Attorney General’s Office Reaches Civil Settlement with Scottsdale Unified School District

PHOENIX – The Arizona Attorney General’s Office (AGO) and the Governing Board of the Scottsdale Unified School District (SUSD) reached an agreement on October 4th that satisfies the State's civil claims related to the selection of construction managers under construction manager at risk (CMAR) procurements for projects at Hohokam Elementary School (Hohokam) and Cheyenne Traditional School (Cheyenne).

The stipulated Consent Judgment has no findings by the Court that the District knowingly violated the Arizona school district procurement code. Both parties agreed to the following:

  • A consent judgment in force and in effect for three years.
  • Annual training for all procurement and financial staff for three years.
  • Procurement examinations above and beyond the statutory requirements for three years.
  • SUSD must pay $5,000 to AGO’s Antitrust Revolving Fund.
  • A release of the District with respect to all past acts relating solely to the civil claims set forth in the State’s complaint.

In 2017, the AGO started an investigation looking into the purchasing and contracting activities of SUSD relating to the construction of school facilities.

Prior to the stipulated Consent Judgment, SUSD had unilaterally and voluntarily commenced training and had procured the services of Clifton Larson Allen to perform a procurement examination for three fiscal years. Additionally, back in March, SUSD and the AGO reached a voluntary agreement that suspended the existing CMAR contract and halted the construction of the Hohokam project. SUSD voluntarily agreed to score any future CMAR contracts for the Hohokam project using a new CMAR committee. SUSD also established a new, second CMAR committee to re-score the CMAR proposals that were previously submitted for the Cheyenne project.

Two other defendants, Hunt & Caraway Architects and Brian Robichaux, remain in the case filed by the AGO in Maricopa County Superior Court.

If a judge finds in the future that SUSD violates the Consent Judgment, the AGO may seek all remedies available at law or in equity.