Controversial Schools Tech Contract Wins Approval

Members of the city's Panel for Education Policy took a leap of faith, as several described it, and authorized a technology contract worth $635 million to provide wireless networks and computers to the city schools Wednesday night at the panel's monthly meeting. 

The contract drew criticism because of its scope and the fact that the company, Custom Computer Specialists, was investigated for fraud as recently as 2011. The $635 million also represents a significant reduction in cost, about 40 percent, from the company's original bid -- a substantial drop in price that some found questionable.

"This one really doesn't pass the smell test," said City Councilwoman Helen Rosenthal during the meeting's public comment period. "I can really feel this budget doubling by the end of five years."

Leonie Haimson, who heads the group Class Size Matters, originally raised the issue over the contract on her blog.

City education officials said the contract was essential for providing tech upgrades and computers for both operational and instructional purposes, and that approval of the contract by March would allow the city to leverage more than $100 million in federal tech funds.

“This proposed contract is a transparent, fiscally responsible contract," said Devora Kaye, a spokeswoman for the Department of Education. "We have overhauled oversight of technology contracts and added strong safeguards to prevent waste and abuse."

Ten of 11 panel members approved the contract, after a pledge from Schools Chancellor Carmen Fariña for more transparency in the process.

While the contract passed late in the evening, the bulk of the time Wednesday night was spent hearing from the public on co-location plans. The vast majority of people who signed up to speak wore bright orange t-shirts in support of the Success Academy charter school network, which is expanding in Bedford-Stuyvesant, Brooklyn.  

In the end, though, the chancellor had the final word with a mini-lecture on schools sharing space.

"'Share' has to be a reality," she said, and implored schools in the same building to collaborate. "This is a reality that I expect to see happen."