Government Sets Aside Money For Insiders
by Starlee RhoadesA three-month investigation by the Phoenix-based Goldwater Institute found that a federal program intended to help disadvantaged business owners win contracts at Sky Harbor International Airport in Phoenix is benefiting a small group of political insiders who are anything but disadvantaged.
The federal Airport Concession Disadvantaged Business Enterprise program (ACDBE or DBE) sets guidelines requiring minimum levels of participation by small businesses owned by minorities and women in airport concession contracting. Award winning investigative reporter Mark Flatten, formerly of the Mesa, Ariz.-based East Valley Tribune, shows that many of the DBE owners at Sky Harbor have a net worth in excess of $1 million and hold multiple city contracts, both on and off the airport.
Of the $52 million in sales attributed to disadvantaged businesses at Sky Harbor in fiscal year 2008, $15.4 million was generated by five DBEs owned by people active in politics. And of the more than 140 individual concession storefronts at Sky Harbor, city records identify only two that are not operated exclusively by a master contractor or owned, at least in part, by a certified DBE.
Public records show one of the top beneficiaries of the DBE program is long-time Democratic Party activist and Maricopa County Supervisor Mary Rose Wilcox. Ms. Wilcox entered into a joint venture with Host International in December 2004 to co-own a Chili’s franchise. In violation of federal and city guidelines, Ms. Wilcox did not bring any money to the partnership and has no real role in running the restaurant.
The investigation’s findings were released yesterday in “High Fliers: How Political Insiders Gained an Edge in Sky Harbor Concessions.”
The City of Phoenix could end the racial preference program on its own, but if that doesn’t happen quickly, voters may beat it to the punch. In 2010 Arizona voters will consider a Ward Connerly-backed Civil Rights Initiative that would ban race and gender preferences in government contracting and education programs.
An interesting long-term question is whether or not race and gender preference programs will be strengthened or eliminated as a result of an Obama presidency. The President himself has said that his daughters shouldn’t be the beneficiaries of any preference programs because they aren’t disadvantaged by either their race or gender. That’s certainly true. And it begs the question of necessity for the hundreds of preference programs in place throughout America today.
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25 Comments
as someone involved in Government Contracting, this is nothing new.
Wow. that just makes me feel all warm and happy inside!
We need to severely shrink the size and power of the Federal government, they are out of control. We need a reinterpretation of the Interstate Commerce Clause, and we need to repeal the 16th and 17th amendments.
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Quite frankly, I think it is wonderful that Phoenix has such an airport. it brings balance to the John Murtha Private Airport in Pennsylvania. Government waste? Government scandal? Cronyism? Insider dealing? The American public is past the point of being shocked or outraged. Further than being shocked, they are simply shell shocked; they trudge through life with the shuffle of the walking wounded, the vacant stares of zombies on their once vibrant faces. This is what Politicians have done to America……………
Again, please raise your hand if this sort of crap surprises you. Anyone, anyone, please raise your hand! Hmm, no hands are raised. VOTE THEM ALL OUT AT EVERY LEVEL OF GOVERNMENT!
the Government has socio-economic objectives to satisfy. everyone complains of the "sole-source" contracts given to Haliburton under LOGCAP in Iraq but sole source contracts are awarded everyday, legally under the FAR, to 8(a) and HUBzone contractors. Many times, not disadvantaged business minded people can get a front person who fits into a "disadvantaged" category to own 51% of the company. Then they can sub contract the work out and filter a cut in the transaction.
I don't know how voters can vote socio economic preferences out. Those decisions come out of Washington and are dictated in the Federal Acquisition Regulation which is a Bible and directs Contracting Officers in acquistions.
To preempt, I understand this isn't federal but states copy the federal acquisition guidelines very closely and are mandated to if the money is federal money which nowadays, is a likely scenario.
Chicago all over again. Remember Obama's BFF Tony Rezcko and his "minority owned" front businesses?
Phoenix has always been a political cesspool, but now it's a big city and the absolute scale of corruption is noteworthy…
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Ah look, a serpent hiding in the grass…
AHHH YES the Obama socialist utopia- an economy based on political favors. We need an ammendment to the constitution giving us the right to vote with our money in a free market. Socialists rob us of this right, and force us accept what they decide we need. I aint no slave!
Since we know how many "minority-owned businesses" are just fronts for other companies, we should get rid these preferences.
But that will not happen for now. Since, for those who have forgotten, the FCC is being compelled to increase "minority" ownership of radio and TV stations. A lot of big-money Democrat contributors are looking forward to that payoff. And after all, such preferences are just "social justice" and who can argue against justice?
Besides Polanski supporters…
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And to top it off J-NO Janet Napolitano, our esteemd former governor is now head of homeland security. That makes me feel very secure, especially when she is trying to stop Sheriff Joe from doing the job he was elected to do. ENFORCE THE LAW. BTW: they (she) now wants to house captured illegal aliens in hotels. ROMM SERVICE ANYONE????
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Ahh! Mary Rose Willcox! She's been corrupt since the git-go. Very adept at milking the "I'm a poor minority Hispanic woman" cow. One deranged individual took a shot at her and hit her in the ass. I don't condone shooting public officials, but the irony was sweet.
Well, Phoenix does have it's warts. It sure ain't Chicago, New York, Washington or New Orleans, however. Since this is a state that a lot of people move to, they also bring a lot of stupid ideas with them. I know, weak defense…WTF.
This is how Chicago works. If you're an unconnected non-minority contractor, you bill a minority contractor, who upcharges your work and rebills a Prime Contractor, who upcharges your work and rebills the City. The city pays double for work done, two invisible fat cat contractors make money, and City Hall can claim that a major portion of their work is done by approved contractors and minority firms. Everybody's happy.
I did one systems development project for the city 15 years ago and was so disgusted I never pursued another job with the city of Chicago. We hired somebody from one of these minority firms a few years ago. We fired her outright when she told us privately (and rather proudly) that she was padding her billing because she was running out of billable work. We found out later that she was using time onsite to look for another job. We informed the client the next day and fired her on the spot. This was our largest client, and we lost them within the month. Our ex-employee, a double minority, filed for unemployment the next day. We didn't even contest it, assuming, probably correctly, that we would be sued for wrongful termination. Our unemployment rate was tripled for the next four years. There are 18 million such stories in the Naked City. This has been just one.
The same system is in effect today. Look up the sordid details of the city purchase of Michael Reese Hospital this past July, which the city quietly purchased from MedLine Corporation for $100 million, planning to use the land for Olympic Village. The purchase price included a kickback from Medline, two prime contractors were selected on no-bid contracts for demolition for another $20 million, and "up to 45%" of the many subcontractors needed were "minority owned" businesses. These costs, solely based on their intended use for the Olympics, were completely excluded from the reported costs of the Olympic bid. Details are in the Chicago Tribune in late July. Look it up. You don't even have to read between the lines.
That's the cost of a one-party city that has been in charge too long. The city government, of course, is whining that they have to raise taxes because they're out of money.
Rotten to the core.
Same crap, different pile.
Mary Rose has been involved in questionable dealings for many years here in Phoenix…. some say it had something to do with the fact she was shot in the buttocks and thats where her brain is ….. yes it really happened… but her ethics were questionable long before that happened !!!!
The shooting caused her brain damage