(The following article by Nicolas Van Praet was posted on the Montreal Gazette website on November 25.)
MONTREAL — The group that lost to Bombardier Inc. in a bid to build a high-speed rail line in Florida has filed a formal protest and wants the decision reversed.
Lawyers for Global Rail Consortium, a South Korean-based partnership of almost 30 companies, filed a protest one week ago with the Florida Department of Transportation, arguing Global should be awarded the contract.
At stake is a deal to design, build and operate an estimated $2.3-billion line between Orlando and Tampa.
Global’s lawyers allege Bombardier’s bid didn’t meet the requirements spelled out in the tender process managed by the Florida High Speed Rail Authority and that Bombardier should have been disqualified.
“The authority’s action was rendered erroneous by reliance on biased staff analysis,” the protest alleges.
Yesterday, Global representatives spoke with Rail Authority officials. “Just like with any contract, you award it to one entity and the other entity is not happy,” said Nazih Haddad, executive director of the Rail Authority.
Bombardier won the contract last month with U.S-based partner Fluor, one of the world’s largest engineering and construction companies. The win marked the first time its new JetTrain technology had been chosen for a specific project.
Bombardier declined to comment on the challenge yesterday. The protest will be considered by the Rail Authority board Dec. 17.
The board will have to decide whether the opposition is valid, given that Global paid only $5,000 to challenge the decision, asking that the normal fee be waived, Haddad said. Typically, a bidder has to post a bond of one per cent of the project’s cost, in this case, about $23 million.
It’s still not certain the rail line will ever be built. Bombardier-Fluor is proposing to finance it by issuing tax-credit bonds, supported by $75 million a year in funds from Florida taxpayers. Florida Governor Jeb Bush opposes the project and has vetoed the Rail Authority’s funding at least once.