The controversy involves a sequence of events in the letting of a $2 million contract that calls for three new lifts (two for installation in 1986), renovation of two others and removal of three existing ones. The focus of the controversy was the juxtaposition of two components of the specifications the state had called for: 1) that external clamps be used; and 2) that the bidder show evidence of having previously done “similar” work.
As it turned out, Riblet was ultimately the low bidder, but the state’s tramway consultant, Ericksen Associates, recommended that the bid be rejected in favor of next lowest bidder, CTEC, because Riblet did not have experience in building lifts with external clamps. The bidder’s position, which ultimately prevailed, was that its 90-year record of building lifts met the “similar” work provision.
Not an issue, but unusual, is the fact that Sunapee is ending up with a lift that the “customer” — from area manager to Commissioner of the Department of Public Works and Highways — made clear they did not want.
The sequence leading up to the signing of the contract on October 1 follows:
Spring ’85 — Ericksen, as state tramway consultant, recommends a program of modernization for Sunapee’s lift system. The state concurs. To avoid possible conflict of interest because of his consulting work with a lift company, Ericksen subcontracts with Frank Neeld of Regalsville, Pa., a veteran of 40 years of lift and cableway design and construction, to prepare the specs. They are written to reflect the criteria requested by the state, including the external clamp requirement.
July 16 — First bids opened; CTEC is low bidder, Riblet second-low and Doppelmayr third. Ericksen recommends CTEC be awarded contract. Based on a verbal commitment and a letter of intent from the state, CTEC immediately begins design and manufacturing work, for which it would later bill the state over $20,000. Riblet threatens lawsuit because, it claimed, CTEC did not meet specs inasmuch as there was a contractual requirement that written specs could not be modified verbally. The verbal “clarification” had been given — “to save time,” according to state officials — to the six possible bidders identified at that time, before any bids had been received. In response to Riblet’s position the state chose to throw out all bids. The project is modified and the state seeks new bids.
Aug. 22 — Riblet bids $1,997,500 while CTEC bids $2,067,000 to design, build and install three triples. DPW&H Commissioner John Chandler, according to The Manchester Union Leader, urges approval to CTEC bid because low-bidder Riblet “did not satisfy our consultant’s specifications.”
Sept. 18 — Executive Council, headed by Gov. John Sununu, a mechanical engineer with a Ph.D before entering politics, meets for three hours. The council has the authority to review bids and contracts, and consistently awards to low bids. Ericksen testifies at length as to why he believes the state should not award the contract to low-bidder Riblet. He is quoted by the Associated Press as saying, “We didn’t want Riblet experimenting with a product they had no experience with.” Sununu questioned Riblet head Tony Sowder about the company’s experience with external grip systems, and, according to the Union Leader, conceded he “never got a direct answer to my question.” AP reports Riblet’s lawyer conceded the company had not used the combination of lift machinery before. Riblet had used the components, it was agreed, but not in the combination specified.
Later, the governor asks for “some good faith indication” that the losing company would not sue over award of the contract; “Win or lose, CTEC is not going to file suit,” says company lawyer. Riblet attorney replies, “This company has never litigated in 90 years over bids but we’d have to think about it.” Council votes 4-1 in favor of Riblet. Sununu, who could exercise veto, said he is unhappy with Council decision, according to AP, but would not overturn the vote if Riblet assures him it will produce liability guarantee for the state. Lawyer says the company “will enter into negotiation and work something out” with state. Sununu okays Council award to Riblet.
Oct. 4 — State signs contract.
Oct. 15 — Ericksen withdraws from participation in lifts program, recommends John Elliot of Enterprise Engineering in Brunswick, Maine, to handle lift certification. At press time, state was negotiating with the state, as Sunapee project heads into final 60 days before Dec. 20 deadline.
