The Qatar Contract in it's entirety, here
I had to study this contract for a little while to figure out the 45 million dollar value that HCC had given it. If one goes to Appendix 3 and does a little math it can be done. Appendix three begins on page 31 of the contract, one goes to the bottom of the first year and finds Total of fixed and billed as one will get an idea of how HCC arrived at the 45 million dollar amount,
Year one is 5.3 million
Year two is 8.5 million
Year three is 9.6 million
Year four is 11.0 million
Year five is 11.3 million
The amounts were rounded to the nearest hundred thousand.
5.3 + 8.5 + 9.6 + 11 + 11.3 = 45.7 million dollars, wow that seems like a lot so what is HCC, us the taxpayer, doing to get all that money? Well we don't get all that money we get paid a percentage of the salary of the faculty that HCC took over there, for instance, in year one HCC gets;
year one 10.5% = $416,000 (rounded to the nearest thousand)
year two 8% = $525,000 (we went from 43 faculty members to 75)
year three 8% = $596,000 (we went from 75 faculty members to 84.5)
year four 7.5% = $641,000 (we went from 84.5 faculty members to 97.5)
year five 7.5% = $654,000 (we went from 97.5 faculty members to 99.5)
Total earned by HCC is $2.83 million, not bad but there are some conditions for this, will get to that later, now $2.83 is short of the $4.5 million that HCC says it will get from the contract, so where is the other money coming from? It comes from Access Service which is defined as Curriculum licenses, Accredation Development, and Library Material and connectivity fee below are the amounts
year one = $213,000 (rounded to nearest thousand)
year two = $213,000
year three = $213,000
year four = $313,000
year five = $338,000
Total = $1.29 Million
So we have $2.83 + $1.29 that equals $4.12 million, approximately what HCC has claimed they will make from this contract, not bad except that there are cost involved that will come from HCC taxpayers.
1) HCC is required to provide a 10% performance bond for the fixed amount, i.e, the first year would require a bond of $500,000
2) HCC must maintain insurance (does this mean that HCC must provide the same Health insurance that the employees have here?)
3) The contract states that HCC could not make this contract public unless it is okay by the government of Qatar (pg 12 at 20.3), no wonder it was so hard to get a copy of this contract. Who ever sent it to me thank you. This is very bothersome to me, how could the attorneys for HCC allow this provision? Texas Law requires that this contract be open record. Is there intentional violation of the law with this provision?
4) Costs to Be Absorbed by HCCS (pg 20)
a. Faculty and Staff Recruitment
b. Credentialing Cost for Faculty including Background Checks
c. All staff and faculty replacement except for the CCQ Dean Position
d. Payroll Services
e. Set up and maintenance of student data services
f. Quarterly administrative audit and evaluation of the program
g. Curriculum licensing to CCQ
h. Development of Employee Orientation and Feedback
i. Accreditation support
j. Program Review
k. Overall program development
l. Maintenance of program currency
m. HCC s portion, as verified and approved by CCQ, of joint development of grants and resources
5) In recognition of the fact that HCCS intends to maintain at CCQ the same standards of quality
existing at HCC Colleges, including, without limitation, with respect to the faculty members, all
HCCS faculty members should be from the HCCS Colleges when possible. This is troubling to me as it indicates that some of our best professors will no longer be available to us the citizens of Houston, Texas.
So how much money will HCC and the taxpayers make? We do not have any idea without knowing the costs that are associated with this contract. As time permits I will see if I can figure out what the costs are.
Where are the Trustees, are they all too busy traveling all over the world at Taxpayers expense? Are they too busy running for other offices? Are they too busy lining their pockets or their friends pockets? One thing I do know is that they are very busy fighting with each other.
Some one, if there is still an honest Trustee left, ask the questions on this contract! If you can not figure out what questions to ask, let me help. Question number;
1) Are the instructors at Qatar HCC employees? If Yes,
2) Is HCC paying all the insurance and benefits? If Yes,
3) What is the cost of the insurance and benefits?
If they are employees and HCC is paying insurance and benefits then in all probably there is a net loss to the college as benefits for employees almost always exceeds 10%. My reading of the contract is that those instructors are HCC employees. Trustees do your job.
So the Question may become if the College is losing money, who is making money on this contract?
I have had to add security to the Qatar contract as the link was lost some how, checked to see if the error was in the program (accidentally removed) and found that every thing was fine in this end.