Though the state signed a contract with disaster management firm IEM more than two weeks ago to administer its $1.3 billion flood recovery program for homeowners, the firm that lost out to IEM is continuing to protest the state’s decision.
AECOM, which finished second to IEM in a field of five firms, has now filed two rounds of protests with the state. Late last month, it filed its first protest with the Office of Community Development, which upheld the award to IEM.
Earlier this week, AECOM appealed that decision to the Office of State Procurement, which has until May 25 to render a decision.
If OSP upholds the award to IEM, AECOM can take the matter to Commissioner of Administration Jay Dardenne for a final determination. Beyond that, the firm has the option to file suit over the dispute in 19th Judicial District Court.
AECOM’s regional business line leader Tyler Jones can’t say how far his company is willing to take its complaint.
“At this point, we are hopeful that the outcome is going to be positive for AECOM and that the protest holds and the state makes a decision that is positive for AECOM,” he says.
AECOM is challenging IEM’s award on several grounds, namely that IEM’s proposal is some $70 million more costly than AECOM’s and will not be able to serve as many homeowners under the Restore Louisiana program. The contract the state signed with IEM April 21 is worth an estimated $257 million. AECOM says it could do the work for $187 million.
AECOM has also argued it is more technically qualified that IEM to do the construction and program management required in the contract, and it has questioned the subjective scoring process used by the selection committee that evaluated the proposals.
The protest isn’t expected to have any practical effect on getting the recovery program up and running, unless either the OSP or Dardenne overturns the decision, according to Pat Forbes, executive director of the Office of Community Development, which oversees the program.
“But I don’t anticipate that,” Forbes says. “We’ve signed a contract with IEM and are barreling forward.”
—Stephanie Riegel
