Thursday, June 19, 2014

Gloucester, VA Illegal Procurement By Utilities Department In Progress?

English: Deere construction equipment in Suffo...
English: Deere construction equipment in Suffolk,VA, photo by William John Grimes. (Photo credit: Wikipedia)
Just another fine example of how well Gloucester County, Va. follows Commonwealth of Virginia law; or not?
On June 15, 2014 I sent the following in an email to the Gloucester County Purchasing Director, Public Utilities Director, County Administrator and Board of Supervisors:
Greetings,
The process thus far to purchase a new mini excavator for the Utilities Department does not allow for competitive bidding.  The Invitation for Bids that was recently published specifies a specific manufacturer (John Deere) and a specific model (60G).  This is the same as sole source procurement, which in the instance of purchasing a mini excavator, is likely not applicable.  There are numerous mini excavator manufacturers who are just as reputable and offer machines, warranties and service that are comparable to John Deere’s.  If there is something specific about the requested item that makes it the only machine that can do a specific task; a description of such should have been included in the procurement notice.      
Do safety issues, excessive maintenance costs, or an excessive amount of hours on an existing machine justify this purchase or is this a new addition to the inventory?  If the latter is the case; is this purchase absolutely necessary at this time?  Is an enclosed cab or canopy option being considered?  Enclosed cab machines utilized in utility work environments increase safety risks due to the amount of work performed in close proximity to people, utilities, traffic and other machines.  Closed cab machines have a tendency to be utilized by employees as a heater or air conditioner which, among other negative things, increases fuel and maintenance costs. 
Based on professional experience and research; the John Deere 60 series mini excavator is just an enhanced version of the John Deere 50 series machines and is considered by many to be an odd ball machine.  Odd in that certain parts which make up the machines uniqueness are only specific to that machine.  The 60 series machines are several thousand pounds heavier than all other comparable machines and often require additional licensing and other transportation related expense increases.  JD-50 series machines outsell JD-60 series machines by a rather large margin.  Combined; these facts suggest an enhanced likelihood of higher maintenance and repair costs and longer down times from waiting on repair parts.  The JD-60 and JD-50 series machines are work horses and are primarily used in high paced production environments of at least 40 hours per week for 40 or more weeks out of the year.  Most contractors purchase the 50 series machines primarily because of cost differences.  Both John Deere machines are more than capable of fulfilling the Utilities Department’s needs, but the 60G is about $10,000 more expensive to purchase and costs more to operate, transport and maintain. 
Unless there is a specific reason why the Utilities Department requires something unique only to the John Deere 60G, the normal transparent procurement process should be followed and all authorized vendors should be allowed to submit bids.
Kenneth E. Hogge, Sr.
Thus far I have received the following response from the Purchasing Director:
“Mr. Hogge
Thank you for your email.
The present bid that we have advertised seeking prices for a John Deere 60 G Excavator is being sought as a brand name without substitution due to the Utility departments desire for this specific equipment.  It is my understanding that Mr. Schlesinger communicated with you regarding this issue and indicated that this specific equipment was desired by his department because of their review of comparable machines.
I do not agree with your assertion that our present solicitation does not allow for competitive bidding and the procurement method is the same as a sole source purchase. Rather, the solicitation is being offered as a proprietary purchase which allows any John Deere dealer to competitively bid on it.  I trust this will be the case because we have had past procurement programs for John Deere equipment that have garnered multiple bids.
As a side note, when the Purchasing Department received the requisition for this equipment, it also included a recommendation to acquire the machine from an existing national purchasing cooperative.  Certainly this would have been an option; however, I decided to initiate our own competitive bid for the excavator in anticipation of receiving a lower price than the cooperative and especially to determine if there was any local source that could bid on the equipment.  Obviously, the answer to this strategy will not be known until the bid due date of Monday, June 23rd.
I am unable to respond to the other issues in your email regarding the Utility Department's justification for the use of this excavator.  Responses to these inquiries rest with the operational requirements of Public Utilities and I am quite sure that Mr. Schlesinger would be willing to discuss them with you.
Our bid opening for the excavator is at 2:00 PM onJune 23rd and we will post a tabulation of the bids on our website shortly after that time.”
Bill Lindsey
Section 2.2-4300, paragraph C of the Code of Virginiastates in part;
that all procurement procedures be conducted in a fair and impartial manner with avoidance of any impropriety or appearance of impropriety, that all qualified vendors have access to public business and that no offeror be arbitrarily or capriciously excluded, it is the intent of the General Assembly that competition be sought to the maximum feasible degree, that procurement procedures involve openness and administrative efficiency, that individual public bodies enjoy broad flexibility in fashioning details of such competition, that the rules governing contract awards be made clear in advance of the competition, that specifications reflect the procurement needs of the purchasing body rather than being drawn to favor a particular vendor”
In his response, Mr. Lindsey stated,
the solicitation is being offered as a proprietary purchase which allows any John Deere dealer to competitively bid on it.”
A proprietary purchase is a purchase in which the specifications or requirements describe a product or service that is only available from one manufacturer or vendor, and which does not permit an equivalent product to be supplied. 
There are no specifications or requirements contained in the Invitation for Bids to support a purchase under the proprietary purchase title.  John Deere bidding against John Deere with respect to an excavator does not demonstrate competition as most heavy equipment dealers are assigned designated sales areas.  This will not necessarily prevent responses from multiple John Deere dealerships however it is still John Deere bidding against John Deere?
The Utilities Department is purchasing a piece of equipment of which type is manufactured and sold by numerous companies such as Case, John Deere, Caterpillar, Kamatsu, New Holland, Kubota, Yanmar, etc.  The exclusion of all companies except John Deere in the procurement process clearly violates Commonwealth law and the spirit for which the law was written.    
Commonwealth of Virginia law requiring all procurement procedures to be conducted in a fair and impartial manner with avoidance of any impropriety or appearance of impropriety has been completely ignored again inGloucester County.  So has the part of the law that requires that specifications reflect the procurement needs of the purchasing body rather than being drawn to favor a particular vendor.  
Manipulation of procurement processes seems to have become a normal way of conducting business in Gloucester County.  This unethical and transparency restricted way of purchasing goods and services is not what the tax payers expect nor is it what the General Assembly intended when the procurement laws were written.
Kenneth E. Hogge, Sr.
Gloucester Point
Note:
At around 5:00 PM on June 16, 2014 I submitted the following FOIA request to Ms. Lewis.
Please provide electronic copies of documentation reflecting the evaluation process utilized in determining which make and model excavator is required to fulfill the mission of the Gloucester County Public Utilities Department. 
On June 18, 2014 I received a response from Ms. Lewis indicating she will contact the departments concerned before being out of the office on the 19th and 20th and will provide a response to my request on June 23, 2014.  June 23rd is the date all bids on providing the excavator are to be in and opened.  Seems like stall tactics to me.



