Driving a Hard Bargain: D.C. Gov't. Overcharging Itself

WASHINGTON -- There are plenty of horror stories about car owners getting over-charged at some fly-by-night mechanic -- but a WTOP investigation has revealed some startling statistics on what a local government has been charging itself.

The D.C. Department of Public Works has been over-billing District agencies: $6,000 to fix the air-conditioning and $500 to change a fuse are just a few of the discrepancies WTOP uncovered through a massive Freedom of Information Act request.

The records reveal a pattern of mismanagement, over-billing and poor bookkeeping resulting in hundreds of thousands of dollars in waste.

Bill Howland, director of DPW, acknowledged the agency has some problems.

"We'll reimburse the department for that charge, and are reviewing our system to ensure we're doing what we're supposed to be doing."

Tens of thousands of dollars of the over-billing is caused by an automated charge of $10 on every work order.

"Now that you've brought that to our attention we'll look at that," Howland tells WTOP.

The agency routinely sells used tires to District agencies and charges them for new tires. But the cost of the tires in most cases was less than the cost to install the tires. DPW charged $66 for a used tire, $79 to install, plus the $10 miscellaneous fee -- $155 for one used tire.

"If we're going to give you a used tire, we ought to discount the price."

Howland tells WTOP he was aware his agency had a problem with providing timely repairs, but didn't know about the billing irregularities.

DPW has a policy of marking up parts by 25 percent. Howland said the mark up rate was below the industry standard of 30 percent. A review by WTOP revealed increases as high as 100 percent. That 25 percent mark-up means fewer salt spreaders on the roads when it snows. DPW sold 10 of the spreaders to District agencies at a profit of $25,000. If the agencies had bought them directly from the supplier they could have purchased 13 of the units.

DPW routinely charged more than private sector providers for services like oil changes. In some case charging close to $200 for an oil, lube and filter. In one case the agency charged $46 to top off the windshield wiper fluid.

On Wednesday, D.C. leaders reacted to the controversy.

Mayor Tony Williams said the D.C. Chief Financial Officer will be reviewing the billing irregularities at the Department of Public Works.

"If anyone is not following the rules there should be consequences."

City Council member Carol Schwartz, who chairs the DPW oversight committee, said she'll use the upcomming budget hearing to get answers as to how the over-billing occurred.

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