#MTGov Daily Rundown: Legislator Takes Bullock Admin to Task Over Marketing Contract
Rep. Ken Holmlund has joined a growing chorus of elected officials and newspaper editorial boards questioning Bullock's commerce department for awarding a state contract to a Wisconsin firm under questionable circumstances, costing Montana jobs.
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"One such event is the Montana Department of Commerce granting a Montana tourism contract to a Wisconsin firm with little or no experience in destination or tourism marketing, even though several Montana firms applied for the contract and had the necessary credentials to do the job. This contract is for $7 to $9 million in Montana tax dollars a year.
Let’s look at the known facts. A deadline had been set for applications and was known by all parties for months. A few hours before the deadline it was extended to allow for all parties to have time to submit the application.
The extension alone is not terribly troubling until you realize that the Jennifer Pelej, the Department of Commerce Bureau Chief, who is heavily involved with awarding this contract, just happens to have a cousin who is a VP account supervisor with the Wisconsin firm Hoffman York. Suddenly the plot thickens, but it gets worse." -Rep. Ken Holmlund, Billings Gazette, 9/10/2016
Holmlund then asked the important question of why a lack of oversight exists at the Montana Department of Commerce.
"I am sure there is more to be revealed about this contract but at best it stinks of blatant cronyism when an out-of-state company gets a contract this large even though they have no experience in the field. Why weren’t Gov. Steve Bullock and Commerce Director Meg O’Leary paying closer attention to this process? Were they complicit in allowing this to happen? I believe honest answers to the citizens of Montana are required from our leaders. No more cronyism and favoritism with our tax dollars." -Rep. Ken Holmlund, Billings Gazette, 9/10/2016
Holmlund then asked the important question of why a lack of oversight exists at the Montana Department of Commerce.
"I am sure there is more to be revealed about this contract but at best it stinks of blatant cronyism when an out-of-state company gets a contract this large even though they have no experience in the field. Why weren’t Gov. Steve Bullock and Commerce Director Meg O’Leary paying closer attention to this process? Were they complicit in allowing this to happen? I believe honest answers to the citizens of Montana are required from our leaders. No more cronyism and favoritism with our tax dollars." -Rep. Ken Holmlund, Billings Gazette, 9/10/2016
Another Montana newspaper is taking the Bullock Administration's Department of Commerce to task over the questionable circumstances surrounding the awarding of the state marketing contract to an out-of-state firm.
"The awarding of a $7 million contract to an out-of-state firm to promote Montana tourism may be technically justified. But the complexity and seemingly arbitrary nature of the bid-awarding process was less than satisfying.
All else being equal — or even close to equal — the bidding process should favor a Montana company for the award of a state contract of this size.
The Bozeman ad agency MercuryCSC has held the contract with the state tourism office for the last 10 years but chose not to bid to renew the contract — apparently because of some friction between the company and state officials." -Bozeman Daily Chronicle, 9/4/2016
The Chronicle editorial board notes the questionable circumstances being the extension of the deadline, and the fact that a senior state tourism official has a cousin who works as an executive for the out of state firm that received the contract.
"And with little explanation, the process was stretched out when a deadline was extended for part of the bid submission process. Add to that the fact that a senior state tourism official has a cousin who is a vice-president in the Wisconsin firm that won the contract and it all gets even murkier, though other state officials saw no conflict in the relationship." -Bozeman Daily Chronicle, 9/4/2016
"But when the process of evaluating bids becomes as complex and cloudy as this one was, its effectiveness has to be questioned." -Bozeman Daily Chronicle, 9/4/2016
Many across Montana were surprised by last month's news that the Bullock Administration's Department of Commerce was awarding it's $7 million tourism marketing contract to a firm in Wisconsin, Hoffman York. Several Montana companies were competing for the contract. The contract was previously held by Bozeman-based Mercury CSC, leading to new questions about the evaluation process.
"The department awarded the contract to Milwaukee agency Hoffman York at the beginning of August using a point system it says is objective to evaluate bidders. But several agencies involved in and familiar with the bidding argue that the process is far from scientific and that the state demonstrated strange behavior bordering on favoritism. "-Bozeman Daily Chronicle, 8/22/2016
Interestingly, Jennifer Pelej, bureau chief for the tourism office's marketing department, disclosed a month into the process that she has a cousin who works as an executive for Hoffman York. Pelej also used to work for the Wisconsin Department of Natural Resources.
"More than a month into the selection process, Pelej also disclosed that her cousin, Jaime Hutchings, works for Hoffman as a VP account supervisor." -Bozeman Daily Chronicle, 8/21/2016
Pelej is also a former employee of the anti-coal National Wildlife Federation.
For some reason, the rules were changed at the last minute, and scores changed dramatically. Critics of the contract award have also noticed that, somehow, an out-of-state company scored much higher on "understanding the Montana brand than the Montana based companies.
"Questions arose early on when officials unexpectedly extended the deadline for the agencies to submit their first response — a 100-plus page document that applicants had weeks to prepare — five hours before it was due. When asked by an applicant about the reason for the extension, Procurement Unit Supervisor Tia Snyder wrote that the state wanted “to give all Offeror’s (sic) a chance to better prepare their response to this solicitation.” -Bozeman Daily Chronicle 8/21/2016
The Great Falls Tribune editorial board has also questioned the contract.
