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Lawmakers sharply criticized two Hogan administration procurement officials Wednesday for the acquisition of incomplete COVID-19 tests kits from South Korea.
They also faced intense scrutiny over the state鈥檚 decision to purchase ventilators and masks from a newly-formed firm with strong ties to Republicans in Washington, D.C., but scant experience in procuring medical equipment.
The state has sought to cancel that deal after equipment was slow to arrive and questions about the company, Blue Flame Medical, were raised in the media.
Although he praised the Department of General Services for doing 鈥済reat work鈥� in locating 鈥渓ife-saving equipment for the people of Maryland鈥� in the early weeks of the crisis, Sen. Paul G. Pinsky (D-Prince George鈥檚) called the test kit deal and the contract with Blue Flame 鈥渄isasters.鈥�
The chairman of the Education, Health and Environmental Affairs Committee, Pinsky said the top officials in the agency were 鈥渃omplicit鈥� in the 鈥渕istakes鈥� the state has made.
The occasionally tense committee hearing, held via Zoom, represented the General Assembly鈥檚 most robust and critical oversight of the Hogan administration鈥檚 handling of the coronavirus crisis.
With state Health Department officials having canceled a scheduled appearance with the legislature鈥檚 COVID-19 Workgroup on Wednesday morning, it fell largely to DGS Secretary Ellington E. Churchill Jr. to defend the administration鈥檚 purchases during the Senate hearing in the afternoon.
Several lawmakers asked why the state purchased test kits from South Korea that lacked important components.
Sen. Clarence K. Lam (D-Howard), a physician, displayed a list of test kit materials that the company, LabGenomics, notes on its website are 鈥渞equired but not provided.鈥�
鈥淚f there鈥檚 ever a matter of life and death, having complete test kits would be it,鈥� Pinsky said. 鈥淚t gave publicity to the governor without helping the lives of Marylanders, and you were complicit in that.鈥�
Hogan announced with great flourish on April 20 that, aided by his wife Yumi, the state had acquired 5,000 LabGenomics test kits from her native South Korea, giving the state the potential capacity to screen 500,000 people for COVID-19 infection.
He called the purchase 鈥渁n exponential, game-changing step forward on our large-scale testing initiative鈥� and his office distributed photos of the Hogans on social media, showing them on the tarmac at Thurgood Marshall BWI Airport greeting a jumbo jet from Asia.
The news garnered Hogan national attention. President Trump took notice as well.
Since the high-profile buy, dubbed 鈥淥peration Enduring Friendship鈥� by the administration, there have been lingering questions about how many of the test kits remain incomplete and how many have been distributed. Health Department officials have repeatedly declined to publicly brief legislative leaders or answer questions from the media.
鈥淚f it was announced that we bought these tests and in fact they weren鈥檛 complete tests, we not only deceived Marylanders, we deceived the nation,鈥� Pinsky said.
Churchill and DGS鈥檚 chief procurement officer, Robert Gleason, testified at length about the challenges they faced attempting to purchase items that were in high demand and short supply the world over.
鈥淚n 25 years of public procurement, I鈥檝e never seen anything like this,鈥� Gleason said. 鈥淚t鈥檚 been an extreme challenge.鈥�
But when pressed on the test kits, he and the secretary repeatedly referred lawmakers to the state鈥檚 top health officials.
鈥淔or any procurement process, you have to have a subject-matter expert,鈥� Churchill said. 鈥淭he subject-matter expert for tests was the Maryland Department of Health. Yes, we did assist, but the evaluation of the product was a part of the process for the Maryland Department of Health.鈥�
Pinsky accused Churchill of 鈥渁bdicating responsibility.鈥�
鈥楴o track record鈥�
The committee also pressed Churchill and Gleason on the decision to award a $12.5 million contract for ventilators and masks to Blue Flame, a company formed in late March by two GOP fundraisers.
Maryland signed its contract with the Delaware-based firm just days after it incorporated.
Procurement officials insisted they were diligent in assessing Blue Flame鈥檚 ability to deliver, but lawmakers expressed skepticism.
鈥淭hey had only been incorporated for six days and had no track record. What kind of vetting process did you put them through?鈥� asked Pinsky. 鈥淭hey didn鈥檛 deliver, which proved the point that they were not vetted appropriately.鈥�
Gleason said the referral to Blue Flame 鈥渃ame through another member of the governor鈥檚 team,鈥� though neither he nor Churchill would identify the person, despite repeated attempts from lawmakers. Whispered conversations could be heard during gaps in the back and forth.
The DGS officials denied that there was any attempt to sway them into contracting with the firm.
鈥淣o conversations were held with that person,鈥� said Gleason. 鈥淣o conversations were held with the governor鈥檚 team specifically concerning getting a contract to Blue Flame Medical based on any relationship. We were not looking at relationships.鈥�
鈥淲e stayed within the guardrails of our procurement methodology,鈥� he added. 鈥淚t was deemed that the products that they were providing were acceptable for use in Maryland and we went forward with our purchase order.鈥�
Lam said that if the state had 鈥淕oogled鈥� Blue Flame they would have found an article from Politico about the firm鈥檚 newcomer status.
Company founder Mike Gula, a GOP fundraiser, told Politico he was able to find difficult-to-procure masks and ventilators because he and cofounder John Thomas, a political consultant, have 鈥渞elationships with a lot of people.鈥�
The firm鈥檚 website boasts of 鈥渁 wide selection鈥� of personal protective equipment and other 鈥渉ard to find medical supplies to beat the outbreak.鈥�
The company, which is represented by former state attorney general Douglas F. Gansler (D), is urging the state to revoke its move to cancel the contract, claiming that some items have been delivered.
The governor鈥檚 spokesman, Michael Ricci, declined to identify the member of Hogan鈥檚 team who referred DGS to Blue Flame.
Though he defended the deal, Gleason said the increase in the supply of ventilators and masks around the world is giving the agency the opportunity 鈥渢o readjust ourselves, to do things maybe with greater rigor or some degree or a greater degree of oversight.鈥�
The Department of Health declined to comment on Wednesday.
Speaking to reporters late Wednesday afternoon, Hogan announced more new testing sites, bringing the state鈥檚 total to 11, and he said Maryland has reached its goal of testing 10,000 people a day 鈥撯�� and had tested more than 300,000 since the COVID-19 crisis hit.
Hogan also detailed the elaborate steps the state has had to take to fill gaps in private lab and federal lab capacity and to make the South Korean kits operational. He disclosed that the University of Maryland will soon be processing tests at a new facility.
Hogan appeared irritated when a reporter asked, 鈥淲hen are we going to see the tests?鈥�
鈥淵ou won鈥檛 actually see them because they鈥檒l be in the lab,鈥� he said.
