The telecommunications industry-dominated Connected Nation, a group created to spur industry-friendly broadband expansion, is at the center of a scandal that cost taxpayers nearly $4 million to produce a broadband availability map critics contend is error-ridden and incomplete.
The non-profit Kentucky company, which historically has close ties to some of the nation’s largest phone companies, has learned how to play political games to win lucrative contracts while producing less-than-useful results, according to a new investigation by the Miami Herald.
When Florida’s Department of Management Services (DMS) decided Connected Nation’s performance in the state was lacking, it decided to let the state’s contract with the group expire and seek other bidders.
That is a remarkable turnaround for an agency that three years earlier took bids from the group’s state chapter — Connect Florida, who estimated the cost of mapping broadband in the state at around $7.1 million. Another bidder, ISC of Tallahassee was a real bargain, offering to do the project for $2.8 million. Connected Nation won. So much for awarding contracts to the lowest bidder.
It turned out the judges scoring the two groups were split, until a former BellSouth (AT&T) executive serving as a judge on the panel put his thumb on the scale, awarding an astounding 51 points to Connected Nation, itself shown to have past ties to AT&T. The other judges scored no more than 15 points in either direction.
ISC, a homegrown Florida business, was stunned. Managing Partner Edwin Lott told Public Knowledge in 2009:
“Florida’s small businesses are working harder than ever to survive in this challenging economy. ISC, like other small businesses around the country, have had our hopes raised with Congress’s efforts to stimulate the economy with the Reinvestment Act and other initiatives. It originally appeared these initiatives were going to provide regional funding to sustain and promote jobs in the communities served by local and state governments.
“Our raised hopes were dashed as Connected Nation appeared to use its ‘connections’ in Florida to ensure its success in what was supposed to be a competitive procurement.”
DMS officials have apparently learned their lesson (at taxpayer expense), but Connected Nation isn’t going quietly. The non-profit group unleashed a high-powered lobbying campaign directed at the state legislature in Tallahassee to get its contract renewed to continue mapping Florida’s broadband future.
It worked, but only after the group’s critics at DMS were effectively bypassed. The legislature approved and Florida governor Rick Scott signed legislation that transferred broadband mapping away from the agency altogether, launching a new one — the Department of Economic Opportunity, to handle broadband matters effective July 1.
At least this time, taxpayers will have to pay less. Connected Nation’s latest bid was half of its original price, undercutting other bidders.
Rep. Alan Williams, a Tallahassee Democrat told the Herald price does not matter as much as political connections in the state legislature.
“Is this a favor to Connected Nation and a lobbyist or is this really good government?’’ Williams asked. “Is this really being accountable and efficient to the state of Florida the way the governor wants to be?”
Sen. Don Gaetz (R-Niceville) told the newspaper Florida state government is rife with insider influence peddling, and that appears to be the case with Connected Nation’s contract.
The group’s potent lobbying team included Lanny Wiles, the husband of the governor’s campaign manager; Al Cardenas, the former chairman of the Republican Party of Florida and head of the Conservative Political Action Committee; and Slater Bayliss, a one-time aide to former Gov. Jeb Bush.