07 budget? Could you give us traveling men some light here Mr. Gwinn?
$20M Bond Money
I'm still trying to get up-to-speed on this. Supposedly this was a "loan" and is SOP for large school districts.
Whether it is or not, along with whether this is a good idea, is certainly a relevant question.
We'll ask about this tonight at the meeting and hopefully be able to post a clearer picture of what happened and why.
Thanks Gwinn
Thank you Gwinn. For the record, you rock with many of us. We know you're the real deal. Keep up your presence and focus on things that matter. Our parents work hard for the school taxes they pay to the DISD. If Dallas is going to move forward, we need to make sure our children are educated to the tee!!!
Thank you!
Thank you kind sir/maam! You're a gentleperson and a scholar!
Lowe and Quashing
Hope you're correct about DISD trustee Jack Lowe. If you are, please encourage him to quash his existing contract which according to your op-ed indicates Jack Lowe may be charging way above what DISD taxpayers should pay for such services and ask him to reimburse DISD taxpayers the excess profit he has gained from this contract. Come to think about it, which DISD trustees, including Jack Lowe, voted to transfer $20 million in DISD construction bond money to pay for DISD day-to-day operating expenses in the DISD 2006-07 budget? Could you give us traveling men some light here Mr. Gwinn?
Re: Lowe and Quashing
Lookit, there may be a legitimate reason for charging $9,900 for something that someone else says should cost $3,000. We just don't know what it is because it's difficult to get at the records.
We'll have to check into the $20M transfer.
I want to reiterate something: Jack Lowe is an honorable guy. He doesn't have an evil bone in his body, and if he tried to tell a lie his tongue would fall out!
This isn't about Jack. This is about a situation involving circumstances. Jack is merely one of the factors in the mix.
Jack wants things to run smoothly. He doesn't like dissent. He wants everyone to get along. I know good and well he doesn't like me or what I do.
Flashback: The Jack Lowe Syndrome.
Checking
Allen,
I am checking on the accuracy of the costs as well as any other details and will get back with you.
Jon Dahlander
Accuracy of Costs
Thanks Jon,
We got the costs from 2 places: the printed document and the electronic information sent by Leticia.
You can search the database and get the PO numbers.
contracts and cost of services
Allen,
keep in mind that not always do contractors give a per job bidding with extensive detail. Honest bidding is done with great care but also know that, likewise, if time was laid into every bid which itemize out each individual cost to the "tee" the bidding cost would greatly enlarge the overall costs. After time contractors can bid on an "average" to jobs which are generically simular. Example; general bids run 5,000 +/- for the majority of bids submitted to XYZ Co. and this runs for over a 12 month period. Well, the bidders may run a general bid amount for majority of jobs at the 5,000 mark. Some jobs gross more, some gross less, but they average out and paperwork cost is cut to conservative levels. Does that make any sense?
I don't know, as a taxpayer, that I necessarily have conflict with the TD Industry contracts being awarded. Afterall they are bidders to receive the contracts, right? My concern would be more on the lines as to question to see if the other bids received are being given fair consideration and receiving a fair share of the funds. Monopoly on a market is not fair. I run a small business, have done government contracting in aviation. It's not always run fair in consideration on who is issued the contract, sometimes it's who you know. If, in DISD, other bidders have receive fair consideration there's not much that can be done. The money will be spent and if TD Industries does the work in a timely and good workmanship manor then what would be the problem. Do we know if there are too many jobs being averaged in bidding? Has someone found the work not delivered? This should not be a matter to take up too much more time unless other bidders are complaining.
TD Contracts
You are correct. There are still some things, however, that need to be given a look-see. We're going to do that just to make sure.
Bids are very easy to falsify and create
One thing I see as consistant, the fact that the rules can be manipulated and there is always a way to pad up business. Like Open Minded, I also worked in the contracting services, and I participated from both sides of business, providing and resourcing. There is something in all this. There is no way that all this is legit. There should be a ban and conflict of interest, unless the Trustee provides the services at the lowest bidder from a general open to the public opportunity to participate.
I think the Trustee should offer services at a "wholesale" rate, and not take a "mark-up" at all. That is what being a community leader and trustee is about. Giving, not taking.
Wholesale rate
The posiblity of a wholesale rate sounds great but in real time it would be impossible to accomplish. Just as a beginning point there would have to be an establishment of a non-profit. Begin to think well beyond that though, some "non-profit" or "not for profit" set ups don't realize a profit on paper, doesn't mean the organization is ethical in behavior. It seems to me that great effort has been made to protect the ability to partake in contracts with DISD while rearranging the ethics policies for a comfortable fit. WE, all of us citizens of Dallas, have allowed the manipulation to occur. Great example is how it was allowed to be voted on to extend their own terms while all the controversial actions have been taking place. Kinda like giving the check book to a crook and asking them to be good. They will, you'll see, just stand back and watch for a longer time. I ask again; has someone, outside the DISD, who has bid on the contracts been given reason or cause to question why they would not have received the contracts. Again, monopoly on contracts is wrong. There are thousands of companies that could provide service to DISD and how many are getting to bid or receiving consideration in the bid grants. This is a statistical data that could show pattern and just cause to back what I, a tax payer, feel is an unethical practice of the current sitting Board of DISD. Has someone checked into these stats?