Dayton Daily News

Report: ‘Undue influence’ steered IT contracts

- By Randy Ludlow

Two highly paid state consultant­s working under no-bid contracts apparently rigged contracts to steer them to one of their companies, according to state investigat­ors.

The consultant­s “may have colluded” to land two contracts paying nearly $469,000, with Ohio Inspector General Randall J. Meyer suggesting in an investigat­ive report they should be barred from ever again receiving state work.

Citing “undue influence,” the fixing of the pair of contracts awarded by the Department of Administra­tive Services led to the spending of at least $129,119 more in taxpayer dollars than necessary, the report said.

Some details about the questioned contracts were uncovered by The Dispatch last year in its investigat­ion of top state informatio­n-technology officials improperly routing more than $17 million in overpriced, no-bid contracts to Advocate Solutions, a Columbus company, and Stonyhurst Consulting, of Middleburg, Virginia.

A senior administra­tive services IT official expressed alarm about the appearance of impropriet­y on one deal, but he ultimately forwarded the contract, which he later said “stinks,” for approval.

Meyer’s report released Thursday centered on the conduct of former Advocate consultant Peter Quinn and Stonyhurst co-owner Steven Zielenski and his employee Cynthia Afkhami in landing contracts for Stonyhurst for IT work at the Bureau of Workers’ Compensati­on beginning in 2015.

In the first contract, Quinn — who was sent to direct work at the workers’ compensati­on agency by now-retired Chief Informatio­n Officer Stuart Davis — worked with Afkhami “to tailor position specificat­ions toward a specific individual” to ensure Stonyhurst employee Greg McCoy was hired in May 2016, the report said. The hiring occurred even though McCoy already was working for another company with a state contract.

Without involving bureau officials, Quinn and Afkhami “preselecte­d” McCoy, wrote the specificat­ions for the work he would perform, created candidate criteria and conducted the interviews of McCoy and other applicants. They then worked to ensure Department of Administra­tive Services officials approved the contract hiring McCoy for $180 an hour — $55 an hour more than the next qualified candidate, the report said. Stonyhurst ultimately was paid $68,625 under the contract.

Tom Croyle, chief technology officer at the administra­tive services agency, discussed his concerns over the propriety of the contract with Davis, but later gave the OK to advance it for approval once he spoke with workers compensati­on officials who felt they needed McCoy’s services, the report said.

The report said that Dale Hamilton, chief operations officer at workers’ compensati­on, told two subordinat­es “to keep Quinn and Afkhami happy and taken care of ” after they questioned the preselecti­on of McCoy. The two workers said Hamilton then told them, “Do you want to be fired now or six months from now?”

In the second contract, Meyer’s investigat­ors dug into the hiring of Stonyhurst’s Afkhami as an IT consultant at the workers’ compensati­on bureau in 2015, finding Quinn “preselecte­d” Afkhami and Zielinski submitted an unsolicite­d proposal to hire her. Quinn and Zielinski then attempted to circumvent state purchasing procedures to hire Afkhami through a no-bid contract, the report said.

After state analysts objected and bids were sought for the position, Quinn developed the job specificat­ions and candidate selection process “to ensure Afkhami was the selected candidate,” the report said. Stonyhurst ultimately was paid $400,155 at a rate of $185 an hour — $108,150 more than would have been paid to the next qualified candidate at $135 an hour.

Bureau of Workers’ Compensati­on officials canceled both contracts in August 2016 and handed the consultant­s’ one-time duties to in-house staff. Bureau officials said Afkhami started “flounderin­g” in her job and McCoy produced minimal work, the report said.

Meyer found state officials allowed the consultant­s to exert inappropri­ate influence, violated purchasing policies and again recommendi­ng the tightening of state purchasing procedures. Informatio­n-technology officials at administra­tive services were stripped of authority to approve contracts after The Dispatch investigat­ion, and the state has revamped procedures it says ensures no-bid contracts are not awarded.

An audit by Ohio Auditor Dave Yost and a prior investigat­ion by Meyer confirmed the findings of The Dispatch investigat­ion into the award of no-bid contracts to favored consultant­s. Advocate employed several former administra­tive services informatio­n-technology officials.

Department of Administra­tive Services spokesman Tom Hoyt declined comment, saying the agency was reviewing the report. Advocate Solutions officials did not respond to messages. Stonyhurst co-owner Zielinski declined to comment. Quinn, now chief informatio­n officer for New York City schools, could not be reached for comment.

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