Saturday, November 17, 2012

DuPree Confirms BlueWare Scanning Readiness

MELBOURNE, Florida - BlueWare, Inc. is ready to gear up its scanning contract with the Brevard Clerk of Courts, according to a company vice-president.
Matt DuPree, a former associate of Clerk Mitch Needelman, told Brevard Times in an exclusive interview that a building and equipment have been purchased.
“We closed on a building on West Drive (in Melbourne),” DuPree said.  “We have hired about 25 people - about 10 of them are veterans.”
DuPree said that the company has been in the initial phase of the five-year, $8.5 million contract.  “We had to test the scanning process and software.  We had to hire a redaction company and we knew we needed a home run with that.  We hired CSI out of Altamonte Springs.  It is time to start scanning.”
He added that the contract does include a performance bond that requires BlueWare to meet deliverables.
“We initially said we could do the job in three years,” DuPree said.  “But Mitch wanted to extend it to five years - with no interest - so that he could better manage the payments.”
DuPree noted that the scanning process will save the county money in other areas as well.  “The Clerk’s Office cloud storage payments went way up - something like $2,000 to $40,000 monthly.  We provide free cloud storage for the scanned documents.”
The process was outlined by DuPree.  Documents will be picked up from Titusville and delivered to Melbourne.  After being checked in and prepped (looking for blank pages and removing staples), the documents are scanned and indexed by BlueWare software.  They are then redacted by CSI, which includes an “80% visual inspection.
At this point in the process, the Clerk’s office verifies the scan, it is placed on the network and the original document is approved for destruction.  DuPree said this process “only takes a couple of hours.”
He added, “The paper is recycled and the original folders can be re-used by the Clerk’s office for a probable yearly savings of a couple of $100,000.”
Noting the political football that this contract has become, DuPree said, “We hope to walk Scott (Ellis) through the facility and show him the process soon.”  Ellis was elected to the Clerk’s office in November and takes over in January 2013.
Ellis replied, “I would have hoped when one has received $8.5 million for an at best $2 million job, having received nearly $1 million already in the current year with no work to show for the funds, it is about time they were able to move from a rental house. I look forward to others explaining the law to Mr. Dupree and his friends in the coming year.”
DuPree is a Vice-President of BlueGem and currently deals primarily with scanning of medical documents for overseas health care organizations.


  1. OK nothing in this article makes sense and it sounds like malarkey.

    First, the person who was key to winning the contract for Blueware by being a paid lobbyist and business advisor for Blueware and negotiated the contract with Mitch is now the VP of the company who won the contract. Does that not sound like a conflict of interest to any one.

    Second, they won the contract that they have bragged about for so long based on their prior experience and work performed in this industry, it took them 9 months to buy hardware, a building and software to make it all happen. Don't you think if they already had the experience they would have had these things already?

    Third, Blueware hired CSI to do the redaction for them? How does this make sense? CSI does all the scanning and redaction for almost all of Florida's 67 counties already and bid for this job against Blueware and lost. So how could a company that has extensive experience in already doing this all over Florida lose to a company with no experience. And then to be hired by the winning company to actually do the work. I know CSI and their prices are constant. So the same price they offered the county in the bid process is the same price they are doing it for Blueware. So Blueware price is so elevated they are able to pay CSI their asking price. Sounds like someone is making a pretty penny to be a pass through.

    1. I guess now you know why by the recent arrest of Needleman, Dupree and Harr!!!! It was a scam all along.

  2. Fourth, Blueware is not charging any money to store the documents for the county. This is all part of their business profile. They always store the documents for free in a proprietary format that you have to pay a fortune to get them off. Ask them if there will be a charge when the contract is over and the county wants their documents back? That is how they have been making money for the past 3 years by exisitng clients trying to leave them and they charge them a fortune to leave.

    Fifth, Matt DuPree was a Florida lobbyist / busines consultant for local businesses in Melbourne and political hopefuls. Now he is an expert on scanning of medical deocuments for overseas health care organizations? Here is his LinkedIn page show me where it says expert in scanning:

    Lobbyist Eligere

    Currently holds this position

    Member National Rifle Association
    Nonprofit; 201-500 employees; Nonprofit Organization Management industry

    2000 - 2012 (12 years)

    Sixth, they have hired 25 people. It does not count saying you have hired people if you use a staffing agency called Spherion. They are on Spherion payroll after you pay Spherion. Not the same thing.

