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October 30, 1969 OFFICE OF MODEL CITIES PROGRAM
673 Capitol Avenue, S.W.
Atlanta, Ga. 30315
(404) 577-5200
Ivan Allen Jr., Mayor
J. C. Johnson, Director
MEMORANDUM
TO : Dan E. Sweat, Chief Administrative Officer
FROM : Johnny C. Johnson, Executive Director
Model Cities Program
SUBJECT: Model Cities Mass Convention, Inc., and QED
Consulting Firm
In response to your memorandum of October 28, an investigation
has been made into your inquiry and the following is submitted
for your consideration.
It has been determined that Model Cities Mass Convention, Inc.
requested bids from three consultants that would provide manage-
ment and personnel guidelines for their operation of the corpora-
tion. It appears that the low bidder for these services was a
firm known as QED.
It seems that the firm of Quod Erat Demonstradum was organized in
February of 1964 and that the general purpose of the organization
was to provide consultant services in the areas of marketing,
management studies, and public relations. The firm has performed
services for Radio Station WAOK and is involved in a project with
several Emory University professors.
Upon examination of the contract between the City of Atlanta and
Model Cities Mass Convention, Inc., it has been determined that
under the allocation of funds, no provisions were made for con-
sultant and contract services with third parties except for public
information purposes. (See attached budget justifications). However,
when combining the budget for HUD and OEO funds, all monies for
training and technical assistance is to be paid out of the OEO
grant and not out of the Model Cities supplemental funds. The
Memo to: Dan E. Sweat
Page Two
October 30, 1969
hiring of a management consultant firm appears to be a legitimate
expenditure out of the OEO funds since these funds are provided
especially to assist in the development of greater management
capabilities on the part of the directors of the corporation.
Further inquiry reveals that EOA had requested of the officers of
the corporation to submit personnel and administrative policies
as a reguirement of their contract. It appears that EOA, and not
Model Cities, would be the final determinant agency with regards
to the sufficiency and qualifications of the consultants.
Item 14 of the contract between the City and Model Cities Mass
Convention, Inc., stipulates that all services sub-contracted to
third parties must have prior approval by this office. Our Pro-
gram Management Division was knowledgeable of the negotiations
and had informed the proper officer that these services were
eligible only under the OEO grant.
I assure you that the staff is fully cognizant of its responsi-
bility to assure that all monies which flow through the Model Cities
Program are spent wisely and effectively, thus are comitted to ful-
filling that obligation
Attached for your perusal is a copy of our manual on accounting
and fiscal management procedures. This manual is furnished all
operating agencies as a guide.
I hope that the above information has been of some benefit to you.
JCI:vic
Attachments