Showing posts with label retroactive. Show all posts
Showing posts with label retroactive. Show all posts

Monday, August 14, 2017

Devastating audit of DOE's contracting process, which violates the City Charter and state laws



Last week I wrote about the problems with the new $670,000 DOE contract for Joel Rose's blended/computerized math instruction program, which was originally promised to be provided free to NYC schools in perpetuity since Rose developed it with about a million dollars of city funds while at DOE. The Panel for Educational Policy is due to vote on this contract on August 23.

Yet since his company New Classrooms went private, NYC has been charged many hundreds of thousands of dollars for this program with a highly questionable educational value.  Subsequently, Gary Rubinstein also wrote about the program's low quality, at different times called School of One or Teach to One.

All this cronyism is not an anomaly, sadly, but is consistent with the scandalously lax oversight of DOE contracts -- including a $1.1 billion contract proposed in 2015 for a contractor who had been involved in a kickback scheme just a few years ago --later thankfully rescinded by the Mayor's office and rebid for savings of between $163 million and $727 million.

On Friday, the NYC Comptroller Stringer released a follow-up audit showing how the DOE continues to violate  state law and its own rules when it comes to contracting.  More on this from the New York Daily News, New York Post and Chalkbeat.

From the Daily News:

In fiscal year 2016 the city school system handed out more than 500 contracts worth $2.7 billion without competitive bidding or required protections, Stringer's investigation found.
That’s 64% of the agency's total contract spending of more than $4 billion for that year....the city agency didn’t bother to evaluate vendors or keep track of their work — or to register contracts with Stringer’s office for review.

From the Comptroller's summary

A review of 521 limited competition contracts and contract actions revealed:
  • DOE directed 442 of the vendors — approximately 85 percent — to begin work before the contract was even registered with the Comptroller’s Office, in violation of the New York State Education Law, the City Charter and DOE’s own rules;
  • DOE submitted 302 new contracts and renewals to the Comptroller’s Office, on average, 258 days after their start dates, while 140 extensions of existing contracts were submitted on average 137 days after work began;
  • In the most egregious case, a contract was submitted to the Comptroller’s Office 910 days — nearly two and a half years — after the vendor began work; and
  • DOE submitted dozens of contracts to the Comptroller’s Office after the contract’s end date.
I myself discovered that of the 27 contracts approved at last month's Panel for Educational Policy meeting , 13 were retroactive—meaning at least some or all of the vendor's work had already started –  rendering the vote of the PEP pretty much irrelevant.  Contracts are only submitted and registered by the Comptroller after the PEP has voted. 

For the audit they specifically looked at how many contracts were registered retroactively.  Of 358 contracts and contract renewals, 84% of the vendors started work before registration,  an average of eight months prior to submission.  More than 10% of the contracts were submitted after the work had already ended.  In another data set of 163 contract extensions, 86% had started before submission,  an average of 137 days prior.


The Comptroller’s audit also found these continuing problems:
  • DOE still does not provide sufficient guidance for contract assignments, and, in particular, it fails to ensure that a proposed new vendor’s capacity and history are adequately assessed. In addition, assignment files lack sufficient information justifying the assignments, detailing prior performance and documenting adequate insurance coverage, among other things.
  • DOE has not developed written procedures or guidelines to help staff detect the warning signs of possible collusion when awarding contracts via actions other than fully competitive solicitations.
  • While general guidance to contract managers appears to be available now in DOE’s contract management training manual, it does not offer the contract managers specific instruction about handling their responsibilities. For example, the training manual is silent on the performance evaluations that must be conducted throughout the contract period and on the frequency of such evaluations.
  • Despite DOE’s representation in response to the previous audit that it would implement a standard format with standard criteria and ratings for evaluating vendor performance and a schedule for conducting such evaluations, we found that no such implementation has taken place.
  • DOE still does not conduct required performance evaluations of contractors seeking renewals or extensions.
  • DOE still does not adequately monitor its contract managers to ensure that contract monitoring and performance evaluations are conducted in accordance with its PPP manual.
  • DOE does not ensure that limited-competition and non-competitive contracts are registered with the Comptroller prior to vendors beginning performance. As a result, vendor payments are delayed, which could potentially decrease competition and raise prices.
David Ross
The question of evaluations is key; many DOE contracts are renewed several times without any evidence that any assessments had been done of the quality of their previous work.  Even when an evaluation was done, in the case of New Classrooms for example, which showed no significant gains  through a randomized experiment, this study was unmentioned in the DOE Request for Authorization document, which asked the PEP for approval.

