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Court Of Appeals Upholds Rail Contract Award

COURT OF APPEALS UPHOLDS RAIL CONTRACT AWARD

The state Intermediate Court of Appeals today upheld the City’s
decision todisqualify one of the bidders for the rail transit core
systems contract, which wasawarded to the Ansaldo Honolulu Joint
Venture.

The Court denied an appeal by Bombardier Transportation USA Inc.
to overturn aruling by the state Circuit Court and reaffirmed the
procurement of the Core Systems Contract was done
correctly.

The core systems contract includes rail cars, operating systems,
and operation and maintenance of the trains after
installation. The City awarded Ansaldo Honolulu the contract
last year.

“This latest decision reaffirms the fact that the procurement
process was done properly and in accordance with state law,”
said Dan Grabauskas, HART’s CEO and executive director. “The
contract award was successfully upheld by three independent
and separate reviews. It was upheld by the state Department
of Commerce and Consumer Affairs, by the state Circuit Court
and now by the state Intermediate Court of Appeals. All of
these extensive reviews underscored the validity of our
procurement process.”

“Our core systems contractor is progressing nicely, with our
train vehicles and operations systems currently in design.
Oahu can expect a state-of-the art automated system that is
safe and reliable. Equally important, we intend to keep
this contract on time and on budget and this decision will
help us do that,” Grabauskas added.

Today’s ruling follows a Circuit Court decision last year that
upheld the City’s procurement process and reaffirmed the
Hawaii State Department of Commerce and Consumer Affairs’
(DCCA) findings that the City conducted meaningful
discussions with Bombardier and that the City properly
rejected Bombardier’s proposal because it contained
conditions.

The DCCA last year also denied an appeal by another losing bidder
for the contract, Sumitomo Corporation of America. Sumitomo
did not appeal that decision to the Circuit Court.

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