February 10, 2020 by Tom Aswell (Louisiana Voice)
A lot of people, the media included, expressed surprised that a company owned by Bernhard Capital Partners was awarded a multi-million-dollar consulting contract by the Louisiana Department of Transportation and Development (DOTD) to plan the construction of a new bridge over the Mississippi River in Baton Rouge.
They shouldn’t have been—surprised, that is.
ATLAS TECHNICAL CONSULTANTS of Austin, Texas, was awarded the two-phase contract despite finishing well behind two other firms in evaluations by the state’s technical selection committee. The selection committee’s evaluation notwithstanding, the final selection was made by DOTD Secretary Shawn Wilson, an appointee of Gov. John Bel Edwards.
Atlas received 61.98 points from the committee while Baker International had 72.59 and AECOM had 74.01 points, more than 12 points higher than Atlas.
The entire process got Louisiana Congressman GARRET GRAVES in a tizzy, saying DOTD “better have good reasons” for doing a deal with Bernhard.
But as we said, no one should be surprised at Bernhard’s clout. He was, after all, once the state Democratic Chairman and was even rumored once as a potential candidate for governor.
As an illustration of his influence, in May 2017, LouisianaVoice did a story about how first Jindal and then Edwards pushed for a state water PRIVATIZATION CONTRACT with Bernhard Energy of Baton Rouge after a second company’s proposal was rejected in favor of seeking an oral presentation from Bernhard. Even then, another evaluation committee rejected Bernhard’s proposal, saying it was not in the state’s best interest to enter into the partnership with Bernhard because of the exceptionally high costs.
That was in 2015, in the last year of Jindal’s administration and despite the committee’s recommendations, he entered into a $25,000 contract with a Baton Rouge consulting firm to another “Evaluation and Feasibility Study” of Bernhard’s proposal. Even then, Bill Wilson of the Office of State Buildings rejected the proposal, saying it “would not be advantageous for the State of Louisiana in its current form.”
But in April 2017, well into the Edwards administration, Commissioner of Administration Jay Dardenne, in an email to Mark Moses, assistant commissioner for Facility Planning & Control, and Paula Tregre, director of the Office of State Procurement in which he said Edwards said the state “will have the RFP (Request for Proposals) on the street no later than May 31,” adding that the proposal “needs to be a top priority.”
So, of course it happened.
Again, no one should be surprised.
On Aug. 12, 2019, the Baton Rouge Advocate had a story announcing the deal whereby Bernhard will lease chiller systems at the state-owned Shaw Center for the Arts from the state for $3 million over 20 years and the state will buy back the chilled water—used to cool the building—for $6 million. Bernhard will also modernize energy systems at 31 state buildings, including the State Capitol, the Governor’s Mansion and state Supreme Court building in New Orleans, at a cost of $54 million to the state.
Another Bernhard company, Louisiana Energy Partners, will also sell extra chilled water to other companies in downtown Baton Rouge and the deal leaves open the possibility that Louisiana Energy Partners may enter into agreements with Louisiana colleges and universities to privatize their energy systems.
And, of course, who could ever forget the Blue Tarp Debacle following Hurricane Katrina in 2005—the first real indication of the stroke Bernhard has in this state.
The Shaw Group (since sold to Chicago Brick & Iron and Bernhard then started a series of new companies cited earlier in this post) was contracted to place tarpaulins over damaged roofs at a rate of $175 per square (one hundred square feet per square). That’s $175 for draping a ten-foot-by-ten-foot square blue tarpaulin over a damaged roof. Shaw in turn sub-contracted the work to a company called A-1 Construction at a cost of $75 a square. A-1 in turn subbed the work to Westcon Construction at $30 a square. Westcon eventually lined up the actual workers who placed the tarps at a cost of $2 a square.
Thus, the Shaw Group realized a net profit of $100 a square, A-1 made $45 dollars per square, and Westcon netted $28 dollars a square – all without ever placing the first sheet of tarpaulin. Between them, the three companies reaped profits of $173 per square after paying a paltry $2 per square. The real irony in the entire scenario was that the first three contractors – Shaw, A-1, and Westcon – didn’t even own the equipment necessary to perform tarping or debris hauling. By the time public outrage, spurred by media revelations of the fiasco, forced public bidding on tarping, forcing tarping prices down from the $3,000-plus range to $1,000, Shaw and friends had already pocketed some $300 million dollars.
The state threatened prosecution of those who it felt overcharged for a gallon of gasoline in Katrina’s aftermath but apparently looked the other way for more influential profiteers.
And no one was surprised.