PEER Report #301

A REVIEW OF THE PEARL RIVER VALLEY WATER SUPPLY DISTRICT’S USE OF REAL ESTATE CONSULTANTS, July 21, 1993, 49 pages

The Pearl River Valley Water Supply District has used real estate consultants since 1963. PEER found that the district:

• has become unquestionably dependent on real estate consultants, while depriving management of expertise and proper controls of leased real estate;
• procured contracts without properly assessing its needs or receiving direction from strong district goals and objectives and without using competitive procurement;
• paid unreasonable commissions (based on inaccurate lease valuations) to consultants rather than direct hourly compensation;
• spend over $1.6 million from April 1983 to July 1992 for a single contractor’s services; and,
• spent $1,011,516 more for the consultants than authorized by the State Personnel Director and than allowed per the contract terms.

In addition, without sufficient documentation and without explicit statutory authority, the State Personnel Director disapproved H. C. Bailey Management Company’s contract on June 29, 1992, and then on March 24, 1993, approved Eastover Realty Corporation’s contract for similar services.

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