GOVERNMENT SPENDING
Senator criticizes Florida's privatization initiatives
A state senator is renewing his criticism of privatization over a no-bid contract.
BY MARC CAPUTO
Herald/Times Tallahassee Bureau
TALLAHASSEE -- The state's decision to consider a no-bid contract extension for a controversial human-resources company has renewed criticism from a leading state senator who says privatization initiatives have cost taxpayers $200 million with little to show for the money.
Senate budget chairman J.D. Alexander persuaded fellow lawmakers during the spring legislative session to increase scrutiny of large state contracts -- only to see Gov. Charlie Crist veto the proposal last week.
When Alexander got word Tuesday that the state's Department of Management Services might offer a five-year extension on a contract for state human resources services to Ohio-based Convergys, the Lake Wales Republican urged Crist to solicit bids for the contract.
''There have been problems with this vendor before, so I'm not sure it's a good idea to give them $44 million more a year without seeing if there's a better option out there,'' Alexander said.
Convergys stands by its work and issued a statement that said: ``The Legislature itself hired a third-party consultant to review the . . . contract and that consultant recommended the contract be renewed.''
But Crist agreed with Alexander, saying the project should be rebid. ''I think we always need open bids, good competition,'' Crist said. ``I think he's right on point. I agree with the senator.''
Still, Crist vetoed Alexander's contracting oversight bill, saying it went too far by requiring too much legislative oversight. Under one interpretation of the legislation, lawmakers would have had to sign off on some state agency purchases of items as insignificant as office furniture.
The contract to centralize and consolidate the state's massive payroll system was one of the first large-scale privatization efforts to draw fire in Florida, in 2002. Paychecks came late, cost savings were lower than anticipated, and some state employees worried about identity theft after personal data was released to a subcontractor in India.
As attorney general, Crist in 2006 persuaded a court to seal a whistle-blower complaint by a former Convergys employee. A judge criticized Crist as an unjustified ''interloper'' in the case. And the former employee filed an ethics complaint, alleging Crist became involved because his top fundraiser, Brian Ballard, is a Convergys lobbyist.
Both denied wrongdoing and the ex-employee's complaints were dismissed.
Alexander said the Convergys contract's problems are dwarfed by problems with other contracts, though, including the now-defunct Project Aspire, an attempt by BearingPoint and People Soft to streamline the state's accounting system.
Florida's chief financial officer, Alex Sink, pulled the plug on the operation in 2007.
Alexander said the state paid $100 million for that project and got almost nothing for it.
Troublesome contracts have bedeviled other agencies, as well, Alexander said. He cited other costly-yet-problematic contracts including those for a child welfare management system and an electronic-imaging system for the Department of Business and Professional Regulation.
Marc Caputo can be reached at mcaputo@MiamiHerald.com
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