Audit Accuses L.A. Technology Agency of Skirting Contract Rules

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A new audit by Los Angeles Controller Laura Chick accuses the city’s Information Technology Agency of intentionally skirting city contracting policies.


The Information Technology Agency, which runs the city’s computer systems and oversees cable franchises, doesn’t have sufficient accountability over its contracting process, Chick said in an accompanying letter to city elected officials. She cited a lack of written proof of competitive bidding and little documentation of agreements reached with contractors.


Chick further alleged that these shortcomings led to abuses.


“The ITA used master agreements to systematically skirt the city’s contracting requirements, avoid scrutiny, award work outside the scope of the original agreements and direct contractors to hire specific firms,” her letter said, adding that work was “oftentimes awarded without competition and for services and rates not authorized under the original contracts. The audit reveals that the management within ITA intentionally circumvented the city’s contracting controls.”


In the audit, Chick issued 39 recommendations, including more detailed statements of work used in hammering agreements out with contractors.


Information Technology Agency General Manager Thera Bradshaw who was named to the post last October after the previous general manager, Liza Lowery, resigned due to illness denied that the department intentionally sought to get around contract controls.


“There were mistakes made, but they were not intentional,” Bradshaw said. “In fact, we have been working with the controller to institute a number of improvements to ensure stronger contract oversight and internal controls. I concur with the overwhelming majority of the recommendations in the audit.”


The Information Technology Agency audit is the latest in a series of performance audits Chick’s office has conducted under provisions of the new city charter. Two years ago, an audit of the city’s airport department uncovered alleged irregularities in the contract award process. Chick forwarded her findings to L.A. County District Attorney, triggering local and federal investigations into contracting practices at City Hall.


An audit of the city’s Public Works department released earlier this month alleged similar lack of documentation in awarding contracts. But Chick said agency officials were cooperating with her in addressing the problem.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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