By Tim Smith CAPITAL BUREAU tcsmith@greenvillenews.com
COLUMBIA -- The chairman of the Senate Transportation Committee
says he will ask for a state review of two consulting contracts
totaling $250 million awarded for work on the highway department's
accelerated construction program.
The Greenville News reported Sunday that the contracts were
awarded in 1999 to two private firms rather than choosing to use the
agency's 1,476-employee engineering staff to do the work.
Sen. Greg Ryberg, an Aiken Republican who chairs the Senate
Transportation Committee, said the contracts are "a high amount of
money" and wants the Legislative Audit Council to review the
details.
"The LAC needs to take this information and judge the contracts
and the value and the amounts," he said.
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Elizabeth Mabry, executive director of South Carolina's
Department of Transportation, told the newspaper that every penny of
the fees paid to Fluor Enterprises and Parsons Brinckerhoff Quade
& Douglas was well spent and that the program the consultants
helped manage has become a model for the rest of the nation.
An official with one of the firms said the companies' work saved
the state about $122 million in design and construction costs.
Department of Transportation officials have said the agency's
engineering staff wasn't large enough to handle the $1.5 billion
worth of accelerated construction projects. They said it would have
meant adding 500 to an engineering staff that has since grown to
1,633.
Agency officials have never publicly said what it would have cost
to do the work using staff and didn't respond to questions posed by
The News about the estimated costs of hiring the extra workers.
But budget records of the department's engineering staff indicate
hiring 500 workers, based upon the average staff salary and taking
into account benefits, would have totaled $168 million over seven
years, or $90 million less than the contracts, according to an
analysis by the newspaper.
Joel Sawyer, a spokesman for Gov. Mark Sanford, said the
contracts go "back to a lack of accountability in this island of
government."
"We have some very profound infrastructure needs in this state
and this situation raises some very legitimate questions as to
whether or not those dollars are being used in the wisest possible
way," he said.
Sen. David Thomas, a Greenville County Republican who chairs the
Senate Banking and Insurance Committee, and Sen. Danny Verdin of
Laurens, who sits on Ryberg's committee, said they agree the
Legislative Audit Council should review the contracts.
"I think the Legislature should look at this," Thomas said. "This
is unbelievable."
Thomas said he is especially concerned that there appeared to be
no public analysis of options by Transportation Department
management or the agency board before choosing to hire the firms.
Some current and former highway commissioners who approved the
contracts now say they are surprised by the cost, and former
Transportation Department executive director B.K. Jones calls the
fees "outrageous."
Commission Chairman Tee Hooper, who was not on the board when the
contracts were approved, told the newspaper last week he thinks
there were other, less costly options open to the agency such as
hiring some workers and outsourcing some of the engineering work.
Hooper said he thinks having the Legislative Audit Council look
into the awarding of the contracts is "appropriate."
The highway department agreed to pay Fluor Daniel and Parsons
Brinckerhoff Quade & Douglas a total of $256 million plus
possible bonuses for their consultant work, according to copies of
the contracts obtained by the newspaper under the State Freedom of
Information Act.
The agency has paid the firms bonuses totaling more than $536,000
as a result of performance evaluations required by the contracts,
said Pete Poore, an agency spokesman.
Mabry told the newspaper she wasn't at the negotiations and
doesn't remember who in her agency participated.
"I'm sure there was give and take," she said. "I wasn't there. I
don't know that I was that involved in the process. But all
consultant contracts are negotiated." |