Mayor Jerry Sanders' staff quietly awarded a contract in September to a company that will train San Diego workers in managed competition techniques if voters approve Sanders' outsourcing ballot measure in Tuesday's election.
Mayor Jerry Sanders wants to move quickly if voters approve Proposition C.
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Alabama-based BAE Systems Analytical Solutions Inc. won a $27,275 contract as the lone bidder. The one-year deal with three one-year renewal options was awarded about a year after an attorney for BAE Systems in San Diego and a lawyer and two executives for an affiliate gave $750 to Sanders' mayoral campaign. One lawyer gave the maximum $600 and the three others each gave $50.
Sanders brushed off criticism about the timing and denied any link between the campaign contributions and the contract. He said a staff member told him about the contract yesterday after an inquiry from The San Diego Union-Tribune.
The mayor said the contract was awarded before Tuesday's election so that his administration could move quickly to train managers and union representatives to use new software and understand how to craft and monitor contracts based on performance measures similar to ones at the federal level.
“I wouldn't be surprised if almost every company in San Diego had one or two people who donated to my campaign for mayor, and I tend to think that they gave money to me because they think I would be a better candidate than anyone I was running against,” he said.
Critics complained about an appearance of impropriety and pointed out that the city's solicitation for the work listed a requirement that training include a focus on “the software tool COMPARE, operated and maintained by BAE Systems Analytical Solution (sic) Inc. or other comparable software.”
“It's an example of why people give Jerry Sanders money,” said Donald Cohen, president of the pro-labor San Diego think tank, the Center on Policy Initiatives. “Maybe it's venture capital. Maybe it's a sure deal, but it's always an investment. They're hoping for a return on investment.”
Proposition C would let private contractors compete against city workers for everyday jobs. Supporters call it managed competition, but opponents fear political allies and contributors will turn it into managed corruption.
Sanders and an array of business backers say the measure will reduce costs and increase efficiency. The Center on Policy Initiatives, the local League of Women Voters and union leaders inside and outside San Diego oppose the measure.
The mayor intends to begin the managed competition training on Thursday. Invitees include people from the Labor Relations, Public Works and Purchasing and Contracting departments, the Business Office, and city labor representatives.
A mayoral spokesman said the Deputy City Attorneys Association, the Police Officers Association and all but 12 members of the firefighters union will be excluded from the training because Sanders won't outsource their jobs. The 12 work for a private company under contract for some paramedic services.
Under Proposition C, Sanders would decide which work to consider outsourcing and then allow contractors to bid against city employees for the jobs if the outside workers could show a savings of at least 10 percent.
He said yesterday the training would prepare unions for a new era of competition with the private sector and help his administration manage any new contract more effectively. “I think one of the criticisms of Proposition C is that contracts won't be well-administered, and that's exactly one of the reasons we wanted to get this going if we do win,” he said.
Sanders' spokesman said BAE Systems has so far incurred a few thousand dollars in costs, which would have to be paid if Proposition C didn't pass.
Matthew Hall: (619) 542-4599; matthew.hall@uniontrib.com
