AT&T contends governor changed requirements to favor local company
AT&T is calling foul on a new $400 million contract awarded by the state of Florida to a rival. The U.S.’ No. 2 carrier filed a complaint with Florida’s Department of Management Services contending the state’s current governor, Rick Scott, changed bid requirements after initial contract bids had already been submitted.
The company is currently Florida’s state vendor for phone and Internet services, but the company is in danger of losing that contract after its current agreement expires in 2016.
The filing said the governor made “material changes” to the requirements that provided a competitive edge to a subsidiary of Harris Corp., which is based in Florida.
AT&T reportedly paid a $3.6 million bond, which is 1% of what AT&T was asking to be paid if it won the bid, to challenge the contract’s legality. The contract with the DMS is set to last for seven years with a seven-year renewal option.
A DMS representative refused comment of the issue. A Harris Corp. representative also declined to speak on the subject, according to an Associated Press report.
