Sunday, April 26, 2020

CORONAVIRUS PROCUREMENT COLLUSION?: KINSA THERMOMETER MONOPOLY INVESTIGATION REQUESTED TODAY





Thomas Jefferson said, "I have sworn upon the Altar of Almighty God eternal hostility against every form of tyranny over the mind" of humankind.

Our City and an incipient monopolist, KINSA, INC., are slow-dancing together on an undisclosed contract.

KINSA is not qualified to do business in the State of Florida.

We must ask questions, demand answers and expect democracy.

Now more than ever we need watchdogs, not lapdogs.

Thus, I've written to the Director of the Bureau of Competition of the Federal Trade Commission and the Assistant Attorney General of the United States for Antitrust:



-----Original Message-----
From: Ed Slavin
To: PCSF
Sent: Sun, Apr 26, 2020 7:17 am
Subject: Re: KINSA, INC.: CORONAVIRUS Antitrust and Monopolization issues re: Digital Thermometer Marketing

Good morning:
Thank you.
With kindest regards, I am,
Sincerely yours,
Ed Slavin
904-377-4998
www.cleanupcityofstaugustine.blogspot.com
www.edslavin.com



-----Original Message-----
From: PCSF
To: Ed Slavin
Sent: Sun, Apr 26, 2020 7:15 am
Subject: RE: KINSA, INC.: CORONAVIRUS Antitrust and Monopolization issues re: Digital Thermometer Marketing

Thank you for contacting the Procurement Collusion Strike Force. We have received your correspondence and will reach out to you shortly to follow up on your inquiry.
We appreciate your interest in the enforcement of federal antitrust laws.
Sincerely,
Procurement Collusion Strike Force
Antitrust Division
U.S. Department of Justice
cid:image001.jpg@01D5F932.525C9D60




-----Original Message-----
From: Ed Slavin
Sent: Sun, Apr 26, 2020 7:14 am
Subject: KINSA, INC.: CORONAVIRUS Antitrust and Monopolization issues re: Digital Thermometer Marketing

To: 
The Hon. Makam Delrahim, Assistant Attorney General for Antitrust, U.S. Department of Justice, and
The Hon. D. Bruce Hoffman, Federal Trade Commission Bureau of Competition, Director

Dear General Delrahim and Director Hoffman:

  1. Would you please be so kind as to direct the Procurement Collusion Strike Force (PCSF) and FTC Bureau of Competition to investigate jointly KINSA, INC. and to conduct a civil, criminal and antitrust review of its contracting practices? 
  2. Does KINSA have "over 90%" market share and one million thermometers in U.S. homes, as claimed?  https://www.citystaug.com/DocumentCenter/View/3388/Kinsa-Project-Plan?bidId= (bottom of page 2)
  3. Was no antitrust review or background investigation ever performed or provided?
  4. Is KINSA legally qualified to do business in Florida? 
  5. NO record on KINSA exists on the Florida Secretary of State website. Do you agree this renders any contracts illegal ab initio, and unenforceable.   F.S. 489.127; Restatement of Contracts, 2d, Sec. 178 (Contract violations of public policy).
  6. How did KINSA come to obtain the no-bid, St. Augustine, Florida contract for 600 internet digital thermometers, about which it has repeatedly bragged in USA Today, Forbes, New York Times, and the Wall Street Journal?  See, e.g., https://www.news-journalonline.com/zz/news/20200325/from-new-york-city-to-st-augustine-fever-charting-shows-social-distancing-may-be-breaking-chain-of-coronavirus-infections
  7. Did KINSA ever offer any money or other things of value to get the job?
  8. Is there an actual contract?
  9. Is the City being overcharged?
  10. Are future bills possible, without limits ex contractu?
  11. Did KINSA show candor with its "partner" City or customers or investors?  See: https://www.citystaug.com/CivicAlerts.aspx?AID=80https://www.citystaug.com/DocumentCenter/View/3388/Kinsa-Project-Plan?bidId=.   https://staugustinefl.swagit.com/play/04132020-582  (video of April13, 2020 City Commision meeting, including puffing presentation by CEO Inder Singh).
  12. Our Nation's Oldest City, the City of St. Augustine, Florida, without supporting apparent independent legal or science advice, abruptly announced a "partnership" with KINSA for digital thermometers.
  13. There was NO reported written City finding of "sole source procurement."
  14. It appears that HIPPAA issues were considered belatedly, after I requested government and contractor records.
  15. It also appears that the City did not vet the vendor, as suggested by the fact KINSA is not legally qualified to do business in the State of Florida.
  16. The City and KINSA never provided contract documents that I requested under Florida's strong Open Records laws.  Wonder why?
  17. The City's Director of General Services, James Piggott, wrote that he has no documents; he is in charge of purchasing. The City Police Chief, Barry Fox, also wrote that he has no documents.
  18. This is pregnant with the admission that the procurement was handled by the City Manager, John Patrick Regan, P.E., who appears to be on a first-name basis with KINSA's CEO.
  19. KINSA was evasive and avoided answering Commissioners' questions at City Commission meetings.  https://staugustinefl.swagit.com/play/04132020-582
  20. Please issue subpoenas or civil investigative demands.
  21. Please consider a consent decree with KINSA and the City on anti-competitive practices in the marketing and procurement digital thermometers.
  22. As facts warrant, would you please be so kind as to take steps to remedy this incipient monopoly's 90%+ market share pursuant to the powers invested in you by the Sherman Antitrust Act, the Clayton Act, the Tunney Act, Hart-Scott-Rodino Antitrust Improvements Act and Section 5 of the Federal Trade Commission Act of 1914 (unfair and deceptive practices).  Let justice be done, in the public interest.  See, e.g., March 9, 2020 USDOJ Press Release, "Justice Department Cautions Business Community Against Violating Antitrust Laws in the Manufacturing, Distribution, and Sale of Public Health Products," https://www.justice.gov/opa/pr/justice-department-cautions-business-community-against-violating-antitrust-laws-manufacturing , stating inter alia: 
"The Department of Justice today announced its intention to hold accountable anyone who violates the antitrust laws of the United States in connection with the manufacturing, distribution, or sale of public health products such as face masks, respirators, and diagnostics.  The department’s announcement is part of a broader administration effort to ensure that federal, state, and local health authorities, the private healthcare sector, and the public at large are in the strongest possible position to respond to the outbreak of the respiratory disease named coronavirus disease 2019 (COVID-19).
“The Department of Justice stands ready to make sure that bad actors do not take advantage of emergency response efforts, healthcare providers, or the American people during this crucial time,” said Attorney General William P. Barr.  “I am committed to ensuring that the department’s resources are available to combat any wrongdoing and protect the public.”
Individuals or companies that fix prices or rig bids for personal health protection equipment such as sterile gloves and face masks could face criminal prosecution.  Competitors who agree to allocate among themselves consumers of public health products could also be prosecuted.  The department’s recently announced Procurement Collusion Strike Force will also be on high alert for collusive practices in the sale of such products to federal, state, and local agencies.
Anyone with information on price fixing, bid-rigging, market allocation schemes, or other anticompetitive conduct should call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

With kindest regards, I am, 
Sincerely yours,
Ed Slavin
Box 3084
St. Augustine, Florida 32085-3084
904-377-4998
www.cleanupcityofstaugustine.blogspot.com
www.edslavin.com

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