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ANATOMY OF A GREASED BID

BROUGHT TO YOU, FOR $3 MILLION, BY THE QUASI-PUBLIC PARTNERSHIP OF SYMINGTON & LECKIE & COOPERS & LYBRAND

But Coopers & Lybrand got its foot in the door on April 14, 1992, when ADOT granted an amendment to the firm's December 1991 standby teaching contract. The amendment allowed payment of up to $179,376 for Coopers & Lybrand to "participate in ADOT's Total Quality Management Program through assisting ADOT personnel to implement" SLIM.

The contract called for Coopers to be paid $103,776 in the first six months and an additional $75,600 the next year--"assuming" Coopers won the "umbrella contract with Project SLIM." ADOT records show Coopers did only nominal work under the contract amendment and was paid $80,960.

The ADOT contract amendment proved to be worth far more than dollars to Coopers & Lybrand. A month after obtaining the ADOT amendment, Coopers & Lybrand used it as leverage in its bid to secure the statewide Project SLIM implementation contract.

"This [ADOT work] is one reason we believe it is in the best interests of the State of Arizona to select Coopers & Lybrand so that a continuity of implementation methodology can be maintained in all agencies," Coopers & Lybrand wrote in its bid for the SLIM implementation contract.

While the bids were being accepted and reviewed by the procurement office, Symington launched a full-court press to convince the legislature to fully fund implementation of Project SLIM.

The House of Representatives, under speaker Jane Hull, quickly backed the governor, although records indicate there was some concern among GOP legislators about the need for millions of dollars for consultants.

The state Senate was far less cooperative, offering only $1.5 million for the approaching fiscal year.

As budget negotiations continued through May 1992, Coopers & Lybrand continued to ask the state for additional money related to the first, $1.5 million Project SLIM contract. The firm convinced the state procurement office to accept two amendments to the first contract, adding another $88,400 to the original $1.5 million contract. This was in addition to the ADOT contract, bringing the total extra payments to Coopers & Lybrand to $169,360.

By early June 1992, House and Senate negotiators were attempting to settle on a final budget. Symington made full funding of Project SLIM implementation--including more than $4 million for private consultants--a prerequisite to adjournment.

House and Senate negotiators finally agreed, and on July 1, 1992, Symington signed the fiscal 1993 budget, including $5.75 million for Project SLIM, $4.175 million of which was earmarked for consultants.

Nine days later, the state procurement office completed its formal round of interviews with the bidders for the Project SLIM implementation contract.

The five-member selection team that reviewed the applications included three workers from Project SLIM, which was directly under the control of the governor--David St. John, Sandy Williams and David May.

On July 10, 1992, the procurement committee awarded a $3.186 million Project SLIM implementation contract to Coopers & Lybrand.

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