Port under scrutiny for back-to-back $99K contracts.

Recent contracting practices at the Port of Bellingham have raised concerns about oversight and transparency, as two high-value contracts just under $100,000 were approved without formal competitive bidding procedures.

At their October 15 board meeting, port commissioners approved a $99,435 personal services (PS) contract with Maul Foster and Alongi, Inc. (MFA) to conduct an industrial lands and employment study in Whatcom County. This follows an August contract with Conflux Associates for $99,396 to conduct a public relations campaign aimed at improving the port’s standing with taxpayers.

Both contracts fall just below the $100,000 threshold that would trigger formal bid procedures requiring a public Request for Proposals (RFP). Under Port Resolution 1279-A, contracts between $50,000 and $100,000 can be issued without formal bid procedures. However, state law still requires ports to demonstrate competitive activity for these contracts.

Questions of Competition and Oversight

While the Port sent its proposal to five different consulting companies for the MFA contract, no competing proposals have yet been made public. For the earlier Conflux contract, officials indicated that consultant selection “was based upon the firm’s response to a request for personal services.” The port did produce a “draft for internal review only” dated January 22, 2024, from EnviroIssues for a “Public Support Engagement” campaign priced at about half the Conflux contract cost.

Neither contract shows evidence of commissioner discussion prior to their presentation for approval, despite port spokesperson Mike Hogan’s assertion that commissioners have opportunities to ask questions about agenda items in advance of meetings.

Contracting Disparities

The two firms present stark contrasts. While MFA is an established firm with eight offices across Washington, Oregon, and Idaho, employing various specialists, Conflux Associates has no web presence and lists a Chuckanut Point residential address as its corporate office.

Questions have also arisen about contract terms and budgeting. The MFA contract specifies completion by December 31, 2024, though its attached proposal indicates a final report due in March 2025. Hogan defended the December deadline, stating it reflects fiscal year requirements for operating budget contracts. However, this explanation appears to conflict with the Conflux Associates contract, which extends to August 31, 2025.

Budget Concerns

The contracts’ funding sources have also drawn scrutiny. While port economic development director Tyler Schroeder indicated that departmental “lapse” would cover the unplanned MFA study, no funding source was identified for the Conflux Associates contract before its approval.

The Conflux contract structure has particularly raised eyebrows. Initially proposed for a three-year term at $298,200, it was reduced to one year at $99,396 with annual renewal options, without adjusting the scope of services. State law prohibits “structuring” contracts to avoid formal bidding procedures.

The MFA study’s cost breakdown anticipates 535 hours of work at rates ranging from $115-$135 per hour for administrative support to $260-$280 per hour for principal involvement, totaling $99,425 – just $565 below the formal bidding threshold.

Commissioner Michael Shepard questioned the necessity of the MFA study given budget constraints and previous analyses. The study aims to supplement work by the county and cities in updating the county’s 2025 comprehensive plan as required by the Growth Management Act.

These contracts have raised significant questions about the port’s contracting procedures, particularly regarding transparency, oversight, and compliance with state competitive bidding requirements.