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Pody Questions State’s Contract to Outsource Motor Pool

Lebanon Republican’s request for info pushed off by Department of General Services

An inquiry into contract outsourcing for the management of the state’s motor pool to Enterprise Rent-A-Car has left one state representative with more questions than answers.

And those answers may not come for another month Mark Pody, who sits on the legislature’s Joint Fiscal Review Committee, told TNReport.com.

Rep. Pody had said on Monday that he’d been told by state Department of General Services staff to expect more specific answers Tuesday. However, that didn’t happen, he said.

“I believe they’re giving me general information where I want more specific information, and I want to see where it’s documented and backed up,” said the Republican from Lebanon.

“Everything has been postponed until they come up in Fiscal Review to review the contracts next month,” Pody told TNReport.com Tuesday afternoon.

Fiscal Review is one of a handful of General Assembly committees that meet year-round. The committee convenes on the second Monday of each month. The next meeting will be July 8.

“I’m not comfortable with the stuff they’ve given me already,” said Pody, who is in his second term. “I’ve got to make them tell me why they believe it’s one way and the contract clearly says its something different.”

Pody, who owns a small company specializing in financial planning, said he was made aware of the contract — which he calls “not good business” — by Nashville’s NewsChannel 5 Chief Investigative Reporter Phil Williams.

“We want transparency in government that we know that our taxpayer dollar is being spent wisely, openly and everybody can follow through,” he told TNReport.com, something he doesn’t feel is happening with the Enterprise contract.

“I just see what’s in the contract and what’s being done is two separate entities. I’m not getting the answers that I’m looking for yet.”

Since Gov. Bill Haslam was elected to office in 2010, General Services Commissioner Steve Cates, a Brentwood developer, has overseen the transfer of certain state jobs and services to private companies,

Among these transfers was the state motor pool in 2011 when the Department of General Services decided to outsource the program to Enterprise and its car-sharing program called WeCar.

Around the same time, former Enterprise executive Kathleen Hansen was hired by Cates to head the department’s motor vehicle management division

According to a General Services’ internal memo, the state contract was not put out for bid for three reasons. First, the General Services memo seeking approval stated that “there is insufficient time to create the Request for Information, hold a pre-bid, create an Event, solicit bids, evaluate bids and award a contract by Jan. 1, 2012.”

Second, the memo stated that, “The rental of cars has not been solicited by the Purchasing Division in the past; therefore it does not have experience in developing the specifications.”

Lastly, the memo stated the state would it “piggy-back” on the “University of Tennessee’s WeCar” program, which was put out for public bid.

However, a statement submitted to NewsChannel 5 Investigates reads: “The University of Tennessee does not have a WeCar program,” but instead has a rental discount program with Enterprise for university employees and alumni only.

The UT motor pool has not been outsourced.

This statement, as well as the fact that the state’s contract calls for a fleet of 80 vehicles, but as of Tuesday only had 56 cars in it, causes Pody grave concern.

“The contract clearly calls for a minimum of 80 cars, and that’s what the state’s suppose to be paying for on a monthly basis,” Pody told TNReport.com Tuesday. “As of today, there’s only 56, and I cannot find any documentation where Enterprise or anybody else has agreed that we only pay for 56.

“There’s no paper trail to verify it. There’s just not. I don’t want us to get a bill at some point when this contract ends that says, ‘You’ve been paying now for $6 and the difference is some 20 cars.”

Additionally, Pody said while the “contract specifically calls for hourly rates in three separate spots,” General Services tells him there is no hourly rate. Instead, the state pays the daily rate of $31.33 and a weekly rate of $184.85, $26.60 more than the state of Oklahoma’s rate of $158.35.

Pody said he intends to ask his questions at the next Fiscal Review Committee meeting so he can go on record as having asked them in a public meeting.

Specifically, he wants to see the paper trail regarding the reduction of the fleet size, as well as written documentation explaining how much this has saved the state versus operating its own motor pool. He also wants a detailed explanation regarding the discrepancies between the UT statement and that of General Services regarding the “piggy-back” of the university’s contract.

Pody said he hopes to have some answers next week, well before the next Fiscal Review Committee meeting.

“It’s just me. I’ve got a month to finish getting my stuff together before they come before Fiscal Review,” he said.

Amelia Morrison Hipps may be reached at amhipps@downhomepolitics.com, on Twitter @DwnHomePolitics or at 615-442-8667.

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