TEA Audit Dismisses Concerns Over Award of Special Education Contract

Alejandra Matos
Houston Chronicle
Posted December 5, 2017

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AUSTIN — Texas Education Agency auditors dismissed concerns lodged by the agency's former special education director who alleged the state improperly awarded a multi-million dollar, no-bid contract to a tech company that is mining data on disabled students.

TEA auditors reviewed the state's contract with SPEDx, a data company, after the agency's special education director alleged another TEA employee awarded the contract to a friend. Laurie Kash, the director, also alleged the agency did not attempt to determine if other vendors could provide the same service.

"The accusations could not be substantiated, and the complainant's charges were made without basis and were not supportable," said Bill Wilson, the TEA's director of internal audit, in a memo obtained by the Houston Chronicle.

Kash raised concerns about the contract internally, and in late November, also filed a federal complaint against the agency for awarding the contract.

TEA fired Kash last month because of allegations that she covered up the sexual abuse of a 6-year-old girl in her previous school district. Two former employees filed a civil lawsuit making the allegations in Oregon days before Kash was fired.

Kash denies the allegations. Bill Aleshire, Kash's lawyer, said he does not trust the audit because it does not cite any legal analysis and auditors did not investigate all of Kash's concerns.

"It's hard to refer to that as an audit without putting quote marks around that word," Aleshire said. "It doesn't conclude that TEA properly awarded the contract, it just addresses three issues."

Auditors reviewed whether a TEA staff member awarded a contract to her friend, if the staff member arranged for her friend to become a sub-contractor and if there were attempts made to find vendors with similar products.

Aleshire contends TEA is using the Oregon lawsuit as a cover, and said Kash was fired because she was outspoken about the SPEDx contract. The Georgia-based company received a $4 million contract to analyze students' Individualized Education Program, or IEP.

An IEP lays out a student's disability, his education needs and how a school intends to meet those needs. In a presentation to school districts, TEA said SPEDx will analyze IEPs to "detect hidden patterns and insights" that can help the department better serve students.

TEA did not put the contract out for bid because the data project requires specialized software that state staff say only SPEDx can provide. Kash, however, believed Penny Schwinn, the TEA's Chief Deputy Commissioner of Academics, awarded the contract to a friend.

Christina Heitz, who Schwinn met through an education training program, introduced Schwinn to SPEDx CEO Richard Nyankori in January, according to the audit. Once SPEDx won the state contract a few months later, the company hired Heitz to conduct training for TEA staff and to interview special education stakeholders.

TEA auditors found no wrongdoing with that arrangement. "Mr. Nyankori did not suggest that TEA persuaded him to hire this subcontractor, and it was a decision he made early in the process," the memo said. "In fact, the Agency is not permitted to direct a vendor on what sub-contractor to use."

Auditors also say TEA staff searched for other vendors that had software that could perform a data analysis like the one SPEDx offered, but TEA could not find any. In early November, Kash received a written reprimand for accusing Schwinn of awarding the contract to Heitz. The reprimand letter also noted other instances when Kash objected to the SPEDx project.

"It is your responsibility to represent the positions of the agency, not your personal preferences or opinions," Justin Porter, Kash's supervisor wrote. Porter then required that he be present in all of Kash's meetings, including when taking phone calls. Porter noted that the reprimand was not intended to prohibit Kash from reporting conduct that she believed to be illegal or unethical.

Aleshire, Kash's lawyer, said he was retained soon after Kash received the reprimand. On Nov. 21, Kash responded to the reprimand, and filed a complaint with the Department of Education outlining her concerns with the contract.

Article available at Austin American Statesman online HERE.