    Seventh, what exactly is this Blueware scanning software. He indicates that the documents will be scanned and indexed by the Blueware software. I just did a Google search of the top 10 commercial grade document scanning and indexing software and Blueware software did not make the list. I am not sure what we paid $8.4 million for? A piece of software that no one in the document scanning world has ever heard of and we paid top dollar to get. Was this a special price just for the Brevard County contract?

    Final question. Why did it take so long to get a building for this operation? Could it be for the fact that Blueware was waiting for the money to be issued for this contract so they can buy the building with this money. So basically the citizens of Brevard County paid for a building to do the scanning of our own records. Could we not find a company that already had a building that we did not have to pay for to be used in our over priced contract. When the contract gets cancelled does that mean we own the building?

    There are so many outstanding questions in this whole process that continually rise to the top and no one wants to answer. And this response by the negotiatior of the contract and now the recipient of the negotiations does not constitue an answer. If the contract was completed in April of this year and only now in November are they ready to start scanning, it makes us all question whether this was the right company for the job since they could not execute from day one.

    If the contract was completed and Blueware was the right choice, why did so many meetings happen in August and September at the Holiday Inn by employees of Blueware and Mitch's flock to convince them we need to do this contract and expand its scope.

    I am not buying any of this.

  3. This is all another charade. Either some fool investor has thrown money in, the Clerk's Office has thrown money in, or someone finally was crazy enough to buy the scanning contract they'd tried to re-sale. I hope Spherion or whomever is supplying the labor gets their money up front, and ditto the guy who sold the building.
    On another note, CSI did not bid the scanning contract, but they have been in league with DuPree and later Blueware ever since Needelman became Clerk.

  4. Scott thanks for the clarification. My friend who works for Seminole County where CSI does all their work, told me that CSI had done presentation for Brevard County and was discouraged from actually bidding on the contract because they would never win.

    So you are probably right in stating they never bid the job.

    Thanks for keeping everyone honest.

  5. Can someone say 44 days and counting until the drape is pulled back on this charade.

    Mr. Ellis thanks for not being fooled by the bull being thrown this way in the paper.

    I love how he said they are going to walk you through the facility and show you the process - how come no one is showing you anything now - you asked for documents and no one will show or tell you how the negotiations were done. Now all of sudden you will be in control and they want to take you on a personal tour.

    Give me a break!!!!!

  6. CSI did not do a presentation to the Clerk for the scanning contract, but they had tried to sell their redaction product and did sell an inflated Firewall product to the Clerk. However, it is important to note a whopping $8.5 million contract for scanning did NOT include the redaction of the scanned images. How convenient for CSI. Blueware got the Lion's Share, but as more unravels I believe we will see there was plenty left to go around for many others.

  7. We'll also find out in the coming week what deals have been cut, or are trying to be cut, with HP. Blueware shopped their contract before to another firm which balked after checking the contract (too good to be true) and the company (too bad to be true). If HP has indeed paid money to Blueware good luck getting in line to get back pennies on the dollar.

  8. Scott you are correct, the other company who Rose used to work for, was contacted to loan the county the money. They looked at all the numbers, did their analysis and left the party when they realized the contract would be cancelled and Blueware really had no product or offering worth that type of money. Rose insisted that they pay her all the money upfront and then deal with the county for paying the loan back to them.

    They called her and said thanks but no thanks because this is a no win situation when we are left holding an $8.4 million note in January on a undelivered service with a county that should not be paying this inflated price.

    The real issue came down to her valuation of the Bestbond software at $5 million. They could not see the real value in it, no documented installations of it, and Blueware could only present it to them in a powerpoint. They were expecting at least a pilot site but Blueware has not even been able to get any one to pilot it. And yet the county paid $5 million for something that did not exist at the time. And Rose wonders why everyone is up in arms and is questioning this contract.

  9. Well, it is certainly not over yet. The south Florida documents company and her former employer may have backed out but I believe another mark has been found. We'll know later this week, the money is moving and it will show up sometime.

  10. Well, after months of denials, at least BlueXXX finally admitted that Matt Dupree works for them.

  11. Yes, I am sure his employment caught Mr. Needelman totally by surprise!

  12. Deed recorded today for the warehouse at 202 west drive.

    To Blueware from Joseph Foresta Inc. $875K - CASH
    OUR - Brevard's CASH ?*#%&#?@!!!

