The Insider's Guide to a D.C. School Contract

This is a story about EdBuild, a 20-month-old Washington nonprofit organization that has been awarded a $57.6 million no-bid contract and up to $1 million in administrative fees by the D.C. Board of Education to modernize and provide academic services to a handful of D.C. public schools. The multimillion-dollar deal was approved without the signature of the school system's chief procurement officer.

Welcome to the District of Columbia, where government is the mother's milk of entrepreneurs.

The story begins in April 2005, when School Superintendent Clifford Janey issued a call for public-private partnerships to help him jump-start much-needed reforms in academic standards and school modernization. Recognizing the system's lack of capacity to do both in a timely fashion, Janey publicly sought outside help.

His call was heard by the NewSchools Venture Fund, a nine-year-old, San Francisco-based organization created by venture capitalists and social entrepreneurs eager to transform public education across America.

Following a series of meetings over six weeks involving NewSchools Venture Fund officials, local business and civic leaders, and Janey, the idea of a public-private partnership took shape, leading to EdBuild's incorporation in the District on Sept. 16, 2005.

Among EdBuild's four incorporators were John Hill, chief executive of the Federal City Council, and Jordan Meranus of the NewSchools Venture Fund's East Coast office. EdBuild's first president and chief executive was Neil Albert, who had served in the administration of Mayor Anthony A. Williams as deputy mayor for children, youth and families, and earlier as director of parks and recreation. Albert is now back on the public payroll, serving as deputy mayor for planning and economic development.

Would there be an EdBuild without the NewSchools Venture Fund? In an e-mail yesterday, EdBuild's president and chief executive, Jacquelyn L. Lendsey, wrote: "Since its inception in September 2005, EdBuild has received grants totaling $1.25 million from NewSchools. These grants were used to support start-up expenses while EdBuild conducted the two-year process of collaboration, outreach and building up an experienced team to meet urgent public school needs in Washington, D.C."

The money was used, Lendsey said, to conduct "hundreds of meetings across D.C.," develop community support, provide academic support to public schools and follow the school board process "for fully vetting a public-private partnership."

Hill and Meranus serve on EdBuild's nine-member board of directors. Former D.C. school board member Julie Mikuta is a partner in NewSchools Venture Fund.

One year after EdBuild's creation, events began occurring at a rapid clip. After Janey released his master facilities plan last September, EdBuild, according to company papers, immediately "submitted a partnership proposal to modernize, coordinate space sharing and provide ongoing academic support for up to four public schools."

Three months later -- in December -- the D.C. school board voted 8 to 1 to approve the EdBuild-D.C. Public Schools partnership. Last month the school board, by a 6 to 1 vote, approved terms of the $57.6 million contract, leaving it to Janey to work out the details. The deal now goes to the D.C. Council, whose approval is required for all city contracts exceeding $1 million.

Janey told me this week that it wasn't always smooth sailing with EdBuild. At one point, Janey said, he and his staff identified 44 issues that required resolution before the contract could be finalized. Chief among them was the justification for awarding EdBuild a contract without public competition. Why, school officials asked in one school document I obtained, should EdBuild be retained to provide educational and modernization services without competition when the school system already has vendors that provide those or comparable services?

Good question. The appearance of favoritism and inside dealing can corrode confidence in government. Full and open competition is the better way. EdBuild's response, shown in the same document, noted that it was the superintendent who called for a single provider to support his key academic and modernization reforms. EdBuild also maintained that it was the only provider well qualified to deliver both turnkey facility services and targeted academic support to D.C. schools. What's more, EdBuild pointed out, the proposed partnership was discussed by Janey and community leaders at two public hearings in a process that was open for public comment and competing proposals.

EdBuild's arguments failed to carry the day with the school system's chief procurement officer, Kevin Green, who did not sign off on the deal. In a telephone interview this week, Green would say on the record only that he felt Janey was sufficiently informed about the proposed contract to decide whether to approve it.

Janey, in a phone interview Thursday, said he approved the contract in his capacity as superintendent after ensuring that his decision was within his authority and that the contract served the school system's best interest.

On May 16 the Examiner newspaper reported that Deputy Mayor Albert (EdBuild's first president) and Deputy Mayor for Education Victor Reinoso (who previously worked for Hill at the Federal City Council) met privately with D.C. Council Chairman Vincent Gray. Among the issues discussed: Gray's support for the EdBuild contract.

Open? Impartial? At arm's length?

Where stands the council?

kingc@washpost.com