Technically, a contract awarded to manage the state’s flood recovery program was canceled at the end of last week. But the process continued to grip the State Capitol throughout this week.
Seeking a manager for a $1.6 billion flood recovery program known as Restore Louisiana, the state earlier this month had awarded the contract, valued somewhere between $250 million and $350 million, to a team led by North Carolina-based IEM. The group had beat out, among other contenders, an organization called PDRM, which is led by local firm CSRS.
Not willing to give up just yet, CSRS filed a complaint with the State Licensing Board for Contractors, claiming that IEM did not possess a commercial contractor’s license at the time it submitted its proposal.
In a twist of fate, the licensing board’s attorney, Larry Bankston, ruled last week that a residential contractor’s license was required to submit a bid, rendering both IEM and PDRM ineligible because neither group had a residential license when they submitted their proposals. Both teams have since obtained all licenses.
Had nothing changed after Bankston’s ruling, third-place finisher SLSCO, owned by Sullivan Land Services, potentially could have won the contract. But that provoked accusations of favoritism, because Bankston’s son, Ben Bankston, works for a subsidiary of Sullivan Land Services. Larry Bankston has dismissed the conflict of interest accusations.
However, the state was so troubled by the brouhaha that it ultimately scrapped the entire process and started over—leading to criticism in a few corners, particularly from U.S. Rep. Garret Graves, R-Baton Rouge.
The cancellation didn’t stop IEM, the original winner, from taking the matter to court. Days after the state hit the reset button, IEM filed for a declaratory judgment in the 19th Judicial District Court in East Baton Rouge Parish to figure out what exactly the licensing requirements should be. That suit is still winding through the legal process. Larry Bankston says the issue is moot because the original request for proposals was canceled.
Earlier this week, the state issued a revised procurement document—this time called a “solicitation for offers”—for a manager for the flood program. Proposals are due April 7, and the award is scheduled to be announced April 13.
Jacques Berry, a spokesman for the Division of Administration, says IEM’s lawsuit should not delay the implementation of a new program management team because it isn’t looking to block the new procurement process. But only time will tell if any other delays or challenges will arise in the proceedings.
