Pablo M 201 Posted February 17, 2011 Share #1 Posted February 17, 2011 Academy Bus files suit against U. By Amy Rowe Associate News Editor Published: Wednesday, February 16, 2011 Academy Bus Company, which served the University community for the last 10 years, filed a lawsuit against the University and First Transit Bus Service for negotiating a contract without first informing the company. The Hoboken-based bus company as well as the state's largest private bus carrier accused Natalie Calleja, the University's Associate Purchasing Director, of collaborating through e-mail with UK-based First Transit representative Rick Pulido to under-price Academy Bus. "The University created an unequal and uneven playing field that favored First Transit and permitted them to submit a substantially lower bid," said Joeseph Ferrara, an attorney representing Academy Bus. In an e-mail to Pulido, Calleja allegedly discussed submitting First Transit's bid "so we modify it in a way that we get to where we both need to be." The e-mail exchanges "gave First Transit every opportunity imaginable to improve all aspects of its proposal to the prejudice of all other potential vendors who were not offered any similar opportunity," according to the lawsuit. The University declined to comment on the lawsuit. Before filing the suit, Academy asked the University to conduct a bid protest hearing in which the company would present their evidence that the procurement process between the University and First Transit was unjust. "The procurement process was unfair, partial, non-transparent, anti-competitive and inequitable," Ferrara said. "Rutgers refused Academy's request for a bid protest hearing, and as a consequence, Academy had no recourse other than to file suit." The University also allegedly ignored the University's requirement that all buses used in the service must be less than 10 years old, Ferrara said. "Rutgers knowingly allowed First Transit to propose the use of buses Rutgers knows are not approved for operation in New Jersey," Ferrara said. "By doing so, it permitted First Transit to lower its costs for the service and hence offer a lower price than if those buses were not permitted." The University's procurement regulations are intended to promote competition, and the process can only be competitive if each vendor is required to furnish its price on the same terms, Ferrara said. "The procurement process conducted by Rutgers in connection with the [First Transit] contract was not designed to secure a price quotation on the same material terms and specification offered to vendors other than First Transit," he said. The University notified Academy on Oct. 21 about awarding the contract to First Transit. Other University officials included in the suit besides Calleja are Executive Director of the Purchasing Department Kevin Lyons, Vice President for Finance and Administration Bruce C. Fehn and University President Richard L. McCormick. As part of First Transit's bid to the University, the company agreed to provide 50 buses, 38 new and 12 used, according to the lawsuit. The 15-year agreement will cost the University just under $19 million. Ferrara said he expects the University to deny their allegations. "I'm sure [the University] will try to walk away from a lot of things indicated in those e-mails," he said. "I don't think they can succeed in establishing what they said as appropriate." Losing out on the contract with the University will have a noticeable affect on Academy, Ferrara said. "The Academy employees presently operating the buses at the University will lose their jobs," he said. "They're also losing the profit they'd make in the contract." While Academy filed suit in December, they have sent out deposition notices to both the University and First Transit requesting they produce certain individuals to give testimony under oath in March, he said. Maxwell Barna contributed to this story. http://www.dailytargum.com/news/academy-bus-files-suit-against-u-1.2470460 Link to comment Share on other sites More sharing options...
BZGuy Posted February 17, 2011 Share #2 Posted February 17, 2011 Hmmm.....Francis isn't gonna give that contract up without a fight!:tup: Link to comment Share on other sites More sharing options...
East New York Posted February 17, 2011 Share #3 Posted February 17, 2011 Wow!:eek: Link to comment Share on other sites More sharing options...
theaveragejoe Posted February 17, 2011 Share #4 Posted February 17, 2011 Wow!:eek: I know if this is proven in court this will be a big win for Academy Link to comment Share on other sites More sharing options...
Pablo M 201 Posted February 17, 2011 Author Share #5 Posted February 17, 2011 Hmmm.....Francis isn't gonna give that contract up without a fight!:tup: He was willing to let it go if it wasn't for this! If there's one thing about Francis, you don't mess with his business. Link to comment Share on other sites More sharing options...
BZGuy Posted February 18, 2011 Share #6 Posted February 18, 2011 If there's one thing about Francis, you don't mess with his money. Fixed it for you! LOL! Link to comment Share on other sites More sharing options...
traildriver Posted February 21, 2011 Share #7 Posted February 21, 2011 This is interesting stuff. Wonder how they got a hold of those emails? Sounds like industrial espionage and all...... Link to comment Share on other sites More sharing options...
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