Pa. Auditor General Blasts Edison Contract

The state of Pennsylvania violated its own competitive-bidding rules because it was "hellbent" on awarding Edison Schools Inc. a $2.7 million "sweetheart deal" to study the Philadelphia school district, the state's auditor general charged last week.

In a searing 64-page report, Robert P. Casey Jr. said the Pennsylvania Department of Education had broken procurement laws when it awarded the New York City-based school-management company the contract in July 2001 without entertaining competing bids.

He blasted the department for proceeding without enough evidence that Edison's fee was reasonable, that it was the most qualified contractor for the job, or that the study was necessary. More than a dozen analyses of the district had been performed in the previous five...

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