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Copyright (c) 1998 Center for New York City Law
CITYLAW

CURRENT DEVELOPMENT: CITY CONTRACTS

May / June, 1998

4 City Law 57

Author

[NO NAME IN ORIGINAL]

Excerpt

Non-responsibility Determinations

DEFACTO DEBARMENT

DE FACTO DEBARMENT OVERCOME

Contract disputes involving two jobs for the SCA have resulted in litigation between SCA and A.F.C. Enterprises, and led to several non-responsibility determinations by City agencies, with affirmances by CCPOs Beth Kaswan and David Karnovsky. City Law, Vol. 4, at 7 (1998). When A.F.C. was also denied prequalified status by DDC for sewer and water main work, A.F.C. demanded a hearing before OATH, claiming that it had been unlawfully debarred by the series of non-responsibility findings. It further alleged that it had a history of satisfactory work for the City, including ten current jobs with DDC totalling $ 8.2 million.

Before the hearing could commence, the City agreed to reinstate A.F.C. as a responsible bidder. A.F.C. agreed not to bid on any structural projects (i.e., building construction) for two years, but will be allowed to bid on any infrastructural work, such as pump stations or site and utility work of any kind. The City agreed not to use previous non-responsibility determinations as a basis for any possible future non-responsibility findings relating to infrastructural jobs, but specifically reserved the right to use findings by a court relating to A.F.C.'s performance on its two SCA contracts. A.F.C. also agreed to withdraw its OATH petition. The agreement is substantially similar to an accord tentatively reached between A.F.C. and DDC.
 
Settlement Agreement between A.F.C. Enterprises, Inc. and the City of New York, Apr. 14, 1998; A.F.C. Enterprises, Inc. v. Holden, ...
 
 
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