Wiring of UNLV library continues

Bill Gang

Thursday, Sept. 23, 1999 | 11:15 a.m.

District Judge Mark Denton has allowed the installation of communications wiring to go forward at UNLV's new library despite his determination that there appear to be some irregularities in the awarding of the contract for the job.

Denton had issued a temporary restraining order two weeks ago that put a halt to that phase of library construction after a lawsuit was filed questioning why the job was awarded to the fourth lowest bidder.

The lawsuit alleged that a back-door deal fueled by free lunches and golf games for a UNLV executive was responsible for Tele Data Contractors getting the contract, despite a bid $120,000 higher than the low bidder: Communication Electronic Systems.

Tele Data's bid also was $100,000 more than UNLV's $480,000 estimate for the cost of the project to run cable and other wiring through the $46 million library scheduled to be completed next summer.

CES had asked Denton to rescind the contract and reopen the bidding process.

The judge questioned why university system officials hadn't looked into the reason Tele Data's bid was more than 20 percent higher and simply declared the firm to be the "best" bidder. But he added an injunction would only hurt taxpayers.

"The public would be put in a box by the horrendous consequences of an injunction," Denton said in his decision late Wednesday.

Testimony indicated that a lengthy delay in completion of the new library would mean renovation of the current Dickinson Library into the UNLV Law School also would be delayed and that would delay accreditation of the law school program.

Without accreditation, the law school graduates could not take the state bar exam to become Nevada lawyers, university lawyer Kwasi Nyamekye argued.

Not having a new library by the summer also would make it difficult for some students in summer classes, he added.

"The balance of hardship favors the public," Denton said, noting that estimated costs from delays because of an injunction could reach $3 million.

"I think it would be irresponsible of me to call a halt to the largest office building project in the state so CES can try to get the job again," the judge reasoned.

But he conceded that taxpayers likely were going to be paying out extra cash because of the bidding boondoggle no matter which way he ruled, although his decision likely would cost taxpayers less than delaying the project.

Denton said that if CES pursues its case to a trial, it likely would prevail and would have to be compensated for the profit it lost, the cost of preparing its bid and, perhaps, for legal fees.

Although Denton was critical of the way UNLV officials handled the bidding process, he said he wasn't prepared to declare that they had acted "in bad faith."

But CES attorney Michael Stoberski said the "manifest abuse of discretion" by UNLV officials already is costing taxpayers $120,000 more than it would be paying CES and likely will cost another $100,000 or more by the time the lawsuit is over.

While Stoberski conceded that CES wants its lost profits, he said that CES managing partner Frank Hollis also is pursuing the legal action out of outrage over the university's contract practices.

"If Mr. Hollis doesn't stand up for taxpayers, I don't know who will," the lawyer said.

Stoberski argued that Tele Data actually should have been declared ineligible for the wiring contract because there had been complaints filed against the company with the state Contractors Board for failing to pay subcontractors.

The bidding specifications required companies to certify that they had not been the subject of complaints.

Although CES attorneys uncovered the nonpayment complaints -- which didn't result in disciplinary action because payment was made -- UNLV officials did not.

University officials also did not check the references of companies to determine their competence to fulfill the contract.

Testimony at the preliminary injunction hearing, which lasted several days over two weeks, indicated that the low bid by CES was quickly rejected because of a determination that the firm had not handled jobs as big as the UNLV library and was presumed to be incapable of doing so.

Hollis assured the judge his company was staffed and capable of performing the job by the November deadline, but references that could have confirmed that weren't contacted.

Denton fumed that UNLV officials were remiss in not making those calls when the Tele Data bid was so much higher than the CES bid and the university estimate.

"By definition, references are to be checked," he said. "When it is the public's money, you have an obligation to be prudent."

Stoberski contended that investigations may not have been done because there was a sweetheart deal to give Tele Data the contract.

He noted that Mark Holman, the university's manager of network services and project coordinator on the wiring contract, had received free lunches and golf games and played on a softball team connected to Tele Data.