Report questions Wayne County contracts

BY ALEJANDRO BODIPO-MEMBA
FREE PRESS STAFF WRITER

A political war of words is escalating in Wayne County government between Executive Robert Ficano and vestiges of the Ed McNamara administration in the wake of a new inspector general report on county contracting practices released Wednesday.

At issue are what some Ficano administration officials call questionable contracting relationships initiated with the county through the former Department of Community Justice (now called the Department of Children and Family Services) during McNamara's tenure as county executive. Questions about the relationships stem from allegations of cronyism, no-bid contracts and conflicts of interest involving the Department of Children and Family Services.

In the 28-page report, Inspector General David Esper said the former Department of Community Justice (DCJ) failed to bid out two multiyear contracts for the operation of an 80-bed secure juvenile treatment facility. One contract was with Calumet Center for $20 million and one with Spectrum Human Services Inc for $25 million.

The report also found best practices were not being employed when considering how contracts with Wayne County were awarded.

Spectrum Human Services is a nonprofit child services agency. Calumet is a short-term juvenile detention center in Highland Park.

In June, Ficano ordered a review of contracts in the Department of Children and Family Services, which has an annual budget of more than $170 million.

"There has been some reliance on the use of sole-source contracts as a means of steering contracts to certain persons on the part of the previous administration," Esper said. "We believe a competitive bidding process should be employed whenever possible to ensure a level playing field and the appearance of propriety."

Esper recommended that the Spectrum contract be re-examined and possibly rebid when it ends in December 2005. He also said the county has the right to terminate the contract without cause, at any time, upon 30 days written notice.

But Roger Swaninger, president and chief executive officer of Westland-based Spectrum Human Services said the original contract was competitively bid and won by his company.

"I respect the role of the inspector general, but the fact remains that we followed all the county's policies and procedures in the sole-source renewal of this competitively bid contract," Swaninger said.

Esper also alleged that some former McNamara staffers tried to manipulate contracting processes during the transition of administrations late last year and in effect create an "underground county government" in order to undermine the Ficano administration.

Critics of Esper's report call it a politically motivated document designed to tarnish the reputations of several key figures of the former McNamara administration.

Among those named in the report were Jeriel Heard, director of the community justice department from 1997 to 2002, and Wayne County Sheriff Warren Evans. Heard is alleged to have steered a lucrative contract to a company -- Evans Solutions Inc. -- co-founded by Evans and run by the sheriff's brother, Blair Evans.

"The allegation that the Spectrum contract is a no-bid contract is spurious," Heard said. "There is absolutely no conflict of interest. In fact, Mr. Esper said to me during our interview that he saw nothing that we did was illegal, immoral or unethical."

In January 2001, prior to any renegotiations involving Evans Solutions and Spectrum, Warren Evans said he put his interest in Evans Solutions in a blind trust to avoid the appearance of impropriety. In December 2002, Evans said, he sold his interest in the company.

The credibility of Esper's report also was questioned by several juvenile justice activists. They said there are a number of factual errors.

Dale Yagiela, executive director of the Plymouth-based Growth Works, one of five organizations that provide case management services for the Western Wayne County Care Management Organization, said Esper's report inaccurately accuses Growth Works board members of also being directors of a private information technology company.

Esper said Growth Works board members Rita Lowenstein, Marsha Bianconi, Jean Tabor, Janet Volante and Chuck Allegrina also are directors of Business Technology Solutions, a supplier to their care management organization.

"None of these people have any involvement in Business Technology," said Yagiela, whom Esper interviewed. The report also said Yagiela was both a board member of Growth Works and Business Technology Solutions -- another claim Yagiela said was false.

Esper bristled at the assertion that he and Ficano are playing politics.

"This is not a witch hunt and we're not looking to blame people here," he said. "As a general philosophy, we believe the procurement process shouldn't be used as a political tool."