The Disgruntled Bidder

Northampton County recently decided to have an outside firm assess Bethlehem's Sands Casino. Calling it "the most important decision in assessment that the county has ever made," Finance Director Vic Mazziotti recommended California firm HVS, which has experience appraising hundreds of casinos, to county council. They unanimously agreed, and the firm will be paid around $100,000 for this job. Sounds fairly straightforward, right? Unfortunately, there's another story, and it reveals a local businessman who used political contacts, instead of qualifications, to pressure county officials.

In competitive bidding, the low price usually wins. But for the casino appraisal, the county went the RFP (Request for Proposal) route. Cheaper is not always better, especially when professional services are involved. Proposals are opened at the same time and assigned to a committee, which evaluates and recommends an ideal vendor. County Council must accept this recommendation, and only then is the County Executive free to sign a contract. In this case, there were four proposals, and one of them came from Allentown appraiser John Ingram, who has absolutely no experience with casinos.

Purchasing Officer Kathryn Anderson tells me that, once a proposal is received, county officials adopt a "cone of silence" until the contract is awarded. This avoids undue influence by any one bidder, who may seek to get a leg up on other prospective vendors. But Ingram made a point of calling numerous county officials anyway. He actually met Northampton Controller Steve Baron, and made a point of mentioning his ties to Allentown Mayor Ed Pawlowski. In fact, in his proposal, Ingram lists Pawlowski as his first reference, including the mayor's personal cell phone number. The other three vendors list banks. Ingram also bragged that he was a member of King Edwin's blue ribbon panel. You know, that's the one that has failed to solve the Queen City's financial woes.

Ingram amazingly wanted the county to stop the RFP process and just award the contract to him.

Ingram did not stop with Controller Barron. He called Finance Director Vic Mazziotti, Purchasing Officer Kathryn Anderson and Director of Administration John Conklin. He even put the squeeze on Council member Charles Dertinger, reportedly calling him at least six times.

The committee making the recommendation in this case included Mazziotti, Anderson and Conklin. Council Prez Ann McHale, Assistant Solicitor Dave Backenstoe and Bethlehem official Mark Sivac also participated. After two meetings, HVS was their unanimous recommendation. The minutes are quite revealing.

"John Ingram continues calling our people about the job and downgrading HVS. John C[onklin] said we need to practice the cone of silence with vendors and Ingram should be told this is our policy and stop. John feels Ingram's proposal should be thrown out.

"Ann said Ingram does not have the insurance that is needed; therefore, the proposal does not meet the requirements. Ann also feels Ingram's proposal should be thrown out.

"Ann would like a local vendor, but everything with Ingram is too negative."

Ingram, when he learned he was rejected by the committee, actually asked County Executive John Stoffa to override their recommendation.

"According to Ann McHale and Charles Dercinger (sp?), the final decision has been made on who is going to be awarded the contract to appraise the Bethlehem Sands Casino---and they said it was made, this morning, in favor of HVS out of San Francisco---so much for the County saving money on valuation services! I didn't know that McHale was on the committee making the decision until yesterday, and I called her for the first time, early this afternoon. She was very unresponsive, except to tell me the final decision had been made, the public announcement would be made on Monday, and that she really didn't want to talk to me.

"I thought the final decision was yours to make, or do you just go along with whatever they decide to do? Anyway, if that is the final decision, I'm very disappointed, of course. If so, that will be the first, only and last RFP I'll ever respond to---who needs the wasted time? If you have the ability to override their decision, I'd still like the opportunity to work with the County on the appraisal."

Stoffa refused to go against his own committee, so Ingram threatened to complain to council and the press. They refused to be bullied. Dertinger and McHale, whom I've often criticized, resisted this undue influence.

In this case, what you know mattered a lot more than who you know.