All these problems are not new, but occurred during the previous administration as well, under the aegis of David Ross.  Ross spent 12 years at the DOE as chief procurement officer,  and is now going to oversee contracts at the MTA – another troubled government agency that cannot afford to waste a single penny of public funds. Will the new contract head at DOE clean up this horrible mess?  We will have to see, but from the weak responses to the audit from DOE, I would not bet on it.

The person ultimately in charge however is Chancellor Fariña.  We've had four Chancellors in a row who were lax in terms of allowing the waste of  millions of dollars in taxpayer money, while more than 300,000 NYC children continue to languish in classes of 30 or more.  Will Fariña stick around after the election?  And if not, who will replace her?

Tuesday, April 19, 2016

Comments on DOE Questionable Contracts and Fair Student Funding formula

Leonie Haimson and Patrick Sullivan of the Citizens Contracts Oversight Committee provided the following comments to the members of the Panel for Educational Policy about the proposed contracts to be voted on April 20, 2016. If you want to join our Overight committee, please email us at info@classsizematters.org. If you would like to send in your own comments, please do so tonight by the public comment deadline at 6:00 pm.


April 19, 2016
Dear Chancellor Farina and members of the Panel for Education Policy:
On behalf of Class Size Matters, the Citizens Contract Oversight Committee, and the Parent Coalition for Student Privacy, we have the following concerns about the proposed contracts and the Fair Student Funding formula to be voted on tomorrow night, April 20, 2016:
The Amazon contract
DOE proposes to pay $30 Million to Amazon over three years to provide digital textbooks and tradebooks. The ultimate plan, according to the RA, is to provide 29%-42% of all content online by Year 5 at a cost of up to $64.5 million.
·         Yet there is no cost/benefit analysis in the RA discussion of the proposed contract, including the huge cost of having to purchase tablets or laptops for all the students who will access their assigned readings through digital devices.  The contract also implies that some students will use “a school-provided device or a personal device to access their profile and content,” Yet latter which cannot be relied upon given the fact that many families cannot afford to supply a suitable e-reader for their children to use at home.
·         The RA also proposes that students will “request content for independent reading” via Amazon, which implies that the DOE will be steering students’ personal purchases to this provider, which will allow Amazon to further expand their market share.  Yet many authors and publishers have protested the way in which Amazon uses their dominance of the market to engage in  illegal monopolistic practices, which goes unmentioned in the RA.
·         The DOE omits any discussion of the growing research showing that reading comprehension and retention are significantly reduced with the use of digital devices compared to actual books.  Here's just one of several recent studies on this critical issue.

·         Finally there are the privacy concerns, which are insufficiently addressed in the RA:

“Despite this technology’s capacity for track and reporting student progress, students’ personal identifiable information will be safeguarded in this system, as Amazon will use a DOE-provided proxy with encrypted information and limited student information.”

It is unclear what “limited student information” is going to be included, but in any case, many parents are not just worried about potential breaches, but about teachers and administrators tracking students at school and at home, and what will be done with their personal data.

For more on some of the concerns with the Amazon contract, as yet unexplored by DOE, see today’s Wall Street Journal.


Contracts with Special Education providers

The DOE proposes to award contracts to pay seven special education vendors who have engaged in fraud in the past or who have failed to pay Workman’s compensation and thus are barred from public work contracts.  We strongly believe that any company that has engaged in fraud or failed to properly follow the law should be barred from future DOE contracts for at least five (5) years.

We are also concerned that the DOE admits that “background checks have not been completed for all vendors…Should noteworthy information become known to the DOE after the Panel meeting, it will be reported to the Panel.” 

No contract should be approved without a background check, and there is no point in reporting it to Panel members once negative information is found.  

