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New Bid Protests Halt Contract Execution on Corps Flood Job

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“Two weeks after the Corps of Engineers re-awarded the contract to build a massive permanent flood-control structure in New Orleans, the job’s procurement nightmare goes on.

The latest chapter follows 18 months of bid protests, a court challenge and a forced rebid.

Bechtel Infrastructure and CDM Smith-led CBY Design-Builders, losing bidders to PCCP Constructors, a Kiewit-led team that won the $629.5-million contract on Sept. 29, protested the re-award to the U.S. Government Accountability Office on Oct. 15.

The protests by Kiewit and Bechtel started in 2011 when the design-build contract was first awarded to CBY. The problems cited in the initial protest involved price, technical design issues and even alleged conflicts-of-interest.”

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Filed Under: News Tagged With: procurement, Rebid

Study: Nearly one-third of small contractors report ‘bait and switching’

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“For Eric Basu, stories of being wronged on contracting work go on and on. There was a time his San Diego-based defense company, Sentek Global, joined as a subcontractor to a larger, prime contractor that wanted Sentek on board in part, Basu suspects, because his business fulfills a state set-aside requirement for veteran-owned companies. After the prime won the bid, Basu said they stopped returning his calls.

Basu is not alone in his caution. Nearly a third of subcontractors reported having at some point been “stiffed” on a contract with a prime, according to a recent American Express survey. For the report, AmEx surveyed 740 small federal contractors. While the practice raises ethical issues, it’s not illegal: Contracting regulations don’t mandate that a prime firm must stick with any particular sub.

The report found that nearly half of active small firm contractors have successfully pursued subcontracting as a procurement strategy, and these businesses derive an average of 25 percent of their procurement business from subcontracts. But for many, being listed as a subcontractor on a winning bid sometimes results in disappointment rather than new business. The survey found that 29 percent of small firms have been victims of “baiting and switching,” in which a prime contractor wins a bid with a specific subcontractor but then either uses a different sub in the execution of the contract, or simply keeps the work for themselves.”

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Filed Under: News Tagged With: Bidding, procurement, Subcontractors

NYS Comptroller’s Audit Finds Fraudulent Construction Bids Made to SUNY Downstate Medical Center

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“An audit that was triggered by three anonymous letters revealed that fake bids were made for construction contracts at the State University of New York Downstate Medical Center, says New York State Comptroller Thomas P. DiNapoli.

According to the audit, Brooklyn-based Eagle Two Construction and its affiliated fake companies were paid $1.2 million by SUNY between January 1996 and October 2010. The affiliated companies, which are all located at the same address, had submitted competing bids in six separate procurements, some of which were forged, according to the findings made by DiNapoli’s auditors and investigators.

“SUNY Downstate Medical Center has worked closely with the office of the state comptroller on its audit of Downstate’s procurement practices and cooperated fully with its review,” said the hospital in a statement. “We will continue to work with [DiNapoli] to ensure compliance with state procurement regulations, monitor purchasing practices, and reinforce internal controls.”

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Filed Under: News Tagged With: Bidding, Construction Fraud, procurement

Filed Under: NewsTagged: ,Bidding, Construction Fraud, procurement
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