Ch2M Hill: Big Bucks with No Competition
The largest line item in the City budget is up for renewal and this has yet to be discussed during a Council meeting.
According to CH2M Hill contract, 120 day notice is due, if Council decides Not to renew the contract, which expires September 30, 2016. The option to renew is to be place on the council agenda no less than 150 days, which was last month.
Otherwise the taxpayers are on the hook to pay for 180 days to terminate the contract, which is the equivalent of almost $2.5 million.
Also, if the City Manager decides to hire a CH2MHill employee, the City would have to pay Ch2M Hill 100% of the staff salary (for over $100k).
The legal jargon is confusing, though one thing is clear, CH2MHill is a Revenue-driven company. The estimated contract amount is $4,775,000/year, or $400k month. There are lots of variables and stipulations for add-on costs.
Since 2006 incorporation, Johns Creek entered a public/private partnership with CH2MHill, an engineering and operations consultant, to provide a wide range of municipal services, including public works and community development.
This contract has never been put out to bid, and though the scope of work CH2MHill does keep diminishing, the dollar amount keeps increasing. With No Competition or Comparison shopping, who knows what is the best value?
GA Weekly Post wrote an interesting article about this Trillion Dollar Industry.
Below are PDFs of the Master Contract and most recent amendments.
Source: City of Johns Creek