The Washington County Commissioners could be in jeopardy of losing a $1.8 million Community Crossing Grant — and possibly be banned from participating in the future — due to awarding the job to a local company that would do the work for a higher price over another company who had a lower bid.
The Indiana Department of Transportation was alerted that at the Commissioner’s May 6 meeting, the board voted 2-1 to award a $1.8 million paving contract to Temple & Temple, despite Harrison County-based company C&R Construction submitting a bid for $1,899,757 – that was $78,096 lower.
The board received a letter on May 27 from INDOT and was asked to respond within 7 days. It is not known whether a response was provided by their deadline. A special meeting is planned for Tuesday, June 10 at 9a to discuss the Community Crossings Paving Bid selection.
The INDOT letter notes that the Board of Commissioners is in “Material Breach” of the contract with INDOT regarding the bidding process for a Community Crossing Grant for an upcoming road project.
In the letter, INDOT states that Indiana Code 36-1-12-4 “the board shall (emphasis added): A) award the contract for public work or improvements to the lowest responsible and responsive bidder; or (B) reject all bids submitted.”
The letter, from Kathy Eaton-McKalip, INDOT Director of Local Programs, states that “to ignore the statutory requirements renders the entire process suspect.”
“Indiana law provides that the purpose behind the competitive bid statutes is to safeguard the public against fraud, favoritism, graft, extravagance, improvidence and corruption, and to ensure honest competition for best work at lowest reasonable cost,” the letter states.
Eaton-McKalip also notes that a provision in the contract between INDOT and the county states that “the Grantee shall comply with all applicable federal, state and local laws, rules, regulations and ordinances….”
She also notes that failure to comply with those laws and rules would cause the state to suspend the grant payments and possibly suspend the county from receiving future grants until “all material breaches are cured to the State’s satisfaction.”
The state is asking the board to award the bid to the lowest bidder to avoid the risk of suspension of the grant payments.
Commissioners Todd Ewen and Phillip Marshall voted to go with Temple’s bid, while Commissioner Tony Cardwell voted against the action.