  13. Interesting that 3 days prior to the date of this deed, Harr changes the Registered Agent (where you send lawsuit papers)for Blueware from Atty Susan Smith to herself at the 1825 Riverside Dr address and not the new WH location. No other of the 10+ Blue corps were changed from Smith as RA. Harr used her rented beachfront condo as the address for Blueware on the deed.

  14. He added, “The paper is recycled and the original folders can be re-used by the Clerk’s office for a probable yearly savings of a couple of $100,000.”

    LOL....That's a bunch of folders :-)what a joke

  15. Funny the contract signed when? shows CSI providing the I give? did we miss something?

    DuPree said that the company has been in the initial phase of the five-year, $8.5 million contract. “We had to test the scanning process and software. We had to hire a redaction company and we knew we needed a home run with that. We hired CSI out of Altamonte Springs. It is time to start scanning.”

  16. Funny you say that... See page #3, section F

  17. It is important to note the above regarding off-site redaction is in the ITN response but is not (I believe) in the May 23rd or June 29th contracts. The actual contract has no Statement of Work, no defined price other than a total, no detail at all of even what is to be scanned.

  18. True but as you can see, Mr. DuPree acts like the delays were caused in trying to secure a new vendor to do the redaction...but yet Blue-whatever clearly states CSI as the Redaction part of the process in the initial ITN response...acting like CSI is new to them....did they not read the response they submitted? Do they think everybody in Brevard County is an idiot and easy pickings?
    By the way I beleive the "Cloud" is a server on the floor at the so called BlueWare mansion....

  19. All mind-boggling, just looking at the docs on-line make me sick. From that e-mail from McDaniel in the Scibd docs that Joey linked-? from bidder: Would the County be willing to separate the redaction services/software from the scanning solution? Answer: “We wish to contract with one entity”

    And from the shame 72-hour bid process posted 5/11/12 “Is this a sub-contracting opportunity” - NO

    Is anyone out there that is in charge or that matters listening? Why are these boards so quiet lately? Please let there be a grand jury convening soon or something! Like this year would be nice! Hello?

  20. I am not sure if anyone from the County ever read the ITN Digitization response but something is not right here.

    Is it only me or do the following seem a little strange:

    1 - They talk about being experts in the field of document scanning and list over 100 clients they have performed this work for and only list two experts - the company President - Rose and Nick. Rose is the President of 10 companies so I amnot sure how she has time to do anything and Nick no longer works at Blueware and is in a lawsuit to get back pay.

    2 - The companies they list as current only 5 exist as current customers. They lost 58 customers since May of this year.

    3 - They list Portsmouth Hospital as a project they worked on from Feb 2007 and ended on Jan 2008 and the Contract Value was $9,000,000. In actuality, they were never paid any money and kicked off the project. The contract value was $9 million but they were paid nothing because they never set up an infrastructure to support the users and Portsmouth kciked them off the site. Did any one call to confirm this?

    4 - Throughout their support documents they keep referring to contract value - not what they were actually paid - big difference.

  21. 5 - They keep referring to the fact they will be scanning at their facilities on 1825 Riverview Drive. Did anyone check out the fact they were renting a conference room and 2 cubicles and won a contract calling this their scanning facility?

    6 - Why was a check for $525,000 issued to them on execution of the contract with no real reason. I thought once work was completed then you receive payment. What is so necessary that by signing a contract you get a half million dollar payment - what services were rendered for that payment?

    7 - Travel and living expenses are to be billed to customer as incurred - this makes no sense. If you are a local company doing local scanning what travel and living expenses do you have?

    8 - The project chart in the response indicated that on 7/6/2012 they Test run of systems from beginning to end will be completed. We are way past July 6th and we are nowhere near this task being complete and yet payments have been made to this company since May - what for. Deliverables were not met - why did payments continue?

    9 - The county paid $80,000 for a Digital Pen pilot project that no one asked for? How does this make sense? And if the county likes the pilot they paid for we get to pay for the full blown pilot implementation?

    10 - For $8.4 million the server is not included in the pricing?

    Mitch you really signed this?

