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Tuesday, February 24, 2004

Low bidder fails to halt convention work


Says winning bidder used shell companies to satisfy subcontractor regulation

By Gregory Korte
The Cincinnati Enquirer

DOWNTOWN - A judge declined Monday to hold up the city's expansion of the Albert B. Sabin Cincinnati Convention Center over a plumbing contractor's claim that a competitor illegally got a high-bid contract.

The bid from the Thomas J. Dyer Co. was $332,398 lower than competitor Nelson Stark, but city officials threw out the Dyer bid because it didn't use enough certified small businesses as subcontractors.

The city established the Small Business Enterprise program last year, replacing a race-based affirmative action program that was ruled unconstitutional.

"The SBE program, we believe, is basically a sham the city is using to create racial quotas," said Bob Manley, a lawyer for Dyer. "We have a city government that is out of control."

Dyer accused Nelson Stark of using shells - small businesses included in the bid only as "pass-throughs" in order to meet city regulations. Jeff Read, vice president of Nelson Stark, did not return a call seeking comment.

Hamilton County Common Pleas Judge Thomas Crush declined to issue a restraining order Monday, setting a hearing on a request for an injunction in two weeks.

City officials said they're working hard to meet a 30 percent small business goal, and are now at 32 percent. Assistant City Manager Timothy H. Riordan said the $145 million project is $9 million under budget, with two-thirds of the bidding complete.

Mayor Charlie Luken said the city should fight the lawsuit because the construction timeline is tight. Plumbing work is to begin this summer.

---

E-mail gkorte@enquirer.com




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