Our Notes:  You just have to love the way some people think they can just get away with doing whatever they think they want to without any consequences to their actions.  The question really does exist however if there will in fact be any consequences other than the department getting exactly what they want no matter what the state code says?  

  We have to ask the question;  is a kickback part of this plan?  Did a John Deer salesman teach the county how to ask for a specific product and get away with somehow bypassing state codes by doing this little trick?  It's a fair question that deserves to be asked.  Someone has to watch every area of the county government these days as there sure seems to be a lot of funny tricks going on everywhere. 

  Yet a further question is why does the department even need this?  If there is a lot of work to be done, maybe it's cheaper to rent what you need?  If not, then what about contracting the work out?  Who else is going to be using this machine?  

Congressman Rob Wittman’s Weekly Update; June 18th, 2014

English:
English: (Photo credit: Wikipedia)
Congressman Rob Wittman’s Weekly Update

As I serve America’s First District in Congress, I take very seriously my constitutional duty, laid out in Article 1, Section 8, that we provide for the common defense of this nation. Connected directly to that is the oversight role Congress plays over the Administration’s foreign policy decisions. There has been considerable attention given to the recent prisoner exchange involving Sgt. Bowe Bergdahl, in which five Taliban leaders were released from the U.S. detention facility at Guantanamo Bay. I have had deep concerns with the manner in which this release was conducted, especially in light of the fact that the Administration chose not to notify Congress until after the release was made – in direct violation of a law the President himself signed requiring him to notify Congress at least 30 days prior to such an action.

