Almost $23 million in federal well being grant approvals have been thrust into uncertainty, with Orange County officers repeatedly delaying – and now deleting – the hiring of contractors that well being director Clayton Chau advisable with out aggressive bidding.
One of many entities was not registered as a charity with the state when Chau advisable them for $600,000 of the federal {dollars}, whereas one other of the distributors is listed as being in “forfeited” standing by state tax authorities, in keeping with on-line state information.
Chau, who serves each because the county well being officer and director of the OC Well being Care Company, didn’t return a cellphone message for remark.
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The $23 million in well being fairness grants – funded by the U.S. Facilities for Illness Management and Prevention (CDC) – are supposed to assist fight COVID-19 and tackle well being disparities amongst racial minorities.
In justifying the shortage of aggressive bidding for the contracts, Chau’s workplace wrote that there wasn’t time to ask for different bids.
“The County dangers dropping these funds if we’re not in a position to execute a contract expeditiously,” Chau’s workplace wrote in an Aug. 11 explanation of why different corporations weren’t given the prospect to compete.
However the grant approvals have been postponed twice from supervisors’ conferences – earlier than Chau deleted the merchandise altogether simply earlier than this week’s assembly.
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At a web-based information convention Monday concerning the pandemic, Voice of OC requested Supervisor Katrina Foley if she has issues concerning the county assembly the deadline for the CDC grants.
“Effectively after all,” stated Foley, who has questioned why the contracts weren’t put out to bid.
“However that’s why the CEO’s workplace is engaged on the merchandise and placing it on our Nov. 2 agenda,” she added, indicating the merchandise had been taken over from Chau by county CEO Frank Kim.
“I’ve my opinions about how we contract. And I wish to be sure we’re centered on our native companies the place we are able to, or ensuring we are able to preserve the work in-house the place applicable, not outsourcing a lot,” Foley stated.
“A number of the contracts I believe should not going to go ahead. Some might. We’re nonetheless simply ready to listen to what the CEO finally ends up recommending.”
The opposite 4 supervisors didn’t return messages for remark.
Earlier this month, Kim stated it’s simply going to take time to get the grants permitted.
“We don’t assume that the grant is in danger,” Kim stated in response to a query from Voice of OC at an Oct. 8 cellphone briefing with reporters.
“It’s simply going to take just a little bit longer.”
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One of many distributors proposed by Chau with out aggressive bidding is Advance OC, which was not registered as a charity with the state Lawyer Basic’s Workplace when he requested supervisors to approve federal grant funding for them in September, in keeping with state information.
Days later, following a Voice of OC article raising questions about the vendor, Advance OC was registered with the state on Oct. 6, in keeping with the Lawyer Basic’s web site.
An Advance OC board member stated the nonprofit had despatched in its paperwork a lot earlier – someday this summer season – however that it wasn’t mirrored in state information till later.
“We had really beforehand despatched the registration [to the Attorney General’s Office], and really they’d cashed the verify manner earlier than the contract was launched to the board. And I don’t know what the difficulty was,” stated Niosha Shakoori, an employment regulation legal professional who serves on Advance OC’s board.
“From what I perceive…the agenda merchandise is simply being postponed till November simply to allow them to do their due diligence, which now we have sort of gone by way of already.”
Chau didn’t return a message asking if officers verify the authorized standing of distributors earlier than recommending they obtain county contracts.
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One other vendor proposed by Chau has a “forfeited” standing with the state Franchise Tax Board.
When contacted for remark, the Institute for Healthcare Enchancment (IHI) attributed the difficulty to not paying an annual registration price.
“IHI is a nonprofit group. The CA Franchise Tax Board requires a $40.00 annual registration price from nonprofits with a view to function within the state. In 2018, there was a discrepancy surrounding IHI’s annual fee,” stated spokeswoman Joanna Clark in a press release Wednesday.
“IHI was simply notified of the difficulty this month (October 2021). Upon notification, IHI submitted the fee and is now ready for the state to course of it and replace IHI’s standing.”
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The CDC grant challenges come amid persistent stories that Chau – with backing from supervisors’ Chairman Andrew Do – is planning to stop his county job and transfer over to develop into CEO of CalOptima, the county’s medical health insurance for a whole lot of hundreds of low-income residents.
Chau and Do have declined to touch upon such stories.
For a part of the CDC grant funding, Chau was recommending the county rent a vendor that he advises on the side, Voice of OC revealed final month.
Chau didn’t disclose his advisory board place with Advance OC in his recommendation that the county hire the vendor for $600,000 in no-bid work.
A authorities ethics professional instructed Voice of OC that Chau ought to, at minimal, be clear about his relationship with the contractor, if not recuse himself totally from recommending them for county work.
“I will surely recuse myself. That’s a transparent battle of curiosity,” stated Tracy Westen, a authorities ethics professional who previously headed the Heart for Governmental Research.
“It’s actually one thing that must be disclosed,” he added.
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Chau declined to reply questions for Voice of OC’s article on the battle issues, telling a reporter final week that he was in a gathering and deferring remark to a Well being Care Company spokesperson.
A press release offered days later by the spokesperson stated Chau and the opposite advisory board members don’t make selections at Advance OC, however relatively present “technical help” to the seller.
It’s not the primary time Chau has confronted conflicts of curiosity issues.
He was fined by state authorities back in 2014 for failing to reveal lucrative drug company speaking fees when he labored as a high psychiatrist on the county Well being Care Company he now leads.
He acquired $84,250 in obvious violation of an company coverage towards accepting such funds, in keeping with a 2013 Voice of OC investigation that revealed the payments.
Nick Gerda covers county authorities for Voice of OC. You may contact him at ngerda@voiceofoc.org.
