FACTS about Public Roofing Procurement, and Oversight. Copyright 2010 by Robert R. Solomon

Friday, October 7, 2016

Purchasing Cooperative "Roofing Scam":

Friends: 

I don't know if this "Roofing Scam" is interesting, but it is very real.  The reason purchasing cooperatives ONLY include Roofing, and no other trades!!  Fascinating.  I guess we roofers can have the "leftovers" after the cooperative and government get done with the isolation, and bid rigging. 

Below, you will see actual contract documents, and verbiage.  Here, I do not consider emotion, but rather "measurable units".  It is a stark existence, but feel someone has to stand up, and guess I'm "It".

Simply put:  NEVER buy a roof through a purchasing cooperative.  You will be paying 50%-100% MORE, and receive an "average' roof at best.  Garland, and Tremco are the main culprits, and while everyone in roofing knows the scam, they are afraid.  I have no such inhibition, and and can eliminate the "retribution" aspect.  In other words, I get to play the "Bad Guy" 24 hours a day. 

There is not an administrator in this country that can justify such overspending.

The DOJ busted Tremco fosr $61,000,000.00, and now facing charges from the SEC.  The SEC is suing Tremco, ANDT their attorney (a big stockholder).  SEC is demanding a jury trial for both.  Two minutes of research will reveal the scam in infinite detail.  Also, look for Janet Campbell "School Roofing Scam".  Brilliant stuff.  Respect.

It is WRONG to steal from schools, and I don't like people who do it.  A personal problem I'm afraid.

For those of you keeping score, dig this:

.  

Here are some links on US Communities

US Communities News and Events- note sponsorship of events and production of webinars:

US Communities complimentary “Strategic Sourcing Summits”

Cobb County Purchasing Department is listed as “Lead Agency” for roofing on US Communities website and appears to solicit the nationwide roofing contract

US Communities website states “No User Fees – no costs or fees to participate”, but reading the Cobb County/US Communities agreement please note on page 56 of the pdf item 5.1 under Administration Agreement in this contract and share 5% of their fee with Cobb County Purchasing:

“5.1 Administrative Fees. Supplier shall pay to U.S. Communities a monthly administrative fee based upon the total sales price of all purchases shipped and billed pursuant to the Master Agreement, excluding taxes, in the amount of two percent (2%) of aggregate purchases made during each calendar month (individually and collectively, “Administrative Fees”). Supplier’s annual sales shall be measured on a calendar year basis. All Administrative Fees shall be payable in U.S. Dollars and shall be made by wire to U.S. Communities, or its designee or trustee as may be directed in writing by U.S. Communities. Administrative Fees shall be due and payable within thirty (30) days of the end of each calendar month for purchases shipped and billed during such calendar month. U.S. Communities agrees to pay to Lead Public Agency five percent (5%) of all Administrative Fees received from Supplier to help offset Lead Public Agency’s costs incurred in connection with managing the Master Agreement nationally.”

There are also provisions in the vendor agreement that appear to be more applicable to an organization that is trying to maximize sales vs. a cooperative that is trying to save its users money, such as:

“(d) Sales Commitment. Supplier shall market the Master Agreement through Supplier’s sales force or dealer network that is properly trained, engaged and committed to offering the Master Agreement as Supplier’s primary offering to Public Agencies. Supplier’s sales force compensation and incentives shall be greater than or equal to the compensation and incentives earned under other contracts to Public Agencies.”


Cobb County is listed on US Communities Advisory Board:

Another whistleblower case involving procurement through cooperative:




Interesting article about an association that has come out against sole-source contracting due to the above case:


Joe Tommie is Cobb County's Purchasing Director, and he's out filming commercials for Garland on the taxpayer's dime.  Smells rotten, because it is.

I depend upon the GREED of others, and watch them move like plodding dinosaurs.  All I have to do is remember how important money is to them, and can figure it out from there.  Super predictable.  

I will be spending more time with you here, and offer a "Table of Contents' to make searches easier.

Reject negativity in all forms, and always remember to keep looking "UP" 

I am very thankful for the time you spend with me here, and we are making progress.  