This past Wednesday, the House Armed Services Committee heard testimony from Defense Secretary Chuck Hagel on this release. Despite the Secretary’s testimony, I am still unconvinced by the Administration’s assessment of the likelihood of these individuals returning to the battlefield, and the degree to which they remain a threat to our national security. When I was Chairman of the Armed Services Committee’s Oversight and Investigations Subcommittee, I conducted a study on the recidivism rates for detainees released from Guantanamo Bay to determine the likelihood of them re-entering the fight against the United States and our allies. At the time, the study found that 27 percent of these detainees return to the battlefield after being released. We simply cannot forget that our nation remains at war in Afghanistan, and that our servicemen and women are still at risk.

These five detainees will be under a one-year supervision period in Qatar. I am concerned about the unknown quality of enforcement of the government of Qatar, as transferring detainees there has proven unsuccessful in the past. During the Armed Services Committee hearing on Wednesday, I asked simply, “What happens to these detainees after a year?” The answer is clearly not that simple. The intelligence we currently have on these individuals – and the data on the chances of them returning to the battlefield – indicate significant, unjustifiable risk. If even one death of an American is linked to this detainee release, it will be an enormous and unprecedented policy failure, and the responsibility and accountability for that will fall solely on the President’s shoulders.

This is a serious issue with significant ramifications for our national security, and substantial implications for future foreign policy decisions. I am fully committed to continuing to press the Administration on its rationale behind releasing the five detainees and their plans to ensure that these dangerous individuals do not target Americans, and, as always, I remain committed to conducting the oversight role that is my constitutional duty. You can view the video of me questioning Secretary Hagel here.

The main streets of Virginia’s First District are full of ideas to get our economy back on track, and your feedback is critically important to me as I serve you. I can be reached by telephone at (202) 225-4261, through my website (www.wittman.house.gov), on Facebook (www.facebook.com/reprobwittman), and via Twitter (www.twitter.com/robwittman).

Congressman Rob Wittman represents the First District of Virginia. He serves on the House Natural Resources Committee and the House Armed Services Committee where he is the Chairman of the Readiness Subcommittee.

Update on VA Scheduling Problems From Senator Mark Warner

Injuries incurred by service members are cover...
Injuries incurred by service members are covered by the Veteran Administration. (Photo credit: Wikipedia)
I wanted to give you a quick update on our efforts to fix the scheduling problems recently disclosed at Department of Veterans Affairs medical facilities across the country, including medical centers in Hampton and Richmond

The Senate on Wednesday overwhelmingly passed bipartisan legislation to begin addressing demand for care. It ensures that vets who have to travel more than 40 miles to get to a VA hospital can access private health providers closer to home, and it gives the VA secretary more authority to fire senior managers for poor job performance. 

I’m also proud to report that this bipartisan Senate legislation includes my proposal to put together a team of private sector data and I-T experts to go in, at no cost to tax payers, to assess the scope of the VA’s scheduling problems and recommend technology and management steps to fix it. I’m also pushing the White House to support this commonsense, private sector approach, and those discussions are proceeding as well. 

Click here to watch a short video update from Senator Warner on the VA’s scheduling problems.

We already have a model for how this could work. Back in 2010, when we learned about the back office mess and data management challenges at the Army’s Arlington National Cemetery, I worked with the Army to allow a team of experts from the nonprofit, nonpartisan Northern Virginia Technology Council to recommend specific fixes for the Cemetery’s management issues. Thanks in part to the great pro bono work by members of NVTC, we upgraded Arlington Cemetery from an analog to a digital operation. In fact, you now can use a smartphone app to locate the grave of a loved one at Arlington. 

Every veteran who contacts the VA should be able to schedule an appointment in an efficient and timely way. I believe this private sector assistance makes sense, and this is something that can be completed quickly. 

