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'Separate Contracting Entity' Is Tainted By Parent Company's Ineligibility

Monday, August 01, 2011 03:00 am


Bid Protest

Gibson & Associates, Inc. v. State of Louisiana, Dept. of Transportation & Development, 2011 La. App. Lexis 586 (May 18, 2011) If the parent company is ineligible to bid, it's a good bet its subsidiary is too--even if ownership is only partial.

The Louisiana Department of Transportation and Development (DOTD) awarded a construction contract for interstate bridge joint repairs and replacements to Lamplighter Construction LLC (Lamplighter), the low bidder. The second lowest bidder, Gibson & Associates, Inc. (Gibson), protested and claimed it was the lowest responsible bidder and was entitled to the award. A trial court agreed and prohibited DOTD from awarding the contract to any bidder other than Gibson or from executing any contract awarded to another entity. DOTD appealed.

Gibson specifically alleged that Lamplighter's bid was irregular and should have been rejected because of Lamplighter's connections with a previously disqualified bidder, TOPCOR Services, Inc. (TOPCOR). Indee [...]

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