Sedgwick landed six-year, $7.9 million state contract with also-ran cost proposal

Des Moines freelance writer John Morrissey digs into how a well-connected company landed a lucrative state contract. Laura Belin contributed reporting to this story.

Four months after being awarded a contract to administer Iowa’s worker’s compensation program for state employees, a politically connected West Des Moines company has apparently not come to terms with the state to continue its work.

Sedgwick Claims Management Services LLC was selected in early March to keep handling the program, even though a competitor achieved a better score on three cost proposal items. The state will pay Sedgwick $7.9 million in administrative costs over six years. Runner-up bidder TRISTAR Risk Enterprise Management LLC offered to do the work for a little more than $6 million, a potential savings of nearly $1.9 million over the contract period.

The Iowa Department of Administrative Services (DAS) provided copies of all submitted bids for the current and previous bid cycles upon receiving John Morrissey’s public records request. But the department has declined further comment about the award and refused to clarify the scoring system or other matters related to this bid process. The new DAS director Jim Kurtenbach did not respond to a request for an interview about this matter.

Sedgwick’s bid contact officer referred questions to several state officials and the company’s public relations office. That office also did not respond to Bleeding Heartland’s inquiry.

Continue Reading...

Jim Kurtenbach to lead Iowa's HR agency. What was Kim Reynolds thinking?

Governor Kim Reynolds announced last week that Jim Kurtenbach will be the new director of the Iowa Department of Administrative Services (DAS), effective July 1. Paul Trombino has held that position on an interim basis for about a month, after the Iowa Senate did not confirm previous DAS Director Janet Phipps.

Tapping Kurtenbach for this job was a strange choice. The agency has broad responsibility for human resources, procurement, and accounting on behalf of the state. Sexual harassment or discrimination by senior officials has led to several lawsuits against the state and millions of dollars in settlements in recent years. Yet not only does Kurtenbach lack relevant experience in the HR field, his hiring and managerial decisions a Iowa State University’s vice president and chief information officer were far from a model for best practices.

Continue Reading...

Seven ways Mary Mosiman helped bury ISU's airplane scandal

A year ago this week, State Auditor Mary Mosiman released the findings from her office’s only examination of the wide-ranging scandal surrounding former Iowa State University President Steven Leath’s use of university-owned airplanes.

To say the self-styled “taxpayer’s watchdog” failed to properly investigate Leath’s personal trips on the taxpayer’s dime would be an understatement.

Mosiman did not try to find out how many times Leath misused ISU’s airplanes or how much his personal travel cost the university. Because the auditor looked the other way, Iowans will never know the scope of a top official’s misconduct at a large public institution.

Continue Reading...

Weekend open thread: ISU cronyism and favoritism edition

Insider dealing at the University of Iowa has drawn intense scrutiny since President Bruce Harreld’s hiring last year. This week, several news reports cast an unflattering light on the culture President Steven Leath is fostering at Iowa State University.

The July 9 Des Moines Register carried a front-page story by Lee Rood on Leath’s recent purchase of land from one of the companies controlled by Iowa Board of Regents President Bruce Rastetter. After trying to weasel out of answering questions regarding what he called his “personal life,” Leath insisted he got no “special deal” on the land. However, the arrangement appears highly irregular, as discussed below following excerpts from Rood’s article.

Two recent stories by Vanessa Miller for the Cedar Rapids Gazette raised further questions about what kind of operation Leath is running. Click through to read about the hiring of former Republican lawmaker Jim Kurtenbach for a high-paying job that was never advertised, as well as Kurtenbach’s restructuring of ISU’s information technology services unit, which involved eliminating 23 positions and paying 19 people not to work since May 25. Excerpts from those stories are below as well.

This is an open thread: all topics welcome.

P.S.- Speaking of cozy Republican networks, Ryan Foley reported for the Associated Press on Friday that the University of Iowa “is retaining a social media startup company with Republican Party ties that benefited from earlier no-bid contracts.” Wholecrowd is run by Jim Anderson, who served as Iowa GOP executive director during part of the time the University of Iowa’s current Vice President for External Relations Peter Matthes was a staffer for the GOP state Senate caucus. Under no-bid contracts Matthes signed with former Iowa GOP state party chair Matt Strawn’s company, Wholecrowd did the same kind of “digital advocacy” work as a subcontractor. The university’s new contract, signed directly with Wholecrowd after a competitive bidding process, seems to have cut Strawn out as the middleman.

Continue Reading...
View More...