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City approves higher bid because competitor failed to reach minority goals

Mayor Rawlings-Blake stands firm on minority contracting goals. The winning bidder was a big contributor to her election campaign.

west lexington st 103

P&J Contracting got the job to reframe the facade and roof of 103 W. Lexington St. (center) for $146,000 more than the low bidder.

Photo by: Fern Shen

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The city Board of Estimates batted aside a protest and awarded a downtown building contract to a politically wired company that’s nearly double the price of the low bid.

The low bidder was ruled “noncompliant” by the city because it reached only 27% minority participation goals rather than 37%. In cash terms, this involved a difference of about $20,000

As a result, P&J Contracting Co. got the job for the structural rehabilitation of 103 W. Lexington Street for $343,800, as opposed to Bob Andrews Construction Co.’s bid of $197,800.

P&J is headed by Pless B. Jones Sr. who, as president of the Maryland Minority Contractors Association, hired former Mayor Sheila Dixon in March 2010. This took place several weeks after Dixon left the mayor’s office as part of a plea deal to settle criminal charges of embezzlement.

Dixon is currently MMCA’s director of marketing.

Unsympathetic Board

In protesting the award to P&J Contracting, Bob Andrews found an unsympathetic audience at today’s Board of Estimates meeting.

“We could have met the goals easily,” Andrews told the board, “and we were under the assumption we had met it.”

By goals he meant the 27% goal set by surrounding counties and the state of Maryland. These jurisdictions combine women-owned businesses as part of the 27% goal, while Baltimore city has a separate 10% goal for women, making the overall goal 37%.

A tree grows on top of the vacant city owned 103 W. Lexington. (Photo by Fern Shen)

A tree grows on the upper facade of 103 W. Lexington when this photo was taken in July. (Photo by Fern Shen)

“We don’t list them [minority and women goals] combined because they are separate,” said Shirley A. Williams chief of the city’s Minority and Women’s Business Opportunity Office. Williams said P&J Contracting was in compliance with city rules with 39% minority-women’s participation.

Andrews said the rules were vague and hard to understand – even his lawyer was under the impression that the city’s overall goal was 27%.

“It would be so easy to write this in language that contractors can understand,” he told the board. “The state certifies white female firms as minority businesses. So do the counties. But the city is off on its own different tangent.”

Dressed Down by Mayor

Andrews’ remarks elicited a strong response by Mayor Stephanie Rawlings-Blake, who sits on the board alongside City Council President Bernard C. “Jack” Young, City Comptroller Joan M. Pratt and two other officials.

“It’s not an English [language] issue, it’s a business terminology issue,” she said sharply, explaining that “we just don’t sign onto the state[’s goals]. . . We tailor our laws to meet the needs of our business community and the climate in the city.”

Contractors who do business with the city must be compliant with city law. “The fact that you don’t understand it doesn’t make it vague,” she added.

Rawlings-Blake invited Andrews to work with city officials and bid on future city contracts before the board unanimously voted to reject his protest and accept the P&J contract.

While the mayor called the matter “an unfortunate misunderstanding,” Andrews, who had never before bid on a city contract, was bitter.

“This whole thing’s a joke,” he said after the meeting. “We don’t need this contract, but the people of Baltimore need to know that a lot of money is being wasted by misapplying MBE [minority business enterprise] goals.”

Campaign Contributions to Rawlings-Blake and Young

P&J Contracting and Pless Jones have been strong supporters of the political aspirations of Rawlings-Blake and Council President Jack Young.

Jones has personally contributed $4,000 to Rawlings-Blake campaign committees, while P&J Contracting added $4,000 – the maximum contribution allowed – to her mayoral election kitty, state election board records show.

He and his wife, the lobbyist Lisa Harris Jones, were members of the host committee that raised $600,000 for Rawlings-Blake at a January fundraiser at the Hippodrome Theatre.

P&J Contracting gave $2,000 to Jack Young’s successful bid to win the primary race as city council president. Jones personally chipped in $500 to an earlier Young committee.

