Bid-Rigging Allegations: Denver Nixes Contracts With Developers

DENVER, CO – The Denver Mayor's office announced a halt to the selection process for a contractor for the multi-million expansion of the Colorado Convention Center after "misconduct" was found in the bidding process.

Mayor Michael B. Hancock asked the Denver District Attorney's office to investigate allegations that private construction management firms and contractors were shown city documents that tainted the fair bidding process.

The city is terminating its contract with Trammell Crow, the company providing program management services for the expansion project, the mayor's office said. The city was also canceling reevaluating Mortenson Construction’s pre-qualification status for bidding on future projects.

The city will "restart the process to secure a design/build contractor with a new selection panel."

“I was fully briefed by the City Attorney and her team yesterday. We believe this is a significant breach of the public trust and a willful violation of a competitive bidding process,” Mayor Hancock said in a statement. “We will never tolerate this type of behavior from our contractors and will continue to address this swiftly and aggressively.”

The expansion of the convention center is expected to cost more than $200 million. The Denver City Council approved $21 million in contracts earlier this year.

"Last month, as Denver Public Works was preparing to conduct interviews, it was discovered that the required, open, fair and competitive process to select a contractor had been tainted," the mayor's statement said.

The integrity of the procurement was "irreparably compromised" after city documents were improperly released to a contractor bidding the project; allegedly improper discussions were held about the bidding process and alleged altering occurred of "approved project plans," the city's statement said.

Bid-rigging or price fixing on public works projects may be found to be violations of the Sherman Antitrust Act, a felony punishable by up to 10 years imprisonment and a $1 million fine for individuals and a fine of up to $100 million for corporations.

Trammell Crow released a statement published on the 9NEWS website:

The alleged actions in connection with the Colorado Convention Center project have in no way been authorized by Trammell Crow Company and are contrary to the firm’s values and longstanding business practices. We are cooperating fully with the City and are conducting our own internal investigation. We will take internal actions as the results of our investigation dictate, including appropriate disciplinary measures.

The television news channel also released a statement from Maja Rosenquist, the senior vice president at Mortenson:

“We’ve received a letter from the City and County of Denver concerning termination of the RFP for the Colorado Convention Center Expansion project. We take the issues raised by the City very seriously and are committed to addressing this matter thoroughly and appropriately. We are conducting our own review of our participation in the RFP process and will cooperate with any further inquiries by the City or the District Attorney’s Office.”

READ MORE at 9NEWS.com

Image via Denver.com

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