Alleged statute violations stem contract litigation

by | May 9, 2016 | Contract Disputes |

There are many ways in which an Ohio business can find customers. One of these is to submit a bid to win a contract with a federal entity. The bidding process allows companies to offer their services as well as an estimate of how much those services could cost. Bids on government contracts can be done on highway systems, construction projects, technology and even food.

Recently, a dispute has arisen concerning a bid submitted by an Ohio company to the Wright-Patterson Air Force Base. The company, Lenny’s Food Service, currently runs the dining facilities on the base but their contract is coming to an end. To win a new contract, the blind-owned business proposed a new bid but the military base selected a business in another state to take over the service.

The Opportunities for Ohioans with Disabilities, however, claims that the base is violating the Randolph-Sheppard Act. The base says that it was not subject to the law because the bid from the Ohio company was not “within 5 percent or $1 million of the lowest bid.” Under the law, blind-owned businesses who submit a bid that is competitive to other bids must receive priority on their bid by federal agencies. The state argues that the base did not follow the right procedures and that its purpose for the litigation is to protect the jobs within the state of Ohio.

Whether companies are seeking a contract, disputing a contract or find themselves the subject of a contract issue, it is important for them to understand that these are complex matters. Therefore, they may find it beneficial to sit down and discuss the circumstances with a knowledgeable attorney.

Source: Dayton Daily News, “Ohio suing WPAFB over blind vendor contract dispute,” Mark Gokavi, May 1, 2016

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