Cost to taxpayers since the mid-1960's?
In the BILLIONS.
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Here's How the Scam Works:
The Manufacturer finds a way to contribute monies to
local and state officials, including but not limited
to State Attorney Generals.
The Manufacturer “courts” local decision-makers regarding
potential contracts.
The persons could be Facilities Personnel to School
Board Members, or regional or State Facilities
Decision Makers.
The Manufacturer might then provide “free”:
- Inspections
- Tests
- Specs
Note: The Specs are either by name only to
the Manufacturer or by too-tight “Performance
Specs”, laden with certifications that are not
audited by any State Auditor, or in the
call-out for products may list tests that are
old, out-of-date or require values to be met
that are not the range, but a number within
the range, not applicable to the test. A
warranty without “maintenance fees” every
five years may not be provided in the spec.
A Mandatory, Pre-Bid Walk may be required.
A substituted product approval date could
easily fall past the bid date.
Bidding Services (controls the process).
The Architects and Engineers who have fiduciary duties
and comply with the demands of those controlling the
contracts have just:
- Violated their licensed duty to protect the Health,
Safety and Welfare of the Public (Fiduciary Duty) - Violated the Competitive Bidding Laws in force
- Aided and Abetted RICOH activities (most likely)
- Aided and Abetted possible Bid Rigging and Collusion
- Aided and Abetted the ability of decision-makers
to receive kickbacks (if done)
And more….
During the Bid Process, the Manufacturer:
- Provides a set of three or more contractors to bid.
- Gives each a packet of certifications, etc. to submit.
- Gives each pricing, which pricing could differ.
- At a mandatory Pre-Bid Walk, controls or “chases
away any other roofing contractors that
show up and want to bid an alternate
product - Stops competition by ensuring the bid continues
when a substituted product is asked for
approval.
During Construction, the Manufacturer:
Provides Inspections (with no outside inspector
Involved).
After Construction, the Manufacturer:
- Requires high maintenance fees every five years
Warranties are kept where and fees paid, used
by whom in the Facilities Departments?
As a result, the roof may wind up being redone every 6-8 years or so.
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Note:
Roofs in moisture-laden areas last 20-30 years of this type.
In the scams, i.e., the roof life could be shortened by “shorting” the asphalt between the plies, drying out the roofs sooner and allowing leaks.
After all, an independent “Registered Roof Observer” from the Roof Consultants' Institute, for instance, was not employed by the Facility Owner.
See the topic "Anatomy of a Billion Dollar Scam" on this blog for more information.
UPDATE:
See "Hoosiers for Fair Taxation Blogspot" topic re: A local contractor speaks about the scam, how it operates - and how the Facilities Director was "wooed" by the roofing Manufacturer, located here:
http://hoosiersforfairtaxation.blogspot.com/2008/02/worthy-roofing-business-that-didnt-get.html
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