I will keep you updated as we continue to push for effective solutions to address the deeper challenges at the VA. And if our office can ever be of help to you, please contact us. I encourage you to also sign-up for future newsletters like this one that discuss the specific issues of concern to you and your community. I promise never to share your email address, and I won’t clog your inbox with unwanted messages. 

Regards, 

Mark R. Warner

GOVERNOR MCAULIFFE ANNOUNCES $13.1 BILLION IN TRANSPORTATION IMPROVEMENTS

English: Virginia Megaprojects Transportation ...
English: Virginia Megaprojects Transportation Improvements, Northern Virginia (Photo credit: Wikipedia)
GOVERNOR MCAULIFFE ANNOUNCES $13.1 BILLION IN TRANSPORTATION IMPROVEMENTS ACROSS THE STATE WILL IMPROVE MOBILITY AND DRIVE THE ECONOMY
Transportation program reflects input from residents and the traveling public following a series of public hearings

Governor Terry McAuliffe announced today that the public was heard and their transportation priorities were carefully considered, resulting in adjustments to the final Six-Year Improvement Program.  The Commonwealth Transportation Board (CTB) approved the program, which allocates $13.1 billion to highway, road, bridge, rail, transit, bicycle/pedestrian paths and other transportation improvements throughout Virginia over a six year period beginning July 1, 2014.

“When the draft program was made available to the public in April, I directed Transportation Secretary Aubrey Layne and the Commonwealth Transportation Board to ramp up public involvement by getting out into the communities and holding hearings in nine regions across the state to solicit public input,” said McAuliffe.  “Nearly 400 people attended and 1,620 oral and written comments were collected.  From that information, the CTB adjusted the program to reflect the needs and priorities of local officials, residents and the traveling public who use and know their transportation system better than anyone else.”

Project highlights include:
·       Widening eight miles of the most congested stretches of  I-64 on the Peninsula
·       Extending the Tide light rail system into Virginia Beach
·       Providing  two new passenger trains from Richmond to Norfolk
·       Making safety improvements and repairs along I-81, including Exit 14 in Abingdon and Exit 150 in Roanoke
·       Improving Route 220 in Botetourt County
·       Developing I-66 improvements, extending the use of shoulders on I-495 and tie-in to the Express Lanes, and improving the Route 28 interchange in Northern Virginia
·       Widening Route 7 over the Dulles Toll Road
·       Funding improvements in the Metro 2025 program, including upgrades for 8-car trains along the Metrorail Orange line
·       Expanding VRE platforms and adding the VRE Potomac Shores station in Prince William County
·       Providing a package of improvements to Route 29 through Charlottesville, which replaces the bypass
·       Funding a second passenger train to Lynchburg

The six-year program will be updated later this year to comply with the new prioritization process, which was signed into law under House Bill 2 by McAuliffe earlier this year.  Under the process, projects will be objectively selected based on regional needs.

Layne added, “There will be no special governor’s list of projects, but rather a strategic transportation program based on selecting the right projects that provide the maximum benefit for limited tax dollars.”

The CTB will work in collaboration with localities to set weights for key factors like congestion mitigation, economic development, accessibility, safety and environmental quality. Specific projects will then be screened and selected for funding beginning in July 2016.

“Key priorities in the program approved today and future updates will continue to be improving the existing infrastructure, including rebuilding aging bridges and roads across the state,” said Charlie Kilpatrick, commissioner of the Virginia Department of Transportation (VDOT). 

Virginia Department of Rail and Public Transportation Director, Jennifer Mitchell said, “The final program also reflects added funds for rail and transit projects to enhance regional mobility and provide more transportation choices.”

