In this case, it happens to be RPM, the owner of Tremco (roofing material manufacturer), who sells almost exclusively to government. In other words, they target schools, an area we can least afford. RPM (Tremco specifically) is facing almost 70M in fines and restitution.
If they were fined 70M, can you imagine what they actually got away with in overall public contracts?
I could be wrong, but please read the news article, and as always, judge for yourself.
8:51
am, April 4, 2013
RPM International Inc. (NYSE: RPM) has
reported a big third-quarter loss as the company accounted for the potential
cost of an anticipated settlement with the federal government related to an
investigation of past roofing contracts with the General Services
Administration.
The
Medina-based maker of coatings and sealants said the loss in the quarter that
ended Feb. 28 totaled $42.4 million, or 33 cents a share. RPM said the loss
mainly was due to an estimated loss
contingency of $68.8 million associated with an investigation of roofing
contracts between the company's Building Solutions Group and the
GSA.
RPM said the Building Solutions Group is in ongoing settlement discussions with the Department of Justice and the GSA aimed at resolving the investigation. The company said it is cooperating with the investigation, which involves compliance with certain pricing terms and conditions of GSA contracts under which the Building Solutions Group's roofing division sold products and services to the federal government.
RPM said the ³substantial majority² of the contingency relates to the sale of products and services from 2002 to 2008. The company said the actual amount of the loss, which remains subject to approval by the Justice Department, may vary from the amount of the contingency.
In
the third quarter of fiscal 2012, RPM earned $6.6 million, or five cents a
share.
Sales at RPM rose 9%, to $843.7 million from $773.6 million.
³With the exception of our roofing
division, most of our North American industrial businesses benefited from
the gradual economic recovery in the U.S., especially our businesses serving
commercial construction markets,"
RPM
chairman and CEO Frank C. Sullivan said in a statement.
Sullivan is hilarious with his "Nothing to see here folks, just keep moving" act.
This is ONLY 2002 through 2008, so I'm wondering about 2009 to Present? GSA is taking no responsibility, nor do they say Tremco will be removed from their approved vendor list.
All Government Purchasing Co-Op's do this, and their claims of "we save taxpayer money because we buy in bulk', or "you don't have to worry about state "competition laws" because we've handled that for you.
They've handled it alright. Handled it straight into their own pockets as "commissioned salesmen" who actually make more money from the "No Compete" schemes. Just imagine.
In Oklahoma, "No-Compete Bids INCREASED by 126 MILLION DOLLARS!! It should have DECREASED, and have no idea how a politician could stand up in a public forum to defend this debauchery.
OKLAHOMA INCREASED NO BID SPENDING BY $126,000,000.00!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
src="http://www.tulsaworld.com/images/icn-pointer.gif" /> Search a database of contracts issued by state agencies on a sole source or no-bid basis issued between fiscal years 2007 and 2011.
State agencies are spending more money for goods and services without seeking bids, leading some to wonder if the state is getting the best bang for its buck on some contracts.
Spending by state agencies on no-bid contracts increased by 24 percent, to $126 million, in fiscal 2011 compared to the previous year, records supplied by the Office of State Finance show.
Spending by state agencies on no-bid contracts increased by 24 percent, to $126 million, in fiscal 2011 compared to the previous year, records supplied by the Office of State Finance show.
In all, some 74 state agencies issued 1,376 no-bid contracts over the course of the year
Contracts were issued without bids for items ranging from $48,000 for photocopiers to $2 million for out-of-state schooling for special education students, a Tulsa World analysis of state reports shows.
In some cases, justification letters required to request the purchase were woefully lacking in detail as required by state purchasing guidelines.
In all of the instances the items or services were lawfully purchased without seeking bids, under the state's "sole source" or "sole brand" acquisition provisions.
State law provides for state agencies to purchase goods and services without seeking bids if the acquisition meets certain guidelines.
A review of sole-source contract reports since 2008 indicates the amount spent by state agencies on no-bid contracts peaked in fiscal year 2009 at $142.6 million.
The total amount spent declined to $101 million in fiscal year 2010 before increasing again in fiscal 2011, which ended June 30.
One state legislator said sole-source contracts should be used sparingly by agencies.
Contracts were issued without bids for items ranging from $48,000 for photocopiers to $2 million for out-of-state schooling for special education students, a Tulsa World analysis of state reports shows.
In some cases, justification letters required to request the purchase were woefully lacking in detail as required by state purchasing guidelines.
In all of the instances the items or services were lawfully purchased without seeking bids, under the state's "sole source" or "sole brand" acquisition provisions.
