The state has again rejected a protest of the contract it awarded in April to disaster recovery firm IEM to manage Restore Louisiana, the $1.3 billion recovery program for homeowners affected by the 2016 floods.
AECOM, which finished second to IEM in a field of five firms that competed for the contract, already failed once in its attempt to get the state to reconsider the award. In early May, the Office of Community Development rejected AECOM’s initial protest, which argued that AECOM’s proposal was $187 million compared to IEM’s $250 million, and that the state selection committee’s technical scoring process was flawed and unfairly favored IEM.
Under state procurement laws, AECOM had the right to take its complaint up the ladder to the Office of State Procurement. In a lengthy ruling Wednesday, OSP again rejected AECOM’s protest, noting that state law gives state agencies wide latitude to evaluate proposals.
“Competitive negotiations are inherently subjective, which is why statutes provide flexibility, and courts have adopted a policy of deference to state agencies in their pursuit of services in the best interest of the state,” says state procurement officer Paula Tregre in her decision. “It is often the case, as in this protest, that unsuccessful proposers argue strict interpretations of (the procurement language) to have the successful offeror disqualified. … (However), absent a showing that an agency action was arbitrary or capricious, the agency’s determinations are given great weight and should not be reversed or modified.”
The lengthy decision goes on to address each of AECOM’s multiple complaints individually.
AECOM has the right to appeal one more time to the state. It can take its protest directly to Commissioner of Administration Jay Dardenne. But it is unlikely he will reverse the earlier decisions of OSP and OCD, both of which are departments under the Division of Administration.
If unsuccessful at the state level, AECOM could ultimately file suit with the 19th Judicial District Court. It is unclear whether the company would go that route. Earlier this month, AECOM officials said they would consider all options. They did not return multiple calls seeking comment today.
Despite the protest, state and IEM officials are moving forward with the administration of the ReLa program.
—Stephanie Riegel