  22. Correction on the Digital Pen Pilot Project...the contract I am reading shows the project was written for $120,000. $40K due on signing, $40K due on 7/1, and $40K due 8/1.

    Also do not forget that document destruction is not included in the contract, this is an extra cost:

    3. Pricing for the Shredding/Destruction of scanned documents is not included in this proposal and will be a separate addendum to this BlueGEM contract.

  23. There were discussions on doing a separate HR Scanning Project covering around 2500 former employee personnel files (250,000 pages). Anyone know if this was ever signed?

  24. Oh for God sake - whey don't we just hand over the entire Clerk's checkbook and make Blueware an authorized signee - if we haven't already!

  25. So let me get this correct - they initially went in with an ITN to do some digitizing and it was issued at a price 4 times current market price only to be followed by continual addedndums to the contract more features that the county did not even ask for and were not competively bidded?

    What does a digital pen project for $120,000 as a pilot have to do with scanning records - this makes no sense. And this was for a pilot - how much would it cost if they want to implement something they did not even ask for in the first place.

    Just becuase Blueware sells something Mitch does know he doesn't have to buy it - right?

  26. Just so everyone is perfectly clear - the Digital Pen company is called DigitalIQ - Guess what? They are a company out of the UK with no US customers. So it probably means they have no experience in Florida state government work.

    But Mitch has just funded another startup company trying to make headway in Brevard County. I am not sure if they read the newspapers over at the County but there are a lot of Melbourne based companies trying to stay afloat that we do not need to pay for some company to move to Florida to get a sweet deal and hire no resources or better yet a UK company trying to break into the US market.

    Stop the craziness now. Do you know what a $120,000 contract would do for my company? How many employees I can keep employed for another year? And that is only the pilot.

  27. I bet the traveling and living expenses in that contract was for the UK company to come over and do their pilot project for us. So we paid for them to fly over, stay, take a little vacation and hand them a nice check when they leave - as the Brits would say - this is splendid.

    Can I get on that vendor list?

  28. Is there something special about the BlueShredders that no one else has that allows them to shred our papers?

    Nice estimate Matt on the cost savings from recycling the old folders. You forgot to estimate how much money will be saved since we do not need to use labels and ink for the folder labels - that has to be worth $250,000.

    And let's not forget to estimate we can save on replacing carpets as often since people will not be walking to the file room as often to get the folders. That has to be worth a million alone.

    These abstract estimations being made by the person who engineered the ITN, wrote the specifications for the ITN, responded to the ITN and then got paid for the contract and is now on salary are not credible.

  29. I find this interesting this is from a July 21, 2012 article -

    Rose Harr, who has been involved in the contracting process with the Clerk of Court's office on behalf of both RoseWare and BlueGem, told Brevard Times on July 8 that, "Because public interest in BlueWare is being generated by contentious remarks in the Brevard County Clerk of Court race, we will be inviting representatives from local media sources to a press conference. At this conference, we will provide information on BlueWare and BlueGEM, discuss details on the recently signed contract with the Brevard County Clerk of Court, and answer questions addressing the aforementioned remarks." To date however, a press conference has not been held.

    So for the last 4 months this company has had no time to meet with anyone to discuss questions regarding the contract?

  30. I am just reading this article for the first time but have been following this mess for the last 6 months.

    Didn't Mitch deny when he was asked by Scott if Matt worked for Blueware, had affiliations with Blueware or would benefit from this contract.

    And didn't Mitch on record deny all allegations?

    Here is the quote -

    “I don’t know of any role Matt DuPree has with BlueWare”: Mitch Needelman, May 24th [2012] Forum.

    So we know Matt and Mitch know and knew each other - they both worked at Eligere. And Matt negotiated the contract for Blueware and now it is revealed that Matt works for Blueware as a VP for this contract.

    So isn't this all a little strange when you connect the dots and we are not supposed to feel like something wrong has happened.

  31. The response to the ITN meant nothing. They used it to be selected for the negootiation. The contract itself is a real sweetheart deal, which is why they fought so hard to suppress the legal opinion they had received on it.

  32. Are you serious?

    It gets worse than what we already know.

