Houston ISD moves to end vendor contract
Potential conflict of interest being probed involving administrator, tutoring provider
The Houston Independent School District, already embroiled in a bribery scandal involving its former chief operating officer, said Friday it has moved to terminate a contract with a vendor amid an investigation into a potential conflict of interest involving the company and an employee.
HISD confirmed the investigation after the Houston Chronicle began asking district officials about a potential conflict of interest involving district administrator Reginald Bush and BlazinBrook Management LLC, a company that contracts with the school district to provide tutoring services.
Bush is a former principal at Kashmere High School who most recently served as one of the district’s 32 school support officers. His name was listed among managers of a governing board for BlazinBrook in a June 2016 filing with the Texas Secretary of State.
The district issued a statement to the Chronicle acknowledging it previously had been made aware of allegations regarding a potential conflict of interest involving a vendor and an employee. It did not name the employee or the company under scrutiny. Nor did it indicate when or how the district became aware of the alleged conflict.
“Upon learning of the allegations, the district began an investigation that is being conducted by an external firm,” the statement read. “As a result of the ongoing investigation, no further comment will be provided at this time. In HISD, we take the procurement process and awarding of vendor contracts seriously while maintaining high expectations for vendors and staff.”
On Friday afternoon, HISD sent the Chronicle an updated statement that added: “In addition, the district has sent notice of termination of its contract with the vendor.”
District trustees approved a contract with BlazinBrook, which describes itself as a professional consulting firm, for tutorial services in October 2017.
The Texas Education Agency confirmed to the Chronicle it had received a complaint regarding the company but declined to elaborate, saying in a statement: “Since this is an ongoing matter, TEA cannot comment further.”
Bush forwarded an email asking for comment to the district’s press office. Further attempts to contact him were unsuccessful.
Patrick Brooks, the owner of BlazinBrook, told a reporter last week he started the company in 1990.
“I’m the only owner of this company,” he said in a brief telephone call. Brooks did not elaborate on whether he had done business with Bush. “I know more than one Reggie Bush,” he said. He did not respond to a follow-up email showing him the filing with the Secretary of State office.
Confirmation of the investigation came two days before federal prosecutors announced an indictment against the district’s former chief operating officer, who is accused of participating in a bribery scheme that saw HISD overbilled $7 million by a company hired to perform grounds maintenance and landscaping at several schools. Four other former district employees and former Board of Education president Rhonda Skillern-Jones have signed plea agreements with prosecutors in that case. Former COO Brian Busby and contractor Anthony Hutchison face a 26count indictment.
Procedures reviewed
In comments related to the Busby indictment Thursday, Superintendent Millard House II said he had ordered reviews of the district’s internal team and systems for contracting and vendors as well as a review of procurement procedures before he was even aware of the charges against the former top official.
“I knew this job was going to be hard,” House said. “We have 50 failing schools we must transform. We must overhaul our special education services, and we have to rebuild some of our schools. To do those things, I need thousands of exceptional educators to join this district, and we must regain the trust of Houston parents and taxpayers.”
Records show BlazinBrook Management was awarded a contract for tutoring services at the board’s Oct. 12, 2017, meeting. The approval was part of an agenda item that included a smorgasbord of vendors with contracts worth more than $100,000.
A filing with the Better Business Bureau shows the company has been in business for at least 11 years.
Invoices obtained under the Texas Public Information show the company provided a total of $500,718 over the last year in tutoring services to Burrus Elementary School, Cornelius Elementary School, Kashmere High School, Key Middle School and McGowen Elementary School. The invoices show the company provided tutoring in areas such as math and English language arts.
Since mid-December 2018, the district has paid BlazinBrook just over $1 million, according to HISD’s online check register, including a $21,760 payment Thursday.
Bush was named principal of Kashmere High in June 2018 after serving as the principal at Kashmere Gardens Elementary for three years, according to the district. Records show Bush became a school support officer — a role tasked with supporting and supervising principals at several schools in June.
The district spends about $10 million to $11 million a year on tutorial services, paying $11.2 million during fiscal 2021, records show.
The company’s contract with HISD was set to expire in January 2023.
Potential lapses
HISD policies prohibit school district employees, such as administrators, from conducting outside business that could impair their judgment.
“No superintendent, business manager, or any other person holding any position or employment under said board shall be directly or indirectly interested in any purchase, sale, business work or contract, the expense, price or consideration of which is paid from the school funds of said district,” the policy states.
The policy also states that “anyone violating this provision shall be discharged from services.”
Bush did not list any work with outside organizations in semi-annual disclosure statements covering periods from September 2014 to February 2016, according to a copy of his personnel file obtained through an open records request.
Houston ISD policy also requires the district to refer any unresolved questions or problematic recommendations to a Conflictof-Interest Review Committee for review of possible violations.
Business ethics experts and other public education leaders told the Chronicle such lapses in disclosure could trigger serious penalties, which could impact not just Bush but also other employees who played a role in the matter.
Other concerns have to do with optics for a school district that serves the public. Educators must base their decisions on what is best for schools and students.
“They need to make sure and do the best they can to make sure that whatever they’re responsible for, that organization is getting the best value,” said Homer Erekson, dean of the Neeley School of Business at Texas Christian University, who specializes in conflict-of-interest and ethics violations.
Conflicts of interest, or even the appearance of one, can hamper public trust in a government entity such as a school district, said Bob Stein, a political science professor at Rice University.
“It erodes public confidence,” Stein said. “It speaks to the heart of democracy: People trust government to do the right thing, to pick contractors, and to do the best for the students or government.”
“We have 50 failing schools we must transform. We must overhaul our special education services, and we have to rebuild some of our schools. To do those things, I need thousands of exceptional educators to join this district, and we must regain the trust of Houston parents and taxpayers.”
Millard House II, Houston ISD superintendent