Outrageous Oregon Contract Disasters

These sound like jokes, but they are what actually happens when public agencies must contract their projects out to for-profit contractors in the capitalist economy.

Oregon state capital aerial shot by Tim King Salem=News.com

(PORTLAND) - Don’t Oregon public agencies need sharper lawyers and better due diligence to negotiate with private contractors? During the past few days, we’ve heard that:

1. Portland can’t collect more than $600,000 in penalties from screwups by the builder of its new streetcars
2. Cover Oregon is forced to pay $40M to Oracle for its failures
3. After losing $2M, Multnomah County gave up trying to get their Colorado software contractor to deliver on its contract and
4. The Portland Development Commission just agreed to lose $6.7M in defaulted loans from its subsidy to The Nines hotel in the former Meier& Frank building by writing off $18.2M in taxpayer-backed loans in exchange for only $11.5M. The subsidized luxury hotel stooped payment on those loans in 2009.

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Portland Tribune photo by L.E. Baskow

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Michael Munk tries to glean important but overlooked items from the world media on the issues of the day and posts them on an irregular schedule. Although items can overlap, he also maintains separate lists for activists in Portland, Oregon and the Northwest, and special lists for: Labor, Latin America, Israel, Torture Taxis, Korea, and the Czech Republic.

Michael is a highly praised writer from an important generation whose book, the Portland Red Guide, has received high praise.

"City Commissioner Nick Fish gave me a copy. Sat down on my sofa and couldn't put it down until I finished. Fascinating!"
-- Tom Potter, Mayor of Portland 2005-2009

"Whoop! Whoop! I'm impressed by how many names from Portland's past have not made it into our official histories and public memorials. Some were good friends of mine. Local history is too often overlooked. Good work, Mike."
-- Bud Clark, Saloon keeper, Goose Hollow Inn, and Mayor of Portland, 1985–1992

Visit the new photo gallery on Michael's website: www.michaelmunk.com