  33. Does any one know if Brevard County jail has Blue jail uniforms for the inmates?

  34. By Anon at 9:22 “…but there are a lot of Melbourne based companies trying to stay afloat… that we do not need to pay for some company to move to Florida to get a sweet deal…”

    You are so right, a big part of the tragedy of this whole sordid scam. I see companies that have been here for 20+ yrs that have a loan renewal come up & they are unable to make value and/or have a hard time coming up with the closing costs of refi that run into the thousands. They end up in foreclosure. [we already have nearly $1 BILLION in foreclosure judgments and pending judgments on commercial property in Brevard County ALONE].

    All this EDC, Enterprise FL and local incentive stuff apparently is an attractive & lucrative opportunity for a few scum-bag shysters to rape us of what little $$ we have left - all to the detriment of the long-term businesses that could use just a little of that assistance to stay in business. Mitch, Harr, McDaniel & Co - you should be ashamed of your evil greedy selves!

  35. Jail time - please. Rose has her escape route already planned.

    She ran and hid in the UK once for 8 years do you not think she already has an escape route planned.

    You can buy a lot of hiding places for $8.5 million.

  36. On the warehouse buy for $875K ($73 psf, or top $ for industrial property in this mkt). That was the LISTING/asking/let’s-start-here price for that property for a looong time. Congrats Harr, you are truly one of a kind - likely the only person to pay FULL asking price for a commercial property in Brevard, maybe even FLA since 2005. Why negotiate like real biz people concerned with their bottom line? It is just so easy to spend when it is not your own hard-earned money.

  37. Yes you are right here is the flyer -

    She paid full asking price.

  38. Here is a little inside information - she talked to the seller and said how can I make this transaction happen in 48 hours. The seller said pay me full asking price and we will get this closed ASAP.

    She has been feeling a lot of presure from these blogs and was afraid the money would be taken away from her so she was forced to make a quick purchase - hence the full asking price.

    I know this because my cousin works at LBR.

  39. It is odd if she had the money she'd place it in an asset she cannot take anywhere. Funny thing is after I had a tip Sunday night (no address number) I found the building Monday morning. There was no LBR sign out front. By the time I drove back by monday afternoon the whole Blue Crew was out front. It will be interesting to see if the title changes later, for now I think they needed to buy a building to get another $300,000 or more from the State of Florida. We have to incentivize these deals, you know!

  40. An asset she cannot take with her but an asset she can sell in the future if it is set up in a trust.

    Also, you are right the deadline for obtaining the incentives was about to expire so she had to pop the cork.

    Where they all out front looking at the new building or taking a picture proud of their latest conquest?

  41. It is were they all out front - not where they all out front - just an FYI.

    The whole trust part falls in line with how I heard she purchased the UK company. She is putting everything in trust now.

    Does any one with a legal mind know why she would be doing this?

  42. I just read the article about the school closures and I know it is all different pots for the money but we can spend $8.5 million for some company from Michigan called Blueware come to our county and charge us an outrageous price for services that cost $2 million and yet we do not have the money to keep our schools open.

    Someone needs to investigate why this is happening. Blueware gets ahead and my child falls behind.

    Stop it now!


    There is new bait in the water. Now that they are experts in digital imaging and record storage, will Blueware go after more of the free Brevard money?

    Let's make a rule that you can't start something new until you finish what you haven't accomplished yet!


    • Brevard Workforce Development Board, Inc. (“Board” or “BWDB”) is soliciting proposals from qualified individuals or organizations to provide an electronic means of cataloging and storing documents, automating workflow, and automating document management, version control, and retrieval.

    If they win this contract than they are the best in digital imaging and workflow. But can they win it if they do not have an inside man like Matt.

    If they don't win the contract does it mean they were really not the best qualified at the lowest price.

    Only time will tell.

    I can't wait to see the price and the number of documents being stored so we can compare apples to apples.

  44. There is always more. I spent much of the day today tracking down an HP contract flying around Blueware for the Clerk to lease computer hardware. Googled around and found a few HP lease deals in Florida and sent e-mails to the names on the contracts. Bingo. They're here, no telling what has been done so far. Six weeks to go and another long term scam contract using Blueware with Clerk's dollars.

  45. When Rose needed to get the money out of the contract after Mitch lost the election and before January 1 came around, she tried to get a company she used to work for with three letters in it loan the money to the county so she can get paid. That company was warned of the prevailing winds by an agency that has been investigating certain business transactions and that three letter company said sorry we are not loaning you the money.

