The purchase of "furniture, fixtures, and equipment" as part of the high school reconstruction has remained a point of contention. Over a year ago, Mike Maloney was asked why it appeared that the district paid more than list price for some items and he said the invoice prices reflected not just the cost of the items but also charges for delivery and hauling away the dunnage (packing materials).
Most of the furniture purchases were handled by a company called Saxton Bradley which is headquartered in the Seattle area. As part of my inquires into the FF&E purchases I have acquired from the district copies of all the Saxton Bradley invoices. Because they make volume purchases and can get educational discounts, Saxton Bradley is able to pass along considerable savings on many items.
For some items that we purchased through Saxton-Bradly, however, we paid over list price.
Here are some examples:
50 Mahasset Music Stands - Through Saxton Bradley we paid $49 each ($2,450.00 total). If we had purchased through Musician's Friend we could have bought them for $29.99 each delivered ($1,499.50 total) - a difference of $950.50!
A Conductor Stand from Wenger - Through Saxton Bradley we paid $561. If we had purchased direct from Wenger we could have bought the same stand for $359 plus $35 shipping and handling - a difference of $167!
50 Student Music Chairs from Wenger - Through Saxton Bradley we paid $131 each ( ($6,550 total). If we had purchased direct from Wenger we could have bought the same chairs for $76 each plus $643 shipping and handling ($4,443 total) - a difference of $2,107!
3 Expanded Music Lab Workstations from Wenger - Through Saxton Bradley we paid $2,368 each ($7,104 total). If we had purchased direct from Wenger we could have bought the same workstations for $1,360 each plus $456 shipping and handling ($4,536 total) - a difference of $2,568!
4 Folio Band Carts from Wenger - Through Saxton Bradley we paid $1,945 each ($7,780 total). If we had purchased direct from Wenger we could have bought them for $1,090 each plus $782 shipping and handling ($5,142 total) - a difference of $2,638!
Note: The documents above are copies of Saxton Bradley invoices with my notes; pages from the 2009-2010 Wenger catalog; and an on-line order form from Musician's Friend. In order to determine the shipping and handling charges from Wenger, I created an account and set up orders with the exact same items we purchased. They then calculated the shipping and handling charges. The prices paid to Saxton Bradley include delivery and installation. Most of the items we purchased through them required minimal or no assembling.
On just the items listed above, we overpaid by a whopping $8,430!! The total of our Saxton Bradley purchases was $332,000 dollars. For what other items were we overcharged? How do we even know if they gave us a good deal overall or not?
The whole point of ordering through Saxton Bradley is to get good deals. If they can't get us good deals, why would Maloney not just order these items separately? It doesn't make any sense.
In my quest to get some answers I've spoken with representatives from Saxton Bradley who each said they didn't know why we paid so much for these things. I've also spoken with the state procurement office and head procurement officer for the Oregon Department of Education. So far no one has an explanation. When pressed for an answer, the Saxton Bradley representative responded with "Have you seen the high school? Doesn't it look great?" - a laughable attempt at distraction. The head of procurement for ODE said she "would want to know why we paid more than the catalog price - that shouldn't ever happen."
But it did. The question is "Why?"
Most of the furniture purchases were handled by a company called Saxton Bradley which is headquartered in the Seattle area. As part of my inquires into the FF&E purchases I have acquired from the district copies of all the Saxton Bradley invoices. Because they make volume purchases and can get educational discounts, Saxton Bradley is able to pass along considerable savings on many items.
For some items that we purchased through Saxton-Bradly, however, we paid over list price.
Here are some examples:
50 Mahasset Music Stands - Through Saxton Bradley we paid $49 each ($2,450.00 total). If we had purchased through Musician's Friend we could have bought them for $29.99 each delivered ($1,499.50 total) - a difference of $950.50!
A Conductor Stand from Wenger - Through Saxton Bradley we paid $561. If we had purchased direct from Wenger we could have bought the same stand for $359 plus $35 shipping and handling - a difference of $167!
50 Student Music Chairs from Wenger - Through Saxton Bradley we paid $131 each ( ($6,550 total). If we had purchased direct from Wenger we could have bought the same chairs for $76 each plus $643 shipping and handling ($4,443 total) - a difference of $2,107!
3 Expanded Music Lab Workstations from Wenger - Through Saxton Bradley we paid $2,368 each ($7,104 total). If we had purchased direct from Wenger we could have bought the same workstations for $1,360 each plus $456 shipping and handling ($4,536 total) - a difference of $2,568!
4 Folio Band Carts from Wenger - Through Saxton Bradley we paid $1,945 each ($7,780 total). If we had purchased direct from Wenger we could have bought them for $1,090 each plus $782 shipping and handling ($5,142 total) - a difference of $2,638!
Note: The documents above are copies of Saxton Bradley invoices with my notes; pages from the 2009-2010 Wenger catalog; and an on-line order form from Musician's Friend. In order to determine the shipping and handling charges from Wenger, I created an account and set up orders with the exact same items we purchased. They then calculated the shipping and handling charges. The prices paid to Saxton Bradley include delivery and installation. Most of the items we purchased through them required minimal or no assembling.
On just the items listed above, we overpaid by a whopping $8,430!! The total of our Saxton Bradley purchases was $332,000 dollars. For what other items were we overcharged? How do we even know if they gave us a good deal overall or not?
The whole point of ordering through Saxton Bradley is to get good deals. If they can't get us good deals, why would Maloney not just order these items separately? It doesn't make any sense.
In my quest to get some answers I've spoken with representatives from Saxton Bradley who each said they didn't know why we paid so much for these things. I've also spoken with the state procurement office and head procurement officer for the Oregon Department of Education. So far no one has an explanation. When pressed for an answer, the Saxton Bradley representative responded with "Have you seen the high school? Doesn't it look great?" - a laughable attempt at distraction. The head of procurement for ODE said she "would want to know why we paid more than the catalog price - that shouldn't ever happen."
But it did. The question is "Why?"
If we have board members who continue to support Joseph Hunter and aren't willing to see the obvious that other people in the community and the school district see it is time to consider a recall election.
ReplyDeleteWow, that is A LOT of wasted money! That is so disappointing and wasteful. That makes me wonder what else is being hidden.
ReplyDeleteThank you for bringing this information to our attention. My hope is that some changes in district ordering will result from this revelation. Unfortunately, I have my doubts. The Central School District superintendent and his supporters are very clever. It's frustrating that everyone can't see what is taking place. This type of "business" has been going on for a long time.
ReplyDelete