With state agencies in West Virginia facing severe budget cuts, a technology company is questioning the state Department of Education's recent decision to spend an extra $33,700 for Microsoft software and services.
Hebron, Kentucky-based Pomeroy IT Solutions, filed a formal protest after the education department bypassed the low bidder and awarded the $2.8 million Microsoft contract to En Pointe Technologies of El Segundo, California.
State education officials disqualified Pomeroy's bid, which was $33,700 less than En Pointe's, because Pomeroy didn't have a licensing agreement with Microsoft. Pomeroy later argued that its contract partner, Softchoice, did have a Microsoft license.
By that time, it was too late.
"Softchoice was determined to have been a Microsoft licensing service provider after the bid submission deadline had passed," said Heather Hutchens, chief lawyer for the state education office. "As Pomeroy did not meet the mandatory specifications, their bid, regardless of cost, could not be evaluated."
Pomeroy sales executives - both at corporate headquarters and at a satellite office in Dunbar - did not respond to emails and phone calls seeking comment last week.
But emails obtained by the Charleston Gazette-Mail show Pomeroy officials were miffed by the state's decision to award the contract to a competitor.
"With the substantial state budget deficit leading to pervasive funding cuts, can you explain how not awarding this to the low bidder meets your fiduciary responsibilities?" Pomeroy executive Summer Bailey wrote to state education administrators earlier this month.
In the same May 13 email, Bailey also asked whether the Department of Education intended to require the contract be awarded directly to a tech firm with a Microsoft licensing agreement. Bailey declined to comment last week on that email and others sent amid the company's bid protest.
Phil Uy, assistant director of internal operations at the education department, responded to Bailey's email, saying Pomeroy, in essence, was challenging a bid specification - not the department's decision to award the technology contract to En Point. Uy added that the bid requirement was "reasonable."
"The specification promotes direct access by the WVDE to the seller responsible for the product," Uy wrote in an email to Bailey.
En Pointe has a software licensing agreement with Microsoft.
The $2.8 million contract allows the Department of Education to buy Microsoft software products for schools across the state - and for department staff members.
The new contract replaces a "Tools for Schools" contract with Pomeroy that expires May 31. The expiring contract included computer software and hardware.
Pomeroy seems to have few options to challenge the education department's decision.
In 2015, the state Legislature passed a law that exempts Department of Education technology contracts and purchases from state procurement laws, which other state agencies must adhere to.
Nonetheless, the department still follows most state Purchasing Division guidelines, Hutchens said.
"Because WVDE is spending public money," she said, "we are committed to utilizing a process which is open, transparent and fair to potential bidders."
Reach Eric Eyre at ericeyre@wvgazettemail.com, 304-348-4869 or follow @ericeyre on Twitter.