Respect.

Robert R. "Ron" Solomon
Director, Roof Consultant's Alliance (5,000 members)
Public Procurement Analyst
CCC 1325620
RobertRSolomon@aol.com

Wednesday, September 14, 2016

RPM (Tremco) Facing SEC Fraud Case.

Thank you to the wonderful people at Durability + Des8ign.
http://www.durabilityanddesign.com/news/?fuseaction=view&id=15485

Note the SEC is demanding a jury trial.  
This is going to get ugly, and not long after the DOJ fined them $61,000,000.00 for abusing GSA contracts.  If Tremco fell of the earth's surface tomorrow, nobody would miss them.

Purchasing Cooperatives who enable them are just as responsible, and I hope they get a good "Wut Fer" as well.




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RPM Faces SEC Fraud Case

Wednesday, September 14, 2016

More items for Building Envelope
Comment|More

The U.S. Securities and Exchange Commission has charged RPM International Inc. and its general counsel with disclosure and accounting fraud stemming from a Department of Justice investigation regarding roofing materials and services provided to the government.
According to the agency’s statement, RPM and Edward W. Moore, 59, “failed to disclose a material loss contingency, or record an accrual for, a government investigation when required to do so under governing accounting principles and securities laws.”
Meanwhile, RPM leaders say the allegations are without merit.
Tremco Case
The SEC’s complaint, filed Friday (Sept. 9), says that from 2011 through 2013, RPM and its subsidiary Tremco Inc.—a manufacturer of roofing materials, construction sealants and waterproofing systems—were under investigation by the DOJ for overcharging the government on certain contracts.
RPM settled the DOJ investigation and litigation for $65.1 million in August 2013.
accounting
© iStock.com / Sky_Blue
The SEC announced it had lodged a disclosure and accounting fraud case against RPM International for failing to disclose a loss contingency or record an accrual for an investigation by the Department of Justice.
As RPM's general counsel and chief compliance officer, Moore allegedly oversaw RPM's response to the DOJ investigation, the SEC said. However, Moore did not inform RPM's CEO, CFO, Audit Committee, and independent auditors, of material facts about the investigation, the complaint alleges.
For example, Moore reportedly “knew but failed to inform” RPM executives that:
  • RPM sent DOJ estimates showing RPM's subsidiary overcharged the government on the contracts under investigation by a material amount;
  • RPM agreed to submit a settlement offer by a specific date to resolve the DOJ investigation; and
  • Prior to submitting the settlement offer to DOJ, RPM's overcharge estimates increased substantially to at least $28 million.
Misleading Documents
The SEC alleges that RPM filed multiple false and misleading documents with the SEC because of Moore’s actions. For example, RPM allegedly failed to disclose in its SEC filings:
  • Any loss contingency related to the DOJ investigation, or to record an accrual on its books, when required to do so by governing accounting principles and the securities laws; and  
  • A material weakness in its internal control over financial reporting and its disclosure controls when in fact such weakness existed.
“Because of RPM’s false and misleading SEC filings, investors were not timely informed that a material loss relating to the DOJ investigation was reasonably possible or probable,” the complaint states. “Investors also were not timely notified of a material weakness in RPM’s internal control over financial reporting and its disclosure controls.”
In August 2014, RPM did restate its financial results for three quarters that occurred during the DOJ investigation and filed amended SEC filings for those quarters, disclosing the DOJ investigation and related accruals, the commission said in its announcement. In the restated filings, RPM also disclosed errors relating to the timing of its disclosure and accrual for the DOJ investigation.
RPM
RPM International
The DOJ investigation in question occurred between 2011 through 2013, when RPM and one of its subsidiaries—roofing materials, construction sealants and waterproofing systems company Tremco Inc.—were under scrutiny for overcharging the government on certain contracts.
“RPM’s restatement thus confirmed that the company’s original SEC filings referenced above were materially false and misleading,” the complaint notes.
Rules Cited
The SEC's complaint charges RPM with violating specific antifraud provisions of the federal securities laws of the Securities Act of 1933; reporting provisions of the federal securities laws of the Securities Exchange Act of 1934 and rules thereunder; and the books and records and internal controls provisions of the federal securities laws of the Exchange Act.
The complaint also charges Moore with violating certain sections of the Securities Act and rules under the Exchange Act.
The complaint seeks permanent injunctions, repayment of “ill-gotten gains” plus interest and penalties.
RPM’s Response
In response to the enforcement action, RPM’s CEO, Frank C. Sullivan, issued a statement Friday asserting that “the restatements had no impact on the audited results for the fiscal year ended May 31, 2013, and the company's audit committee concluded that there was no intentional misconduct on the part of any of its officers.”
Sullivan added: "We believe the allegations have absolutely no merit and are the product of prosecutorial overreach. We intend to vigorously defend ourselves and expect our position to be vindicated in court."
Further, RPM filed a Form 8-K with the SEC on Friday, stating that the company has “cooperated with the SEC’s investigation and believes the allegations mischaracterize both the company’s and Mr. Moore’s actions in connection with the matters related to the company’s quarterly results in fiscal 2013 are without merit.”
The filing also noted its confidence in Moore’s integrity and conduct.
RPM International is the parent company of Carboline, Tremco and dozens of other coating, sealant and chemical brands. The company is based in Medina, OH.
The SEC has demanded a jury trial.
--------------
Reject negativity in all forms, and always remember to keep looking "UP".
Respect.