"We think Montanans should be able to feel confident that this new contract was awarded solely on the basis of merit, but the subjective ranking system doesn’t instill that confidence, especially with a relative working at the contract winner. Professional services are not subject to competitive bidding laws in Montana, but that doesn’t mean state government should give away the dairy farm as if it’s a bowl of cottage cheese." -Great Falls Tribune, 8/26/2016
This isn't the first time that Bullock Administration officials have been questioned about possible conflicts of interest in the awarding of state contracts. Earlier this year, news broke that a Bullock Administration official had direct ties to a Butte based non-profit from which the state leased a facility in Galen to house some of the patients from the closing Montana Developmental Center in Boulder.
“There was no competitive bidding process to award the Galen lease. In fact, officials said Wednesday they didn’t even look at potential alternatives to the $1.2 million annual agreement.
That's how the state’s newest landlord became Community Counseling and Correctional Services -- a Butte-based nonprofit that employs Brandie Villa, a top company accountant and the wife of Governor’s Office Budget Director Dan Villa.
The move has left some wondering how a building owned by Brandie Villa’s bosses -- one that might have sat vacant and heavy on CCCS’ books, in the absence of a state-backed lease -- suddenly became Montana’s first and only choice to house a mental health facility.” -Helena Independent Record, 4/8/2016
The Chronicle editorial board notes the questionable circumstances being the extension of the deadline, and the fact that a senior state tourism official has a cousin who works as an executive for the out of state firm that received the contract.
"And with little explanation, the process was stretched out when a deadline was extended for part of the bid submission process. Add to that the fact that a senior state tourism official has a cousin who is a vice-president in the Wisconsin firm that won the contract and it all gets even murkier, though other state officials saw no conflict in the relationship." -Bozeman Daily Chronicle, 9/4/2016
"But when the process of evaluating bids becomes as complex and cloudy as this one was, its effectiveness has to be questioned." -Bozeman Daily Chronicle, 9/4/2016
Many across Montana were surprised by last month's news that the Bullock Administration's Department of Commerce was awarding it's $7 million tourism marketing contract to a firm in Wisconsin, Hoffman York. Several Montana companies were competing for the contract. The contract was previously held by Bozeman-based Mercury CSC, leading to new questions about the evaluation process.
"The department awarded the contract to Milwaukee agency Hoffman York at the beginning of August using a point system it says is objective to evaluate bidders. But several agencies involved in and familiar with the bidding argue that the process is far from scientific and that the state demonstrated strange behavior bordering on favoritism. "-Bozeman Daily Chronicle, 8/22/2016
Interestingly, Jennifer Pelej, bureau chief for the tourism office's marketing department, disclosed a month into the process that she has a cousin who works as an executive for Hoffman York. Pelej also used to work for the Wisconsin Department of Natural Resources.
"More than a month into the selection process, Pelej also disclosed that her cousin, Jaime Hutchings, works for Hoffman as a VP account supervisor." -Bozeman Daily Chronicle, 8/21/2016
Pelej is also a former employee of the anti-coal National Wildlife Federation.
For some reason, the rules were changed at the last minute, and scores changed dramatically. Critics of the contract award have also noticed that, somehow, an out-of-state company scored much higher on "understanding the Montana brand than the Montana based companies.
"Questions arose early on when officials unexpectedly extended the deadline for the agencies to submit their first response — a 100-plus page document that applicants had weeks to prepare — five hours before it was due. When asked by an applicant about the reason for the extension, Procurement Unit Supervisor Tia Snyder wrote that the state wanted “to give all Offeror’s (sic) a chance to better prepare their response to this solicitation.” -Bozeman Daily Chronicle 8/21/2016
The Great Falls Tribune editorial board has also questioned the contract.
"We think Montanans should be able to feel confident that this new contract was awarded solely on the basis of merit, but the subjective ranking system doesn’t instill that confidence, especially with a relative working at the contract winner. Professional services are not subject to competitive bidding laws in Montana, but that doesn’t mean state government should give away the dairy farm as if it’s a bowl of cottage cheese." -Great Falls Tribune, 8/26/2016
This isn't the first time that Bullock Administration officials have been questioned about possible conflicts of interest in the awarding of state contracts. Earlier this year, news broke that a Bullock Administration official had direct ties to a Butte based non-profit from which the state leased a facility in Galen to house some of the patients from the closing Montana Developmental Center in Boulder.
“There was no competitive bidding process to award the Galen lease. In fact, officials said Wednesday they didn’t even look at potential alternatives to the $1.2 million annual agreement.
That's how the state’s newest landlord became Community Counseling and Correctional Services -- a Butte-based nonprofit that employs Brandie Villa, a top company accountant and the wife of Governor’s Office Budget Director Dan Villa.
The move has left some wondering how a building owned by Brandie Villa’s bosses -- one that might have sat vacant and heavy on CCCS’ books, in the absence of a state-backed lease -- suddenly became Montana’s first and only choice to house a mental health facility.” -Helena Independent Record, 4/8/2016
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