News

A company that received a half-million dollar grant to assess North Dakota's emergency services was pushed by the state to subcontract some work to a nonprofit group that had previously broken open meetings laws and improperly used federal grant money on alcohol and bonuses.

Records obtained by The Associated Press show that the state Health Department urged SafeTech Solutions LLP to consider hiring the North Dakota EMS Association to be involved in the work _ even though the association was ordered last year to repay $124,000 from an earlier federal grant.

That push came after the association had already failed in its standalone bid for the state grant.

SafeTech, based in Placentia, Calif., was notified by the state Health Department on April 5 that it would receive the contract "on the condition that SafeTech will consider engaging the North Dakota EMS Association as a subcontractor," according to documents released to the AP under a Freedom of Information Act request.

Tim Wiedrich, chief of the Health Department's emergency preparedness and response section, said the agency encouraged SafeTech to subcontract the work with the EMS Association because of "strengths to the EMS proposal."

The Heath Department has no overlap of staff or political connection with EMS, which represents about 1,800 ambulance and emergency workers. It was, though, the only North Dakota applicant for the state grant.

SafeTech Solutions said despite the urging by the state Health Department, it would not hire the North Dakota group.

"Our proposal did not include them and we will follow our proposal," spokesman John Becknell said. "We are proceeding ahead without any relationship with them."

Mark Weber, president of the Bismarck-based EMS Association, did not return telephone calls seeking comment.

The group has been under scrutiny after receiving about $810,000 in federal money between 2004 and 2008 to help produce a plan to fight bioterrorism and other mass disasters. Records obtained earlier by the AP showed that the state Health Department ordered the EMS association last year to repay more than $124,000 it spent on alcohol, lobbying, bonuses and other questionable expenses.

A North Dakota attorney general's opinion last year said the group also broke state law in closing a board meeting in 2008 to talk about an unfavorable audit. North Dakota's open meetings law applies to the group because it acts on behalf of the government.

Initially, the EMS Association, SafeTech Solutions, Integral Performance Solutions LLC of Wilmington, N.C., and New York-based Risk Solutions International LLC had submitted proposals for the state grant to assess North Dakota's emergency services and to provide plans for leadership training and recruiting. The work is to be done by June 30, 2011.

Arvy Smith, the Health Department's deputy state health officer, said SafeTech and the North Dakota nonprofit got the highest scores in the grant evaluation, though the EMS Association's misdoings likely counted against the group.

"I think it could have impacted the scores," she said.

Records show Wiedrich wrote a letter of recommendation for the state EMS group in January, while its standalone application was being considered. But he did not for the other applicants.

"They asked me to," Wiedrich said of the EMS Association. He said he did so because the EMS Association did produce a beneficial plan to deal with mass disasters, despite its wrongdoing.

In his recommendation, Wiedrich called the EMS association a "recognized leader" of emergency medical services in the state.

He said his letter "covered both what was wrong and what was right" with the group. But it downplayed the misspent money on booze, bonuses and other forbidden expenses, saying the group repaid the money and "did not have sufficient time records to justify some of their personal expenses claimed under the contract."

The letter made no mention of the group breaking state law by conducting a secret meeting.

"Frankly, I hadn't gone down that path," Wiedrich said.

Smith said it was unusual for a staff member to write a recommendation for a group seeking grant money, and that Wiedrich was not part of the team that evaluated the applications.

The AP began inquiring about which group would get the grant money immediately before the March 1 grant award deadline. The award was not announced until more than a month later.

"Clearly, we didn't meet that," Wiedrich said. "There was a lot of discussion about who to award the grant to."

Grant applications were judged by five people in the Health Department, he said. None has ties to EMS.

Wiedrich said SafeTech can do the work alone.

"But we felt it appropriate for them to mutually explore this, if there is a fit," he said.


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