Ron

Thursday, September 1, 2016

AEPA Purchasing Cooperative and RCI.

Friends:

This is another example of a fake "Line Item' bid scheme.   Fill out 55 pages of "Line Items", just so they can pick a single favorable line item for their "Preferred Vendor".

Let me make a prediction:  AEPA will choose one of the following:  Tremco, or Garland.  They're the only ones who perpetrate in such heinous abuse of taxpayers.

I want RCI to "Stand Up", and tell AEPA :  NO LINE ITEM BIDDING.  No estimator in this country (or anywhere else) can determine the price of a roof from a "list".  There are just too many variables in figuring these projects, and NO LIST on earth can produce a hard bid.  Can't do it.

What their "list" says is the exact opposite of how any roofing professional estimates are done.

AEPA Pre-bid Conference Call
Registration - Today
During its ongoing effort to track activities related to the use of cooperative purchasing in public school systems re-roofing projects, RCI has been made aware of the Association of Educational Purchasing Agencies (AEPA) solicitation below.
Good afternoon,  the AEPA is soliciting bids for the a national contract (20 states) for roofing and building envelope services, which includes materials, restoration and installation.   Tomorrow is the first deadline for submittal of registration for a conference call that will be held on September 7, 2016 at 1:00 Eastern time.   The registration to participate in the conference call must be submitted by tomorrow before 3:00 PM.
Also included on this e-mail is the pricing spreadsheet (see supplemental information below) that shows how the points are allotted for various parts of contract offer. There are a total of 10 forms that need to be submitted for the bid.  These forms are on the Public Purchase website. You have to register on the website to access the bid solicitation.
The bids are due October 5th and will be publicly opened at a school in Michigan.
Supplemental Information:
This information is intended for any RCI Consultant  member who may have an interest in learning more about this activity. We realize the time is short for anyone to register to participate in the teleconference, but we just learned of this notice. If you decide to register to  participate in the teleconference, we would appreciate notification for our records only. 


http://r20.rs6.net/tn.jsp?f=001OuukHnZiLz5s68dcfVshuxP_Ey3FL0TnDhL4NGCnimFh6LvzIsJyGxtdMSTFoo-46322d8NUsTLssUhv-4PKLdJJCGNbmY-paO4S5oBYqE3bqkJQDJQ_UZ5qno1ZMvwVtxPz0SyRex3PJoZnE8IqshLAGoB1fheuv4zDghhBZEo=&c=dmzTs9g3LdBODu-lpR8PcaAc8kio3E0zeyd_7Lx-k7j9qvQ7XgK_tQ==&ch=JQTbnXqzfL9KpK5Bhm3u32qd1r-zJaprkXOJogmtYlCeO3OHs3j43Q==
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RCI, Inc., 1500 Sunday Drive, Suite 204, Raleigh, NC 27607


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This is very stressful work friends, and need all the encouragement I can get.

