Bad Faith Finding Does Not Mandate Award Of Attorney Fees And 1% Penalty

If a public owner breaches its payment obligations to a public contractor and acts in bad faith in doing so, is the public contractor automatically entitled to an award of its attorney's fees and a 1% penalty under section 3935 of Read more

Was Bid Non-Conforming Where Use Of PennBid Was Mandatory?

If a public owner mandates that all bidders use PennBid, an electronic bidding system used by public owners in Pennsylvania, for receipt and tabulation of their bid prices, but also inexplicably requires each bidder to write out its base bid price Read more

Commonwealth Court Affirms Dismissal Of Late-Filed Claim With The Board Of Claims

In a recent, unreported decision, the Commonwealth Court of Pennsylvania affirmed the dismissal by the Board of Claims (Board) of a late-filed contractor claim.  Under the Board's jurisdictional statute, 62 Pa. C.S. § 1712.1(e), a formal statement of claim must Read more

Oral Promise To Pay Subcontractor Ruled Enforceable Against School District

In a departure from the usual rule, but not surprising given the facts of the case, the Commonwealth Court of Pennsylvania recently enforced a subcontractor's claim for payment against a public owner. In 2009, West Allegheny School District terminated Flaherty Mechanical Read more

No-Bid Busing Contracts Cost School Districts An Extra $53.7 Million Over State Reimbursement

According to recent audits conducted by the Pa. Department of the Auditor General, Pennsylvania school districts spent at least $53.7 million in excess of the state's transportation reimbursement formula through the use of no-bid busing contracts. The conclusion of the Auditor General was based on audits of Read more

General

Former Philadelphia School Superintendent Ackerman Directed Award of No-Bid Contract

According to a recent Inquirer article, the Philadelphia School Reform Commission has concluded that former Philadelphia School Superintendent Arlene C. Ackerman directed Philadelphia School District staff to award a controversial $7.5 million no-bid contract for surveillance cameras to a small minority-owned firm in 2010.  The Philadelphia Inquirer article reporting the SRC’s conclusion can be found here.

My earlier post on the lawsuit which was filed by the company which lost the contract can be found here.  This news should bolster the chances of the company in its lawsuit against the School District.

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Posted on by Christopher I. McCabe, Esq. in General, Phila. School District Leave a comment

Philadelphia School District Sued Over Contract Award To Minority Firm

The Philadelphia School District has been sued by a suburban, white-owned firm which lost out on a School District contract in favor of a minority-owned firm.  The Philadelphia Inquirer has reported that the firm, which lost a $7.5 million surveillance-camera project after former Philadelphia School Superintendent Arlene C. Ackerman allegedly intervened on behalf of a minority-owned firm, has filed a federal civil rights lawsuit against the School District and Ackerman.

The firm may have an uphill battle in its suit.  It is well-established that disappointed bidders have no standing to sue public entities for lost profits due to the loss of a contract award.  Moreover, the federal courts have held that disappointed bidders have no claims for due process violations for alleged bidding irregularities because the bidders themselves have no personal or property rights in the lost contract.

On the other hand, if the firm can establish that, but for the actions of Ackerman and due to the race of its owner or the race of the owner of the minority-owned firm, it would have obtained the contract, it may be able to prevail against the School District.  This suit in such case would be no different that the challenges to minority “set-aside” laws which were viewed as quotas and which were struck down by the courts.  If successful, the suit will result in an award of attorney’s fees in favor of the firm.

The suit is the fourth brought against the district in the aftermath of the decision to award an emergency, no-bid contract to a minority-owned firm to install surveillance cameras in 19 city schools the state had deemed dangerous. The School District justified bypassing its normal bidding requirements by calling the camera installation an “emergency.”

The Philadelphia Inquirer article can be found here.  An Inquirer article on a whistleblower suit by a former School District official arising out of the same contract award can be found here.

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Posted on by Christopher I. McCabe, Esq. in Phila. School District Leave a comment