FY 2015-2020 Six-Year Improvement Program breakdown of Allocations:

$9.9 billion – Highway construction
$3.2 billion – Rail and public transportation
$13.1 billion – Total six-year program

Online resources:

CTB presentation of Final Six-Year Improvement Program 
Link
SYIP database

Governor McAuliffe Announces 2,000 new jobs in Chesterfield County

The Senate floor session in the Richmond capit...
The Senate floor session in the Richmond capital building. (Photo credit: Wikipedia)
~ Shandong Tranlin Paper Co., Ltd. will invest $2 billion in first U.S. advanced manufacturing operation~
-Project represents largest Chinese greenfield economic development project in U.S. and largest Chinese economic development project in Virginia history-

RICHMOND - Governor Terry McAuliffe announced today at the Virginia State Capitol that Shandong Tranlin Paper Co., Ltd., a leading Chinese pulp and paper company will invest $2 billion over five years to establish its first U.S. advanced manufacturing operation in Chesterfield County. The investment represents the largest Chinese investment and job creation project in Virginia history and is the largest Chinese greenfield economic development project in the United States. Virginia successfully competed against several other states for the project, which will create 2,000 new jobs by 2020.

            Speaking at today’s announcement, Governor McAuliffe said, “An investment of this magnitude, with the creation of 2,000 new jobs by 2020, represents the largest Chinese greenfield economic development project in the United States, and shows how Virginia is leading the way in attracting innovative businesses to the Commonwealth. Advanced manufacturing jobs are the heart of a strong and growing 21st century economy, and this investment symbolizes the economic recovery taking place across the nation, and will be transformational for the economy of Chesterfield County and the surrounding region. The opportunity to welcome a leading, global company’s first U.S. manufacturing operation and simultaneously strengthen Virginia’s relationship with China is invaluable. Economic development is a team effort, and it is the collaboration of the entire team that helped to convince Tranlin that Virginia is the best site for its U.S. operation. We are therefore partnering with the Major Employment and Investment Commission, and are confident this project will bring international attention to the thriving advanced manufacturing industry in the Commonwealth.”
“The Tranlin operation in Chesterfield County represents a project of historic proportions for Virginia,” said Maurice Jones, Virginia Secretary of Commerce and Trade. “This global pulp and paper company is a national leading R&D Center for straw-based pulp and paper in China, among many other awards for innovation and invention, and will enter the U.S. market with its new paper and fertilizer manufacturing facility in Chesterfield County. The new 850-acre campus offers the potential for Tranlin to eventually produce its full product lines and continue to grow its operation and customer base while using Virginia’s natural resources. Attracting companies like Tranlin to Virginia is how we will build a 21st Century Virginia economy.”
“As we work to grow and diversify our economy, it is vital that we continue to build relationships with our largest agricultural and forestry trade partner, China, through both exports into Chinese markets and Chinese investments in business ventures here,” said Todd Haymore, Virginia Secretary of Agriculture and Forestry. “Tranlin represents a tremendous opportunity for Virginia’s corn and small grain producers by creating a lucrative new market for agricultural residuals that are typically left in the field. Based on the agricultural supply chain opportunities associated with the project, the economic benefit to farmers in this region alone could exceed $50 million per year once the project is complete and operating at full capacity. I look forward to working with Tranlin as they begin to procure needed agricultural products from our growers, to help them succeed and continue to expand their investment in Virginia.”