Many millions of dollars are wastefully spent, and there is absolutely no need for it.  It's just government buying from government, and rewarding friends with guaranteed contracts.

I am thankful for the time you spend with me here.  I know how hard your jobs are, and will do my bloody best to handle these issues, while you are busy trying to feed your families.  

NOTE: Retired 2003, do not solicit nor accept compensation or personal advancement of any kind,

Reject negativity in all forms, and always remember to keep looking "UP".

Respect.

Ron


Thursday, May 26, 2016

U. S. Communities LIES about ROOFING!!

Friends:

I've been very busy lately with "Proprietary Specifications, and "Preferred Vendors" in public works.  Sadly, I lost a mentor, and dear friend, Mr. Bob Lyons.  Mr. Lyons was the first, and only 2 time President of RCI.  Much respect to Mr. Lyons, and I will miss him terribly.

 Downtown Tampa:


Carnival Cruise Lines out of Port Tampa:


Just trying to give you a sense of where I come from.


Today, I will share (to do your own research) more details about the U.S. Communities, Garland, SCAM.  Fake pricing (actually NO pricing) on U.S. Communities website.  NONE.

I've asked U.S. Communities Mr. David Kidd to furnish the "Competitive" pricing 6 times.  Still no answer, and no pricing.  What does that tell you?

For those of you who care more about public record, than hearsay, I am providing the following for anyone who is shut out by these thieves of school money.  Be sure to check out the line about "Salesman's Compensation".  Cobb County, Georgia is a den of criminals who organize this theft FOR U.S. Communities, and Garland.

NEVER BUY ANYTHING FROM U.S. COMMUNITIES, OR GARLAND!  YOU WILL GET RIPPED OFF EVERY TIME.

Garland is all about ripping off schools, and other public works.  Garland peels 27% off your tax dollar to pay the Cooperative 2%, and the Garland Salesman gets 25%!  Cobb County MAKES SURE to include it in their verbiage.

For anyone who is sick of these scammers, or shut out of huge territories, here you go:

Here are some links on US Communities/Garland scam:

US Communities News and Events- note sponsorship of events and production of webinars:

US Communities complimentary “Strategic Sourcing Summits”

Cobb County Purchasing Department is listed as “Lead Agency” for roofing on US Communities website and appears to solicit the nationwide roofing contract

US Communities website states “No User Fees – no costs or fees to participate”, but reading the Cobb County/US Communities agreement please note on page 56 of the pdf item 5.1 under Administration Agreement in this contract and share 5% of their fee with Cobb County Purchasing:

“5.1 Administrative Fees. Supplier shall pay to U.S. Communities a monthly administrative fee based upon the total sales price of all purchases shipped and billed pursuant to the Master Agreement, excluding taxes, in the amount of two percent (2%) of aggregate purchases made during each calendar month (individually and collectively, “Administrative Fees”). Supplier’s annual sales shall be measured on a calendar year basis. All Administrative Fees shall be payable in U.S. Dollars and shall be made by wire to U.S. Communities, or its designee or trustee as may be directed in writing by U.S. Communities. Administrative Fees shall be due and payable within thirty (30) days of the end of each calendar month for purchases shipped and billed during such calendar month. U.S. Communities agrees to pay to Lead Public Agency five percent (5%) of all Administrative Fees received from Supplier to help offset Lead Public Agency’s costs incurred in connection with managing the Master Agreement nationally.”

There are also provisions in the vendor agreement that appear to be more applicable to an organization that is trying to maximize sales vs. a cooperative that is trying to save its users money, such as:

“(d) Sales Commitment. Supplier shall market the Master Agreement through Supplier’s sales force or dealer network that is properly trained, engaged and committed to offering the Master Agreement as Supplier’s primary offering to Public Agencies. Supplier’s sales force compensation and incentives shall be greater than or equal to the compensation and incentives earned under other contracts to Public Agencies.”