State law provides for state agencies to purchase goods and services without seeking bids if the acquisition meets certain guidelines.
A review of sole-source contract reports since 2008 indicates the amount spent by state agencies on no-bid contracts peaked in fiscal year 2009 at $142.6 million.
The total amount spent declined to $101 million in fiscal year 2010 before increasing again in fiscal 2011, which ended June 30.
One state legislator said sole-source contracts should be used sparingly by agencies.
Really, Do Ya Think?
"The only reason that I see that we should do a sole-source contract is when the agency knows there is going to be only one vendor that meets this need," said Rep. Mike Reynolds, R-Oklahoma City.
"The only reason that I see that we should do a sole-source contract is when the agency knows there is going to be only one vendor that meets this need," said Rep. Mike Reynolds, R-Oklahoma City.
That is absolutely not the case with roof contracting services. There are plenty of HONEST MANUFACTURERS, HONEST CONSULTANTS, and HONEST CONTRACTORS that are local, and provide every need.
Roofing is not a "SPECIALTY ITEM" any more than concrete, steel, landscaping, or paint.
Reynolds said sole-source designations also may be necessary in an emergency.
"Past that, no, it's just convenient for the agencies not to have to do the paperwork and that's what they are hired to do," Reynolds said.
Another legislator said the issue of sole-source exemptions has not come up recently among lawmakers.
When told about the World's findings, House Rep. Jason Murphey, R-Guthrie, said he intends to press the Office of State Finance for more information on the issue. Murphey has championed ending higher education exemptions from state central purchasing laws.
"There may be a great reason for it and it all makes sense, but I'd like to know that, too," Murphey said, referring to the increase in no-bid contract amounts.
Preston Doerflinger, who is the Office of State Finance director and state Secretary of Finance, said the state purchasing process is being evaluated since the Department of Central Services and three other agencies were consolidated earlier this year.
"I am a big believer in competitive bidding, while recognizing that a sole-source contract may be more cost-effective in some circumstances," Doerflinger said.
"I understand parameters for sole-source contracts are set in legislation. In general, the goal of the OSF will be to ensure taxpayers are receiving the best possible value in the purchase of goods and services by the state."
Reynolds said sole-source designations also may be necessary in an emergency.
"Past that, no, it's just convenient for the agencies not to have to do the paperwork and that's what they are hired to do," Reynolds said.
Another legislator said the issue of sole-source exemptions has not come up recently among lawmakers.
When told about the World's findings, House Rep. Jason Murphey, R-Guthrie, said he intends to press the Office of State Finance for more information on the issue. Murphey has championed ending higher education exemptions from state central purchasing laws.
"There may be a great reason for it and it all makes sense, but I'd like to know that, too," Murphey said, referring to the increase in no-bid contract amounts.
Preston Doerflinger, who is the Office of State Finance director and state Secretary of Finance, said the state purchasing process is being evaluated since the Department of Central Services and three other agencies were consolidated earlier this year.
"I am a big believer in competitive bidding, while recognizing that a sole-source contract may be more cost-effective in some circumstances," Doerflinger said.
"I understand parameters for sole-source contracts are set in legislation. In general, the goal of the OSF will be to ensure taxpayers are receiving the best possible value in the purchase of goods and services by the state."
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They all TALK about it, but when the lawyers get it to court, have no support from Congress or Senate.
There is SO MUCH MONEY BEING WASTED on "No Compete", "Sole Source" contracting or services, that every person in North America should be outraged.
Where are our Canadian friends on this? It is permeating the fabric of your government as well. ln most cases, 25% of every roofing taxpayer dollar (think schools) is going STRAIGHT into a "Salesman's Pocket".
Did that sting?
Think about me the next time your children are asked to bring school supplies from home because the school has no money. Think about me when teachers are laid off, and services cut.
The people at RPM "Tremco" may not care about you, but I do.
Many industry leaders have reached out to me, and I am working at full throttle to assist them. Many Consultants, Distributors, and Contractors want to clean up this stain upon the discipline, and we will.
I am not hard to find for anyone who wishes to know more about me. Just type my full Christian name "Robert R. "Ron" Solomon" followed by the words "Sustainability", or "Roofing", and you will see I'm an open book.
Here, I am free to tell only the truth. If anyone ever wishes to correct me, I encourage you to do so. Please be kind enough to limit your comments based upon science, or public record, as I don't give opinions, nor do I feature them.
I am humbled to bring this message to you, and I am on your side.
Reject negativity in all forms, and always remember to keep looking "UP".
Respect,
Robert R. "Ron" Solomon
Director, Roof Consultant's Alliance
CCC1325620
