Information filters out on no-bid contract

By By Bob Martin, The Alabama Scene
Information continues to filter out about the recipients of a $7 million dollar Riley administration computer contract that became a point of contention a few months back when it came before the Legislative Contract Review Committee. It was later discovered that the company awarded the contract, Paragon Source, doesn’t have a corporate headquarters, a telephone listing, a fax number, an e-mail address or a web site and is incorporated in Virginia.
The new no-bid, soul source contract piggybacked an existing $6 million no-bid and sole-source contract for work on computers in the State Finance Department.
After reviewing documents obtained by the committee, it appears that some 66 firms or individuals were paid from the first contract. The CEO of Paragon Source, Janet Lauderdale, received $596,780, about 10 percent of the contract.
What I found interesting about the payments were those to individual workers based on an hourly rate. For example for October of 2008 one individual was paid $39,360 based on an hourly rate of $246.
There were 22 normal state workdays that month so a person had to put in over 11 hours per regular workday to compile those numbers. There were numerous other employees under the contract who also charged in excess of normal work hours.
Jefferson judge named to hear Paragon case
In other news about the contract Chief Justice Sue Bell Cobb has appointed a Jefferson County judge to hear the lawsuit filed by the legislative committee attempting to halt the $7 million extension to the computer contract signed earlier this month by Riley.
Circuit Judge Tom King Jr. of Birmingham was appointed after the six Montgomery circuit judges removed themselves from the case, saying they were “personally or professionally acquainted” with both sides.
The lawsuit was filed against Finance Director Bill Newton and the computer company, Paragon Source of Virginia, its CEO Lauderdale, and her husband, Thomas Raburn. The suit asks the court to immediately stop Paragon Source from doing any work or receiving payment from the state. For several days last week the defendants couldn’t be located for service to be executed, but the committee’s attorney now says all of the defendants, including Lauderdale and her husband, have been served with the complaint.
GOP’s Johnson says he passed lie detector text
Last week I reported that Republican gubernatorial candidate Bill Johnson challenged Gov. Riley to a polygraph test to see who is telling the truth about Johnson’s charge that Riley accepted millions in Mississippi casino money in 2002 in his first run for governor. Riley’s spokespersons denied the charges and attempted to paint Johnson as a figure on the political fringe.
Johnson now says he took a polygraph test and passed. The results of the test, administered by Clyde Wolfe, a licensed polygraph examiner for over three decades are on Johnson’s web site.
Did Jesse Jackson help or hurt Davis?
In a speech to the Congressional Black Caucus last week Jesse Jackson spoke these words aimed directly at U. S. Rep. Artur Davis, who cast his vote against the House-passed Health Care Bill: “We even have blacks voting against the Health Care Bill from Alabama. You can’t vote against Health Care and call yourself a black man.”
Later Jackson apologized, but it was clearly a halfway apology and all this set off political speculation here about whether Jackson helped Davis or hurt him.
I was frankly surprised at Davis’ vote. If he made the vote to attract conservative whites it might make a bit of sense. However, it could set off a firestorm in his own district where the number of people without any health care is the highest in the state.
CORRECTION – Last week I wrote that the State Board of Education provided its chief legal counsel, Joan Davis, $225,000 for the six months she served as interim chancellor. That was not correct. What I should have reported was the board increased Ms. Davis’ normal salary to an annualized $225,000 only for the period served as Chancellor, which was approximately six months. The prorated increase in her salary was only $35,601.56 for the period she served as chancellor and continued to oversee her division,
Bob Martin is editor &publisher of The Montgomery Independent. Email
him at: bob@montgomeryindependent.com