On the state level, where individual donations are not limited to $4,000, P&J Contracting has forked over $20,000 to the Democratic State Central Committee. It has also given generously to the campaign committees of Gov. Martin O’Malley and Lt. Gov. Anthony G. Brown.

P&J has been the recipient of more than $25 million in city contracts, mostly for demolition. These include $12.1 million for tearing down 500 rowhouses for the East Baltimore Development, Inc., $6 million to demolish scattered housing for the city Department of Housing and Community Development, and $2.6 million for the implosion of Lexington Terrace, a high-rise public housing complex.

Jones attended today’s meeting, but was not asked by the board to respond to the low bidder’s protest.

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  • http://baltomatic.com Lars Peterson

    I guess I will have to revise my estimates of the total cost to the public of rehabilitating these properties.  I had figured that this part of the project would cost  $240,555, which is the amount that the BDC transferred to an active account in July.  The award granted today is over $100K more than that.  More details here: http://www.flickr.com/photos/larspeterson/4971950124/in/set-72157624754485636/ 

    • Anonymous

      FromBBrew: Lars, you are exactly right. A conclusion to be drawn: it’s fine with the city to award a contract that’s 43% higher than its own estimate ($343,800 v. $240,555), but terrible to miss a minority requirement that involved a $20,000 shortfall. Should the city have given low bidder, Andrews Construction, the opportunity to meet the 37% minority requirement?

  • Wilsonsmailbox

    So because the company did not have 10% woman ownership the people of Baltimore City overpay by $146,000?? This is why we are paying $2.268 per $100 assessed on our property tax while the county pays less than half that rate.

    • A Contractor

      This is not correct.  The contract bid documents required two seperate subcontractor/supplier participation goals of 27% MBE & 10% WBE.  The contractor misinterpreted the bid documents and believed that the WBE goal was part of and not exclussive of the MBE goal.  The contract language is not ambiguous.  Opinions vary concerning the value of MBE/WBE goals (requirements) to the City’s taxpayers.  However, in this particular case the Board made a legally correct award.  The apparent low bidder was “non responsive” and not elegible for award.

      That said, the wisdom of recommending a contract award at 140% of the budgeted value is open for debate.

      • Rodney

        The  MBE/WBE goals are not up for debate, and the BOE certainly made the legally correct award. That said, a sensible Board would have reevaluated the process and worked with the low-bid contractor to meet the requirements. Awarding a contract so far above budgeted value is poor wisdom and worst, poor governing.

        • Left the mill

          the MBE/WBE goals are certainly up for debate. a free market is supposed to operate like a free market, not be dictated by superfluous laws with no evidence to support them
           

  • UpperFells

    Welcome to Baltimore, folks. People wonder why we have white flight to the suburbs. The crime, grime, and schools are enough, but then we get the Mayor(s) taking away fairly bid projects from white contractors and handing them to MBE’s that bid far above the true project cost. P&J makes a huge profit and then gives part of it back to the city’s political machine with campaign donations to SRB, Jack Young, Joan Pratt and AME Bethel.  

    I wonder why we don’t just move to 50% MBE requirements. That would be fair. 

    Keep screwing whitey, Baltimore. And keep crying racism the whole time. 

    • Gerald Neily

      You didn’t mention Black Flight, which has also become a major force in this city – equal opportunity regardless of race.

  • Ktrueheart

    While not part of your discussion here is the fact that the winning Bid was more than $100,000 above the amount put in the City’s budget for this contract action.  In my book all of the bids should have been disqualified and the action should have been resolicited.   Your article seems to be on point that this contract was destined for P&J regardless of what rules had to be bent or circumvented.

  • Edfitz

    Another example of “You get what you pay for”…
    This is just the start of $1.4 million in pre-paid favors for the next 4 years.

  • Rocco

    Rules are rules. Every other contractor that bids work for the City understands them. Are we supposed to make an exception for this guy?

  • Christopher Boyle

    “Corruptus in Extremis”

  • Bgogel

    Does anyone really think that a Board headed by Stephanie will be predisposed to do Sheila any favors???  Why even make the implication???

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