EPISD: Internal Audit reveals indicators of vendor favoritism and bid tailoring

An internal audit by the El Paso Independent School District reveals indicators of favoritism, insider information, and bid tailoring.

The audit that was posted on the district’s website Friday focuses on one request seeking various services from San Diego company GAFCON.

This all begins with the $668 million bond that voters approved in 2016.

In May of 2017 a request for qualifications for bond program management services was published seeking oversight of bond program manager Jacobs Engineering.

The audit revealed a needs assessment was not performed or documented and key stakeholders were not included or asked to participate in determining whether the district needed bond program management advisory services.

This is where indicators associated with vendor favoritism, insider information, and bid tailoring come into play.

In April 2017, two weeks before the release of the request for services was issued, District Superintendent Juan Cabrera along with a board member and member of the Citizens Board Advisory Committee, met with representatives from GAFCON.

The audit states that meeting gives the appearance the vendor was favored, had insider information, and was given the opportunity to get a head start on planning and preparing their proposal.

A statement by Cabrera within the audit states:

“I consult with vendors across many sectors about their products and services to determine how and
if they will generally fit in our infrastructure and with our framework. In this particular instance, I felt it was appropriate to educate myself to Specifically understand the role an oversight company would play with Jacobs and with EPISD staff.”

A corrective action plan was created to address the findings in the audit.

The plan requests to develop a board policy that outlines the district’s commitment to procurement of ethics, transparency, impartiality, and accountability.

Also, the district’s procurement manual should include examples of when it is appropriate and not appropriate to meet with vendors for all employees.

That is just two of the corrective actions. There’s several more. If you’d like to see the timeline and corrective action plan you can click here.

The audit states it found the procurement process for the RFQ was conducted in accordance with district policies and state laws and regulations.

However, the audit goes on to say the presolicitation phase was not conducted in a strategic or transparent manner and these indicators are a warning of unethical practices.

The contract was awarded to GAFCON but the district later canceled the contract.

Cabrera sent ABC-7 this statement following the story Sat. afternoon:

“We are satisfied with the completion of the audit and that the findings affirm what we have stated – no laws or policies were broken. It is our intention to be transparent in all practices. We are committed to implementing the recommendations for best practices in order to be transparent in all proceedings.”