Thursday, July 23, 2009

Outsourcing to a Contractor At Risk

Misinformation: MWH doesn’t need all the trouble here in the Cape, they have plenty of work elsewhere.

Reality: The Cape Coral project is MWH’s largest, worldwide, with the exception of Australia.

This job is so big that MWH hired a telemarketing firm to call North residents in an attempt to sway their opinions with a disinformation campaign.


Misinformation: The City needs to use a contractor to perform all the work because of liability issues.

Reality: The City can take out Errors & Omissions & Liability policies at a fraction of the cost of hiring ANY at risk contractor such as MWH.

Since 2000 this would have saved the taxpayers hundreds of millions of dollars paid to MWH, which now have to be paid back to keep the city solvent.

The City could have hired competent staff to manage and oversee city employees on the projects. This would have created thousands of infrastructure jobs.

Infrastructure jobs are the key component to a durable economic base.

A durable economic base would have been much more resililent than the service economy based on vapor loans.

Instead, the Cape decided to avoid taking ownership and pay extra to OUTSOURCE.

Now the chickens have come home to roost and the future economic costs will be enormous.

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