The fact that the DOE would even consider proposing contracts for companies to provide services to special needs students, a highly vulnerable population, without conducting any background checks, only reaffirms our conviction that there is insufficient care and due diligence maintained by DOE officials to minimize risk to children, fraud and waste. 
More evidence of the insufficient care shown by DOE is shown below in the section below headed “Reimbursing the Fund for Public Schools for PreK vendors found “non-responsible”.
An article about these highly questionable special education contracts was published in yesterday’s Daily News here

Whole School Reform
DOE seeks funding for a vendor, Southern Regional Education Board, who has provided these services in the past and whose expertise with NYC schools has been previously questioned.  It is regrettable that the new proposed contract is presented without any accounting for how the vendor has performed in the past.
Pre-K providers
DOE continues the unacceptable practice of proposing to award many pre-K contracts without providing any information in advance on the vendors or their backgrounds and history (see items #3-5 on pages 49- 51 and #24-25 on pages 109-110,)  This again is risky and irresponsible.
Professional development contracts
We are concerned about the proliferation of professional development contracts.  This month there are seven PD contracts, items #7-11, #16 and #19, at a total cost of $14,697,447 or $8,050,447 annually.  Including these, there have been a total 36 PD contracts since October 2015, costing over $27 million annually, or $98 million over the course of these contracts. 

Nearly half of these contracts are proposed to provide training aligned to the Common Core standards, even though the State Education Department is now planning to revamp the standards. 

Retroactive contracts
DOE also continues its unacceptable practice of asking the PEP to approve retroactive contracts after the funds have already been presumably spent.  This month, there are nine proposed retroactive contracts: items #2, 16-20, 26-28.
Reimbursing Fund for Public Schools the City of New York for PreK vendors found “non-responsible”  [Update: wrote the wrong Fund here}
Serious concerns are prompted in the information found in the Addenda (page 132).  Many pre-K providers were approved by the PEP in July 2014, despite the fact that their background checks were not complete.
Three providers were subsequently found to have engaged in fraud or other illegal behavior, including B’Above Worldwide Institute, FootSteps Child Care Inc., and West Harlem Community Organization Inc.
Church Avenue Day Care did not file NYC corporate taxes for 2010-2014.  While this transgression would normally disqualify a vendor (categorize them as "non-responsible"), the DOE decided to pay the firm anyway with private funds raised by the Fund for the Public Schools City of New York.  The documents now make clear the firm hasn't corrected the issue.  But the DOE wants now to reimburse the Fund for Public Schools for its payments to this vendor.
The DOE also proposes to reimburse the Fund for Public Schools the City of NY for it payments to another preK vendor, Footsteps Childcare Inc. despite the fact that earlier audits from the NYS Comptroller had found this vendor had engaged in “systematic abuse of child care grants awarded by the NYS Office of Children and Family Services, including evidence that funds…had been misappropriated to defraud the State.”
A third vendor, B’Above Worldwide Institute, exhibited unspecified “performance and contract compliance issues” during the 2014-2015 school year.  Despite the fact that the vendor was offered the “opportunity to show cause why it should not be found non-responsible,” B’Above failed to do so.  Now the DOE wants to pay back the Fund for Public Schools the City of NY for the “bridge loan” that the Fund had provided the vendor.
Panel members should oppose these reimbursements.  Moreover, the DOE's practices of using a private fundraising entity to fund questionable vendors, presumably because they had been barred from receiving city funds, should immediately cease.
These examples provide more evidence of unacceptably sloppy and risky contracting practices on the part of DOE, and why no contract should be approved by the PEP for vendors whose background checks have not been completed.
Fair student funding
While in FY 2008, schools were provided with 100% on average of their Fair Student funding, this year the average is only at 89% and if the mayor’s proposed budget is adopted, next year this figure will rise to only 91% — reflecting a 9 percent cut to our schools since 2007.  Moreover, the Mayor’s proposed budget does not project any increase in Fair student funding in the out years.
In many cases, the overall use of the Fair student Funding formula has forced class sizes upwards, or forced principals to choose between retaining their experienced teachers or keeping class sizes at acceptable levels.  
In addition, as Class Size Matters discussed in testimony before the City Council last month, the specific formula being proposed is unsupported by logic or research.
·         The smallest amount of funding is allocated to students in grades K-5, where the investment in smaller classes has huge pay-offs in terms of increased student achievement. 
·         More funding on the level of 8 percent is allocated for students in grades 6-8, an additional 3 percent for high school students, and 40-50 percent additional funding for remedial services as a student falls behind, starting in 4th grade. 
·         Yet as many studies indicate, remediation is  far less effective than prevention,  which  ensures that students do not fall behind in the first place, especially in the form of smaller classes in Kindergarten through 3rd grade.
·         The FSF weights are far greater for special needs students if they are assigned to inclusion classes starting in Kindergarten, (with a weight of 2.09) and in grades 1-12 (with a weight of 1.74), though the class sizes in these ICT classes are generally far too large to provide students with the individual attention they need.
·         The failure of DOE’s inclusion program, caused in large part by the excessive class sizes of ICT classes, is something we hear constantly from parents of special needs students. 
·         This is further evidenced by the fact that since the fall of 2012, there have been sharp increases in the numbers of students recommended for special education services, as well as the number of students attending non-public schools at city expense, according to the Mayor’s Management report.
·         Total special education enrollment in grades K12 has increased by 25 percent in four years since the inclusion initiative began in earnest in 2012, at a huge expense to the city.  The increase in the number of students identified as having special needs is yet another indication of the hidden cost of rising class sizes, especially as class size reduction has been shown to significantly reduce the number of students identified as requiring special services.