    So rose colored glasses started calling other vendors who sell hardware - i.e. HP and said I have this sweet deal and if you give me the money I will make them buy your hardware.

    And that is how you got to where you are today.

    Same bad deal just a different player loaning the money and selling the hardware.

  46. The top 5 things I am thankful for in 2012 by rose colored glasses.

    1 - How easy it is to make money in Brevard County even when you have nothing to sell.

    2 - How you can make up a problem that needs to be solved, write your own contract specifications, not compete with anyone and then write the terms for that contract.

    3 - How experience is not required for doing business in Brevard County.

    4 - How you can get paid the day you sign a contract rather than actually having to deliver a product.

    5 - How easy it is to create new companies by just putting the word Blue in front of any other word.

    Have a Happy Thanksgiving or how we carpet baggers like to call it BlueHappy BlueThanksGiving

    And my News Year Wish is that you all stop harrassing me or I am going to be BlueBlue.

  47. I think as HP starts hashing over whatever deal RoseRose has signed hem up for they may be a little BlueBlue. I hope for their sake and any other firm's sake they don't throw away money assuming her scanning contract.
    If this were evidence it would be the Fruit of the Poisonous Tree, good thing HP is a big company, else they'd really know the consquences of biting into the poisonous BlueBlue apple.

  48. If HP really did this deal, they deserve what they get...Nothing.

  49. Word on the street Rose is back in buying mode. My cousin, the realtor of choice by Rose these days, tells me she is shopping for duplexes on the beach. The intent is for her visitng dignitaries to have somewhere to stay when they come across the pond.

    Sounds like someone has some serious extra cash to burn. Really strange how a company can go from not making payroll to spending money like a wild man. Seems to me she better be sending the Brevard County staff a big thank you XMAS card this year.

  50. Hard to say where all the money would have come from. I suspect large sums of money would not be from the Clerk's Office but from the third party vendors whom she 'arranged' leasing deals with the clerk and/or bought out her scanning contract. Either/and/or, whatever they have moved up front is history.

  51. It scares me when I think this would all continue if you had not won office and can stop this on January 1.

    Could you imagine the financial nightmare we could be in if he won reelection.

    Thank you Scott for caring.

  52. Had he won they'd never hvave hired the extra 30 people and probably would have let more go. These long term contracts he has been signed exceed available funds, but he'd have covered that with further diminishing service to save money for more scam contracts. Strike the IQ and charisma sections and you can define the whole Needelman/Harr/DuPree crew.

  53. Great article - Harr fits so many of these qualities. She has orchestrated a pretty good following in such a short time, she definitely has no feelings for anyone but herself, she has invented some amazing stories about 100,000 doctors using their software reality is only a handful or Blueware is the system of record for all of the UK, and we all know the delusional part.

    Everything else that she reflects gets personal and I don't want to get band by the moderator.

  54. Scott, anything new to report? Things seem to have quieted down the past week.

  55. Charles has a new story, new blog underway!

  56. I want a forensic audit ASAP of the Clerks Office and Blueware. Why isn't the Clerks Lawyers on record?

  57. Anyone have Matt's biz card from BlueXXX? Can you post a scanned copy here?

  58. As this scam continues not one politician or others lift a finger to do one thing all while this is happening to our schools. We need some people with Balls for a change to make a change! Stop talking about it and do something about it!

  59. So is this true????
    Michigan Software Company Lands on the Space Coast
    May 5th, 2012
    A Michigan-based information technology company expected to hire 190 over the next four years is on its way to Florida’s Space Coast, the governor’s office announced Friday.

    BlueWare Inc., a software company, is relocating to Melbourne, where it will be developing and writing software, document scanning and developing in the areas of robotics, nanotechnology and genomics, as they apply to a patient’s medical records.

    “BlueWare’s choice to move to Florida is a testament to the strength of our business climate and the result of a common vision for economic growth by local, regional, business and government partners,” Scott said in a written statement. “Today’s announcement is a great win for the Space Coast, as well as for the entire state.”

    BlueWare has said it expects to hire 190, with an average wage of $69,000, over four years, while investing more than $1 million for property and equipment.

    The company was awarded $760,000 through a State of Florida Qualified Target Industry Tax Refund and $550,000 in a Quick Action Closing Fund incentive to offset the costs of location, employee training, and infrastructure.