Auditor: Portland leaders tried to select PPB-loaded firm for 'reconciliation' project without bidding process

PORTLAND, Ore. (KOIN) – A new report issued by the Portland City Auditors’ Office has revealed that two City of Portland agencies overseen by Mayor Ted Wheeler misused city code in 2022 in an attempt to directly offer a $200,000 contract to a newly formed nonprofit without opening the job to other qualified candidates through a proper bidding process, as mandated by the city’s own Code of Ethics.

The contract sought professional guidance for implementing a “truth and reconciliation” process involving the Portland Police Bureau and members of the Portland community. The proposed healing process was unanimously recommended by the Portland Committee on Community Engaged Policing following a 2014 settlement between the City of Portland and the U.S. Department of Justice regarding PPB’s “unnecessary and excessive” use of force.

“We must tell the truth about the history of policing in Portland, address past harm, and create a process that will help heal our community and restore trust between local law enforcement and Portlanders, especially among Black, Indigenous, and all communities of color,” the city’s solicitation for the contract reads. “This will create a safer Portland and a more effective police bureau.”

According to the report, city leaders overseeing Portland’s Community Safety Division and the Office of Management and Finance planned to offer the job to TrustLab, a nonprofit company claiming to offer “proven methodology to break down barriers and to build trust.” TrustLab’s website also promotes its “Board of Advisors,” which includes a number of former PPB officers and local humanitarians.

But the contract never materialized after a tip provided to the City Auditors’ Fraud Hotline revealed that the city inappropriately attempted to hire TrustLab through a “sole-source” procurement process, according to the report. City employees later told the auditor’s office that they mistakenly thought the “truth and reconciliation” project could be labeled as a pilot program, which could allow for a sole-source contract.

According to the City Auditor’s Office, city regulations do not allow plans like the “truth and reconciliation” project to receive pilot exemptions. A sole-source contract would also have been permissible under city code if there was only one contractor, supplier, or product that could have fulfilled the project’s requirements, However, the report states that TrustLab does not offer unique services.

“On the sole source exemption form, [the Community Safety Division] stated that TrustLab had experience providing social justice and law enforcement systems expertise and unique relationships with police but did not provide documentation,” the report reads. “Procurement did not try to verify this experience and expertise because they only considered the pilot exemption. We identified many other organizations with expertise in truth and reconciliation, restorative justice, and policing.”

President of Portland’s police officer’s union Sgt. Aaron Schmautz told KOIN 6 News that he previously agreed to be part of TrustLab’s “steering committee,” and provide insight into how PPB could foster positive community engagement. However, Schmautz said that he was unaware that he was considered to be a member of TrustLab’s “advisory board,” adding that the nonprofit never actually held a “steering committee” meeting or involved him in the development of any organizational action plans to heal the rift between PPB and its citizens.

It remains unclear why the City of Portland was so intent on hiring TrustLab for the project, based on the company’s limited proof of experience or offered solutions.

Schmautz said that he was never provided any details as to how TrustLab hoped to restore trust between Portlanders and local law enforcement. However, he did say that he agreed with TrustLab’s method of including both former PPB officers and civilian community leaders in the “truth and reconciliation” development process.

“If the goal is to work with law enforcement and the community to find a way to work together, you're going to need to employ the participation of both law enforcement and the community,” he said.

The City Auditor’s office said that although TrustLab may have been the Community Safety Division’s top choice for the project, its initial decision to forego a competitive bidding process and exclusively seek TrustLab as the sole option for the project was counterintuitive to the “truth and reconciliation” project’s mission of rebuilding trust between the City of Portland and its citizens.

“We found it especially troubling that Community Safety avoided an open and competitive process for selecting a contractor to help set the course for rebuilding trust between the Police Bureau and community members,” the report stated.

KOIN 6 News contacted Mayor Ted Wheeler’s office to ask why the city initially chose TrustLab for the project, and if the city has taken any action to prevent future contracting missteps. The mayor’s office did not respond to KOIN’s request for comment.