Yours sincerely,

Leonie Haimson, Executive Director, Class Size Matters and co-chair, Parent Coalition for Student Privacy

Patrick Sullivan on behalf of the Citizens Contract Oversight Committee


Wednesday, March 23, 2016

Too many retroactive DOE sole-source contracts and other problems with proposals to be voted on tonight



Patrick Sullivan and Leonie Haimson of the Citizens Contracts Oversight Committee provided the following comments to the members of the Panel for Educational Policy about the list of proposed DOE contracts to be voted on tonight.  If you want to join our committee, please email us at info@classsizematters.org


Retroactive sole-source contracts 

For the contracts to be voted upon March 23 at the PEP, fully half of the proposed contracts (17 of 35) are retroactive -- with some starting as early as last May; which prompts the question what the point of a vote is, if it is held months after the money has been paid and the services delivered. Sole source retroactive contracts for this month include:

Item 6 (page 20) Bard College. Inexplicable why this is retroactive. The relationship with Bard has been in place for years.


Item 7 (page 23) Measure Excellence

Item 11 (page 33) Teachers College professional development for conferences

Item 12 (page 36) Teachers College professional development for writing instruction

Item 13 (page 39) Silicon Valley Mathematics Initiative: consulting to develop tests to measure teachers for performance reviews.

Insufficient information on consulting project to rate teachers with student tests

Item 13 (page 39) Silicon Valley Mathematics Initiative is a consulting engagement to develop tests to measure teachers for performance reviews. This work is controversial in light of 1) the thorough discrediting of value-added measurement models by the academic community and 2) action to eliminate state tests in rating teachers.  The contract should be presented with more information including the RFP and statement of work.  It should be presented for approval before it's done, not after.

Contracts presented for approval without any prior information

There are eight Head Start or pre-K contracts that have no information: Items 15, 16, 17, 26, 27, 28, 29, 30. One (item 16 on page 46) is for "lead teacher incentives". That sounds like something that would require a discussion.  DOE continues to present contracts for approval with no names or amounts reported despite the promise of DOE to reveal this information at least a month ahead of the votes.

Lack of any assessment of quality of services delivered

DOE spends vast amounts of money on professional development -- $70 million has been approved since October of 2105 -- without any assessment of the efficacy of this spending.   This month the requested funding is another $500,000.

For numerous textbook and online program contracts, there are no comparative evaluations of quality or market research as to why these particular vendors were chosen; with less analysis offered than in the detailed description of why a particular vendor for snow tire chains was selected.

Rationale for Bard College funding is unclear

The proposal to pay Bard College nearly a million dollars for additional services to the two Bard High schools, which are both highly selective schools with comparatively few high-needs students, does not appear to be aligned with their Fair Student Funding system.

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