Tranlin’s new manufacturing facility in the paper and fertilizer sectors will be located on an 850-acre campus in the James River Industrial Center. Based on analysis performed by the U.S. Department of Agriculture, the Virginia Department of Agriculture and Consumer Services, and Virginia Tech Cooperative Extension, the economic benefits of this operation will be felt throughout the agriculture sector, from new demand for agricultural equipment, to new jobs for direct and indirect agricultural jobs. In addition, this project will help preserve farmland by providing farmers a new opportunity to derive additional economic return from their land and equipment, creating positive economic pressure to maintain it in farming use. The harvest of straw in the spring and corn stalks in the fall for use by Tranlin will be two new cash crops for Virginia producers, in addition to other fibrous products from the surrounding area. From an environmental standpoint, the harvest of these agricultural residuals is compatible with the Chesapeake Bay-friendly no-till crop production practices these producers are already using. In addition, Tranlin prides itself on a process that leads to an environmentally friendly effluent, resulting in the discharge of quality, clean water.
Founded in 1976 and based in Liaocheng, China, Shandong Tranlin Paper Co., Ltd., formerly known as Shandong Tralin Paper Co., Ltd., is centered on the pulp and paper industry, with an annual productivity of 400,000 tons of refined pulp, 700,000 tons of machine-made paper, 400,000 tons of organic fertilizers, and 2.4 billion food and medical packaging boxes. The company has established a diversified product structure centered on the natural products and a marketing network in accordance with demands of internationalization. The main products, with more than 100 varieties and five categories, include refined natural pulp, natural culture paper, natural household paper, food and medical packaging box and organic fertilizers. The products are sold in more than 30 provinces, municipalities and autonomous regions of China, and some products have been exported to the United States, Europe, Japan and South Korea.
We are pleased that Virginia and Chesterfield County will be the site of our first U.S. advanced manufacturing operation,” said Mr. Hongfa Li, Chairman and President, Shandong Tranlin Paper Co., Ltd. “Virginia has abundant resources of agricultural stalks, power and water supplymanpower, and strong transportation systemall necessary tools that guarantee Tranlin’s future development. More importantly, the Virginia team’s flexibility, patienceteamwork,cooperation, and above all, passion for foreign investment, factored into our decisionAfter an in-depth feasibility study that occurred over the past year, we have all the reasons to say “Yes, Virginia.”
            “We are very excited about joining the welcoming community of Virginia and Chesterfield County,” said Jerry Z Peng, Chairman and CEO of Tranlin, Inc., Tranlin group’s recently established US entity. “We are even more excited about the opportunity to apply our innovative technologies in building an industry-leading production base in central Virginia. We are confident this will not only provide U.S. consumers with clean and eco-friendly paper products, but also serve U.S. agricultural interests and home owners with all-natural and highly effective organic fertilizers.” Mr. Peng also noted his ties to Virginia, having received his MBA from UVA’s Darden School and currently serving on its foundation board.

The Virginia Economic Development Partnership worked with Chesterfield County, the Virginia Department of Agriculture and Consumer Services, the Virginia Department of Environmental Quality, the Greater Richmond Partnership, Dominion Virginia Power, and the Virginia Port Authority to secure the project for Virginia. Governor McAuliffe approved a $5 million grant from the Governor’s Opportunity Fund to assist Chesterfield County with the project. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

The company may be eligible to receive a Major Employment and Investment (MEI) custom performance grant, subject to approval by the General Assembly. An MEI project is defined under current law as a regional economic development project in which a private entity is expected to make a capital investment exceeding $250 million in the Commonwealth and to create more than 400 new full-time jobs. As part of its review, the Commission may endorse certain incentive packages for approval by the General Assembly.

"What a great and historical day for Virginia, the region, and Chesterfield County,” said Jay Stegmaier, County Administrator for Chesterfield County. “We have worked diligently within the county, and with our partners at the state, regional, and local levels, to build an environment that is attractive for this record-breaking announcement of $2 billion with 2,000 new, quality jobs. Additionally, this announcement comes from a leading company that manufactures great products while staying focused on the environment, recycling, and sustainability, which will contribute to the long-term success of Chesterfield County. The scope and reach of this project is enormous and has significant impacts on both the business and agriculture communities.  We enthusiastically welcome Tranlin as the newest international member of our corporate family."

“This announcement is the largest in the history of Chesterfield County,” said Jim Holland, Chairman of the Chesterfield County Board of Supervisors. “It is very fitting that our county was founded on an international investment and now, over 400 years later, we are still celebrating why we continue to be a great location for companies from around the world. Welcome Tranlin, to Chesterfield County. We look forward to your continued growth and success."  

           “The Major Employment and Investment (MEI) Project Approval Commission was established in 2009 to help Virginia better compete for major economic development projects that require General Assembly approval for incentive packages,” said Senator Walter Stosch and Delegate Chris Jones, members of the MEI Project Approval Commission. “The Tranlin project is significant for Virginia and is critically important to win. These jobs and related revenues are important to our ability to fund education, health care and other core priorities. The MEI Commission is fully supportive of this transformational project and we are pleased that the MEI Commission could play a role in ensuring that the Commonwealth of Virginia is home to Tranlin’s first U.S. operation.”