AATA Does “Do Over” on Soils Contract

The Ann Arbor Transportation Authority board has rescinded the award of a $119,980 contract with PM Environmental – because of a failure on the AATA’s side to go through the standard procedure for bidding out the contract. The contract is for remediation of contaminated soil at the AATA’s headwaters on 2700 S. Industrial Highway.

The board had originally approved the soil remediation contract at its Feb. 21, 2013 meeting. That action essentially extended the scope of work of the contract that PM Environmental already had for the site assessment work. However, the evacuation and remediation work was supposed to be bid out separately. From an AATA staff memo:

AATA processes require that a second RFP be issued for the soil remediation, to ensure full and open competition. AATA, therefore requests the Board to rescind this unexecuted contract with PM. AATA has notified PM with our intent to issue a new RFP so that they will not begin any work or incur any costs. AATA will publish a new RFP, to which PM is free to respond.

The vote to rescind the contract, and open it for bids – a process in which PM Environmental can also participate – took place at the AATA’s March 21, 2013 meeting.

The remediation activity dates back to 2010, and will address an in-ground gas leak that was discovered when the AATA upgraded a fuel tank monitoring system. A final assessment report (FAR), based on monitoring wells and ground water sampling, was filed with the Michigan Dept. of Environmental Quality on Dec. 15, 2011.

The costs for the work will be reimbursed by the AATA’s insurance carrier, Chartis, which is a subsidiary of American International Group Inc. (AIG). The AATA’s deductible for its policy was $25,000, which the AATA has already expended.

This brief was filed from the downtown location of the Ann Arbor District Library at 343 S. Fifth, where the AATA board holds its meetings. A more detailed report will follow: [link]