PEER Report #237

A MANAGEMENT REVIEW OF THE DIVISION OF GENERAL SERVICES’ SECURITY SERVICES CONTRACT PROCESSES FOR THE CHARITY HOSPITALS, April 26, 1990, 26 pages

Effective July 1, 1989, the Division of General Services, Department of Finance and Administration, assumed custodial and liquidation responsibilities for the assets of the three charity hospitals closed by state law. The Director of General Services elected to contract with a private firm to provide security for a three-month period as assets were liquidated. Although personal services contracts are not subject to state competitive bidding requirements, the Director elected to solicit competitive bids but mishandled all phase of the procurement.

The Director did not adequately publicize the division’s intent to contract, failed to advise prospective bidders of security requirements and bid evaluation criteria, and awarded the contract to other than the low bidder using a criterion that was not communicated to bidders. The division’s action creates the appearance of favoritism and portrays a poor state government image to vendors and the public.

For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.