REJECTED BY MTA, ACCEPTED BY COURT

In November 1994, the Los Angeles County Metropolitan Transportation Authority (MTA) solicited bids for the construction of the Hollywood/Highland Station and Tunnels. The contract was awarded to the second lowest bidder, despite the fact that its bid was almost $1 million more than Kajima/Ray Wilson's bid. MTA justified its selection on the grounds that the second bidder's disadvantaged business enterprise (DBE) credits, at 30.88%, exceeded the goal, while those of Kajima/Ray Wilson, at 29.51%, fell short. In Kajima/Ray Wilson v. Los Angeles MTA, 69 Cal. App. 4th 1458, 82 Cal. Rptr.2d 348 (1999), the Court of Appeal held that the MTA's application of an unwritten policy to grant only 5% DBE credit of bid amounts designated for those identified as brokers to Kajima/Ray Wilson's bid was arbitrary, violated federal regulations, and was an abuse of discretion. The MTA challenged the award of bid preparation expenses and bid protest costs. Based on the evidence, the Court of Appeal awarded such costs, including outside attorney's fees and costs of in-house legal counsel.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/11660022
• Corporate Authors:

  Scranton Gillette Communications

  380 E Northwest Highway, Suite 200
  Des Planes, IL  United States  60016-2282
• Authors:
  • Parvin, C
• Publication Date: 1999-11

Language

• English

Media Info

• Pagination: p. 12
• Serial:
  • Roads & Bridges
  • Volume: 37
  • Issue Number: 11
  • Publisher: Scranton Gillette Communications
  • ISSN: 8750-9229
  • Serial URL: http://www.roadsbridges.com/rb/

Subject/Index Terms

• TRT Terms: Appeals; Competitive bidding; Construction; Contract administration; Contractors; Contracts; Court decisions; Disadvantaged business enterprises; Federal government; Litigation; Public policy; Regulations; Subcontractors; Subway stations; Tunnels
• Geographic Terms: Los Angeles County (California)
• Old TRIS Terms: Metropolitan transportation authority
• Subject Areas: Administration and Management; Bridges and other structures; Construction; Highways; Law; Policy; Public Transportation; I10: Economics and Administration;

Filing Info

• Accession Number: 00781612
• Record Type: Publication
• Files: TRIS
• Created Date: Jan 4 2000 12:00AM