Technology services bids sought; Business program a key consideration
BYLINE: By Gordon Russell, Staff writer
New Orleans Mayor Ray Nagin's administration has decided to seek competition in technology services, an area that has been dominated during Nagin's five-year tenure by a software firm with links to his first two chief technology officers.
Last week, the city began posting a request for proposals for technology services on its Web site, www.cityofno.com. Interested companies must respond by April 25.
The proposals will be judged on a complicated array of factors, the most heavily weighted of them being the proposer's compliance with the city's disadvantaged business enterprise program. That is a major shift: Imagine Software LLC, which has overseen much of the technology upgrades at City Hall since Nagin's arrival, has essentially been excused from disadvantaged business guidelines in its work for the city.
Imagine's principals were all previously private-sector employees of Greg Meffert, Nagin's first chief technology officer. One of Imagine's partners, Mark Kurt, replaced Meffert as the city's chief technology officer last summer, a few months after Kurt sold his share in the firm. Kurt resigned from his city post in February.
The close ties between Imagine and City Hall have created repeated controversies. For instance, it emerged last fall that a yacht Meffert had used and claimed to own actually belonged to the Imagine partners. In addition, Imagine provided an employee whose duties included serving as Meffert's driver; the firm was reimbursed by the city.
Though Imagine has essentially run the Mayor's Office of Technology on Nagin's watch, the company has never directly contracted with the city. Instead, it has worked under subcontracts to different technology vendors: Affiliated Computer Services; Science and Engineering Associates; and more recently, Ciber Inc., which is based in Denver.
Complaints over deal
Imagine's employees have been billed to the city at rates set by the federal General Services Administration and memorialized in contracts with numerous vendors, including Ciber. Thanks to an executive order signed by Nagin in 2004, using a company that has a General Services Administration agreement allows the city to skip its normal procurement practices.
According to Meffert, using those federal schedules rather than putting the work out to bid has saved the city millions of dollars. But others in the local technology sector have complained that they've been unable to compete for city jobs.
Mark Lewis, president of the Louisiana Technology Council, stopped short of criticizing the old arrangement, but he hailed the city's solicitation of competition as a sign of progress.
"The communication with the city, which hasn't been very good in the past, has been opened up," Lewis said. "We're kind of at the forefront of helping to get that information (about the request for proposals) out. We just want to get the best contract, the best quality of service and the best price. . . . That's what the city wants, and that's what we want."
Early in 2007, the stable of Imagine employees was moved from underneath the umbrella of Ciber, which is still owed millions of dollars by the city, to a local technology firm called Benetech LLC, which like Ciber has a General Services Administration arrangement.
Since taking over the contract, Benetech has reduced the number of Imagine employees on its payroll from around 14 to six or seven, according to owner Aaron Bennett. The Imagine employees have been supplemented with some of the company's own workers.
Bennett said he had hoped to land the work on a long-term basis under the General Services Administration schedule. Though Bennett said he was disappointed that the city decided to seek proposals, he expects to respond to the city's request for bids, he said.
Ciber is also "evaluating" the city's request for proposals, a company spokeswoman said.
Guests of company owner
Around the time that Benetech became the prime contractor over Imagine, Nagin, his wife and Meffert flew to Chicago on a private jet as guests of Bennett's to attend the Bears-Saints playoff game. The plane made a stop in Las Vegas before returning to New Orleans on Jan. 22.
Bennett said he was concerned about the appearance of impropriety, given that his company had recently taken over the technology contract. But he did not believe Nagin was aware of Benetech's work for the city, he said, and he emphasized that he did not lobby the mayor during the trip.
"I think this is well below his level," Bennett said.
In addition, Bennett invoiced both Nagin and Meffert for the trip. After consulting with Gray Sexton, chief attorney for the state ethics board, Bennett billed the two for the trip at a rate approximating what commercial travel booked on the Internet would have cost.
"I went to a lot of trouble to do this the right way," Bennett said.
In fact, Meffert, who paid Bennett immediately, could have accepted the trip without running afoul of ethics laws, because he no longer works in the public sector. But the rules prohibit Nagin or any public official from receiving anything of value from a vendor.
Sexton confirmed that he had multiple conversations with Bennett, but he said the ethics board cannot render advisory opinions after the fact. As a general proposition, he said public officials may ride on private planes owned by vendors, provided that they pay for the travel.
Nagin has yet to pay his $1,852 invoice, which was delivered to City Hall on Feb. 1, Bennett said. Nagin's spokeswoman, Ceeon Quiett, said Nagin had requested the invoice, but did not answer questions about what source of money he will use to pay it.
Quiett emphasized that Nagin and Bennett did not discuss any city business during the trip.
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Gordon Russell can be reached at grussell@timespicayune.com or (504) 826-3347.