Cobb County is listed on US Communities Advisory Board:

Another whistleblower case involving procurement through cooperative:




Interesting article about an association that has come out against sole-source contracting due to the above case:


I threw in a couple of photos of my city so your eyeballs didn't fall out.

My friends, this scourge is unapologetic when it comes to stealing your tax dollars, and they do it with an accomplice:  Purchasing Cooperatives.

I welcome you to my LinkedIn Group (5,000 Members):  Roof Consultant's Alliance.  I write a lot there, and hopefully, some of it is useful in your pursuit of fairness.

Reject negativity in all forms, and always remember to keep looking "UP".

Respect.

Robert R. "Ron" Solomon
Director, Roof Consultant's Alliance
Public Procurement Analyst
CCC 1325620

Tampa, Florida

Friday, January 1, 2016

Tremco Sales Manual.

Tremco is the firm who received a $61,000,000.00 fine by the DOJ, for abusing GSA contracts.

Tremco and Garland push this "Predatory Sales Model" through fake purchasing cooperative bid rigging scams.  Do not take my word, and type "School Roofing Scam" into your browser, and try the same on YouTube.  Every word I say is confirmed through public record.

I don't want to go into an individual page by page breakdown at the moment.  After this Tremco Sales Manual, you will see Garland's full sales manual as well.  These things are in hard copy form, and scanning each page (in sequence) takes time, and order.

So, here is the great Tremco, "Black Sheeping" it up as usual.  Any public entity that uses them should be audited.  There is no sane reason to use them.  NONE.























Continued in next post.

That's the first 21 pages of 79 total.  

Stay tuned, because it get's better (just not for them).

Garland is next, although I've offered them EVERY OPPORTUNITY to tell the truth.  They lied to me in person, and I am very unappreciative of base behavior.  For that, I will repay them with the truth.

I do not lie, cheat, or steal, and despise those who do.  My promise is to hunt them down, find them, and expose them for what they are.  Last week, I was able to expose the scam in a school district , and a hospital with help from my consultant friends across the nation.  Administrators were told to visit my site here, and compare fact with sales drivel.  They did, and that was the end of Garland in their districts.  This is happening more frequently, and I am elated.



That represents about $2M in lost  revenue, and maybe when they get tired of losing money, will regain their manners. Civilized people do not steal from schools.  Those who do must be held accountable, and shunned by decent people everywhere.

Fight hard, but fight fair.

Friends, I am so thankful for the time you spend with me here.  Reject negativity in all forms, and always remember to keep looking "UP".



Respect.

Robert R. "Ron" Solomon
Director, Roof Consultant's Alliance
Public Procurement Analyst
State Certification: CCC 1325620

LinkedIn Profile: https://www.linkedin.com/in/robertrsolomon

20 more pages:



















We've got about 40 pages to go, so please be patient.  After I've furnished each page, I will do a 'Breakdown" on verbiage, and what it means.  Roofing procurement through Purchasing Cooperatives MUST BE STOPPED!!  The cooperatives are liars, and I can prove it any day of the week.  If anyone wants to call me down on this (especially a purchasing cooperative), you are welcome to write my central email address:  RobertRSolomon@aol.com

I've already offered $10,000.00 of my own money on a public debate with Tremco, and Garland.  No takers after 5 years.  Money goes to a school of my choice.

I argue based upon science, and public record.  Not emotion. 

Friends, I am so thankful for the time you spend with me here.  Reject negativity in all forms, and always remember to keep looking "UP".

Respect.

Robert R. "Ron" Solomon
Director, Roof Consultant's Alliance
Public Procurement Analyst
State Certification: CCC 1325620


Here is the balance of the sales manual:

































Please forgive any duplicates, and I'll delete them after a second reading.

NONE of this is joyful for me, but neither can I sit by and watch our schools being abused.

Friends, I am so thankful for the time you spend with me here.  Reject negativity in all forms, and always remember to keep looking "UP".



Respect.

Robert R. "Ron" Solomon
Director, Roof Consultant's Alliance
Public Procurement Analyst
State Certification: CCC 1325620

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